Saturday, November 7, 2009

Education: Can we flow into a single stream?

I must say that P. Gunasegaram of The Star has offered another balanced and sensible view of the education malaise that has dogged this country for at least 3 decades now. The pigeons have not only come home to roost. Worse, several generations of pigeons have hatched. They are flying in all directions.

Schools are incubators for young citizens. If schools are structured in a manner that enhances ethnocentricity, then, what we have are citizens that mingle only with their own race.

We are the sum of shared experiences. If I didn't sit beside Maniam in Standard Two and paid him 5 sen to solve every one of my intractable Maths problems and, tolerated his filthy habit of picking his nose in class, how could he ever have been my friend? If I didn't covet the chance to play Under-15 football and, needed to impress Baharom, the school football captain, and, needed to hang around with him and his team, how could I have become his friend?

We, each, are atoms floating around within a nation. Education and schooling gives us a chance to go beyond the comfort zone of our homes and our community to mingle and mix with other young Malaysians. That gives us a chance to transform from single atoms into compounds and complex compounds.

Education and schools are venues where the nation is built and renewed and regenerated.

Take that away and we will have what we have today. A multiracial nation that lives separate lives under the same sky.

There is much that is wrong about the Malaysian education system. Much work needs to be done.

Some of the advocates of single stream should avoid racist taunts and ethnic stereotyping in their impatient advocacy of the single stream. They should also desist from their insistence on using one dominant language.

It is when we are able to cast aside negative pettiness and racist motivations that the possibility of a single stream can materialise.

The issue of education and, choice of language medium is not a matter that we can legislate upon. Rather, it is a matter that needs positive and constructive engagement.

Such an ambience cannot be created until distrust is removed.

The fact that there is distrust over a single stream is an indictment of the political leadership of Malaysia. It's not just the BN coalition that is guilty. It is also the Pakatan Rakyat fellows who are equally guilty.

Here's Guna's most sensible analysis:

Improving the quality of national schools will solve that and provide myriad other benefits too.

WHEN the founding fathers agreed that vernacular and religious schools should exist alongside the national school system, they had no idea of the kind of problems it would give rise to.

They had no idea that it would help to polarise the education system so much that many Malaysian school children will go to schools based on their racial and religious heritage, and have little interaction with students of other races.

They had no idea that, especially in primary schools, there would be very little intermingling of children of different races, seriously exacerbating the problem of a lack of national unity.

While at the time of independence those who wanted their children to do well sent their children to national schools, these have now, along with religious schools, become largely the preserve of Malay children.

While national schools were once considered centres of excellence, their quality of education has deteriorated over the years leading to a mass exodus of non-Malay students to vernacular schools, while more religious Malays opt for religious schools. Those who can afford it opt for private education.

While national schools, because of their quality and open nature, were at one time considered natural choices for most Malaysians, well over 80% of Chinese schoolchildren and a significant proportion of Indians go to vernacular schools for their primary education.

At secondary school level, some of those in the vernacular and religious schools do come into the national school stream but by then, because of their experience in their formative years, they do not mingle as much as their parents did.

The problem gets worse at tertiary level, with government universities populated largely by Malays while private colleges and universities are dominated by non-Malays.

Some non-Malays could not gain admission to government universities and others, both Malays and non-Malays, feel the quality of local universities has fallen and want international recognition for their degrees.

Without doubt, the problem originated from one single cause – the massive deterioration of the quality of the teaching in national schools.

This was made worse by the perceived “Islamisation” of many national schools, which made non-Muslims uncomfortable about sending their students to these schools.

Well-funded Chinese schools with better infrastructure and dedicated teachers developed a reputation for quality, rigour and working their students hard.

That eventually led to most Chinese parents sending their children to these schools.

All these have left Malaysia in rather poor circumstances – it may well be the only country in the world with a fragmented educational system.

It has a peculiar set of problems which is rather difficult to overcome.

First, the move to a single stream cannot be compelled because vernacular and religious schools are guaranteed under the Constitution. Even if consensus can be reached to move to a single stream, there are other questions.

How would one ensure that mother tongue education continues unabated?

If, as is most likely, consensus cannot be reached, imaginative ways have to be thought of to overcome these problems.

Vision schools, where vernacular and national schools are located close together and some activities integrated, are likely to be of only limited help because it won’t be physically possible to put most schools close together.

Sports may help, but if you have teams largely comprising single races, that could make things worse rather than better even if there is interaction among the players.

Consensus on a single stream is best, and perhaps we need someone of stature to go around and build such a consensus from various community leaders. But it is a tough task.

The precursor to that consensus is safeguards to devote enough time and resources to mother tongue education in schools to ensure that language and cultural heritage are not lost, and a monitoring and corrective mechanism in which all will have faith.

Ultimately, even if vernacular and religious schools are present, national unity aims will be better served if you simply move more students and eventually most students of all races into national schools.

There is only one way that can be done short of a single stream.

That is simply to improve the quality of the national schools, so that they are better than the others and to make Malaysians of all races equally welcome in those schools.

Nobody is pretending that this is an easy task. But it may be easier to do than to obtain a consensus on a single stream.

And there are other attendant benefits. If the national educational system improves, so will the population. The opportunities that it will present to all equally will close the gap between the races and the rich and the poor.

It will lead to a better quality workforce, a greater social conscience, excellence, more moral behaviour - and better quality leaders.

The icing on the cake is that an improved national school system will also improve national unity.

Sunday, November 1, 2009

Ku Li: The infrastructure of institutions

I'm reiterating my bewilderment as to why UMNO and BN still choose to ignore Tengku Razaleigh Hamzah. Granted that there is an entire political power superstructure that is dominated by the likes of Najib and Muhyiddin presently, but, why can't UMNO-BN loyalists like Tengku Razaleigh be given the political forum and space within UMNO and BN to contribute his considerable experience and wisdom?

The fact that men like Tengku Razaleigh continue to be marginalised lends credence to the perception that UMNO and BN are still in the "divide-and-rule" and denial mode in spite of clear and incontrovertible evidence that all is still not well for the coalition and each component.

Here's another piece of perspective from the great man. Do read my end-notes below, though.

The best of what we already had, come 1957 and 1963, were a set of viable modern institutions practices and skills: the Westminster model of Parliamentary democracy, civil law grounded in a Constitution, a capable and independent civil service, including an excellent teaching service, armed forces and police, good schools, sophisticated trade practices and markets, financial markets, and modern methods of management such as those applied in our plantation sector. We were already a functioning country integrated into global markets. The challenges of development and nation-building were serious, but we faced them with an independent judiciary, a professional civil service and a well-defined set of relationships between a Federal Government and our individually sovereign states. Indeed we were able to face these challenges because these institutions functioned well.

Institutionally, we had a good start as a nation. Why is it important to recall this?

For one it makes sense of the feeling among many Malaysians and international friends who have observed Malaysia over a longer period that Malaysia has seen better days. There is a feeling of wasted promise, of having lost our way, or declined beyond the point of no return.

This feeling is too sharp, and too pervasive to be put down to the nostalgia of always finding “the good old days best.” The illusion of nostalgia doesn’t explain why we are losing our best and brightest. Those who can stay away and settle overseas do so, with the encouragement of their parents. Their parents tell them to remain where they are, there is nothing for them here. The illusion of nostalgia does not explain why parents fight to send their children to private and international schools rather than the national schools they themselves went to. The very same politicians who recite nationalist slogans about our national schools and turn the curriculum into an ideological hammer send their own children to international schools here or in Australia and Britain. They know better than anyone else the shape our schools are in. It is no illusion that people do not have the faith in our judiciary and police that they once had.

Malaysians are losing faith in their future despite the evidence of material progress around us, despite being a relatively successful country. We have lots of infrastructure. Lots of malls and highways. Especially toll highways. It is not for want of physical infrastructure, dubious as some of it is, that we feel we languish. It is a sense that we are losing the institutional infrastructure of civilized society.

That infrastructure, whether indigenous or acquired, was already in place at independence. Having secured our political independence through a consultative and deliberative process, we were well placed to build upon this foundation. We had a complex system of laws, conventions and practices but crucially we had the people capable of understanding and administering such a system. We had a civil service and a political class trained and socialized into the practices of the Westminster system of parliamentary democracy. Core principles of accountability, check and balance and independence were lodged in the habits, thought patterns and behaviour of our civil servants and judges.

If Malaysians feel a sense of loss, tell their children not to come home from overseas, or are making plans to emigrate, it is not because they do not love this country or are ungrateful for tarred roads and bridges. It is because they feel the erosion of the institutional infrastructure of our society. Institutional intangibles such as the rule of law, accountability and transparency are the basis of a people’s confidence in their society.
.......

We acknowledge and celebrate our ties to British education and British institutions not out of sentimentality but out of an understanding that these are foundational influences that have had much to do with stability and competitiveness as a nation. British educational, administrative, legal and cultural institutions continue to be of vital importance to us as Malaysians. We need to affirm these links without political blinkers, understand their cultural, political and economic importance to us, and build on them. One result of such a change of attitude should be a rethinking of our attitude to the English language. By now it is also a Malaysian language. It would be sheer hypocrisy to deny its value and centrality to us as Malaysians. Do we continue to deny in political rhetoric what we practice in reality, or do we grasp the situation and come up with better policies for the teaching and adoption of the language?
____________________

I cannot deny that Tengku Razaleigh's words and perspectives are a balm to soothe the sores of the pronouncements and policies and administrative decisions of the Malaysian government agencies that seem to frame all policies and decisions on the basis of race instead of principle.

However, the stark contrast between what the Tengku espouses and what many of his colleagues in UMNO are doing publicly and within the Malaysian government is quite glaring.

What is a Malaysian voter to make of this Jekyll and Hyde nature of UMNO?

Saturday, October 31, 2009

Robert Kuok's departure from sugar business: A sign of the times?

This transaction may have more stories that will never be told than what is told. Is it a sign of the times?

Why would a solidly run company dispose off a key contributor to the Malaysian arm of its food commodities business? Why sell off it's market dominance in Malaysia? That is so very unlike Robert Kuok.

Kuok isn't called "The Sugar King" for nothing. Well, he's still got his sugar interests outside of Malaysia.

This is a nuanced post because the transaction is nuanced.

PPB Group Bhd, controlled by tycoon Tan Sri Robert Kuok, stands to lose its dominance of the domestic sugar market under a proposal to sell its entire stake in two sugar units and land used for sugar cane cultivation to Federal Land Development Authority (Felda) for RM1.29 billion.


The proposed sale will see PPB exiting the local sugar industry, which had earned founder Kuok his nickname of "Sugar King".

PPB said it will dispose of its entire 36.36 million shares of RM1 each in Malayan Sugar Manufacturing Co Bhd (MSM) to Felda Global Ventures Holdings Sdn Bhd, a wholly-owned unit of Felda.

It is also selling its 50 per cent stake, or six million shares of RM1 each, in Kilang Gula Felda Perlis Sdn Bhd to Felda Global Ventures for RM26.31 million.

Felda Holdings Bhd already holds a 50 per cent stake in the company, which is involved in sugar cane milling and refining of domestic and imported raw sugar.

The group said the disposal of these three assets will help it realise its investments with a substantial gain.

Meanwhile, its 49 per cent-owned associate Grenfell Holdings Sdn Bhd will sell its stake in plantation group and sugar refiner Tradewinds (M) Bhd for RM207.53 million.

Tradewinds is controlled by businessman Tan Sri Syed Mokhtar Al-Bukhary.

