Below is my observation and understanding of the effect of globalisation. Compared to 20 or 30 years ago the world economy has gone through different stages of reform. After ending of the cold war between the formal Soviet Union, Communist China and the Western countries, the economy of the formal rivals are interdependence.
An American multinational company might outsource the production of its goods in China and manufactured using the steel imported from Australia. The goods are later sold to the consumers in Europe. There is free flow of capital, skilled workforce and resources from one country to the others depending on the supply and demand. A Chinese company might buy over a mining company in Australia due to the demand of the resources in China.
I would like to share on my thought why some country will progress whereas other is going backward. The wealth of a country is a contribution from the following:
1.Natural resources like oil, gas, steel, coal, aluminium etc.
2.Skilled workforce like trade person who can maintain machines and professional occupation.
3.Capital. The industry in the country shall have sufficient capital to carry out research and development work and invest in new technology to find a way to reduce cost in order to make the products competitive. For example, automation used in factory to reduce labour work.
4.A stable government.
5.Equal opportunity
I can say the prosperity of the Australian economy is due to all the above mentioned factors especially resources. There is one tiny little country that is proporous since independent from British and Malaysia without any natural resources. The country is Singapore. The country is making full advantage of the other four factors for it to develop to where it is now.
If a country is rich in natural resources, will it be wealthy? The answer is no if the other factors are not developed. The best example is Malaysia. The country is blessed with abundant of natural resources like oil and gas, tin, timber, etc. However the economy of the country is deteriorating year after year.
I will explain the situation of Malaysia from the last factor, equal opportunity. Malaysia is practising discrimination policy which is known as New Economy Policy (NEP) where the Malaysian of Chinese ethnic do not have the same right of the indigenous Malay in education and business opportunity. The intention of New Economy Policy is to redistribute the wealth of the country so that the Malay will also benefited from the development.
The intention of the NEP is good, but the way it is implemented through the government policies has caused the Chinese to lose control of the much bigger companies to the Malay. In addition, the Chinese do not have equal opportunity for further education.
As I explained before that the globalisation has enable capital and skilled workforce to free flow from one country to the others, the Chinese with their capital and skills are leaving Malaysia to other countries like Singapore, Australia, New Zealand, Canada, Britain and America. New capital or foreign direct investment is avoiding Malaysia due to the NEP.
The tricky political situation in Malaysia where politicians siphon the country coffers into their own pocket and the politicians are applying all dirty tricks to keep them in power created a very unstable government. The government delivery system, police, judical system are corrupted beyond operational.
In the factor of capital, the foreign exchange revenue from the export of resources are unfortunately used in non productive way like building white elephant projects. The capital is not used to improve the production technology. Factory are labour intensive. Construction site are labour intensive. Automation and prefabrication technology are not promoted. To reduce the labour, capital is required to acquire new technology or new way of doing things.
The outflow of skilled workforce is happily replenished with heavy in flow of unskilled workforce. This is disaster in the making where the productivity of the economy is competing in the lowest end labour intensive market.
Above are my own opinions and what make me leave Malaysia to settle in Australia. I don't expect my opinions to be accepted by others. But I believe if my opinions are taken into consideration, it will help in reviving the current situation in Malaysia.
Friday, July 25, 2008
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6 comments:
Will, if you choose to remain in Kuching, I shall support you to become our next DCM. :-)
Our country, Malaysia has gone through a lot changes especially the current political issues which I felt ashamed as Malaysian. War of mouth among our leaders and all of them have to take care of their own back side, cronies and family. So where got time to think of our country's development and rakyat welfare??
Much I would like to voice out my opinion here but..... no need to waste my energy and saliva.
Every country's progress depends mostly on the quality of its people.
Comparatively, Malaysia is still among the best among its group of non-developed countries, though still much to progress.
If you want to compare to Australia, we must remember that Australia has its development since 200 years ago and never been sieze by any foreign country except these ex-Britain people was colonising the natives there. They could have experience the same similar progress to what they are today.
Then, if compare to Singapore, tiny which is much easier when you have only 4 million to consider and probably much lesser than 1m are old timer. If you ask any opposition in Singapore, they can tell you all the facts on the government's weaknesses and controls of the families. Talk too much, you shall be sue till your are jailed ! Is this justice also ?
Even super power like US had to go through the civil war to transform over 250 years...Malaysia had not have any civil war! (I hope not one to be started) Thank God except the black May 13 for few months...
Corruption,...Taiwan, US, China, Japan, Singapore, Great Britain, Russia, India (needless to say Indon, Philipine, Thailand, Burma, Vietnam...all have their top leaders been toppled due to cronynism, corruption, abuse of power...
As Malaysian, I am not ashamed and I am proud as we have progressed very much and it is still one of the most peaceful country in the world...
Indeed what we have experience since 8/3/2008 GE is hell of a experience and I would term it as a metamorphosis of Malaysian transformation and sincerely, I hope we will all learn more and move on with a progressive Malaysian rather than giving our beloved country up. We must continue to believe and use democratic resolution to open more dynamic tranformation to the Government (whoever is).
I believe many countries has achieved better status/progress in all the highlighted factors by Will in your writings, is due to the fact that most of their people does not give up but work tirelessly to promote transparency, equality and stability. Many leaders have died or being jailed or outcast in the course of it...i.e Martin Luther, JFK, Gandhi, even the wellknown Mandela who has just turn 90 years old...
Don't give up...keep working towards the progress of our country, Malaysia...I love you...
Hey...I like the Koala photo...what type of camera are you having ?
It is fabulous !
I started to recognise the problems that the country is facing now during my last project about 4 years ago. I saw the dirty tactics engaged between the politician and their cronies. The worst part is what they expected from us. They don't want us to be smart. What they want us is to obey. My conscience is telling me that this is wrong and it worked against my ethic. That's why I quit.
I believe that my decision is correct. The project contractual completion date is July 2006 but until now it is still incomplete. For any project, a day delay is incurring a day cost. There will be cost associated with labours up from management and down to the workers, establishment cost, equipment hire cost, insurance cost and bank interest. Unfortunately the tax payers are to bear the cost again due to this is a government project. This is just one example. Many more are to come.
I have an article of my old and new camera few days ago. The Koala photo was taken by Fujifilm S5600. It was a point and shoot camera but with super zoom. It was not longer in production.
Will, for that project, I agree with you. It is a mismanagement. I respect your decision and salute your courage.
Yet, they are still unable to complete the project after 6 years.
Today, we are challenged to think of our ways to disclose such inefficiency and how could we bring these people to justice ?
It is difficult to bring them to justice. The mass of the poeple are eithier misslead on democracy or harassed to vote for certian party in order to protect the racial interest. This has created opprotunity for those in power to become bosses. The politician are servants and they suppose to serve. However in reality, the situation is reversed.
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