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MALAYSIA: A unique approach to social and economic growth

A uniqueapproachto social andeconomic growthA quiet transformation has been underway inthis Asian democracy for the last three decades. The results are tangible, and the change continues.

B ack in the late 1970s, when former Prime Minister Mahathir bin Mohamad set Malaysia on course to join the ranks of the developed world by 2020, he understood that it was not just

education, but a change in mentality that would determine the country’s future.

Three decades of sustained growth later, under Prime Minister Najib Razak higher education is one of Malaysia’s most vibrant sectors. And thanks to investment, energy, and that crucial change in mentality, Malaysia’s universities have established international reputations for research in emerging fields like biotechnology, life and space sciences, and nanotechnology.

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Lai Yoke is a 23-year-old ethnic Chinese Malaysian. She knows about the benefits of education: she attended a public university while holding down a part-time job, and now works for a major pharmaceutical company. She comes from a low-income family, and has benefited from the educational reforms of the last two decades.

She says that legislation passed in 2007 is further improving access and the quality of teaching and learning, while boosting research and innovation. “I would like to return to study, to do a Masters or a Ph D,” she says, aware that such possibilities didn’t exist for her parents.

Lai Yoke has benefited from low-cost loans to join the almost million students in more than

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50 private and public universities, four campuses of international universities, 24 polytechnics, nearly 40 public community colleges, and almost 500 private colleges.

Malaysia’s four designated research universities, the Universiti Malaya, Universiti Sains Malaysia, Universiti Kebangsaan Malaysia, and Universiti Putra Malaysia, along with its premier engineering and technology university, Universiti Teknologi Malaysia, are all ranked among the top 500 in the most recent Times Higher Education Supplement-Quacquarelli Symonds (THES-QS) World University Rankings.

Established in Penang in 1969, Universiti Sains Malaysia (USM) offers courses to around 22,000 >> continues on next page

undergraduates and 6,000 postgraduate students, and has 16 research institutes and centres. In a recent academic reputation survey of 17 of Malaysia’s 20 public universities carried out by the Nation Accreditation Board (LAN), it was named best overall university in Malaysia.

Vice Chancellor, Professor Tan Sri Dato’ Dzulkifli Abd Razak, sees his role as redefining the goal of universities as products of the industrial age where the student is the “raw material” being processed for “sale in the market.”

“Our university is trying to redefine this. Technical colleges may be able to produce employment for

>> The award-winning North-South Expressway spurred the nation’s growth while providing a comfortable and safe road travel.

Visit for details: www.plus.com.my

Malaysian Borneo: The Malaysian states of Sabah and Sarawark offer a world of cultural possibilities along with breathtaking beaches, diving sites, national parks and the famed Mount Kinabalu. Don’t miss out onthe friendliness and warmth of the people.

Petaling street Kuala luMPur: Otherwise known as “Chinatown”, this area of Kuala Lumpur offers a bustling streets with food, shopping and massages as well as the entertainment of a city inside the city.

MelaKa: Situated on the famous Straits of Melaka, this UNESCO World Heritage Site since 2008 has been home to the Portuguese, Dutch, British and Chinese, offering a unique cultural and architectural panorama.

national Holidays: Malaysia’s multicultural society celebrates many holidays belonging to each of the cultures, Hari Raya, Deepavali and Thaipusam and Chinese New Year fill the cities of towns of life and happiness shared by all independent of beliefs and religions. Check the calendar to find the exact dates.

taMan negara: Possibly the oldest undisturbed tropical rainforest in the world lies in between three of the central states of Malaysia, Kelantan, Terengganu and Pahang. A national park since 1938, its flora and fauna have evolved without disruption in natural manner. A wide range of activitiesare available in this natural paradise,from jungle trekking to fishing.

Don’t Miss in Malaysia

hospitals, with a view to joining the growing numbers of Europeans seeking private treatment here.

Datin Paduka Siti Sa’diah Sheikh Bakir, Managing Director of KPJ Healthcare, a pioneer in the sector, and now one of its leading players, says despite the challenging economic climate, medical tourism has a positive outlook boosted by new market penetration.

