Why Has Malaysia Fallen Behind Other Nations

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New countries - America, Canada, Australia, New Zealand, Singapore and yes, Malaysia are all relatively new nations in their modern configuration. All these nations had their native or indigenous populations but settlers, coming in from other nations fleeing oppression or persecution in their home countries or seeking employment or being brought in as migrants, or as slaves or as indentured labour, altered the demography of these nations. Colonisation and decolonisation provided the impetus for change.
They all started their new or altered nationhood as colonies but eventually became independent, The United States has become the most powerful nation on earth. Singapore has become one of the wealthiest in per capita terms. And Canada and Australia are considered advanced nations. New Zealand has also done well. All these nations have benefitted from large-scale immigration. Indigenous people may dispute this statement as they have not been treated well in some of these countries.
All these countries have diverse populations with many cultures, languages, and religions. English is the dominant language in these countries.
Malaysia's history is not dissimilar except the indigenous people remain in the majority and have political control. It has a diverse population. It is a constitutional democracy with a parliament, a professional civil service, and an independent judiciary. It has a modern market economy. It is an advanced country in some respects. English is widely spoken (with varying levels of proficiency) although the language of administration and instruction in schools is mainly Malay.
Left behind
Malaysia has not progressed as much as these countries.
Fifty years ago, Malaysia was at par or ahead of countries like South Korea, Taiwan, Hong Kong and Singapore. Today, these countries have become developed nations. Taiwan and South Korea are major manufacturing countries, and Singapore is a financial centre, overtaking both Hong Kong and Switzerland.
What differentiates these countries from us? What did they do right and what did we do wrong?
Consider Singapore, our nearest neighbour. Singapore has a population of just over five and a half million, a GDP about equal to ours and whose currency is three times ours - three times what it was 50 years ago. It has no resources, except a good location. It relies on the talent of its own people and the inefficiency and problems of its neighbours.
Singapore has benefited enormously from talent from Malaysia. Our talent exodus leads mainly to Singapore and Australia. We have two million young people working abroad. Singapore would not have achieved its phenomenal growth without Malaysian talent. Singapore also imports talent from Asean and from India and China. It gives scholarships to top students from all these countries. They pay their civil servants, including teachers, well to attract the best.
Singapore has chosen English as their operating language. They measure themselves against the advanced nations of the world. Their educational standards are high. Singapore's school system ranks among the best in the world - it is often number one for maths and science. Two of its universities are among the top 20 in Asia.
Singapore Airlines, Changi Airport and the Port of Singapore are among the best in the world. Singapore has housed more than two-thirds of its population in affordable housing built by the government. Its public transportation system is super-efficient and not owning a car is an option for many Singaporeans.
Why has Singapore surpassed us to this extent? Our history is similar. Our people are culturally and ethnically quite like Singapore. In addition, we have a huge land area and a large population. We have tin, rubber, oil palm, tea, cocoa, pepper and fruits and vegetables. And we have oil and gas.
In summary, all the countries named above have good educational systems - good schools, top universities and through various measures obtain or attract talent from all over the world for its industries and research facilities. All of them have zero tolerance for corruption. If one looks for what is common in most advanced economies, one will see democratic governments, free press, good schools and universities, low levels of corruption, peace and stability.
Democracy and development
Studies have demonstrated a clear correlation between democracy and development.
There are no democratic governments in the Middle East and if not for oil money, most would have remained relatively undeveloped. Countries with military governments have not done well either. Look at Myanmar, Thailand, Egypt and Pakistan. Russia relies heavily on its oil and gas and also its arms sales. A multi-party system, individual freedom, freedom of expression, freedom of movement, separation of powers and an independent judiciary are required to bring out the potential of a people.
China is an exception to the rule. Although a one-party state, it has become a powerful nation. Its educational system is highly competitive, China sends tens of thousands of its young people to study abroad. The Chinese diaspora invests heavily in China and tens of thousands of overseas Chinese find employment in China. Its large workforce and market have resulted in huge investments in China and a rapid transfer of know-how. The Chinese have proved very adept at reverse engineering - like the Japanese - first copying and then improving. The Chinese Communist Party claims that the party is democratic and meritocratic. Only the brightest can rise to the top. State exams are extremely competitive.
And what about us?
Why have we not been able to advance as rapidly as the others? Why is there so much poverty in the country? The Malaysian government acknowledges about 5.6 percent of Malaysian households live in absolute poverty, The UN estimates that 15 percent of Malaysians live in relative poverty. Bank Negara estimates at least 30 percent of Malaysians earn less than a living wage. The indigenous people of Sarawak and Sabah are very poor. There are more poor Malay households than Chinese or Indian households.