According to PPB's 2008 annual report, MSM and Kilang Gula Felda Perlis produced more than 750,000 tonnes of refined sugar, supplying some 60 per cent of the domestic sugar requirements last year.

Its sugar refining and cane plantation business contributed 27 per cent to the group's revenue of RM3.46 billion and 36.5 per cent to its operating profit of RM431.2 million in the fiscal year ended December 31 2008.

This makes the business its second largest contributor, after its grains and feed business.

Friday, October 30, 2009

Outrageous!

This report from the Malaysian Mirror makes me outraged. This is either bureaucratic stupidity or plain subversive racism. And, people wonder why so many Sarawakians are pissed off.

KUCHING - For 17 years, Marina Undau lived a life of a child growing into a young adult.

School, her family and friends were a central part of her existence. She dreamt of doing her parents proud by furthering her education in a university and eventually getting a good job.

SPM came and went, and the 18-year-old science stream student of SMK Simanggang did well, scoring 9As and 1B last year.

But then she had a rude shock.

Not eligible

The education system said she was not eligible to enroll in a matriculation course, a prelude to varsity and a degree. The reason? She was, it seemed, not a bumiputra.

Born to an Iban father and a Chinese mother, Marina’s hope for a smooth climb up academia was dashed. With it went a part of her identity and the drive that made her a top scorer.

sarawak-semi-bumiputra.pngIn an interview with The Borneo Post at her house in Sri Aman on Wednesday, Marina expressed her feelings in Iban: “Aku amai enda puas ati nadai olih nyambung sekula ngagai universiti (I’m very sad that I can’t pursue my university education).”

Meantime, she has started Form Six in her old school as a workaround solution.

Upset and bewildered

Seated between her parents, Undau Liap and Wong Pick Sing, the disappointment in the teenager was plain to see.

Her elder sister never had a problem getting into a university. Her identity was never questioned and she is at present in her second year at Universiti Sains Malaysia in Penang.

Marina is worried that a similar obstacle she faced after SPM awaits once she completes her STPM.

“If I get good results, what’s next?”

Marina’s father, Undau, would not take no for an answer.

When her application to enter matriculation was rejected, Undau, a civil servant, contacted the Education Ministry’s Matriculation Department in Putrajaya on June 23 and was told that her daughter was not a bumiputra.

Pressing on

Dissatisfied, the father wrote to the ministry on July 1. The reply he received shocked him, and it is bound to challenge the identity of many Sarawakians who are of mixed-parentage.

The ministry said in a reply on July 14 that Undau’s appeal was turned down because “the candidate is categorised as non-bumiputra (father is Iban and mother is Chinese)” based on a definition used by the Student Intake Management Division, Higher Learning Department and Higher Education Ministry.

Their definition is as follows:

• If either parent of a candidate is a Malay who is a Muslim/Orang Asli as defined in Article 160 (2) of the Federal Constitution, the child is considered a bumiputra.

• Sabah – If the father of the candidate is a Malay who is a Muslim/native of Sabah as defined by Article 161A(6)(a) of the Federal Constitution, the child is considered a bumiputra.

• Sarawak – If the father and mother is a native of Sarawak as defined under Article 161A(6)(b) of the Federal Constitution, the child is considered a bumiputra.

Despite the explanation, Undau is still dissatisfied and urged the government to clear up education issues that differentiate bumiputras from non-bumiputras.

He said the 1Malaysia concept would be rather hollow if education today continues to be polarised along such lines

“Why all the differences in the intake of students for higher learning? I am not questioning the Constitution, but what is the meaning of 1Malaysia if things like this happen?”

NRD and Native Court weigh in

The National Registration Department (NRD) headquarters here said it has received a flurry of enquiries about the bumiputra status of late.

An NRD spokesman said that in Sarawak, a person’s race is registered based only on the race of the father.

On whether such a person is automatically accorded bumiputra rights, the spokesman said: “We don’t actually handle that. We look at the race of the father. If the father is Iban, the child is Iban. If the father is Chinese, the child is Chinese. The bumiputra status comes under the Native Court.”

Native Court registrar Ronnie Edward said the bumiputra status was a “birthright” and the Native Court only hear cases where a person who was to be declared a bumiputra although his father was not a native.

He said Marina was not alone in facing this problem.

Edward believes the only way to clear the air is to amend the Federal Constitution.

“Article 161(A) of the Constitution has to be amended. The article says that in Sarawak, both parents have to be ‘exclusively’ a native,” he said.

Institutionalising innovation?

I get the idea of setting up a National Innovation Centre. But I don't get the idea of a chain of innovation centres of excellence to be set up throughout the country.

I really don't get the proposal to set up an iconic innovation centre similar to the Multimedia Super Corridor. The word "iconic" sounds expensive.

Besides, can innovation be institutionalised?

Innovation is about creativity. Creativity is about being inquisitive. Being inquisitive means having a burning desire and having an unquenchable thirst for knowledge and information. This means being a self-starter. This means having the street smarts to look things up oneself and being completely unaware of time and space.

Setting up a Centre is fine. But to be sure, such a Centre should purely be a catalyst to point Malaysians towards trends such as nanotechnology.

Such a Centre should have a substantial focus on whether the school curriculum can be improved and teaching methods improved in order to foster innovative thinking instead of creating automatons.

The spark comes from within, not without
Innovative thinking cannot be institutionalised. It can only be sparked from within each Malaysian. This kind of spark can only come from having a sound and solid education. It does not come from iconic buildings. It certainly won't come from having mini-iconic centres, all of which sounds expensive.

Tax incentives for R&D spending will help to spark innovation
Instead of spending on building an iconic Centre, which really does sound expensive, really, there should be triple and quadruple tax deductions for R&D spending. That's how the Government can foster genuine and meaningful innovation.

It's the education, stupid
And, greater resources should be put into improving the school curriculum instead of wasting money with buku pinjaman untuk semua. Resources should be put into training better teachers. More allocations should be given to the remuneration of teachers so that the best and brightest will want to enter the noble profession. And, the teachers must have the skills to generate the inquisitive spirit and thirst for knowledge. That's where the real spark of innovation starts.

That's the way to foster innovation.

What I'm seeing so far is blah, blah, blah...build iconic centre...spend money on buildings..blah, blah, blah.

Innovation is software, NOT hardware
Just to be sure, it must be understood that innovation is a SOFTWARE item. It's about enhancing the quality of the human resources of Malaysia. Done correctly, the fruits of higher income and value-added can be reaped for generations.

In contrast, building innovation centres is only about HARDWARE. There's only one round of making money from the construction contract and, then, only a small coterie of cronies benefit.

Friday, October 23, 2009

While waiting for Budget 2010...

While waiting for Budget 2010, the one observation that I wish to make is that the very public display of conciliation by the leaders of the MCA is to be commended. Certainly the wounds are still fresh. Yes, cynics may say that they needed a pikestaff up their arses from Najib to get them to display the public conciliation...which, in a figurative sense may have been true. But, it's a start.

The one thing that piques my interest with a curl on my lips is the extract from The Star:

At about 2.30pm, the press were ushered into the 9th floor meeting room.

Ong together with Dr Chua and other central committee members then entered the room and took their seats.

However, the chair next to Ong - meant for deputy president Datuk Seri Liow Tiong Lai - was empty.

Everyone waited for a while but there was still no sign of Liow.

Party secretary-general Datuk Wong Foon Meng then walked in and had a word with Ong.

The two then went out of the room.

About 10 minutes later, Ong came back into the meeting room, followed by Wong, Liow and vice-president Datuk Seri Kong Cho Ha.

As all Malaysians know, reading between the lines is an artform in a nation where leaders and their Press minions have mastered the dark art of saying things without so much saying so. These are gestures, nebulous words and phrases, body language and the like.

So.....is there anything that The Star report is alluding to? Might it be a pointer towards lingering, simmering matters that may fester and putrefy before breaking out as an angry pus-laden sore at some future date?

I'm not sure. As Mrs Pot sang to the Candlestand and the Clock in the Disney animation, Beauty and the Beast, maybe there's something there that wasn't there before (or, some such lyric).

Wednesday, October 21, 2009

An eBay For Innovation

Here's one crazy crowdsourcing/crowdfunding concept that works as a bulletin board cum research prize. It is a completely merit-based, populist omnibus approach to getting a piece of research put out into the Internet for anyone who is interested to either pose a challenge or, post a solution. The prize money is funded by netizens. The judge is the person who posed the challenge.

If you think this is crazy, you may be correct. But, then again, you may be wrong. Read these swatches from the Forbes piece and think again...

What if you don't have millions of dollars to offer yet have a problem you want solved? A new Web site called ChallengePost aims to fill the gap between the small goals and the lofty ambitions of X Prize Foundation. Started in New York City by 35-year-old former record label owner Brandon Kessler, ChallengePost gives anyone the ability to establish a goal, rally a community around it and raise funds with which to reward winners.
......

But ChallengePost's Kessler is hoping his site will collect a wider range of challenges and prize-linked innovation goals by simplifying and democratizing the process. Anyone can post a challenge directly on the site, and visitors can give their thumbs-up to a cause or pledge money to build up a prize even if they haven't a clue how to solve the problem. Users can also share their activity on the site with friends through social networking sites.

Kessler sees the site as a great marketing vehicle for brands that want to connect with their customers' altruism. A company such as Dell ( DELL - news - people ) or Starbucks ( SBUX - news - people ) could, for example, issue a challenge to come up with ways to reduce their packaging costs. (Neither have signed up with ChallengePost yet.) ChallengePost is working with several companies and already has a deal with ad agency Deutsch Inc.

ChallengePost plans to make money by charging an 8% fee off the amount of any prize solved, and it negotiates separate, flat fees with companies that post or sponsor a challenge. Any intellectual property generated by the solutions is public domain by default, but challengers can retain property rights if they wish. If someone finds an existing solution to a prize-attached challenge, no one gets any money.

Kessler became interested in the idea of building a Web site to aggregate innovation challenges back in 2006, when he caught wind of a project called Windows on a Mac, which sought to reward anyone who could make the Microsoft Windows operating system run on the new Intel-based ( INTC - news - people ) Apple Macintosh computers. The sponsor of the contest ended up raising $14,000 from strangers sending him money through PayPal. The problem was solved in three weeks, months before Apple released its own software to run Windows. That software solution never became a commercial product, but it "showed how much action and involvement a challenge could inspire," says Kessler.

Visit ChallengePost and start thinking out of the box. You might make some money, too. Great innovation, great model to stimulate innovation and, potentially, a great way to make some money.

Tuesday, October 20, 2009

Lessons from The Damned United

The movie, The Damned United which is the core matter for the preceding post contains some principles that may be extracted for business leadership and, of late and, possibly more importantly, for political leadership.

The protagonist, Brian Clough (played most excellently by Michael Sheen) was an ascerbic and caustic maverick with a gigantic ego. His 44-day saga as manager of the then-English First Division League Champions, Leeds United offers interesting lessons.

First, keep your most loyal man beside you. Clough ditched his long-time deputy, Peter Taylor in a fit of hubris. Taylor is the type of deputy every mercurial leader needs. While Clough went on his visonary exploits, he needed Taylor to put the nuts and bolts together. Taylor was the talent-spotter. Taylor was the one players went to after another tempestous outburst by Clough. Taylor was the man who patched the team together. Every leader needs a deputy like Taylor. Needless to say, without Taylor's soft skills, Clough was quickly left in an alienated position in Leeds United.

Second, build the team spirit. The first time Clough met with the highly-decorated Leeds United team he antagonised them by telling them that they won their trophies by cheating. This is hardly the way to get a team spirit going.

