1) The New Economic Model has exposed serious shortcomings. This is useful as it enables some clear identification of what needs to be done.
2) Over the past 30 years, Foreign Direct Investments (FDIs) have brought changes to the livelihoods of many in Malaysia. However, the country would now seem to need a range of different strategies.
3) The advantage of low cost is now with the likes of China and Vietnam. The small and medium sized enterprises (SMEs) have focused on serving the needs of the multinationals. This has lead to production efficiencies, but has not seen these businesses moving into the higher-value activites such as product design and research and development which would have been a driver for future revenues and growth.
4) If we look at what has been happening elsewhere in Asia, for example, South Korea and Taiwan, policies have been focused on domestic investment and niche strategies for growing their own multinationals and conglomerates. Examples are in automotive and shipbuilding sectors in Korea and semiconductors in Taiwan.
5) In many of these other Asian nations, FDI has supplemented domestic direct investment, unlike in many countries in SE Asia, like Malaysia, that has been too heavily reliant on FDIs.
Twitter Updates
The New Economic Model (NEM); the Challenge is in Implementation.
1. Part One of The New Economic Model, launched this week by the Primeminister of Malaysia, Datuk Seri Mohd Najib Tun Razak, provides a framework for drastic transformation, not only of the approach to the economy, but to the culture of the nation.
2. The private sector is expected to be in the driving seat of the economy. With a focus on seeking opportunities and competition regionally and internationally, the emphasis must be on "business friendly" policies and encouraging much more entrepreneurship. Liberalization will continue to promote greater productivity and efficiency. It is expected that the services sector will expand and lead the growth.
3. There is a skills shortage and what is needed are the right market-centric policies and incentives to get the country up to the higher income level. People with high level qualifications and skills have been leaving Malaysia. To help retain skilled personnel, the focus has to be on higher technology and value-added industries.
4. New business opportunities will be opened up in new technologies and automation. An example is telecommunications. Moving from basic call services through to Internet and data businesses. People in the telecommunications sector have had to develop and learn new skills to enable provision of these new services in an increasingly competitive market place.
5. Implementation of the new Model will demand a change in the "culture" for everyone, both in the public and private sectors. The business environment needs to be transformed. Corruption and inefficiencies in all sections of the economy will have to be tackled. This will require significant courage on behalf of the Government and people.
6. The benefits of the realization of a higher income economy to the "rakyat" (people) and "businesses" must be clearly communicated and understood.
7. For the "rakyat", the key messages would seem to be that with higher purchasing power comes a better quality of life, opportunities for upward mobility, better living and working conditions and an improved and sustainable environment and growth across the whole nation.
8. For the business community, the benefits should be greater efficiency, improved access to funds, (particularly for the SME), greater market transparency, fair market pricing and competition, a barrier free market place, and more opportunities for public-private partnerships.
9. The NEM is very bold and challenging. It demands the detailed attention of the business community, but in terms of implementation, it also requires a serious and determined approach on the part of the civil service.
10 In the words of the Senior Business Editor of The Star "A powerful issue to be addressed is skepticism on the ground, especially among the older generation that has long observed certain unsatisfactory developments or those who could have been subjected to a regime that favored certain ingrained practices of preferences. A proper model...is required in both private and public sectors, after taking into account all the stumbling blocks and impediments to change. ...the cultural and mindset of the past will require more time and possibly substantial effort to overcome age-old attitudes, mistrust and fear"
Key References
Download the New Economic Model Part 1
A growing resource of articles on the NEM from The Star newspaper
2. The private sector is expected to be in the driving seat of the economy. With a focus on seeking opportunities and competition regionally and internationally, the emphasis must be on "business friendly" policies and encouraging much more entrepreneurship. Liberalization will continue to promote greater productivity and efficiency. It is expected that the services sector will expand and lead the growth.