Why is this so? There are many factors. Here are some of them.
In the 1970s, we changed our medium of instruction from English to the national language, Malay. The objective was to retain English as a major second language. But with time, English language proficiency declined. Teachers could not teach effectively in English; public universities use both Malay and English to teach. Textbooks and research material remain mainly in English. Recent graduates from public universities lack English language proficiency.
It is an undeniable fact that the English language has become a global language. It is the language of international trade and diplomacy. It is the language of the internet and that gives you access to knowledge in a way unparalleled in history. Our leaders and our people know the value and importance of the English language. We have 178 international schools in the country, most of them teaching in English. And we have hundreds of colleges teaching in English.
Unfortunately, our government schools and vernacular schools do not produce English-proficient students. And remedial classes at college or university cannot do much to improve their English. This has a significant impact on the quality and employability of our graduates.
There is also the view that our universities do not produce the graduates we need. For instance, a recent statement from a government minister expressed concern about the relatively few students pursuing science and engineering courses at university. Mathematics is the foundation of courses in science, engineering, and technology.
The United States ranks first in the world in science and maths with almost 50 percent of the top maths scientists in the world. It is followed by UK, Germany and France with 6 percent or less, and China with 4.3 percent. In a Pisa (Programme for International Student Assessment) worldwide study conducted in 2018-2019 for 15 years olds, proficiency in maths, science and reading Singapore came second after China and Malaysia 48.
But all is not bad in the country. In 1967, there was only one university in the country. To do law, one had to go either to the UK or to Singapore. Few could go into the only engineering faculty in the country. Today, there are 20 public universities with 500,000 undergraduates and about 467 private colleges and universities with 600,000 students. Forty-four percent of students between 17 to 23 are in college or university compared to 14 percent in the 1980s. It is an undeniable fact that Malaysians are more highly educated than they have ever been. And that must be a good thing.
However, standards are inconsistent and English language proficiency is an issue. It is also not certain that universities are producing the type of graduates the nation needs.
Brain drain
Many of our young people work abroad for higher wages. Malaysia is caught in what economists call the middle-income trap. We hold ourselves out to be a low-cost nation and attract industries that rely on low-cost labour. First-year lawyers earn much more in Singapore, Hong Kong and the UK. Accountants who speak English and Mandarin earn much more in China. Canada, America, UK.
Australia has schemes to attract the talent of the world into their countries. A Malaysian economist says that many of our SMEs (small and medium-sized enterprises) cannot move to the next level because of a shortage of talented people. Political uncertainty also results in investors taking a short-term view and cashing out early. Malaysians need to be more productive. Malaysia needs to move higher up the value chain producing higher-value goods and paying higher wages for qualified people..
Ironically, we have about two million foreign workers working in the country. Without foreign workers, we will have no workers for construction, for our plantations, our industries and to some extent our hospitality industries. Low-cost foreign workers depress wages that would otherwise be payable to Malaysian workers. Employers take the easy way out. There is little investment in training or in technology. Little thought is given to the effect that foreign workers have on our own people.
Our young people move out to work in other countries. In fact, many of our people work in low-level jobs in other countries for higher pay. So, Malaysians live and work abroad whilst we bring in low-cost labour from overseas. These foreign workers pay no tax, burden our infrastructure and remit most of their income back to their homes.
Our politics does not help either. We are a multiracial, multicultural, and multireligious society. And that could be a source of strength, Our Constitution guarantees freedom of worship and the equality of all its citizens. Unfortunately, there are elements in our society that are ambivalent about this. PAS, for instance, wants to take us in a different direction. There are policies that are clearly discriminatory. And discrimination whether in the public or private sector is wrong.
I am not questioning Article 153 and Malay special rights. I am in favour of a system that continually monitors the situation in the country to make sure that all races enjoy the opportunities available in this country. The distribution of wealth and opportunities must be fair and just to all, between races and within racial groups. Discrimination and racism in all its forms create stress and anxiety, and result in many leaving the country, It also results in many talented individuals not being able to grow into their full potential.
Sabah and Sarawak came into Malaysia with high expectations. Poverty levels are very high in these two states. We do not pay enough attention to the people of Sabah and Sarawak. We cannot just see them as a vote bank but not bother about their welfare. Their resources contribute much to the federal government, but these states do not get a proportionate share of state-derived revenue.
So, what can we do to change things?
