THE CREATION OF A FLEXIBLE, LEARNING SOCIETY:
Remarks by
the hon. Dato’ seri
abdullah ahmad badawi
prime minister of malaysia
at the jeddah economic
forum
sunday, 20th february 2005
at 9.00 am
jeddah, kingdom of saudi
arabia
the creation of a
flexible, learning society:
people as a source of
sustainable growth
assalamualaikum
warahmatullahi wabarakatuh and good morning
excellencies
distinguished guests
ladies and gentlemen
1. The organisers of this
important forum very generously state in their overview introducing this
session that “by putting “people first” malaysia has successfully designed and
implemented a strategy for economic and social development that has been a
model for the islamic world”. They go on to say: “malaysia has a story to tell
as to why it is important to put people first in strategic development”.
2. Let me begin by saying
that malaysia’s obsession with human capital formation and human resource
development has been in place only since the early 1990’s, at the beginning of
our second generation as an independent nation. It would have been a grave
error had we made it the first priority of the malaysian people too early; even
as it would have been a grave error not to make it the first and most important
task of government today and in the decades to come.
3. In the earlier years,
the main concern of my people was to put peace and stability in place, to
secure our freedom and independence, and to build the malaysian nation. It
might be of interest to you to know that during the period 1945 to 1957, the
year in which we gained our independence from the british, we might have been
characterised as a “failed state”, if that term had then been in existence.
Terrorism and political instability plagued the land. Given the turmoil, our
average annual rate of economic growth was 3.5 per cent, barely able to keep
pace with our rate of population growth. All that we could do was to produce
rubber and tin. We manufactured practically nothing. Infrastructure was
non-existent or in disrepair. Literacy rates were very low. Birth rates were
very high.
4. The first battery of
economists from the world bank to come to an independent federation of malaya
concluded with a historic forecast. The world bank predicted that the most
likely scenario for independent malaya would be a medium to long-term sustained
average annual rate of growth of 3.5 per cent – not bad for a typical third
world developing country, but hardly encouraging for a people with higher
aspirations.
5. For a decade
thereafter, the world bank appeared to be spot on. Then, for various reasons,
things began to change. From 1969 onwards, as the result of determined national
leadership, malaysia began to grow strongly. It has since chalked up a
sustained annual rate of 7 per cent to this day, a growth run interrupted only
by one-year stumbles brought on by two world oil crises, two global recessions
and one asian financial crisis.
6. I say all this because
for some countries beset by other urgencies, priorities other than human
resource development must hold sway. I should also not fail to stress that
nation-building and national development, even economic development, is a most
complicated business.
7. After so many decades
of enormous attempts at development – economic, social, political, cultural,
religious development in every corner of the globe – even the greatest
so-called experts of development have run out of simple prescriptions. Almost
without exception, they have come to the conclusion that there are good reasons
why the vast majority of developing countries have failed or are having the
most difficult of times. It is simply a fact that sustained economic
development is a very difficult feat to accomplish. Indeed, it might be argued
that although some cities have moved from third to first world, and a few
countries (perhaps malaysia among them) look well on the way there, over the
last century and a half possibly only japan has been able to become a fully
developed country, developed in a comprehensive way.
8. I say all this in order
to stress not only that development is a difficult process but also to stress that,
quite obviously, development is not a ‘one size fits all’ proposition.
9. Role models are of
course useful. Those who refuse to learn from the mistakes of other nations are
often condemned to learn from the mistakes of their own. Those who are quick on
the uptake on what works elsewhere and what will work in their own case can
take many short cuts. But it must be stressed that the world is a complex and
complicated place where no country is the same, and each country has its own
unique strengths and weaknesses, opportunities and challenges. As such, each
one of us must devise our own unique winning formula to grow and develop.
Ladies and gentlemen
10. Having said all this,
i do believe it is necessary to also stress that for most countries today human
resource development and human capital formation, is either extremely
important, absolutely vital or a matter of life or death. In the case of
malaysia, we may be wrong, but we think it is a matter of life or death.