3. There is a skills shortage and what is needed are the right market-centric policies and incentives to get the country up to the higher income level. People with high level qualifications and skills have been leaving Malaysia. To help retain skilled personnel, the focus has to be on higher technology and value-added industries.
4. New business opportunities will be opened up in new technologies and automation. An example is telecommunications. Moving from basic call services through to Internet and data businesses. People in the telecommunications sector have had to develop and learn new skills to enable provision of these new services in an increasingly competitive market place.
5. Implementation of the new Model will demand a change in the "culture" for everyone, both in the public and private sectors. The business environment needs to be transformed. Corruption and inefficiencies in all sections of the economy will have to be tackled. This will require significant courage on behalf of the Government and people.
6. The benefits of the realization of a higher income economy to the "rakyat" (people) and "businesses" must be clearly communicated and understood.
7. For the "rakyat", the key messages would seem to be that with higher purchasing power comes a better quality of life, opportunities for upward mobility, better living and working conditions and an improved and sustainable environment and growth across the whole nation.
8. For the business community, the benefits should be greater efficiency, improved access to funds, (particularly for the SME), greater market transparency, fair market pricing and competition, a barrier free market place, and more opportunities for public-private partnerships.
9. The NEM is very bold and challenging. It demands the detailed attention of the business community, but in terms of implementation, it also requires a serious and determined approach on the part of the civil service.
10 In the words of the Senior Business Editor of The Star "A powerful issue to be addressed is skepticism on the ground, especially among the older generation that has long observed certain unsatisfactory developments or those who could have been subjected to a regime that favored certain ingrained practices of preferences. A proper model...is required in both private and public sectors, after taking into account all the stumbling blocks and impediments to change. ...the cultural and mindset of the past will require more time and possibly substantial effort to overcome age-old attitudes, mistrust and fear"
Key References
Download the New Economic Model Part 1
A growing resource of articles on the NEM from The Star newspaper
New CIOB Report Stresses Key Role of the Built Environment in the New Economy
A timely new report from the Chartered Institute of Building provides a practical agenda for the Industry and Government. The following is a brief summary of the key points.
To deliver "a low carbon economy and provide a 'value for money' return on investment in relation to the built environment, the industry in partnership with government must strive to achieve the following goals:
- Maintain construction commitments in programmes such as education and infrastructure renewal to achieve long term national economic benefits.
- Promote future job creation and skills development in the workforce by sustaining training and apprenticeships during the economic downturn.
- Secure 'value for money' by properly resourced maintenance programmes, quality design and construction and efficient procurement processes
- Balance speed and fairness in the planning system at al levels, from the massive changes needed to facilitate large-scale power generation through to the local level.
- Achieve carbon reduction targets and job creation by pro-actively upgrading the energy efficiency of the existing building stock, a self financing exercise as long term savings result.
- Support construction by means of a smoothly run financial system backed by policies on taxation which promote enterprise and growth.
- Think in longer time frames to achieve the long term changes we need in transport, energy and sustainability, as opposed to stop/start cycles.
- Appoint a full-time Minister of Construction and give the new Chief Construction Adviser a fully resourced office to achieve a 'joined up' approach which will back up major government programmes in housing, education, health, infrastructure and carbon reduction.
- Promote access to construction jobs to all sections of society to achieve a diverse vibrant industry.
- Pursue a policy of zero tolerance of fatalities and injuries." CLICK HERE FOR A LINK TO THE FULL REPORT
Announcement
I am very pleased to announce that I have accepted an offer of the post of Professor from Universiti Teknologi Malaysia (UTM).
My appointment will commence in July 2010 and I will be based at the Business Advanced Techology Centre (BATC), International Campus, Kuala Lumpur, Malaysia.
It has been a very rewarding and productive two years with the Department of Quantity Surveying in the Kulliyyah of Architecture and Environmental Design, International Islamic University Malaysia (IIUM).
