Philosophy Politics Economics

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Malaysia's brain drain Posted: 21 Apr 2011 08:03 PM PDT Malaysia at economic crossroads as it fights the great brain drain Kuala Lumpur government announces new strategy to try and retain its brightest sons and daughters from emigrating Dustin Roasa in Kuala Lumpur guardian.co.uk, Thursday 21 April 2011 18.47 BST Sheng Cai Lim is a skilled and experienced IT professional, an asset to a country that aspires to grow into a fully developed nation by the end of the decade. There's only one problem. Lim, 29, isn't sure he wants to stay in Malaysia. Lim says it's 50/50 that he'll leave. "I'll likely go to Singapore for a few years, and then after that maybe Canada or New Zealand," he said. He's on a six-month sabbatical from work and recently registered with head hunters who place candidates abroad. "My friends overseas wonder why I'm still in Malaysia. They say there are better opportunities abroad," he said. If Lim does make the move, he'll join the 1.5m Malaysians, or 5.3% of the population, who live and work outside of the country, according to the World Bank. By moving to countries such as Singapore, Australia and the UK, these migrants are creating a considerable brain drain that threatens the country's economic progress. "Brain drain is hurting the country's drive to move up the value chain," said Dr Ooi Kee Beng, senior fellow at the Institute of South-east Asian Studies in Singapore. "The fact that Malaysians fill many of the top and middle management posts in the region, from Shanghai to Singapore, tells us that the country is bleeding talent." The problem has been getting worse in recent years. More than 300,000 Malaysians left the country between March 2008 and August 2009, compared to nearly 140,000 in 2007, the deputy foreign affairs minister, Tuan A Kohilan Pillay told parliament. Many work in key sectors such as finance, technology and engineering. Two factors are driving the exodus, said Tony Pua, MP and member of the opposition committee on the ministry of higher education. "First, there's simple economics. You can make more money overseas," he said. The other cause is the country's race-based affirmative action policies, Pua said, which favour ethnic-majority bumiputra, or sons of the soil, over minority Chinese and Indians, who make up 24% and 7% of the population, respectively. "The two problems exacerbate each other. The economy has not been growing, and there's an increasing demand for a bigger piece of the pie among bumiputra. As a result, the government is more prone to implement policies that favour them, and minorities feel excluded. It's a vicious cycle," Pua said. Malaysian law provides bumiputra benefits such as rebates on property prices, quotas for university enrolment and civil-service jobs, and preferential treatment for government contracts, among other advantages. The laws, which were enacted in 1971 in an attempt to redistribute wealth in the wake of race riots in 1969, distinguish Malaysia from other Asian countries with brain-drain problems, such as the Philippines. In interviews with Malaysians living in Kuala Lumpur and overseas, frustration with these laws and worries about rising racial tension and Islamic conservatism have led many to reconsider their futures in their country of birth. "Malaysia is a very controlled and fanatic country," said Janath Anantha Vass, 29, an ethnic Indian accountant in Kuala Lumpur who plans to move to Australia. "Melbourne suits my lifestyle the best, and I feel that's the place for me." The Malaysian government is attempting to respond to the problem with an array of programmes, including 1Malaysia, a campaign designed to ease racial tensions. In January, Prime Minister Najib Razak launched the Talent Corporation, which seeks to lure back skilled Malaysians. But many are sceptical that these programmes will address the systemic problems driving brain drain. "I'm not sure how effective Talent Corporation will be. Past programmes like this have not worked, and I'm not sure how this one is different," said Evelyn Wong, an ethnic Chinese economics student at Scripps College in California, who blogs about brain drain. But Dr Kim Leng Yeah, an economist at Ram Holdings in Kuala Lumpur, said Talent Corporation did at least demonstrate the government's willingness to address the issue. "There has been a lot of public scepticism," he said. "But it is a proactive move." Representatives at Talent Corporation declined to comment. As Lim, who is ethnic Chinese, considers his future, he has spent time thinking about his place in multicultural Malaysia. "I do realise that I am a minority in this country," he said. "My family is encouraging me to leave. They say, 'Malaysia doesn't want us anymore, so why stay?'" And while he hasn't given up on eventually returning, he would have to see significant changes before doing so. "It doesn't feel like the country is mature enough to tackle its problems right now. When we are ready to face our problems, I'll be ready to come back," he said.

ETP: RM9.6b plucked from thin air? Posted: 21 Apr 2011 08:38 AM PDT Is the Najib administration so desperate to showcase the "success" of the ETP that it has now taken to announcing multi-billion ringgit worth of projects which are nothing more than hot air as at this point of time? The Prime Minister, Datuk Seri Najib Razak celebrated his 5th "update" by announcing a total of RM11.16 billion worth of projects and claiming that the Economic Transformation Programme (ETP) is right on track. The Government must be congratulated if it is really able to attract such an amount of projects within a short period of time, especially if it is due to the ETP. However, upon closer scrutiny of the projects announced, it becomes clear that the numbers quoted provided a skewed and misleading picture of ETP "developments". Firstly, of the 12 "entry-point projects" (EPPs) in this update, 5 have been previously announced making them a repetition of projects which have already been disclosed. Secondly, of the RM11.2 billion worth of projects announced, the Karambunai Integrated Resort City project alone constituted RM9.6 billion or a whopping 86% of all the value of all the projects added together! Thirdly and perhaps most importantly, the value for the Karambunai project appears to be plucked out from thin air for it appears as if nothing has yet been finalised which will justify any announcement to the public! The Karambunai resort project is led by gaming tycoon Tan Sri Chen Lip Keong's group of companies on a 1,100ha piece of land, owned by Karambunai Corp Bhd and Petaling Tin Berhad. Tan Sri Chen has substantial shareholdings in both these companies, and is the president of both. As if on cue after the Prime Minister made his ETP announcement, Petaling Tin Bhd announced on Bursa Malaysia yesterday that it "has not signed any agreement with any parties pertaining to the resort project and there are no corporate developments that warrant future disclosures to the stock exchange at this juncture." In other words, Datuk Seri Najib Razak's boast of the RM11.16 billion EPP projects, including the RM9.6 billion Karambunai Integrated Resort Project is nothing more than a "trial balloon" inflated with hot air! In fact, even some of the smaller EPPs failed the scrutiny test, such as the RM50 million "1Malaysia email project", where it now appears that the company which has been awarded the project, Tricubes Bhd, which isn't only loss making as at this point of time, but is at a risk of being delisted from the ACE market after being issued a GN3 status by Bursa Malaysia. The project awarded by the Government aims to provide an email account to all Malaysians above the age of 18 is supposed to be privately financed. However, the company which is facing serious financial difficulty has not disclosed how it will even be able to finance the project on its own. It is disappointing that the Prime Minister, in an attempt to make his administration and the ETP look good to the man-on-the-street, has chosen to boast of projects with dubious economic value, like the "1Malaysia email project" as well as incorporating huge projects with their multi-billion ringgit valuations being plucked out from thin air. Malaysians want to see real success and real tangible benefits from government policies and projects, and not just listen empty pronouncements made to make the Barisan Nasional government look good.

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