11. At the beginning of
the 1990’s, at the beginning of our second generation as an independent nation,
the malaysian people took to heart the goal of becoming a comprehensively
developed nation by the year 2020, the beginning of our third generation as an
independent people. We called this “vision 2020”.
12. In malaysia’s vision
2020, we also took to heart the belief that “the most important resource of any
nation must be the talents, skills, creativity and will of its people”. The
vision declared malaysia’s belief that “our people are our ultimate resource”.
From the board room to the shop floor, from the cabinet room to the lowest
echelons of the civil service we told ourselves: “in the 1990s and beyond,
malaysia must give the fullest emphasis possible to the development of this
ultimate resource”.
13. Ten years later, as we
entered the new millennium, malaysia adopted the “knowledge-based economy
master plan”, which we called our “strategic initiative one of the 21st
century”. This initiative is aimed at transforming a largely input-driven
production-based economy into a productivity-driven knowledge-intensive
economy. The single most important strategic thrust of this masterplan is the
accumulation and development of the human resources necessary to make the
quantum leap to the next level.
14. Why do we believe that
the most important task and function of the government of malaysia today and in
the decades to come is to develop and secure the human resources of outstanding
knowledge, skills, creativity, innovation, energy and discipline?. Our conclusion
is derived from inductive empirical evidence and deductive logic.
15. In the age of hunting
and gathering, the richest and most developed were those who were best at
hunting and gathering and those who lived where there was much to hunt and
gather. The future belonged to the best hunters and gatherers who could harvest
the natural bounty of the land.
16. In the age of
agriculture, the richest and most developed were those who had vast expanses of
land and who could organise large numbers who could till, sow and reap the
fruits of an activity called “farming”.
17. In the age of
industry, the richest and most developed were those who could build the
factories that could produce the goods that the world hungered for. This
required making the massive capital investments, assembling the raw materials,
putting in place the machines, building the disciplined, mass, urban industrial
workforce and ensuring the necessary hard infrastructure and logistics.
18. Today, the richest and
the most developed do not live in industrial countries but in post-industrial
societies, where the low value-added manufacturing have been hollowed out,
almost to extinction, where the low value-added agriculture have disappeared,
almost to extinction, and where the low value-added services will be hollowed
out, almost to extinction. Those who fail to outsource live on borrowed time.
Post-industrial economies may still have massive industries but these must be
high value-added industries. They may have substantial agriculture but their
agriculture must have high value added. Above all, post-industrial economies
are strongest in services – and in high value-added services.
19. High value-added
industry, agriculture and services do not need low-knowledge, uncreative and
un-skilled manpower in massive quantities, the mainstay of the industrial
economy. They need very knowledgeable, very creative, very innovative, very
smart workers aided by massive infusions of technology and capital.
20. In passing, take note
of the fact that the economic output of the united states today, as measured in
tons, is approximately the same as it was a hundred years ago. Its real
economic value today, however, is 20 times higher. Why the difference in value
despite no difference in output?. The answer lies in the infusion of intangible
attributes, the most important of which is knowledge.
21. Let me give you
another fact: today, already more than 50 per cent of the gross domestic
product of the major o.e.c.d. countries comes from the production and
distribution of knowledge.
22. As for the deductive
reasoning, let me merely cite one argument. It is surely self evident, too
obvious to require elaboration, that quality and high-value output is the
result of thinking and planning, execution and implementation by smart people.
23. But who are the smart
people that we want?. We must be sure that we do not get those who masquerade
as smart people when they are actually not smart. As prophet muhammad (peace be
upon him) said: “when you give a task to someone incapable, then you will face
disaster”.
27. What we need and must
find are the truly knowledgeable, creative, innovative and energetic – over the
utterly ignorant, the deadly unimaginative, the incredibly straightjacketed and
the lethargic know-nothing. We need people with high moral values and strong
integrity, too. We certainly do not want smart people who are cheats and
tricksters.
Ladies and gentlemen
28. Twenty years ago,
malaysia was a country that subsisted on agriculture and minerals. Today, in
terms of the value of industrial production over total g.d.p., we are –
depending on the year of reference – the third or fourth most industrial
economy in the world. Nevertheless, we have no time to rest on laurels, no
moment to relax in the valley of complacency. There are new peaks to climb,
which we must do before others beat us to it.