Third, taking over a team or organisation with a successful past track record requires patience. The new leader can never emulate nor imitate his predescessor. But, that does not mean that the new leader should go on an iconoclastic binge of destroying the predescessor's reputation or trivialise his record. Instead, he needs to patiently deconstruct and, then, reconstruct. This is a process that takes time.

Fourth, the leader who ignores the above principles is not lost. He or she can move on to achieve great things again through another club or organisation.

Sunday, October 18, 2009

The Damned United



When I was in Form One there was only one football hero for me. It was Norman Hunter. The team was Leeds United. Playing at left-back, Norman Hunter was a certainty to put a snarling stop to any flanking attacks down the left side of the pitch. And, once the ball was won, Hunter used his trusty left foot to lay on inch-perfect passes back to the centre of the pitch. He was my role model. It was 1975. Leeds were still at their peak. In that same year, Leeds reached the European Cup Final playing a dominant match against Bayern Munich. But, in that foggy day, Bayern prevailed. It was a heartbreaking match.

The year before that, 1974, was in many ways a pivotal year. Don Revie, the legendary Leeds manager who had nurtured a Second Division team from 1961 to become League Champions in the 1968/69 season and again in the 1973/74 season with many silverware in a trot was tapped by the English FA to replace Sir Alf Ramsey as England manager. Regrettably, Revie never repeated his success at the international stage, resigning as England manager in 1977 under controversial circumstances to a lucrative stint as manager for the UAE team.

David Peace, wrote a historical fiction about one key episode for Leeds United in 1974. It was about the highly emotional and controversial replacement for Don Revie. That replacement manager was Brian Clough. He was manager of Leeds United for only 44 days. It was a stormy 44 days.

Peace's book was made into a movie called The Damned United.



The movie is about the great friendship and partnership between Brian Clough and Peter Taylor. This great partnership created the great Nottingham Forest team that won back-to-back European Cup victories in the 1980s. But, to me, the movie is a nostalgic period piece that transports me back to the 1970s, when my boyhood footballing hero, Norman Hunter and his team mates, Billy Bremner, John Giles, Paul Madeley, Allan Clarke, Terry Cooper, Jack Charlton, Eddie Gray, Peter Lorimer, Paul Reaney, Trevor Cherry and, later on, Terry Yorath, Gordon McQueen, Joe Jordan, David Harvey, Duncan McKenzie and the rest of them dominated the English First Division.

http://www.fhcorporate.com/imag/norman%20hunter.gifNorman Hunter pix from here.

The movie also speaks of the terrible animosity between Revie and Clough which begged the question as to why, for the life of me, the Leeds United board determined that Clough was a logical successor to the Don. The following Youtube clip is revealing of the hostility between the two gentlemen. Until today, Leeds United partisans believe that Clough planted himself as a Trojan Horse to sow the seeds of the eventual destruction of the great Revie team.



With the great character actor, Michael Sheen (he was Tony Blair in The Queen), playing the protagonist Clough, and ably supported by a great cast, The Damned United is a must-watch for fans of football and, others.

For me, it is well and truly a nostalgic trip. Proof absolute that the team that now dominates the League One, the old Third Division has the necessary pedigree to bring the historic Elland Road Stadium back to the glory of the English Premier League. It may take a little while longer. But, we'll get there.

Hardcore Leeds United supporters can get a full dose of Leeds United history here.

Friday, October 16, 2009

HAPPY DEEPAVALI

http://www.hinduyuva.org/tattva-blog/wp-content/uploads/2007/11/diwali.gif

Happy Deepavali Malaysia.

Monday, October 12, 2009

MCA's future

The phrase "MCA's future" may appear to be an oxymoron, but that would be an unkind view and, more importantly, an erroneous view.

Like most BN components, the MCA has great franchise strength. It has a huge warchest through asset-holdings and astutely managed corporates such as The Star media behemoth. The corporate equivalent to the current MCA travails must surely be the saga of KFC Holdings in recent years. In spite of boardroom struggles, the KFC franchise maintained its retail and financial strengths.

http://cache.daylife.com/imageserve/06999r26Dy87X/610x.jpgpix from here.

The palpable difference must surely be that while KFC maintained and extended it's market share, the MCA's "market share" is shrinking...politically vis-a-vis the wider Chinese Malaysian polity.

But, all is not lost.

The key question is whether the MCA, as with many BN components, can identify a transformational leader who can parlay MCA's structural and franchise strengths into regaining the support of Chinese Malaysians and, the wider Malaysian electorate.

In an ideal world, this should be the key issue that the MCA Central Committee should deliberate on when they meet this Thursday.

But, I suspect and expect that this issue will be deferred to another day. It is a "macro" issue that is secondary to the "micro" issue of leadership jostling.

Ong Tee Keat must resign
On the matter of leadership jostling, what the Central Committee needs to bear in mind is that in the wake of last Saturday's EGM, Ong Tee Keat must resign as party president. No matter how one attempts to spin the outcome, the fact remains that Ong lost the vote of no confidence. The honourable thing to do, if he is a true party loyalist, is to resign. He blew his chance big time. And, so, he has to go.

When he won the presidency, he should have risen above the fray and urged party unity. But, regrettably, he went on a witch-hunt. The pigeons have come home to roost. And, the pigeons are shitting all over him. I'm sorry but this means his time is well and truly up.

Chua Soi Lek must remain out
As for Chua Soi Lek, Saturday's outcome was even more emphatic. He is not reinstated. He is no longer accepted as a party leader. So, he should remain outside the party leadership. He should be content that his son is rising just as his star is waning (pardon the pun).

Beyond the leadership struggle
So, whether it is Liow's turn, Kong's turn, Yen Yen's turn or, even Fong Chan On's turn, who ever ascends to party leadership needs to be a transformational leader.

Get the party to close ranks and let the healing start as soon as possible.

Then and, only then, can MCA get back on track.

Whoever is in charge, MCA needs to change the "C" from Chinese to "Community". MCA needs to re-position itself as a Malaysian political party that cares for the issues faced by all Malaysian communities. Ironically, by expanding it's franchise, MCA will regain its lost lustre.

Malaysian communities, be they Malay, Chinese, Indian, Ceylonese, Kadazan, Dayak or any suku kaum, are fed-up with the communal paradigm. Every racial and ethnic group have become increasingly aware that they are in the same boat, the Malaysian boat. The sooner the MCA gets that, the faster it can recover from the debacle of the 12th General Election and, the faster it will get into jockeying position for the 13th General Elections.

So, yes. It ain't over. It's a chance for a new beginning.

Friday, October 9, 2009

Pakatan Rakyat to register as a coalition

This is one of the best pieces of news that I've heard from the Pakatan Rakyat for some time. By having PKR, PAS and DAP register as a coalition party called Pakatan Rakyat, this motley crew is signalling a sense of deeper purpose than is evident hitherto.

http://1.bp.blogspot.com/_RclVKMy2zj8/ShuM4xbU39I/AAAAAAAAAKU/5QoUMjjnAfw/S660/PAKATAN+RAKYAT.jpgpix from here.

Many Malaysians who had contributed to and, ridden the euphoric waves, post-March 8, 2008 have become jaded by the dysfunctional amalgamation that Pakatan Rakyat is. Even wiser heads within the Pakatan pantheon has become exasperated by the cross-purposes at which issues are dealt with.

So, the formalisation of the Pakatan Rakyat as a coalition is a positive sign. It may not quell the raucousness within the nascent coalition. But, it should go a long way to temper the process in which differing views can be managed and moderated.

For neutrals, the formation of a new coalition augurs well for the orderly democratic transformation that Malaysia's constitutional evolutionary journey is taking us all on. It also signals the greater likelihood of a more stable 2-party system that so typifies advanced economies.

Thursday, October 8, 2009

Independent Directors: Bursa Malaysia's screwy thinking

The following extract reveals the blinkered thinking that dogs Malaysian regulators:

STOCK market operator Bursa Malaysia said it will not set a timeframe on how long an independent director can serve a company, but suggests that an annual competency assessment be carried out within the company itself.

"The Malaysian Code on Corporate Governance clearly says that on an annual basis, boards must undertake an assessment of competency, skills and experience. So in that assessment, they need to look at the independence element - is the independent director able to discharge his duty and does he bring an unbias judgement to the board?" said Bursa Malaysia chief regulatory officer Selvarany Rasiah.

Once a company is publicly listed, there is a need to protect minority shareholders who tend to be more focused on their day job than to be spending time tracking stocks. This is the reality. Malaysian minority shareholders are indolent and, have this tendency to wait for manna to fall from the heavens. When things go awry, as they tend to from time to time, they find themselves flailing helplessly in the wind.

Of course, the wise ones among us would respond to this by saying that such small investors and, yes, punters, should keep their money in the bank or, under their mattresses. But that would be missing the point on the matter of corporate governance.

The principle that has dogged regulators in Malaysia and, of course, the world over, is how much statutory or regulatory intervention is required without dampening the free market.

Well, we have witnessed how unfettered regulation has benefitted Wall Street. Perhaps that is a bit dramatic as an example and a tad unfair to compare with the issue of Independent Directors. But, if you care to extract the broad principles, you may find key things that are common to Wall Street unregulated activities and, the issue of leaving the fate of Independent Directors to the boards of Malaysian PLCs.

Independent Directors of Malaysian PLCs are an emasculated lot. Board papers are delivered at the eleventh hour. Board papers are hugely thick with reams of accounting data that are based on assumptions that are printed in size 8 fonts i.e. fine-print.

Independent Directors in Malaysia are invited to the board of Malaysian PLCs at the pleasure of his majesty the man in charge, whoever that might be. Usually it is the imperial dominant shareholder or, the imperious political master or, his eunuch.

So, absent any external regulation such as creating a pool of public directors that are empanelled by the likes of the Shareholder Minority Watchdog Group or, the Malaysian Institute of Corporate Governance or, some such body or group, Bursa Malaysia's stated position on Independent Directors points to 2 principles that tend to be ignored:

First, who will guard the guards themselves? Checks and balances and audits are necessary.

Second, can a person be the best judge of his own cause? If there is a true independent in the board, can the executive members tolerate his or her continued annoying presence? Or, will the recalcitrant independent's tenure not be renewed?

Independent Directors can only be independent if their appointment is externalised.

The guiding rationale and principle must be that once a company is publicly listed in Bursa Malaysia, the public investors and, yes, even punters, deserve protection not just by the auditors who come in each quarter but, also by genuinely independent directors.

The Achilles heel is actually the appointment process. But, it would appear that Bursa Malaysia has preferred to put its head in the sand on this matter.

Wednesday, October 7, 2009

DAP's alternative Budget 2010

DAP has produced what I believe to be their second alternative budget, the first one being presented last year.

I'm perusing it. There are many interesting proposals that are worthy of consideration for those who are prepared to keep an open mind and refrain from petty polemics.

The DAP Budget 2010 can be read in toto here.

Saturday, October 3, 2009

Made in U.S.A. - Coconut water as a health and sports drink

How's this for innovative thinking and marketing? There's a wonderful U.S. company that has taken a drink that Malaysians have enjoyed, like, forever...COCONUT WATER... and, has packaged it as a health and sports drink.

Many of us are aware that coconut water has amazing properties. We know it to be a "cooling drink" when we feel "heaty" which may be translated as a re-hydrating drink. So, dengue patients have been advised to either drink isotonic drinks such as 100-Plus OR coconut water.

In Malaysia, coconut water is widely sold in its natural state...in a coconut! Or, sold in generic plastic bags and bottles.

