7/30/2007

Malaysia's comparative advantage

Najib is saying it again to reassure foreign, esp Singaporean investors, that the IDR is a long term investment and there will be no flip flops of policies again. I think the Malaysian govt knows very well the problems and issues and is trying to alleviate the fears of investors. But talk is one thing. It is actions and concrete rules and regulations that the investors are waiting. And Najib also understand the huge comparative advantage which Johore has vis a vis Singapore in terms of land and labour cost. The Malaysian govt should exploit this fully as the ridiculous land and property prices and rentals in Singapore would make Malaysia extremely attractive. Why are the Malaysians waiting? This is the time to compete aggressively with Singapore and wrestle as many investments as they can to Johore. And it is so easy if they can ruin in the parochial and kampong mentality of the local politicians and keep them at bay. A rich and prosperous Johore is good for everyone. And Johore stands to gain to become the most developed and industrialised and modern state of Malaysia. Only if they have the political will to grab the bull by the horns.
The beast of Cyberspace 5 govt agencies are going online to tap the power of the internet. They want to participate in feedbacks and two way communications with their customers. They must have seen the goodness and the evolving role of cyberspace and do not want to be missed out. The importance of cyberspace and internet as a communication tool are growing by the days. But the fear is always there. How to manage and control feedbacks and information, how to censor the undesirable, how to not hear the bad news? Political observer, Viswa Sadasivan said, '... a good starting ground could be sectors that are less "risky" and where the citizenry-government rules of engagement are 'less rigid", such as sports, the environment and tourism.' This fear of the cyber beast is frightening. Any wrong move will see them being devour to pieces by the beast. Got to tread gently. So frightening.

The changing and unchanging political dynamics

For more than 40 years, the political dynamics and the way politics are played out have hardly changed here. Like it or not, it is a system based on a powerful personality dominating all political decisions and policies. Once decided, there it goes. Right or wrong, good or bad, let's move on. It looks so simple and easy to run this place. The same pattern of a domineering leader at the top was also the case for Malaysia and Indonesia. There were Mahathir and Suharto, all very powerful personalities that do not allow anyone to mess around with them. And between these three key players, many things could be done, deals struck, just by their own wheelings and dealings. Between LKY and Suharto, they have reached a certain understanding and would honour their agreements. In the case of Mahathir, though he had all the power to make deals, at the later stage of his political life he came out as one that would break deals or interpret them in whatever ways he wanted or to his benefit. There is nothing that is cast in stone. Everything is changeable. That was the political scene then. The same pattern and style of politics still exist in the little island but no more in Malaysia and Indonesia. They have changed with the passing of Mahathir and Suharto. More pressure groups are getting stronger and getting heard. More demands are made on their leaders that prevent them from exercising their power as PM or President. They no longer have the absolute powers of their predecessors. This is frustrating to Singapore. Making deals are no longer between two personalities, a four eye meeting to solve all issues. Things are going to be dragged on and on and nothing done. This is the new dynamics of the region. We have remained quite the same in the way we do things. The rest have changed. How to make deals anymore?

7/29/2007

The Seniors Game

LKY is roaming the streets of Jakarta. And we see a smiling Suharto meeting his old friends as if nothing has changed. Time stood still. It was yesterday once more. It will be fun if Mahathir was there too. The reappearance of the seniors give one a very strange feeling. When they are not around, the yudhoyono, Sudarsono and the who dunno, and their counterparts here all look so real, big men, national leaders. But in the presence of the seniors, they appear so young, so youthful, so fresh, like freshmen. The faces of the seniors are too domineering and too overwhelming for the young leaders. They have a presence that cannot be matched by the new leaders.

Sunday morning is to think about impossibilities

What would be best for Malaysia in the future? Or what could become of Malaysia? The thinkings or aspirations are quite diverse. The country at the moment is dominated by the views and interests of a minority of religious fundamentalists. And if they are to have a free hand to do what they like, Malaysia is likely to become another Iran or Iraq or at best a Saudi Arabia. Anything else will be full of contradictions and tension. How would this affect the rest of the population, those who would want a more secular and modern Malaysia, travelling in the comfort of the best limousines as opposed to those who would prefer to ride on a heavily carpetted camel back? The modernistic group would include the progressive bumis as well as many who have been accustomed to the good life of western technical and scientific societies. And the other racial minorities are not that small a group that can simply disappeared. Then there are the East Malaysian states living in the backwaters of Malaysian economic and political strifes. They have very little affinity to be Malaysians even to these days. They are different and would want to run their own lives and create their own future. Or maybe my reading is wrong and they too would want an Islamic state and live under Islamic principles and fundamentals. They have not made any noises with regards to the comments that Malaysia is an Islamic state. Or they have and not reported. There are thus three distinct groups with totally irreconcilable interests and outlooks for the future of Malaysia and there is no accommodation if or middle path. It is only a matter of time for these groups to gravitate further and further apart from each other and each will have their distinct characteristics and values. Provided no force is used to coerce any of the group to become like another group. What we may see is a federation of the north eastern states of Kedah, Kelantan Trengganu and Pahang plus the four southern states of Thailand, Narathiwat, Pattani, Suratthani and Songkla, breaking away to form their own Islamic state. And the East Malaysian states will break away to become a new independent country. The rest of the western and southern Malaysian states may choose to become more secular and moderate from the religious point of view and developed along the lines of western countries. Then some will use the slogan that Allah has moved northeast and the religious will move in that direction. If there is an agreement that the three new entities should leave each other to chart their own destinies and do not meddle in each other's internal affair, we could see the emergence of three new countries that are more coherent and with their people having more similar dreams and more likely to sleep more at peace. Just a Sunday morning indulgence in fantasy.