29. Today, the profit
margins in manufacturing are getting thinner and thinner as one country after
another finds the wherewithal and masters the simple mechanics of
manufacturing. The chinas of this world – low-cost producers in the south, in
the north, in the west and in the east – are lapping at our heels, threatening
to bite our ankles off. We have no choice but to make the quick quantum leap to
the knowledge-intense post-industrial economy – living, more prosperously, from
a higher value-added and more knowledge intensive industrial, agricultural and
services sectors. We have no time to lose in developing and securing the human
resources we need for our transition to the productivity-driven, knowledge-intensive
post-industrial economy.
30. Having stressed the
importance of human capital formation and human resource development, it is
also important for me to emphasise the importance not only of commitment and
effort, but also sound judgment and sound management. In other words, it is not
only necessary for us to do the right thing. It is also very necessary for us
to do it right.
31. In the malaysian case,
we believe that “doing it right” requires:
• doing it efficiently –
among other things, ensuring an acute understanding of opportunity costs,
strategic intervention points, and the importance of extracting maximum value
from money spent;
• doing it productively –
among other things, making sure that supply-demand mismatches are minimised;
• doing it well – making
sure that everyone understands that excellence in quantity is absolutely
necessary and superlative quality is vital;
• doing it pragmatically –
doing what is necessary and what works rather than what ideology or unrealistic
idealism demands;
• ensuring not only that
human capital is accumulated and human resources developed but also that they
are fully mobilised and productively deployed;
• ensuring that a total
national learning system, with life-long learning, is productively in place to
ensure that the human capital is progressively value-added; and
• ensuring that a national
integrity plan for good governance and inculcation of moral and ethical values
is effectively implemented.
32. The policies and
programmes for human capital formation we put in place must never forget
efficiency because they entail enormous investments, financial and otherwise.
There are massive tradeoffs and tremendous opportunity costs. In some
countries, the choice facing governments is health or security or education.
For some, the answer is obvious. The resources must go to health and security.
For others, the answer is equally obvious. Malaysia is fortunate in that we can
say that the obvious choice is education.
33. Our strategists,
planners and implementers have had to ensure an acute understanding of the
strategic intervention points. In any major endeavour, where no society,
however well endowed and empowered, can have enough of what is necessary,
effort and resources must obviously be concentrated on where the greatest difference
can be made. Malaysia’s strategists, planners and implementers have had no
choice but to be tightly focused on where the action promises the highest
returns.
34. As an example, we have
found that over the years we gave the tertiary side of education most of what
it needed. We made the mistake of under-investing in primary education. The
result was inevitable: too many of our young entered secondary school with
inadequate educational foundations and were unable to take full advantage of a
secondary education. The overall result is a university entering population
that could not take full advantage of tertiary education, that was a heavy drag
on our higher education system. We have now started to remedy the situation by
giving the primary school system the commitment and resources that it very much
deserves.
Ladies and gentlemen
35. A national programme
for human capital formation and human resource development can be
super-efficient, producing ever increasing output at ever lower cost – and yet
be an absolute disaster, if what is being produced is not what is needed – in
this case, for sustained economic growth. With apologies to t he followers of
plato, if we produced his philosopher kings by the millions each year, we would
be in desperate trouble.
36. Right or wrong, we
believe we have to concentrate on producing something much less elevated but
perhaps equally difficult to achieve: a world-class workforce that is
employable, empowered and disciplined, able to adjust to changing work needs,
with a commitment to life-long learning.
37. We believe that such a
workforce must have the necessary thinking, reading, writing, numerical and
communication competencies. We think they should have minimum abilities to be
creative and to innovate. We think they should be entrepreneurial. They must be
i.c.t. equipped. We think they should be attracted to science and technology
and antagonistic to superstition. We believe they should be skillful in a
multi-cultural world. They must carry in their heads the belief that all must
be able to stand on their own two feet, that no-one owes anyone a living, that
human beings can do anything; but that achieving anything meaningful requires
very hard work. We think they should be patriots. At this stage in world
history, we also believe that they must have enough competence in the english
language to be able to have access to the bulk of human knowledge as it exists
in the present-day world. We also believe that our people must have faith in
themselves, must be positive, confident and psychologically liberated.