1. Raise English language proficiency. Consider this, China and India each have more English language-proficient people than any of the English-speaking countries of the world. In India's case, the school of preference for the middle class is an English school and all universities conduct most of their courses in English.
China has a policy of creating a pool of English-proficient Chinese so that they can benefit from international trade and diplomacy, and from the flow of knowledge from the western world. China, like India, also wants, to provide services to the rest of the world. To do so, their people have to be proficient in other languages. English is an important language. Make Malaysians at least bilingual.
2. Raise educational standards. We must have first-tier colleges that can compete with the best in the world. At one time, Universiti Malaya was such a university. Even now, Malaysians achieve great academic distinction everywhere. Establish top-class business schools in the country to train entrepreneurs. Our undergraduates should be able to spend time in good universities in other parts of the world. They should also spend time in internships with private firms.
3. Have proper manpower studies. Our universities must produce graduates that are required in the marketplace. Technology is changing the workplace. Robots and AI will replace many if not most of the existing jobs. We must look into the future and educate our young for the jobs of the future. The new graduates must be able to adapt to a world that is rapidly changing.
4. Leverage our diversity. Malays have been uncomfortable with the large number of non-Malays brought into the country and have feared being swamped by them. But they must see the positive side.
In the 19th and 20th centuries, the population of the country was very small. The British together with the Malay rulers saw the economic potential of the country. And needed labour to develop the infrastructure, establish the plantations and extract tin. They brought in Chinese and Indian indentured labour. The country at the time was covered with teeming jungles filled with snakes and mosquitoes. Tens of thousands of indentured labourers died clearing the forests and building roads. railways, ports, airports, setting up telephone and transmission lines and establishing the plantations and mines. The country prospered. And when independence came, we were ready to take on the helm of government.
After 1969, there was a perceived need to accelerate Malay development and that was achieved through the NEP (New Economic Policy). Today, the Malays have come into their own. There is a large Malay middle class - professionals, civil servants, businessmen, etc. It is time to come together as Malaysians. The Malays must embrace the non-Malays. And non-Malays must embrace the Malays. And together, we advance the nation.
The dynamic created from the convergence of so many cultural streams and traditions has created a people who are able to punch above their weight. We should stop pitting the races against each other. We should use the talents of our people whatever their race or religion. We want the best minds in all institutions of government, and in industry as well.
The UK, Singapore and Canada have more Indians in their cabinet than we have. But do not point our fingers at just the government. The private sector must examine itself too. Racism is also a problem in the private sector. Dr Michael Jeyakumar Devaraj of PSM, in a recent book launch, called on the private sector to look at racism in its ranks as well.
5. Zero tolerance for corruption. Corruption bleeds the country of much-needed resources. We have seen the damage done to the country with 1MDB and other scandals. We have also seen how inflated prices for unviable projects can raise our debt levels and burden taxpayers for generations. Our national debt has surpassed RM1 trillion.
More than 70 percent of our national budget is to meet operational expenses including debt servicing. The auditor-general has warned that it is not sustainable to service debt through borrowings. Insufficient money goes into our development expenditure. We must prepare ourselves for the day when our oil and gas reserves run out. Our enforcement agencies must be made independent and empowered to root out corruption wherever it finds it.
6, Look after the poor. Look after their housing, health and nutritional needs. They are our people too. Get Singapore's help in tackling our affordable housing problem. There is no shame in that. They lead the world in affordable housing in terms of design, speed of construction and cost. Our health system is very good. Make it better. And institute a system of food rationing so that the very poor get enough food to meet their nutritional requirements.
7. Implement the minimum wage forcefully. Malaysian employers must commit themselves to the development of our people and our nation. They must train our people to be more productive. They must bring in technology to reduce their dependence on foreign labour.
8. Have schemes to attract talent from all over the world. The deputy vice-chancellor of Monash University in a talk in Kuala Lumpur spoke of a global battle for talent. The UK gives special entry visas to graduates from the top 50 universities of the world. Two of Singapore's universities are on that list. Singapore has their Asean Scholarship Programme. The US attracts thousands of the most talented students from all over the world.
9. Pay special attention to the people of Sabah and Sarawak. A disproportionate amount of the Malaysian poor come from there. Make Malaysia meaningful for them.
We need to reset or reboot the nation. The forthcoming elections will give us a chance to do so. We need younger leaders. We need leaders who are not encumbered by historical baggage. We need young leaders who are more open-minded and global in their thinking. We need leaders of vision and integrity.
It is imperative that all Malaysians come out and vote in GE15. - Mkini
DAVID DASS is a lawyer, a Malaysiakini subscriber and commentator.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

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