But, if the coconut and the coconut tree is the proverbial lembu here, look at the American sapi below. Pandainya... As they say, it's all in the packaging.

Original packaging...

http://2.bp.blogspot.com/_9mVeP1u8BnI/RfbwpUnM3LI/AAAAAAAAAFs/4DQ_9VeXuYE/s400/100_1924.jpgpix from here.


American packaging....
http://2.bp.blogspot.com/_Dwex9AQ8IuA/SW4EEHhViKI/AAAAAAAABPY/V6CbtJkt-5c/s400/Zico_Premium_Pure_Coconut_Water_From_Brazil-1.jpgpix from here.

Click here to read more about the U.S. company that sells coconut water and learn from its great product positioning and marketing strategy. Now, this is the type of thinking that Malaysians need to acquire.

Wednesday, September 30, 2009

Malaysian corporate governance lacks bite

Nestor Advisor Ltd senior advisor Ken Rushton's observations on Malaysian corporate governance are accurate. Here are some of his reported observations:

“The culture here does not seem entirely supportive of good governance. And you cannot write a code of culture. You need more education. Education is part of ethics,” he said, adding that change had to come from the grassroots and not necessarily from the government.

“Good people who could be coming on the board (of directors) are worried about reputation risk. This is unfortunate as you need competent people on the board,” he said.

“It seems to me a surprisingly immature market. The perception of Malaysia as far as corporate governance is concerned is not good overseas and that does not encourage foreign direct investment because foreign investors will only come in if they have confidence,” he said.

In spite of listed companies having committees to evaluate candidates for board positions, the truth of the matter is that board of directors appointments are, in the main, based on perceived loyalties and, in many cases, sycophantic attributes. Kaki ampu are usually favoured over more independent-minded persons.

It is equally true that intelligent directors tend to be reticent in board meetings so as not to say the hard truths that will make the dominant director-shareholder lose face and cause personal offence.

It is imperative that a pool of non-executive directorial candidates be created by corporate governance entities such as the Minority Shareholders Watchdog Group to be available as directorial candidates based on the "cab rank" principle i.e. "first-come-first-served" basis to ensure that there is true and genuine independence on the part of those directors that are designated as "independent directors". Barring this development the true state of Malaysian corporate governance will remain as moribund as ever in spite of the best written corporate governance codes.

Positive perceptions of stimulus packages

Economic policymakers will be reassured that their stimulus packages were not acts of insanity when they read Krugman's views here which suggests that the stimulus packages has a likelihood of catalysing a virtuous cycle where increased fiscal debts will be increasingly offset (but not completely negated) by increased economic activity.

Increased economic activity means greater revenues. Greater revenues points toward higher tax revenue to governments which will ameliorate the fiscal deficit burden.

Will this view hold up in a "W" recovery pattern? We will all have to revisit Krugman if there is a change of circumstances.

Saturday, September 26, 2009

MIC: Leave with dignity, not in shame

M. Veera Pandiyan's column in The Star on Friday is a rare combination of candour and insight written at a personal level. It does tell us that times have changed that the piece could even be approved for publication. In another time and age, it may well be that a piece of this nature would have been blue-pencilled to nothingness. Then again, it may be that this piece was "approved" because the apex leadership of BN wants to see a major revamp of the MIC.

In any event, here we are. And, this part that I extracted is most rivetting. The column piece should be read in toto to do it justice for, as the columnist intoned at the end of the piece, I might be inviting a garland of slippers for this, but there is a danger of the MIC ending up as an abbreviation for Megalomaniac In Command if he chooses to stay on to the end of his 11th term. (emphasis mine)

“You have sold your community for a fistful of dollars!”

The thundering voice was that of Datuk Seri S. Samy Vellu, then, and still, president of the MIC, during a press conference in January 1983 to announce the launch of Maika Holdings.

The initial reaction of shock segued into amusement. In the mind, the image of the party leader who had just taken over the helm of the Indian component party of Barisan Nasional morphed into that of a cowboy – albeit more like Bud Spencer than Clint Eastwood in the old spaghetti Western movies.

The reason for Samy Vellu anger? I had asked a question that I felt was fair: How is Maika going to be any different from the party’s existing business entities like Koperasi Nesa and Koperasi Pekerja Jaya?

“You Indian reporters in The Star are always running down the MIC, you have all sold out your community for a company run by the MCA!” he said.

If I remember correctly, that was the end of the press conference.

As other bewildered reporters and I walked down the steps of the party headquarters, one of the president’s then economic advisers, who has since moved on to champion human rights and other currently politically correct causes, asked me: “Why do you all always belittle the MIC?”

But when asked to name the instances, the economist could not be specific. By then we had reached the end of the stairway and the still incensed party leader, who must have seen us arguing, came rushing forward with some of his aides.

Fortunately, the late Datuk K. Pathmanaban, then a deputy minister and party vice-president, pulled me away and cooled off the situation.

Friday, September 25, 2009

It’s unthinkable for a tainted man to lead MCA

I found this view offered by Tan Sri Robert Phang to be sensible. It is a sentiment that is along similar lines to what Dr M and Tengku Razaleigh Hamzah has said about the selection of candidates for the Bagan Pinang by-election.

The surest way for BN and its components to regain lost ground is to lead by example. The clearest message of leadership must surely be exemplified by verbs such as "clean", "moral", "upright", "honest", "humble" and the like.

I was tempted to suggest words like "sanitize" or "hygienise" but I realised quickly that such words may suggest meanings such as "To make more acceptable by removing unpleasant or offensive features from..." which may inadvertently remind any person reading the verb to subliminally infer that there were "unpleasant" or "offensive" features that were whitewashed earlier.

In any event, this form of "recycling" (of politicians "with a past") is bad for the political environment.

I have digressed. Read on...

It is unthinkable for a tainted leader – and by his own admission, too – to become the MCA president, said community leader Tan Sri Robert Phang.

The Chinese community will also feel its future and welfare will never be protected or enhanced by a leader with a tainted record,” he said.

The Social Care Foundation chairman was referring to Datuk Seri Dr Chua Soi Lek, the MCA deputy president who was recently suspended for four years by the MCA central committee.

Phang added that “morality is definitely a very important fundamental requisite part of political leadership.”

Wise words: Phang appealling to all MCA delegates to do away with emotion, exercise prudence and due diligence in exercising their votes.

“What affects MCA will certainly affect Barisan Nasional,” he added.

The future and welfare of the Chinese community, said Phang, would also be at stake should Dr Chua become MCA president.

The party would always be subject to blackmail and intimidation by members of the public and other political parties should they choose a “tainted” person to be its leader, he added.

Phang said the five proposed resolutions submitted by Dr Chua’s camp for the Oct 10 extraordinary general meeting (EGM) were well constructed.

“Dr Chua has said many times he was never, and is still not, interested in becoming the party president or a Cabinet member.

“However, it has become very clear that the five resolutions are well engineered and if they are passed, party president Datuk Seri Ong Tee Keat would have no choice but to step down,” he said, adding that Dr Chua would automatically take over from Ong.

He said such a scenario would definitely create anxiety for the Chinese community and cause the central delegates to be affected.

Phang also called on Dr Chua to retire from politics permanently.

“If this decision is taken, I’m sure it will go down in history that you have further contributed and become a tremendous helping hand to the party by not disrupting its machinery.

Tuesday, September 22, 2009

Property market distortion

The elements of the stimulus package and low interest rates may be fueling the apparent recovery of the Malaysian property market. Property prices are holding steady. It hasn't really come down. This has something to do with low interest rates. Lots of speculative property buyers are refinancing in the hope of unloading at the appropriate time.

There is local buying interest. This may be due to the ridiculously low fixed deposit rates. People may be shifting their savings into properties in the hope that capital gains will be better than fixed deposit interest rates and, maybe higher than government-issued savings bonds. In a sense this portfolio shift is part of the excessive liquidity that typifies the menu of economic stimulus measures taken by the government.

While this phenomenon is not quite a property bubble, it does point to a facade of economic recovery. It is an artifice that may lend support to the notion of a double-dip "W" recovery pattern.

The concern is that property developers may be misreading the signs. The original intent of the stimulus package was to permit existing property projects to be completed so that excess inventory can be cleared. But, the buying interest is engendering new property launches so that a potential vicious cycle is being created if there is another economic correction forming part of the "W" recovery pattern. What happens then? Can the government afford another stimulus package when it is struggling with a 7.6% of GDP deficit?

There is a disconcerting policy dysfunction where new property development plans are approved by state governments and local authorities while macroeconomic planning is done at the federal level. The federal economic planners need to communicate the macroeconomic concerns to the state governments and local authorities to avoid another round of excessive property inventory build-up. Failure to do so may negatively affect the economic recovery efforts.

Sunday, September 20, 2009

Sarkozy and Stiglitz on happiness, sustainability and social well-being

French President Nicolas Sarkozy is quoted as saying that he wants France to move beyond GDP measurements as the primary measure of economic welfare. Sarkozy wants to urge his Group of 20 counterparts to join him in what he calls “a great revolution” in which economic performance will be measured in terms of happiness, sustainability and social well-being.

Sarkozy is also quoted as saying, “The crisis not only makes us free to imagine other models, another world. It obliges us to.”

Sarkozy was responding to a report from a commission headed by Nobel economics laureate Joseph Stiglitz which called for measures of growth to be expanded to include concepts such as work-life balance, environmental sustainability and mental health.

One observation made in tha report is that “There often seems to be a marked difference between standard measures of socio-economic variables like growth...and widespread perceptions of these realities.”

Here is one observation of the GDP:

GDP is a basic measure of a country’s economic performance and is the market value of all final goods and services made within the borders of a nation in a year.

Revered for 60 years as a benchmark of performance, progress and prosperity, and referred to slavishly by politicians eager to point to a number going upwards, this measure of economic output has itself fallen on hard times, embarrassed by the crisis it failed to foretell and discredited by the large disconnect between the ‘growth’ it suggests and the grubbier realities of everyday life.

To put it bluntly, few people really trust GDP as a measure of anything any more. The fact that it has started rising again in most developed countries while millions struggle joblessly onwards merely underscores the point: GDP is anachronistic, a throwback to an era last century when the material privations of life meant it was important to know how much stuff we were producing.

Nowadays, it’s just a Grossly Dated Parameter. As one analogy puts it, measuring progress by calculating GDP is like measuring a person’s health purely through the amount of food he takes in.

Many leading economists have been suggesting this for years, but until now only one country — Bhutan — has moved to a more qualitative measure of life, incorporating factors as diverse as pollution, noise, serious illness, divorce rates and democratic freedoms into its assessment of social progress.

I fully and wholeheartedly support this move. There is so much neurosis building up in the modern urban human that is caused by GDP as the measure of the idea of success. The GDP measure may have contributed to a misplaced value system that extols materialism at the expense of true happiness.

Many of us know that GDP cannot measure the economic value of a home-making and parenting? Is it any wonder that these roles have been trivialised in urban living?

How many people do you know have expressed a belief that they would be better off (career-wise) without a spouse, children or ageing parents? That, I believe, is an attitude and value that can be traced back to the use of GDP as a measure of economic success.

Saturday, September 19, 2009

Salam Aidilfitri

http://3.bp.blogspot.com/_kqXBhR7noas/SNuRylxHWSI/AAAAAAAAAP0/ZsA4irJncd4/s320/aidilfitri11.jpgpix from here.

To all my Muslim friends in MALAYSIA and elsewhere, may I wish you SALAM AIDILFITRI.

And, a special SELAMAT HARI RAYA greeting to my Muslim blogger friends. May you have all the blessings for the season.