38. As every human
resource development person knows, all this is a very tall order. Malaysia is
bound to fail as much as we succeed. At the very least, we must try to produce
as many malaysians as possible with as many of these attributes as possible. We
must work very hard for quantity. At the very same time, we know that in all
societies in all human eras of recorded history, a relatively small percentage
make a contribution out of all proportion to their numbers. This is why even as
we work intensely to produce the very largest number possible of the world
class workforce of excellence that we must have, we must make sure that we do
our utmost to also develop this very small percentage of superlative
performers.
39. In pursuing these
efforts, we must be fast on our feet, able to experiment and innovate, and to
quickly discard what does not work and forcefully and quickly develop what does
work.
Ladies and gentlemen
40. Following from the
necessity for pragmatism, i should point out that for most countries the
primary thrust should be directed towards developing one’s own people. We must
develop the total national learning system that starts before kindergarten and
only ends in the grave, involving schools, polytechnics, universities, the work
place, the place of play and every learning space in between.
41. We should make sure
that there is no brain drain of any size. Despite our every effort, it is
inevitable that some of our people will move and work in other geographies.
Even the most developed countries cannot prevent this. But where there is a
brain drain – and fortunately malaysia has been able to keep this within bounds
– it is extremely important to try to make sure that brain drains are
transformed into brain cycles: where our talent works in other countries but at
a later stage will return, bringing back to their homeland their talent,
enriched by their experience.
42. As one developed
country after another and as one fast developing country after another has
found, the principle of pragmatism also requires focused and strong commitment
to programmes that will secure the necessary brain gain.
43. However good a total
national learning system can be built within a country, the process of human
resource development simply takes time. Sometimes there is a substantial or
lengthy period when there is no alternative to bringing substantial numbers of
foreigners to one’s country to productively contribute. Without exception, no
country can or should develop every skill, every talent, every specialist in
every area of important specialisation that it needs. Under both these
circumstances, despite the narrow minded nationalist impulses, a brain gain
programme can not and should not be avoided. In the case of malaysia, over the
next 10 years, we will need to reduce the number of unskilled foreign workers
by at least a million from today’s level. We will need to increase the number
of extremely skilled foreign workers by at least 50,000.
44. If we do succeed in
our human resource development obsession, we must make sure that we also
succeed in the equally important process of mobilisation and deployment – and
mobilisation and deployment into the right places. In so many societies, vast
reservoirs of resources are poured into human resource development. Great
success is achieved – to be followed by failure in making full productive use
of this enormous bounty.
45. Income tax regimes
must not be such that large numbers that must work and contribute simply
withdraw their services. Obviously, over time, the mandatory and notional age
of retirement has to rise in order to ensure greater mobilisation and
deployment of valuable human resources.
46. A good productive and
sensible balance has also to be found between the percentage of women who
devote themselves to the very important job of home-maker and those who should
make their main contribution to society through work outside and beyond the
home. In malaysia’s case, many visitors express great surprise at the
percentage of women they see on our university campuses. Because of entry on
the basis of merit, two thirds of our public university undergraduates are
women. In some universities, the percentage is higher. The number of women who
work in malaysia is already comparatively high. And women occupy high positions
in the public sector and in the business world. But obviously in the days
ahead, the women participation ratio should rightly be substantially higher.
And the percentage of women in high positions must also advance apace.
Ladies and gentlemen
47. I have already
mentioned the importance of putting in place a total national learning system
from cradle to grave. Like other nations, malaysia is grappling with how to get
this done, especially for the period after our young leave universities and
enter the workplace. For many years now we have established a human resource
development fund – with mandatory contributions from industry – to finance
workers keen to acquire new skills and competencies. Incentives exist for
companies who wish to invest in training their staff. Community colleges are
being set up to cater for continuing education programmes. Like many other
countries, we are trying very hard to establish systems and processes for
life-long learning. But, as my words indicate to you, i am far from satisfied
with the results thus far achieved.
