How Malaysia Can Avoid Being Overly Affected by External Factors

If we do not wish to be overly affected by external factors, we must strengthen ourselves. Malaysia is a developing country with 33 million people in the middle-income category. At the same time, it is a nation of diverse races, religions and cultures. Because of this, it is indeed more vulnerable to international external influences. If every external international factor brings significant impact each time it occurs, it will be very difficult for Malaysia to develop into a developed nation. For example, religious issues in foreign countries may, to some extent, influence people’s thinking. Fluctuations of the US dollar and the Chinese renminbi affect the nation’s trade. The strategic rivalry between China and the United States also affects the direction of Southeast Asia as a whole. All these factors often bring economic shocks to Malaysia.

Malaysia has remained at the top tier among developing countries for the past two or three decades, yet it has often failed to reach the level of a high-income or developed nation. We are already classified as an upper middle-income country. Personally, I believe Malaysia has strong potential to become a high-income and developed nation. Recently, the stabilisation of the ringgit has been good news for most Malaysians, as the ringgit has been undervalued for many years. In my view, even at around RM3.90 to the US dollar, the ringgit is still undervalued and has significant potential to strengthen further.

Overseas, in Singapore, Hong Kong, Europe, New Zealand, Taiwan, the United States and the United Kingdom, Malaysian talents can easily be found, especially in Singapore. Conservatively estimated, about 50% of professionals in Singapore are Malaysians. One of the biggest reasons for this talent outflow is the undervaluation of the ringgit, particularly when it reached around RM4.50 against the US dollar. Brain drain is a major loss to the nation and is not a healthy phenomenon.

How can Malaysia reduce the impact of international external factors and at the same time reduce talent outflow?First is the Kuala Lumpur–Singapore High-Speed Rail (HSR) project. Once completed, the HSR will create an effect whereby some international corporations headquartered in Singapore may choose to establish their administrative, operational and production departments in Kuala Lumpur. This is because many professionals in these operational and production sectors are Malaysians. In other words, these international corporations can significantly reduce expenses and operational costs, while Malaysia will gain substantial revenue through personal income tax from professionals and corporate tax. This represents a considerable long-term income source for Malaysia. In the long run, the construction of the HSR is beneficial for Malaysia.

Second, Malaysia’s basic policies and legal system are largely derived from the Commonwealth system. Why are Commonwealth policies and laws highly regarded, welcomed and recognised internationally? Because the Commonwealth legal system has a long history, is well-established, and emphasizes fairness. From the perspective of international corporations, they also hope that the Malaysian government does not frequently make drastic changes to existing systems. This allows them to view Malaysia as a safe and investable destination. When major international fluctuations occur, these entrepreneurs can treat Malaysia as a safe haven. In general, everyone hopes to be protected by the law.

Third is Malaysia’s education system. In my time, regardless of whether families were from urban or rural areas, wealthy or less fortunate, educated or not, they all sent their children to public schools. It was a very harmonious environment. Recently, however, I have observed that more Malaysians are sending their children to international schools or religious schools. Most of these students are Malaysians. Why are these parents willing to spend large sums of money to send their children to international schools instead of choosing public schools, which provide free education? Many foreign friends have asked me this question, which makes me feel embarrassed and unsure how to respond. I hope Malaysia’s public school education system can be elevated to a higher international standard, especially in enabling students to master standard English more effectively. As for religious schools, I also hope there can be a more standardised, positive, healthy and well-planned unified education system. These education systems can cultivate mature thinking among students, as they are the future masters of the nation. 

At the university level, Malaysia has many public and private universities of world-class standard. Recently, I have noticed that in private universities, the number of students studying engineering is lower than those studying business. In this era of rapid AI and technological development, Malaysia’s public and private universities should offer more modern engineering programmes, giving students more options for further studies. As many technology companies and data centres are being established in Malaysia, we need to cultivate a large number of top engineers to meet these demands. Malaysia has the potential to develop into a world-class tourism destination. These foreign tourists may very likely become investors in our country, or choose to retire in Malaysia under programmes such as MM2H. This will bring substantial long-term income to Malaysia. Malaysia is a friendly and safe country protected by law, and it also has very mature infrastructure. This allows quality foreign tourists to enjoy travelling in Malaysia with ease.

Malaysia cannot afford unproductive and negative political instability. On this remaining journey towards becoming a developed nation, we must have a stable and mature government, with fair, just and sound policies, and politically wise leaders to lead us into high-income status, high-quality living standards and a better education system. We need a group of visionary and capable politicians who sincerely develop Malaysia into a country that is welcomed and trusted internationally. The future will be better.

With all these factors in place, as long as we persist in doing each matter better, I believe we will no longer be severely affected by international external factors. I firmly believe that Malaysia’s elite leaders have the ability to develop this country into a dignified developed nation.

At the same time, I wish everyone a Happy Chinese New Year and good health.

Translated from original article source:

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