To bro Sak and Mamasita, I hope you will have the perfect family reunion during this blessed time.

Friday, September 18, 2009

Shahrizat and the Penan women

Shahrizat did not do the right thing by not coming out to meet with the NGO protesters who were highlighting the outrage felt by Malaysians at the plight of those Penan women who were violated.

protest-3.jpgpix from here.

It may be a reflection of her "fair weather friend" attitude that under pressure she chose to withdraw into her cave and mutter sulky statements against the very same NGOs that she was purportedly courting.

By her sulk and, worse still, her criticism of the NGOs, which were mainly NGOs for the welfare of women, Shahrizat has lost any iota of pretended goodwill that she and her Ministry has made with the NGOs.

How can she lose the plot? The answer may well be that she does not and, perhaps never did, believe in the cause of women in Malaysia. It may all have been mere lip-service.

This debacle by Shahrizat may make many Malaysians wonder how a Malaysian woman leader like Rafidah Aziz or, even Ng Yen Yen, may have handled the situation.

One thing is for certain, Shahrizat missed a great opportunity to score one for UMNO and BN. By her act of shrinking away from the NGO protesters and worse, she aggravated the situation by criticising the protesters, she did a disservice to herself and the ruling coalition. The worst of it was when she turned on Ivy Josiah who was, in many ways, her bridge to the NGOs.

What Shahrizat should have done as a human being and someone who purports to be a woman political leader was to empathise with the Penan women who were violated. After all, she would have been on very safe grounds. There was already an official report that confirmed the allegations of Penan women being violated.

She should have expressed outrage that such an inhuman and criminal act had taken place. But by not so doing she has invited Malaysians to infer that she lacks sincerity and may even have an absent heart and emotion when it mattered most.

Thursday, September 17, 2009

Has anything changed, really?

When I read the analysis done on Malaysia by Rainer Heufers in 2002, I am reminded that despite the momentous results of the 12th General Elections on March 8, 2008, Malaysia has still some distance to go in many aspects of governance. Here are extracts for you to consider and, judge for yourself whether anything has changed:

Moreover, ministers are seldom held responsible and accountable before parliament. Ministerial responsibility has hence to be enforced and the legislative process should open up, so that formulation and deliberation of bills take into account the public views and parliamentary debate. Finally, the people should elect at least some of the members of the Senate.

The judiciary is generally independent except in those cases that touch upon the interest of the political and economic elite of the country. Several of such cases have significantly affected the reputation of the judiciary. The executive needs to recognize that it should not interfere with the independent constitutional position of the judiciary. The judiciary itself needs to maintain its independent decision-making.

Lastly, there are several direct and indirect controls of the media that have led to a biased reporting in favour of the ruling coalition. In this respect, the annual licensing procedure and the party ownership of news organisations have to be reviewed.

The general elections in 1999 mainly focused on such issues like Islam and democratic reforms, cruelty, corruption and mismanagement, foreign policy, and the affirmative action policy towards Bumiputeras. Following the events described in this article, the next elections that will be held at latest in 2004, will probably revolve around the same issues. But as tensions have risen since 1999, they might be tackled in a rather aggressive manner. Jesudason projected that "future political changes in the country are more likely to come from the loss of coherence of the ruling coalition, particularly the UMNO, than from a more effective political opposition."

The major failure of the present government is that it failed to develop skills in dispute management and dispute resolution. Civil society groups hardly have the legal options to fight lawfully for their respective causes, the reputation of the judiciary has deteriorated due to government interference, and there is no significant extrajudicial arbitration. Moreover, the government has suspended popular elections for local governments, which has led to negative repercussions on the political culture in the constituencies. The Malaysian democracy is equipped with weak institutions that are conditioned to prevent crisis. Once a crisis hits, there are no competencies to master the situation. The country thus appears not sufficiently prepared for future political challenges and possible crisis scenarios ahead.

Really, has anything changed? Any sincere and truly patriotic Malaysian political leader must work to strengthen our moribund constitutional institutions. Malaysians must remind our political leaders of Lord Acton's axiom that "power corrupts, absolute power corrupts absolutely". Therefore, there must be strong institutional audits and checks and balances. The weakening of these checks and balances has distorted Malaysia's trajectory of progress. The absence of real checks and balances has created monsters such as PKFZ.

Malaysian voters will come to greater sentience that if the ruling coalition cannot address this issue within the next few years, we may be inclined to let the other guy have a go at it.

Wednesday, September 16, 2009

Dalian, the Bangalore of China

Malaysian economic managers need to read this AFP report to get a reality check on how urgent it is that we need to crank up our economy. I need to do some nagging here even if it is to state the obvious. Dalian, China has enough HUMAN CAPITAL conversant in the ENGLISH LANGUAGE for the city to become an outsourcing hub for multinational companies.

So, while some members of the Cabinet like the Prime Minister and the Minister of International Trade and Industry are urging foreign direct investors to give Malaysia a second look, the Deputy Minister merangkap Minister of Education has decided that PPSMI be abolished in stages. This rojak approach to economic management (yes, education IS part and parcel of economic management...although many Cabinet members may believe that education is only about politics) will have a deleterious effect on Malaysia's economic competitiveness in the medium to long term. Mark my words.

Anyway, read this to get an idea of why I feel exasperated with the language policy reversal:

Once a simple port city on China's northeast coast, Dalian is now the hub of the country's booming outsourcing and IT industries, with dozens of the world's top high-tech firms on site.

In little more than a decade, the city -- located where the Bohai and Yellow Seas meet -- has become home to seven massive business parks, spread out along 30 kilometres (20 miles) of rolling green hills.

About 70,000 people work here for more than 700 companies, more than half of which are foreign-owned or contain foreign capital, according to officials, who say that more than 2,000 companies could be set up here by 2013.

"Dalian has become China's number one spot for outsourcing", both in terms of call centres and management facilities, said Chuck Shi, deputy director of the high-tech zone.

The Chinese port city is following in the footsteps of Bangalore, which became India's high-tech hub and the world's back-office for outsourcing and off-shoring, with 650 foreign and domestic IT firms on the city register.

The result of Dalian's focus on IT has been that economic growth has topped the already impressive national average in recent years, and the city for the second time recently hosted the World Economic Forum's "Summer Davos in Asia".

"The theme of this year's meeting was the resumption of growth. We've faced up to that test pretty well. We posted 11.6 percent growth in the first half," said the city's Communist Party boss, Xia Deren.

The city's main high-tech complex, Dalian Software Park, is home to about 470 companies, 40 of which are on the Fortune Global 500 list.

  • Bird's eye view of the city of Dalian, host of the World Economic Forum's summer meeting. Dalian is now the hub of China's booming outsourcing and IT industries, with dozens of the world's top high-tech firms. Photo courtesy: AFP.

.

General Electric was the first foreign company to set up shop, and others quickly followed: US computer giants such as Dell, Hewlett-Packard and IBM; Finnish mobile phone maker Nokia; and Japanese electronics firm Sony, to name a few.

In 2007, Dalian scored a major win by attracting Intel, the world's leading producer of semiconductors. The US giant has invested 2.5 billion dollars in a wafer factory here -- its first such facility in Asia.

Xia said at the time that Intel's move could help "kickstart the development of the northeast" Liaoning, Jilin and Heilongjiang provinces, which used to rely on heavy industry that underwent restructuring in the 1990s.

The transformation of Dalian from a naval construction site and a petrochemicals hub to a high-tech centre came in large part thanks to one time mayor Bo Xilai, who later became China's high-profile trade minister.

But even if the decision was political, the money has all been private.

The next phase of the Dalian Software Park -- four times bigger than the current complex -- should be completed within 10 years, with a total of about 15 billion yuan (2.2 billion dollars) invested.

Some of the city's more than 20 universities -- many of them specialising in science, technology or foreign languages -- are expected to set up there, giving Dalian an extra competitive advantage.

The port is hoping to draw even more call-centre and outsourcing business from both South Korea and Japan -- each a stone's throw away -- by offering a highly-trained workforce with top-notch language skills.

Curtis Eubanks, chief of British Telecom's call centre here, told AFP at the 10th anniversary of the park last year Dalian was an unbeatable location.

"Dalian has an impeccable reputation in this area. Amassing such a talent pool in other countries, or even elsewhere in China, would be more difficult and more expensive," Eubanks said.

Fair value accounting unfair?

Don't worry about this particular entry. I've been examining the issue of "mark-to-market" and "fair value accounting" for some time. These accounting rules are being debated heatedly in the U.S. and Europe. I've done some previous posts on this under the label "Mark-to-Market Rule". It is something you can click on if you have lingering symptoms of insomnia and, if you find that Perry Como and Mantovani isn't able to cure your predicament. I am just pasting this piece by Stephen Oong from Ernst & Young as published in The Star for my own reference. You will find this matter becoming more and more prominent in the coming months because the accounting profession in Malaysia has determined that from January 1, 2010 (that would be some 3 months away), Malaysian corporates must adopt this rule in measuring the value of their assets.

FAIR value accounting has been the subject of intense scrutiny and debate in the uncertainty of the current economic times. Under such conditions, the fair values of certain assets and liabilities are more volatile, causing the income statements of some companies to be more volatile too. Certain quarters are of the view that fair value accounting is the main culprit behind the poor performance of many of the worst affected companies. Or is fair value accounting a mere bearer of the bad news?

Fair value accounting is a financial measurement methodology whereby companies are permitted or required to measure certain assets and liabilities at fair value or market value. Under fair value accounting, companies report losses when the fair values of their assets decrease or liabilities increase. The gains or losses are reflected directly in the income statements or sometimes in the statement of equity changes.

Companies in Malaysia are very familiar and comfortable with using fair value accounting. For many years, Malaysian companies have been applying fair value accounting in the measurement of certain permissible items and transactions in their financial statements. Such applications are allowed for by our Malaysian accounting standards. Why then the sudden spate of criticism on fair value accounting? Could it be that fair value accounting is not fair?

Fair value accounting is accused of being pro-cyclical. In periods of growth and during downturns, fair value accounting accentuates the volatility of the financial statements. When assets are measured at their respective fair values, rising or falling values will be reflected in the financial statements of the company and such swings could move in a cyclical fashion.

Fair value accounting appears harsh when prices are going down; yet no one complains when asset values are rising. However, fair value accounting is merely reporting and reflecting the outcomes of market forces at play, not causing them.

When market conditions result in volatility in values and earnings, users of financial statements benefit when companies transparently report these circumstances and their impact on financial reporting. Users of financial statements would like to know the financial position of a company based on its current value rather than some old historical costs.

Although the information contained in the balance sheet is reliable (because it is based on verifiable historical costs) and not subjective, it is irrelevant, and accordingly not useful, for decision-making purposes.

Assets acquired years ago and newly-acquired assets do not have the same costs and hence have different carrying values, even though their respective current values may be the same. To account for such assets in the financial statements of different entities at their respective historical costs would make comparisons between companies almost impossible.

Historical cost information for assets has no economic relevance to the buy, sell, hold decisions that management must make each day. However, making economic decisions using fair values may also be inappropriate because the fair values used may not be reliable, but at least they may not be totally wrong all the time.

The support for the use of the fair value approach is principally grounded on relevance. The adoption of fair value as the primary basis of measurement should be tested explicitly against the four attributes that make information in financial statements useful to users: understandability, relevance, reliability and comparability. However, information needs to pass a reliability threshold before it can be considered relevant.

In this respect, fair values based on prices quoted in an active market will pass both the reliability and relevance attributes. However, a source of discomfort among the fair value dissenters is when assets and liabilities are not quoted in an active market; or when there are infrequent or no transactions for the kind of assets or liabilities held by the entity.