48. Fortunately, for a
substantial proportion of our population in malaysia, education is an
obsession. Every family believes that their children must graduate from
university. Many children attend extra classes. Sadly, even kindergarten
children are on intensive private tuition. Nevertheless, despite the obsession,
there are still large digital divides to bridge and knowledge chasms to fill.
There is much to do in the days ahead.
Ladies and gentlemen
49. For the malays who are
muslims, education is compulsory. Eradication of poverty is mandatory. These
are commanded by islam.
50. It is for these
reasons that education has been given such emphasis in malaysia’s development
plans. Education is given the highest allocation for most of the years since
malaysia’s independence, accounting for about one-fifth of the country’s
development expenditure. Similarly, poverty eradication efforts have been
sustained in the country for decades now, reducing the poverty rate from over 50
percent in 1970 to about 5 percent now.
51. Improving the
education of our people and eradicating poverty are among malaysia’s most
important strategies today. I believe that if a muslim country is to survive
with progress and dignity, our human development efforts must succeed.
52. Indeed, mastery of
knowledge and comprehensive development are important principles of islam
hadhari (literally, civilisational islam). I have espoused this approach to
inspire my people towards progress and development. Let me say that islam
hadhari is not a new religion. It is not a new teaching nor is it a new mazhab
or denomination. Islam hadhari is an effort to bring the ummah back to basics,
to return to the primacy of values and principles, as prescribed in the quran
and the hadith that form the foundation of islamic civilisation. It is an
approach that values substance, and not form. It is an approach that seeks to
make muslims understand that progress is enjoined by islam. It is an approach
that is compatible with modernity and yet remains firmly rooted in the noble
values and injunctions of islam. It puts forth ten fundamental principles that
muslim nations and communities must demonstrate:
i. First, faith and piety
in allah;
ii. Second, a just and
trustworthy government;
iii. Third, a free and
independent people;
iv. Fourth, a vigorous
pursuit and mastery of knowledge;
v. Fifth, balanced and
comprehensive economic development;
vi. Sixth, a good quality
of life for the people;
vii. Seventh, protection
of the rights of minority groups and women;
viii. Eigth, cultural and
moral integrity;
ix. Ninth, safeguarding
natural resources and the environment; and
x. Tenth, strong defence
capabilities.
53. As can be noted, the
pursuit of knowledge is an important hallmark of islam hadhari, without which
progress and advancement cannot be meaningfully achieved. Malaysia therefore
stands committed to human resource development. We know our economic prospects
are inextricably tied to the quality of our human capital. While i fully admit
that no country can fully implement all the principles perfectly, it is
important that the leadership’s political will remains focused on developing
human resource capacity.
54. Careful and effective
human resource development and stronger poverty alleviation measures should
also be made more pervasive in the muslim world. The more fortunate among us
must get together and help the others. It is with this in mind that i have
initiated the capacity building programme in the organisation of islamic
conference to assist less developed o.i.c. countries eradicate poverty and
better develop their economies. It is my belief that enhanced capacity is a key
step in our journey towards greater unity, dignity and progress of the ummah.
Ladies and gentlemen
55. Although the
organisers of this forum are generous in their belief that malaysia “has
successfully designed and implemented a strategy for economic and social
development that has been a model for the islamic world”, as the leader of
malaysia i must be much more humble. We have a long way to go. All that we have
done remains to be a work in progress.
56. I pray to allah that
we are on the right path. I pray to allah that in the years ahead we will have
the strength to stay the course, and the creativity to find new routes and pathways
to where we must go.
57. We know that we have
little choice. If we fail with our human resource development programme, there
is little hope for malaysia to become a fully developed nation. If we succeed,
we have an excellent chance.
58. May allah shower us
with his divine guidance and continue to keep us in his protection.
Thank you.
Di pos oleh Arbain Muhayat pada 21 December 2008