Since 2008 I have been engaged in a number of important projects. Most notably these have included, the launch of the Journal of Quantity Surveying & Construction Business, and the organisation and hosting of three international conferences (QS Academia, Construction in the Muslim World and the 5th Joint Ventures in Construction conference in collaboration with Kyoto University, Japan).
In addition, I have enjoyed being involved in the on-going development of a new Masters programme in Quantity Surveying, and research projects under the Procurement and Project Delivery System Research Unit.
I would like to thank the Dean and all colleagues in the Kulliyyah for their help and support.
I would especially like to pay tribute to Professor Sr Dr Khairuddin Abdul Rashid for his leadership, encouragement and friendship. I hope we can continue some of our projects and collaborate in the future.
Last, but by no means least, I would like to wish all the best to the past and present students and graduates of IIUM. I have enjoyed teaching you, organizing your visits, (we always seemed to be going to JB and Singapore for some reason), and supervising your final year projects. I hope we will all keep in touch through Facebook! Thankyou and Salam.
My appointment will commence in July 2010 and I will be based at the Business Advanced Techology Centre (BATC), International Campus, Kuala Lumpur, Malaysia.
It has been a very rewarding and productive two years with the Department of Quantity Surveying in the Kulliyyah of Architecture and Environmental Design, International Islamic University Malaysia (IIUM).
Since 2008 I have been engaged in a number of important projects. Most notably these have included, the launch of the Journal of Quantity Surveying & Construction Business, and the organisation and hosting of three international conferences (QS Academia, Construction in the Muslim World and the 5th Joint Ventures in Construction conference in collaboration with Kyoto University, Japan).
In addition, I have enjoyed being involved in the on-going development of a new Masters programme in Quantity Surveying, and research projects under the Procurement and Project Delivery System Research Unit.
I would like to thank the Dean and all colleagues in the Kulliyyah for their help and support.
I would especially like to pay tribute to Professor Sr Dr Khairuddin Abdul Rashid for his leadership, encouragement and friendship. I hope we can continue some of our projects and collaborate in the future.
Last, but by no means least, I would like to wish all the best to the past and present students and graduates of IIUM. I have enjoyed teaching you, organizing your visits, (we always seemed to be going to JB and Singapore for some reason), and supervising your final year projects. I hope we will all keep in touch through Facebook! Thankyou and Salam.
Importance of Collaboration Between Academia & Industry For the Future of Construction Research (PART 2)
1. Types of Academic/Industrial Collaboration - Two appropriate models; Continuing Education, Research
2. One of the core competencies of academic institutions is teaching. Many institutes engaged in education at the high end, have the courseware and ability to provide training for high-end manpower development. Therefore, a natural collaboration possibility is for the academic faculty and institutes to conduct training in topics of interest for industry. This model has existed for a long time and is reasonably well understood. This form of relationship is also beneficial to both.
3. Today in the world driven by Intellectual Property, there is an increased interest in collaboration in the area of research. For the purposes of our discussion, research can be considered as the activity of creating new knowledge. Though academicians in most good institutes engage in research, collaboration in this area is possible only if the industry has a need for research. Though the goal of research is to create new knowledge, the purpose of research in a company is to create new knowledge that can be used to improve the business.
2. One of the core competencies of academic institutions is teaching. Many institutes engaged in education at the high end, have the courseware and ability to provide training for high-end manpower development. Therefore, a natural collaboration possibility is for the academic faculty and institutes to conduct training in topics of interest for industry. This model has existed for a long time and is reasonably well understood. This form of relationship is also beneficial to both.
3. Today in the world driven by Intellectual Property, there is an increased interest in collaboration in the area of research. For the purposes of our discussion, research can be considered as the activity of creating new knowledge. Though academicians in most good institutes engage in research, collaboration in this area is possible only if the industry has a need for research. Though the goal of research is to create new knowledge, the purpose of research in a company is to create new knowledge that can be used to improve the business.