Under FRS, in such illiquid market situations, companies are to use adjusted mark-to-market measurements based on observable market prices for similar assets and liabilities. Where such market observable data is not available, FRS suggests the use of acceptable valuation models to estimate fair value (mark-to-model measurement). Such adjusted mark-to-market and mark-to-model basis of determining fair value is what users of financial information are not comfortable with.

In any adjusted mark-to-market models and valuation models, the output is only as relevant and reliable as the input. Because the assets are in an illiquid market, input using market observable data is hard to come by. Companies would therefore have to rely heavily on the estimation of future cashflows and to use input based on non-observable best estimates and best judgments.

So can valuations that are not independently verifiable be considered reliable? And is information that is not reliable relevant in the world of financial reporting? Under such circumstances, the financial statements produced using fair values may be more relevant (vis-à-vis historical costs) but one cannot be so sure about its reliability either.

Relevance and reliability are the two key attributes of financial reports that are useful to readers. However, these attributes could be compromised by the use of adjusted mark-to-market and mark-to-model calculated fair values.

That is why it is important that companies make adequate and robust disclosures in their financial statements as to the valuation processes and methods used in determining fair values, what the significant estimates are and the assumptions used as inputs.

The balance sheet prepared using fair value as a basis of measurement gives a better reflection of the actual worth of the company. Until and unless another better basis of accounting measurement can be identified, fair value accounting is still the fairest option available.

HAPPY MALAYSIA DAY!

Today, September 16, is the 46th anniversary since the formation of Malaysia. On this day Sarawak and Sabah became members of the Federation. This day should be made a public holiday in recognition of the importance of Malaysia's formation. Malaysia Day should be a celebration of solidarity between Malaysians in Semenanjung with Malaysians in Sarawak and Sabah.

Large animated Malaysian flag graphic for a white background.

I am mindful that on this day, Singapore also became a member of the Federation. But, for reasons that I may examine one day, on August 9, 1965 Singapore left the Federation.

http://mylivingwall.com/v3/images/stories/paintings/government_law/malaysia_day_1963_wince.jpgpix from here.

timemagazineapril121963-1.jpg image by malaysianunplugpix from here
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Here's the actual Time Magazine report on April, 12 1963 on the formation of Malaysia:

Manila hummed with excitement as delegates gathered for the third annual meeting of the Association of Southeast Asia. Phalanxes of motorcycle police escorted shiny official limousines to meetings at the pale, domed conference hall in the heart of the city. Inside the paneled auditorium and at diplomatic cocktail parties, an endless stream of dignitaries strolled up to greet the man who was the focus of everyone's attention. Malaya's stocky, smiling Prime Minister Abdul Rahman. 60. the golf-playing ex-playboy who this summer will bring into being a new Asian nation.

To one and all. Abdul Rahman happily took credit for the formation of the Malaysian Federation. As he puts it. "I am the father of Malaysia." Strictly speaking, this is not true; the idea has long been the dream of Asian nationalists enchanted by its economic and political prospects. For years. Britain too has advocated the plan as a neat way to tie up all its remaining Asian colonies (with the exception of Hong Kong) into one tidy independent package. But the Tunku (it means Prince) was the indispensable catalyst without whom Malaysia could not have been achieved. He wooed, bullied and cajoled the four other countries into the federation agreement, was the only logical choice to serve as the new nation's first Prime Minister.

Happy, Not Mighty. Unlike most other new Asian leaders, Abdul Rahman is no rabid nationalist. He has remained on close, friendly terms with the British, has no interest in pie-in-the-sky economic schemes. His political aims are simple: "Food instead of bullets, clothing instead of uniforms, houses instead of barracks.'' His new nation has a combat army of only seven battalions and an air force so small that the pilots often have trouble finding a fourth for bridge. "My ambition is not mighty Malaysia," says Abdul Rahman, "but happy Malaysia."

But many pressing problems threaten the Tunku's ambition. Malaysia's current prosperity is endangered by its dependence on a one-crop economy. Synthetics have already captured half the world's annual 5,000,000-ton rubber market and forced down the price of latex. On top of this, Brunei's oil reserves are fast depleting. To counter the economic threat, Malaya has embarked on an ambitious diversification program, is offering a five-year tax holiday to new industries and pushing a big land-development program for new cash crops.

Politically, Malaysia has already experienced some acute pains. Fearful that a stable new nation will curb Communist subversion in Southeast Asia, Russia has branded the federation "a cunning invention of London" set up with the "unqualified support of U.S. imperialists.'' Both neighboring Indonesia and the Philippines have launched a campaign of invective against the whole idea.

Walls of Prejudice. By far Malaysia's most complex and festering problem is the simmering racial hostility between the new nation's Chinese and Malay populations. Throughout the federation, the astute, prosperous, hard-bargaining Chinese dominate business, industry and trade, have economically far outstripped the rural, easygoing Malays. Chinese tycoons control North Borneo's booming young timber industry and Sarawak's vast, rolling pepper gardens; in Malaya. Abdul Rahman's government has complained that the rich, inbred Chinese business community has erected a "wall of prejudice" against ambitious young Malay businessmen.

The Malays have built some walls of their own. By Malayan law. only one-quarter of the government jobs can go to non-Malays, while Malays get special concessions in the granting of scholarships and licenses for new businesses. Rigid citizenship requirements have been set up for the Chinese (Malays are automatically citizens), and the Borneo territories plan immigration restrictions to keep Chinese businessmen out. "Special privileges are like a golf handicap." rationalizes Malaya's Chinese Finance Minister Tan Siew Sin. "They are not to hold the Chinese down, but to help the Malays along."

Golf Every Morning. It is ironically fitting that the complicated problems of federation are the province of a man who. on the face of it. is so uncomplicated himself. "I am a lazy man." admits Abdul Rahman cheerfully, and six years as Malaya's Prime Minister have not altered his funloving ways. The Tunku plays golf every morning (handicap: 24), checks the racing calendar before making advance political engagements, always takes a nap in the afternoon. An avid soccer fan and sports-car buff, he is chronically late for appointments, explains: "Being punctual always wears me out."

The Tunku has the charisma of the really successful politician. His title draws enormous respect from the masses, and at the same time his genuine charm and easygoing manner quickly win their confidence. Though he is a devout Moslem, Abdul Rahman enjoys brandy and soda; he is also an excellent curry cook. With his third wife, Sharifah Rodzia, and their four adopted children (two of whom are Chinese),* the Tunku leads a life of cheerful disorder in Kuala Lumpur's open, airy Prime Minister's residence, allows the 70 children of his servants the run of the house; visiting diplomats are often surprised during a conference to see a servant's child wander into the sitting room and climb up onto the Tunku's lap.

The Tunku has solved the problem of paper work simply: he does not read it. He has always had an aversion to the printed page, as a student picked up the knack of absorbing pertinent passages from books or papers that were read aloud to him. But though he has no intellectual pretensions, the Tunku commands unswerving loyalty from his brilliant subordinates for his almost charmed ability to avoid political mistakes. Says an aide: "He understands the Malay mind better than anyone else ever has." Abdul Rahman agrees. "I have the feel of the people." he says. "I have the touch."

The Playboy Prince. Abdul Rahman was the seventh son of his father's sixth wife and, with his 44 brothers and sisters, lived the plush life befitting the offspring of the Sultan of Kedah. His Siamese mother demanded that he be carried to school on the shoulders of a retainer, and though he was an indifferent student, his royal birth won him a scholarship to Cambridge, where he began to read law. But the Tunku skipped most of his lectures, seldom missed a tea or dinner-dance, distinguished himself mainly by picking up 28 traffic violations in his silver Riley with red fenders.

Not unexpectedly, the playboy prince flunked his bar exams. So far down the line of succession that he had no chance of ever attaining his father's sultanate, the Tunku returned to Malaya as a minor civil servant in a number of remote outposts. On foot and on elephant, he traveled through the bush getting to know the land and the people, once even worked as a manual laborer to help build a new mosque, which the grateful Malays named Rahmaniah after him.

World War II and Japan's swift conquest of the Malayan peninsula hastened Abdul Rahman's maturity. As a useful district officer, the Tunku was kept on the job by the Japanese. Secretly, however, he helped hide escapees from Japanese death camps, kept in contact with British guerrilla units, which were supplying arms to anti-Japanese Communist irregulars in the jungles.

"Who the Hell Is He?" Abdul Rahman was also in contact with the Malayan independence movement that began to take root when the Japanese ousted the British. With the end of the war, at the age of 42, the Tunku returned to England to get his law degree, began to play a larger part in the cause of merdeka (freedom). He insisted that it was the duty of every Malay in Britain to join the nationalistic Malay Society. Because of his age and long experience in the civil service, younger Malay students looked to him as their leader, called him—because of his darker skin—"Black Uncle." In fiery political bull sessions with youthful follower Tun Abdul Razak, the seeds of a future political partnership were being sown; today Razak is the most trusted member of his Cabinet.

Back home, the middle-aging lawyer joined the United Malay Nationalist Organization, slowly began building up a political following in his native Kedah. In other Malay states, the Tunku's firebrand followers from the London days began pushing him for the party leadership; finally, in 1951, Abdul Rahman took over as boss of the U.M.N.O. "Nobody had ever heard of him," an official recalls. "I remember people asking 'Who the hell is he?' "

They soon found out. Convinced that he could only achieve national leadership at the head of a multiracial united front, Abdul Rahman muted hotly anti-Chinese sentiment in his own Malay party, stumped the country urging Chinese and Indian leaders to unite behind him under the banner of a new organization called the Alliance Party. To finance his crusade, he sold his expensive cars and most of his other property. "I worked like mad, living andy sleeping on trains," says the Tunku. "I was often home only one day a month." But Abdul Rahman's zeal paid off. In the 1955 general election, the Alliance swept 51 of the 52 seats in the federal legislature, and the Tunku took over as Chief Minister under the British High Commissioner.

Merdeka. Abdul Rahman was so busy politicking that he had taken little military interest in the brutal, bloody guerrilla war that 350,000 British and Malayan troops and home guardsmen were waging against Communist insurgents in Malaya's tangled jungles. But after his 1955 election landslide, the Tunku grew afraid that the British might use the emergency to delay independence, arranged to meet the Communist rebel chieftains in northern Malaya to see if some sort of settlement could be worked out. "My ideas about Communism were determined by that meeting," says the Tunku. "I became convinced that once a Communist, always a Communist. They could never coexist with us in an inde pendent Malaya."

As the war in the jungle began taking a turn for the better, Abdul Rahman flintily told Britain that the time was long overdue for Malaya's independence. After months of haggling and delay, the Tunku finally forced Britain's Colonial Secretary Alan Lennox-Boyd (now Lord Boyd) to the conference table. Throughout the grueling, three-week session in London, the Tunku refused to budge from his ultimatum that independence must come no later than Aug. 31, 1957. "When the Siamese have no intention of yielding, they just appear stupid," he told subordinates. "I'm half Siamese, you know." At last, Lennox-Boyd got the point and caved in. On the Tunku's target date, independent Malaya came into being.

"Good Old Tunku." The Tunku had no revolutionary blueprint for his new nation, brought into his Cabinet his old London crony, Abdul Razak, to hammer out a program for orderly progress. While Abdul Rahman ground down hard on Red subversives, Minister of Rural Development Razak (in the post he will retain in Malaysia's new government) started a program of new roads, schools and clinics to boost the standard of living in the primitive kampongs (villages) of the interior, where the Communists were trying to gain a foothold. In the air-conditioned "operations room" of his ministry, gadget-loving Razak carefully watched the progress of his bulldozers on dozens of charts, movie screens and map displays, kept his program constantly ahead of schedule with his cold insistence on re sults—or else.

