Monday, July 7, 2014

Hystory be Damned ... and we allow it

For the past one year, scores of Malaysians remained hysterically and emotionally gripped by events relating to people, policies and communal differences. We failed to see the woods out of the trees. The longer this goes on unchecked, Malaysians are selling themselves shorter and shorter over time.

For a fact, recently I wrote a 4-page letter to the MD of a veteran German car group besides offering my consulting services, chronic problems associating with his veteran and famous car brand, 4 hours kept waiting with no other main customers, on a simple oil and filter change for a car bought 9 months ago. Not only that my first 15,000km was invalidated by the brought-in at 10,000 km.

Casting that aside, I am invited to contribute a historical article for an institute in Penang. It bemuses me that in the wider context of discussions, historical means what is widely accepted by the community without having to charge emotions of what is in the total truth, but what is in the selected facts to share.Nevertheless I do agree that my article will lend support or finale to other eleven articles written before me of a common theme.

Finally, in the recent write-up and worldwide circulation of a Mamak Malaysian-born who set to open a restaurant in Twitter's HQ. Kudos to her when I read the headlines with a smile and sense of "Good on you, girl". Until I read the full article published by our local media and as well as foreign news. I am terribly shocked, to know my neighbours - the Mamak, as this fifth generation claimed to be the lower of caste in Malaysia and treated badly to the point that she was not accepted for higher studies with good results. She had also felt largely insulted that shes still being treated an Indian in her own country. Her story then went on to illustrate due to the lack of opportunities she left Malaysia at the age of 15, leaving behind her OrangUtan and a blind chicken and what-not of wonderful memories as she took on the bigger and better world bravely.

The Americans bought her enterprising story by the hook. But what failed to impress me, was our local media and general population who had read the same news, very happy for achievement - failed to challenge and authenticate her claims. Where in Penang or parts of Malaysia, can a poor person keep an endangered species at home? Therefore from here, I ask you, what kind of role-model are we allowing to permeate the minds of our children to understand and follow as life history?

I sincerely hope the source of information, the principal behind stories and the media will play their roles to ensure good value stories are properly researched, managed and ran before it hits to international circles and give us a red bleeding nose when facts come charging back at us, one day.

Thank you.

Friday, July 4, 2014

The End of Industrialisation for Penang?

In 2008, Penang ushered in its State Government made up of parties from Pakatan Rakyat. They had also successfully defended the State in 2013 to continue governing the Penang state.

Then comes the time for reporting on the sustainable growth in Penang and whether the economic outlook fared well since 2008.

Overall, for the majority of Penangites, they enjoy a time of professional governance.  Like advertised, competency, accountability and transparency had occurred at above the crust where the ordinary people can feel the changes.

But what about what is in the mantle of the State economy?

In the publication of Pilot Studies for a New Penang, circa 2009, there is a chapter 10 on Position Penang for Sustainable Growth by Nungsari A. Radhi and Hamdan A Majeed, where it claimed 50% of the world’s microprocessors are being produced by Penang. In their article, it questioned whether Penang is prepared for the next phase of change? This is backed by a survey conducted by Khazanah from a year (before their publication) that Penang firm’s activities have dramatically changed and no longer just manufacturing based. To conclude their short article as much as the opening and ending suggested, the change simply is not happening as quickly as it should and in fact has decelerated over the years compared to (new) growth cities. Therefore the learned ones, suggested to wing it and see what happens next.

Today July 2014, Datuk Redza Rafiq had reported the Northern Corridor Implementation Authority (NCIA) has attracted RM 6.7billion in foreign direct investments (FDIs) by the first half of 2014 with some 9,800 jobs created. He said, "We are confident of achieving the investment target of RM10bil this year with contributions coming from manufacturing, tourism, agriculture and logistics sectors.”. Reda went on to add in his report prepared for the NCIA 12th Council Meeting chaired by Prime Minister Datuk Seri Najib Tun Razak. NCIA has been looking at designing a completely new manufacturing ecosystem by venturing into new growth sectors like medical devices.

To be very honest, medical devices is not a new growth sector and in fact, it’s one of the areas that we are not capitalising fast enough and we also do not have the quality assurance means to do so at the industrial level in Penang.

Indeed, there are calls for the resignation of the Chief Minister, Lim Guan Eng on what is said as abysmal results as Penang dropped to 6th place in terms of FDIs in the country.

The background of this statement was against National FDI the Economic Transformation Program (ETP) by Najib which reported a highest ever record for foreign direct investment of RM38.7bil last year, a 24% increase over 2012 and 3.9% higher than the last record of RM37.3bil achieved in 2011. I can only suppose that the detractors did not read much into International Trade and Industry (MITI) minister Datuk Seri Mustapa Mohamed’s claim on the contributions, “….all sectors of the economy registered increases in FDI inflows in 2013.” What detractors also failed to comment was the movement of RM over USD that contribute to the record in 2013.




So what is happening to Penang Industry and FDI?

It is the quiet change.

The world industries are now shifting, again. No longer has Business Processing Outsourcing (BPO) automatically gone to India when they have Romania and The Philippines (according to Dr Vinod Devanthas at an American IT MNC) as English-speaking countries. And despite all the human resources hiccups from 2010 until today, Intel insisted on filling up their biggest plant located in Vietnam and slowly closing off their plants elsewhere in the world. Penang and Malaysia industrial leaders, Government researchers are fully aware of these changes. At minimum, information technology research and advisory firms continue to provide positive indicators with the usual, read between the fine-lines.

So where does Penang future economic outline seemed to be heading? One proponent of economic ideas said that Penang being the largest UNESCO historical and heritage city should fully concentrate on its heritage development and creation of very liveable state and shift away from industries. Others had said that Penang will have to move higher up the value chain to create a new ecosystem management for value-chain in the business processing outsourcing.
                                       

Whichever the path is, it is definite that we are seeing to the end of industrialisation for Penang by 2015. It is noteworthy that GST came in at a same time, to latch onto most sectors but for those with the income of RM 500,000 or less.

In any case, evidently both the State and Federal Governments as has been since 2008, must cooperate now and not rivalling each other for the worse in preparation for the next General Election.

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http://www.mole.my/content/penang%E2%80%99s-fdi-free-fall-guan-eng-must-resign-gracefully-0
http://www.thestar.com.my/Business/Business-News/2014/02/14/Malaysia-receives-record-FDI-of-RM39bil-By-DAVID-TAN/
http://www.thanhniennews.com/business/intel-opens-biggest-ever-chip-plant-in-vietnam-14495.html

http://whc.unesco.org/en/list/1223