Abdul Rahman made no effort to squeeze the British out of the country, was convinced that Britain's continued economic and military presence was the best possible insurance for Malayan stability. Today a British officer commands the Malayan army, five senior British civil servants hold key positions in Malayan government ministries, and British businessmen control more than half of the rubber industry, repatriate $86 million in profits annually. "It's wonderful how this place has flowered since independence." says one businessman. "We're really much better off. Good old Tunku."

Parleys on the Green. With his young nation booming, Abdul Rahman looked with increasing fear at the predicament of neighboring Singapore, just three-quarters of a mile across the Johore Strait. There Communism was spreading like an infection among the underfed, underemployed masses in Singapore's squalid, teeming tenement quarters. By strikes, riots and boycotts, the Peking-oriented Communist-front Barisan Socialist Party tried to topple the tottering government glued together by Singapore's shifty, brilliant, Cambridge-educated Prime Minister Lee Kuan Yew, 39.

Never too choosy about where he got political support, "Harry" Lee first tried cooperation with the Communists, later adopted a "leftist, not extremist, nonCommunist, not antiCommunist" policy. It did not work; to save his political neck, he was forced to go for help to an old golfing partner—Abdul Rahman.

Lee's vacation house bordered a fair way of Kuala Lumpur's rambling Selangor Golf Club, where the Tunku shot his daily round. From tee to green, Lee tried to convince Abdul Rahman that Singapore's rickety coalition could never survive another election, and that a Red Singapore could only spell trouble for Malaya. Gradually, the Tunku came to the frightening conclusion that Singapore might well become "a Chinese Cuba."

One solution to the "Singapore problem" was obvious: a merger, so that Malaya's powerful internal security police could move in and help Singapore authorities hold Red subversion in check.

But the Tunku shuddered at the prospect of upsetting his nation's Malay racial preponderance by the addition of Singapore's 1,300,000 Chinese. "In order to balance the population," he says, "I thought of the Borneo territories."

Wining & Dining. Sarawak, Brunei and North Borneo, however, were less than enthusiastic about the federation scheme. Borneo leaders resented being invited to join merely as a political and racial accommodation, desired instead some sort of independence of their own. Then Britain began putting quiet pressure on the three territorial governments, tried to persuade them that union in Malaysia offered them far more economic and political power than they could ever achieve by themselves.

But it was Abdul Rahman who sold the scheme. The Tunku wined and dined a continuous stream of Borneo delegations in Kuala Lumpur, warmed up Borneo leaders cool to the federation with promises of favored political positions in the new nation. He shrewdly offered the Borneo territories 70 seats in the federal parliament, against only 15 for far more populous Singapore and 104 for Malaya. He promised tax concessions and a $12 million dollop of Malayan aid annually to the territories, agreed to keep federal hands off Brunei's oil reserves. It was the Tunku's fondest hope that the new nation come into being on Aug. 31, 1963, the sixth anniversary of Malaya's independence.

Then last December came a blow that threatened to destroy the Tunku's timetable. It was the uprising in Brunei.

"Just Too Much." Discontent with the Sultan of Brunei's corrupt, inefficient and autocratic regime had long been festering in the tiny, Delaware-sized territory. Last year the Sultan's government spent only $50,000 on drugs and medicine for its people, while laying out $47,000 for electrical illumination on the Sultan's birth day; action on requests to the government usually took from six months to three years. The dominant but powerless People's Party was also dead-set against Malaysia; the party's erratic, goateed, onetime veterinarian leader, Sheik A. M. Azahari, 34, wanted instead to align Brunei, Sarawak and North Borneo into a single independent state—with himself as its leader.

When it finally erupted, the revolt was poorly organized and badly led. Four battalions of Britain's tough little Gurkha troops landed on Brunei, inside of a week sent the shattered remnants of the 3,000-man rebel army scuttling back into hiding in Brunei's steaming jungles.

But the Brunei revolt at last gave the Philippines and Indonesia, for different reasons, an excuse to display their opposition to the scheme. Oblivious to Malaya's success against Red infiltration, the Philippines feared that leftists would ultimately take over the new nation, thus putting a Communist neighbor right on their doorstep. Dusting off an old claim to North Borneo, the Philippines maintained that in 1878 the Sultan of Sulu had only "leased," not sold, the territory to the British. London stiffly rejected the Filipino claim to the region.

Indonesia shouted that the turmoil showed the deep dissatisfaction with Malaysia in the Borneo territories, and that the federation was only a plot to extend Britain's colonial influence in Asia. Rabble-rousing President Sukarno knew that a British-backed, economically viable Malaysia would not only derail his ambition to extend his influence over the Borneo territories, but might also serve as an inducement to rebellion for the people of depressed Indonesian Borneo. Moreover, Abdul Rahman has ignored every "revolutionary principle" for which Sukarno stands, has in the process created a conservative, prosperous nation, while revolutionary, leftist Indonesia, with its 100 million people, has slid to the edge of economic ruin. Says a diplomat: "To have a little country like this extending its influence in Southeast Asia was just too much for Sukarno."

Sound Ground. In a drumfire of propaganda outbursts, Indonesia hailed the "Brunei freedom fighters," lashed out at "British mercenaries and puppets," granted political asylum to Brunei Leader Azahari, raved that Abdul Rahman was "round the bend." (Retorted the Tunku: "What can you expect from a pig but a grunt?") Djakarta mobs hanged the Tun ku in effigy, and Sukarno declared a "policy of confrontation" against Malaya. Indonesian jets buzzed Malayan ships in the South China Sea, and army leaders darkly threatened "incidents of physical conflict" along the border of Brunei and Indonesia.

Sukarno did not dare to invade; he plainly hoped to induce the United Nations to step in and placate him as it did with West New Guinea—thus sparing him the necessity of fighting for what he wants. However, the U.N. seems unwilling to play Sukarno's game; a U.N. observer team told him that Malaysia is "on sound legal ground."

Promise to "Brothers." Last week in Manila, the acrid dispute between Indonesia, the Philippines, and Malaysia added an undertone of tension to the otherwise calm meeting of the Association of Southeast Asia. Not on the official agenda, the Malaysia question came up repeatedly in long private discussions between Abdul Rahman and Philippines President Diosdado Macapagal. The Tunku was anxious for the whole matter to be settled quietly. In an attempt to be reasonable and friendly with his "Malay brothers," he agreed to look into the Filipino claim to North Borneo, lukewarmly endorsed a proposal for an Asian summit meeting between himself, Macapagal, and Indonesia's Sukarno. But the Tunku vetoed the suggestion that he postpone the creation of Malaysia until some settlement could be reached; the federation, he said, would come into being by Aug. 31 as planned.

From the standpoint of language, religion, culture or geography, Malaysia is not a natural nation. But Abdul Rahman has faced problems similar to Malaysia's in his own Malaya—and there a decent society has flourished. He does not promise the moon to his new nation, only a sane, humane, workable government. Under his leadership, Malaysia can be, as John F. Kennedy has said, "the best hope of security in that vital part of the world."

*The Tunku's first wife, who died of malaria in 1935-was the mother of his two children, Daughter Kathijah, 29, wife of a Malayan studying in Britain, and Son Xerang, 27, now a major in the Malayan army. His second wife was a white Englishwoman, Violet Coulson, whom he married over the protests of his family; they were divorced in 1946.

Let us celebrate today as MALAYSIA DAY

Tuesday, September 15, 2009

1Malaysia F1 Team

If anyone can make it happen, Tony Fernandes can. The 1Malaysia F1 Team will inject some branding excitement on Malaysia. I like Tony Fernandes and Kamarudin Meranun. If they and the team can inject the Air Asia pizzazz into the 1Malaysia F1 Team, then, I think we're in for a treat.

Large animated Malaysian flag graphic for a white background.

I'm rooting for the 1Malaysia F1 Team, for sure.

I do hope that Tony and Kamarudin will have the time for it, though.

UPM lecturers "hauled up" over plagiarism

The penalty for academic plagiarism in Malaysia is a mere "stern warning".

For anyone who has undergone tertiary education, you would have been made aware that plagiarism is a serious offence.

What message does this "stern warning" by Universiti Putra Malaysia send to aspiring students and lazy academics?

This is symptomatic of the Malaysian malaise. The culture of "sweeping things under the carpet".

And, yet, we pretend to wonder why we are losing in the competitive stakes.

I'm not saying that we should "rotan" these fellows. But, they need to be sacked. They weren't foolish students. They were lecturers, academics for Heaven's sake.

So, with Google planning to put out electronic versions of books out in the Internet everyone can be a "cut-and-paste" author too. All you get is a "stern warning" for plagiarism.

Monday, September 14, 2009

A minor observation on the Treasury Sec-Gen's column

Tan Sri Dr Wan Abdul Aziz Wan Abdullah, who is the secretary-general of Treasury, Ministry of Finance said this, among other things, in his column today. The emphasis are mine:

Human capital is the key ingredient in the new growth model. As we progress in the new economy, there will be a greater demand for high skilled jobs and if the supply is not available domestically we have to source and pay for such talents elsewhere.

This is the challenge for the education institutions in Malaysia. Our schools, skills centres, polytechnics and universities must play a proactive role and expose our students to the state of the art technologies. In addition, our students should be inculcated with good working habits, suitable soft skills and the yearn for continuous improvement. This long-standing issue must be addressed immediately.

......

Having said all these, the architecture of the new model must be structured on the two pillars of Malaysia’s inherent strengths, namely political stability and racial unity. The political stability that we continue to enjoy enables us to plan ahead with greater certainty and enhances investors’ confidence, both domestic and foreign. We must also continue to build on something that is very dear to us, and that is racial unity.

To move beyond platitudes, the Tan Sri needs to get his colleagues in the Higher Education Ministry and the Education Ministry to seriously apply academic meritocracy.

First, reward only those students who actually provide the correct answers. Do not fiddle around with the passing marks.

Second, promote good academics who have consistently produced good students and produced good academic papers. Get rid of the the kaki ampu sycophants who are more interested in non-academic things like developing vacant land in the campus, building a surau in the school compound (at the expense of teachers' carparks and students' outdoor tempat perhimpunan) and arranging the next VVIP visit and, of course, getting promoted by ampu instead of merit or seniority.

That is the fundamental matter to address the HUMAN CAPITAL pipeline in Malaysia.

As for POLITICAL STABILITY and RACIAL UNITY, I don't know why that should be raised at all by the Tan Sri because Malaysia has always had these two assets, even after March 8, 2008. We still have the same coalition running the Federal Government.

So, Tan Sri, we love the words and, we accept the points wholeheartedly But, let's see some serious bootstrapping action on improving the Human Capital i.e. education. Otherwise, these are mere words to sooth those Malaysians that suffer from temporary amnesia. For those with long memories, it may be painful to be reminded of these words when Vietnam's economy exceeds ours in all respects.

Sunday, September 13, 2009

Samy also lives in Egypt

I read this report by Hafiz Yatim in Malaysiakini. Here's an extract:

MIC president S Samy Vellu today said the Indian community voted against the Barisan Nasional because they were fed up with the ruling coalition, and not him.

The 73-year-old politician lamented that he was often made the scapegoat for the dismal results in the last general election, which saw MIC nearly being dealt a fatal blow.

“This is a blame that people throw back to me. During my time (as minister and parliamentarian) they said people were fed-up with me (and) that was why the Indian community did not vote for BN.

“It is not that they are fed-up with me. They are fed-up with BN,” stressed Samy Vellu who was defeated in his parliamentary stronghold of Sungai Siput in the March 2008 polls.

For reasons that I am still trying to fathom, I just cracked up into fits of uncontrollable chuckles as I read the report. We should just add Sam to the list of BN leaders who live "in the Nile".

Saturday, September 12, 2009

Economics in evolution

The salutary effect of the economic debacle of 2008 is that it is forcing economic thinkers to review the conventional wisdom of the past half century.

The European economic thinkers have always approached economics from a philosophical and values-based perspective. You could call it pure economics in the academic sense.

On the other hand, American economic thinkers, particularly those from the Chicago School, tended to be more into applied economics and, tended to use intensive mathematical modelling. Econometrics owes its development very much from this approach.

Another way to look at it is that the values-based approach is classified as normative economics while the applications-based approach is positive economics.

If you are still awake after reading the above, we may soldier on...

Krugman's clue
Paul Krugman's latest blog post, Mathematics and Economics, point towards a growing belief among contemporary economic thinkers that in the wake of the 2008 economic debacle, there is a need to re-inject an understanding of human behaviour into the study of economics beyond numbers. It will be interesting to see how this process will evolve. Instead of recycling the tagline of "normative economics", people are calling this renewed approach to economics, behaviourial economics.

Death of mathematics in economics?
It is impossible to remove mathematics from economics since postulations need to be proven and, you cannot prove or disprove anything without mathematical formulation and statistical data. So, anyone (particularly students) who think that they can throw out their statistics and probability textbooks should refrain from doing so. Economic modelling is here to stay.

Rather, thinkers like Krugman are critiquing the hegemony of Chicago School-types that formulated, developed and encouraged the quantitative approach to economics in the strong belief that human economics and business behaviour - particularly how we look at and, deal with risk - can be reduced into numbers. I believe that in a marketing context, we can include Stephen Baker's The Numerati into this category albeit in a loose association.

Thinkers like Eugeme Fama pushed the thinking that dominated U.S. regulatory and capital market practises that relied heavily on assumptions about availability of information and its effect on fair price and valuation. This was tagged the Efficient Capital Market Hypothesis or Efficient Market Hypothesis. In many ways, it took the Price Theory to its apogee.

In fairness to Fama, he did call it a "hypothesis" and, not a "thesis" or "axiom".

The X-factor in human economic behaviour
At the risk of widespread opprobrium from the wider community of economic thinkers, I make the observation that the 2 things that cannot be quantified are GREED and STUPIDITY. That is probably why behaviourial economics is necessary.

Friday, September 11, 2009

Malaysia: 30 A's but 90 D's

The number of A's and D's are plucked from the Global Competitiveness Report 2009/2010 that is seeing the Malaysian government's knickers in the twist though, if I were them, I wouldn't worry too much about it. Just study where the D's are are start strengthening those areas. Pretty straightforward, I'd say. See our Report Card here. We are ranked 24th in the overall competitive stakes.

It's a Friday. The mind is wandering towards more delectable things. I may or, may not, write more about this.

An Indonesian reminder

The recent anti-Malaysian events in the Menteng district of Jakarta should serve as a stark reminder that Malaysians have more in common with each other than with non-Malaysians within the archipelagic islands that dot the South China Sea.

Ask any indigenous person from the Orang Asli in the Peninsular, to the Penans in Sarawak, to the Aborigines in the Australian Outback, to the Native American, about where and what "home" is and you will receive the same answer. It's the physical space where we live most of our lives that define WHO we are. It is the neighbourhood where we live that defines us. It is the types of food that we eat, from recipes created and evolved from all the different races, cultures and faiths of the Malaysian people, that defines who we are. It is the recognition of familiar geography and terrain from past experiences - the spot where we crashed our bicycle - where the irate neighbourhood dog chased us - where we stole the first kiss - where we flew kites - these experiences are rooted in the place and, they define who we are. Well, if you don't already get it, my point is that a Malay Malaysian may have more in common with a Chinese Malaysian and an Indian Malaysian than he or she has with an Indonesian or Filipino because of common life experiences.

The puzzling thing is that our peculiar Malaysian brand of communal politics thrives on magnifying the things that separate us than the things that we have in common. This is something all Malaysian political leaders need to admit. You are killing the nation.

The angry Indonesians in the Menteng district were looking for Malaysians, not Malays, Chinese, Indians, Kadazans, Kelabits, Ibans or any specific ethnic person. They were looking for Malaysians (and, I need to give a "shout out" to my bro satD - Stay safe, bro. I hope the people in your neck of the woods are not going ape shit, if you'll pardon the pun).

Merdeka fortnight is from 31st August to 16th September
Maybe it is the political struggle in the aftermath of the General Elections of March 8, 2008. Maybe it is the economic challenges. Maybe its A(H1N1). Maybe Rais Yatim is too busy finding ways and means to narrow the Information Superhighway to 1kbps. But, I was and, am still, very disappointed with the Merdeka non-celebrations of 2009.

There was hardly a whimper from any Malaysian political leader of any stripe for the Jalur Gemilang to be hoisted.

And, within less than 24-hours from 31st August the few Jalur Gemilang that were put up were quickly taken down.

What happened to 16th September, my Malaysian brothers and sisters?

And, particularly to those from BN, didn't March 8, 2008, show that Sabah and Sarawak is your "fixed deposit"? I would have thought that to preserve your "drawdown" rights, you would want to make a timely reminder to our brothers and sisters in Sabah and Sarawak that Kita serumpun. But, apparently not.

I will have to say that it is not too late. There are still 5 days to 16th September. There still time to book the Padang Merdeka in Kuching for flag-raising on 16th September before Dominique Ng gets there!!! But, then again, maybe not...

Setia
The strategy deployed by the Malaysian leaders in 1988 (in the aftermath of the death of UMNO tulen and the emasculation of the Judiciary), was a particularly good one. It was based on one key public relations programme which I call, the "when-in-doubt- wave-the-flag" strategy. And, the key was only one simple word, "SETIA".

I could only find Siti Nurhaliza's version on Youtube (too lazy to look). But many will recall the multiracial ensemble that sang on the television every night.



The Setia song and the video that accompanied Negaraku when the television stations were shutting down for the night (yes, in the 80s there was no Astro and 24-hour television) provided a powerful and resonant audio-visual imagery that swelled the chest (and, buxom bosoms...regardless of gender) of many Malaysians. I'm no political scientist nor sociologist and, I therefore, cannot say for certain the extent to which the Setia strategy tilted the balance of the 1990 General Elections in favour of BN (despite a spirited fight by the Opposition parties that included Semangat 46). But, I am certain that the Setia strategy deserved credit in getting Malaysians to "stay the course". And, the Information Minister at the time was Tok Mat (Datuk Mohamad Rahmat). That was a good strategy.

BN will do well to remember, the "when-in-doubt-wave-the-flag" strategy because when Malaysians wave the flag, it is more than certain that the positive feeling is directed towards Putrajaya and, by association, the occupants thereof (pardon the legalese). Now, that's a thought.

Thursday, September 10, 2009

MCA: Decoupling ain't that simple, Tee Keat

Ong Tee Keat is expressing wishful thinking in the SinChewDaily report which goes like this:

MCA president Datuk Seri Ong Tee Keat said, he had advocated the investigations of the Port Klang Free Zone (PKFZ) scandal because MCA must no longer take the blame for other people.

"Before me, the PKA chairman and transport ministers were all MCA leaders. Whoever is corrupt should bear the responsibility himself, not MCA."

While it may be true that the MCA predecessors that are found to have dipped their hands into the proverbial cookie jar will be brought to book at a personal level (God willing), Ong Tee Keat and the current MCA will find that it the stigma and stench of the PKFZ scandal will be hard to wash off no matter which political and public relations detergent that Ong and the MCA uses.

I am not contradicting my previous post.

It will take time...a long time...for MCA to deconstruct its PKFZ past and, to reconstruct itself. I'm sorry to say that the deconstruction process hasn't even begun and, I suspect Ong knows that.

If Ong can lead MCA past the deconstruction process - which will involve some fatricidal feuds which may get quite ugly - then, the difficult process of reconstruction can begin.

Put simply, in the political ethos post-March 8, 2008, it's about being transparent. It's about keeping as much out in the open as possible. It's about communal parties engaging in multiracial issues (something UMNO needs to understand). It's about open-ness.

Until that happens, it is wishful thinking that PKFZ, which is fast becoming a pejorative for all that is wrong with Malaysian governance, will be an abbreviated noun that the MCA can be decoupled from.

Wednesday, September 9, 2009

MCA: A re-examination of Ong Tee Keat

These are the things that Ong Tee Keat is quoted as having said:

1. Impact on public trust towards BN
Ong said how he and the BN government handles the issue will have a bearing on public trust.

2. Rules of political appointments to statutory bodies and corporations must change
He also said the rules of political appointment in government corporations must change, where those sitting on the Board of Directors must have certain aptitudes and skills.

“We must get people who at least know something about the subject matter. You might be a political appointee, but at least be well-versed with the subject matter,” he said.

Ong admitted that this proposal was not going to earn him many friends but stressed that this must be done if one is to learn any lessons from the RM12.5 billion fiasco, illustrating that the management of the Port Klang Authority (PKA) had operated with impunity probably because the Board of Directors was not savvy enough to comprehend the intricacies of port management.

3. Make the PKFZ fiasco the turning point
“PKFZ should be made a turning point if we really want to bring in a new breed of political culture of accountability and transparency.

“We don’t just talk, we must walk the talk,” he said, adding that this is the acid test to the government’s commitment to accountability and transparency.
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I have previously written that the MCA feud was fought on personality against the backdrop of the PKFZ fiasco.

I must say that on the strength of the 3 matters enumerated above, neutrals should support Ong Tee Keat to ensure that he carries out this agenda.
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There are many - particularly in UMNO - who are taking the stand that BN components like the MCA, particularly leaders like Ong Tee Keat, and, are of questionable use to UMNO. See, for instance, Nur Jazlan's column.

These views do point towards the urgent need for the MCA to re-position itself. This is something it cannot do until the internal convulsions can be sorted out. But, can it be done?

The most intriguing feature of the MCA tussle is, to me, not the actual contenders. Rather, it is the shadowy role being played by ghosts of MCA leaders past who have a personal stake and exposure to the PKFZ issue. These are the characters that will prevent any attempt by Ong Tee Keat to quell dissent in order to commence genuine reform.

The other intriguing matter is that of strong murmurs that the UMNO leadership are not inclined towards Ong Tee Keat. Whether this has anything to do with PKFZ and, if so, which aspect of PKFZ, is unclear. But, such inclination or non-inclination is irrelevant and, should be irrelevant to Ong Tee Keat because for as long as he is the leader of the MCA, UMNO has to work with him. And this, if I may say, should make Ong Tee Keat more attractive for supporters. It allows him to be perceived to be independent (perception is everything even if reality may not be quite the same) and, therefore, worthy of support.

If Ong survives this test - and, I expect that he should - Ong should parlay public perception of his courage and leadership to see through the PKFZ matter and bring the guilty parties to book and, equally important, garner his MCA colleagues towards a multiracial platform. The parochial Chinese issues will always be there.

And, if Ong is to make his mark, it will be that he transformed MCA from the Malaysian Chinese Association to the Malaysian Community Association. By so doing, Ong and the MCA will have a fighting chance in the Thirteenth General Elections.
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