“The contributing factors to our performance in health tourism is the quality of our services, competitive costs, regulated professional medical charges, well-trained

medical consul-tants and similarity in culture and religions,” she says.

Siti Sa’diah Datin Paduka adds that men and women’s wellness programmes have become popular among health tourists, particularly for those seeking solutions to weight management problems.”

Prince Court Medical Centre is a state-of-the-art hospital that opened in late 2008. CEO Stuart D. Rowley says that arrangements can be made for hospitalisation immediately upon arrival in the country. Examinations and work-up tests can be done right

away, with any follow-up treatment or surgery necessary, performed before discharge. He says that with prices which are around a third of those in Europe or North America, coupled with better quality care and the chance to enjoy a wonderful holiday, Malaysia is already the world’s number three destination for health tourism.

“We cater to people who are looking for world-class medical facilities at competitive prices. Compared to other private hospitals in the country, our room rates are highly competitive, as are medical fees,” says Mr. Rowley.



today but at the university we have to shape the future and this means skills and competencies that we offer to our students must make them and the university relevant for the future,” he says.

The International Centre For Leadership In Finance (ICLIF), Malaysia’s only training centre for chief executive officers (CEOs) and top-level management, hopes to become a world-class leadership development centre in the next few years.

CEO David J.S. Winfield says ICLIF aims to become a recognised centre of excellence for the development of corporate leaders with a global perspective and Asian insights.

Its most popular syllabus is the Global Leadership Development Programme (GLDP), launched in 2004.

“Our programme also allows participants to network, participate in shared learning experiences and development sessions, and exposes themselves to the brightest academic minds and leading industry practitioners,” Mr. Winfield says.

Universiti Putra Malaysia (UPM), one of the largest and most popular universities in the country, started life 76 years ago as a college of agriculture and was raised to the status of a university in 1971. It acquired its present name in 1997 to indicate its by then multidisciplinary nature.

Professor Datuk Dr. Nik Mustapha R. Abdullah, UPM’s Vice Chancellor, says the institution has expanded its frontiers in various disciplines, such as engineering, medical sciences, pure sciences, economics, management, education, languages, communication and other fields.

“Agriculture is still the main thing, and accounts for 70% of our research grant. Our focus is on agri-biotechnology because our strength lies in agriculture,” says Prof. Nik Mustapha.

The National University of Malaysia, known as UKM, as the country’s flagship educational institution, sets the standard by being one of the best universities in the country and by playing a key part in social and economic development.

Its focus is on research on sustainable regional development, renewable energy, and climate change, as well as health technology and exploring Malaysia’s rich biodiversity for biotechnology development.

Professor Dato’ Dr. Sharifah Hapsah, the Vice Chancellor, encourages her students to think beyond traditional approaches.

“You have to invite people to use their creativity and innovation. If we are required to be creative and innovative, then it should be free and open,” she says.

“In R&D, this university carries out strategic industry related research programmes. This is very relevant to industry in Malaysia and the region,” she says.

Datuk Hj. Idris bin Hj. Haron, Deputy Minister of Education, says that Malaysia will continue to generate knowledge-based activities. “The obstacle is how to implement this knowledge on the ground. The universities and colleges here have to create the awareness in students and teach them to get over the obstacles and implement the ideas,” he says.

HEALTH MATTERSYvonne Warren has been in Malaysia for two weeks. She’s taken time off from her job as a systems manager in the United Kingdom to accompany her husband, a European Member of Parliament, who is combining an official visit with sightseeing.

Mrs. Warren is also taking advantage of her stay to find out more about the country’s network of private

>> continues from previous page

DATO’ SRINAJIB RAZAK

Prime Ministerof Malaysia

Corporate Communication DivisionUniversity Putra Malaysia,43400 UPM Serdang, Selangor, Malaysia.Tel: 603-8946 6003/6014 Fax: 603-8948 7273Email: [email protected]

www.upm.edu.my

that Malaysia has the most attractive laws favouring foreign investment in real estate.

“The majority of the land is freehold and foreigners can buy any amount of residential properties priced above e50,000. Our land laws are clear and transparent; there is also a waiver on real property gains tax,” says Mr. Fong.

“The Malaysia My Second Home (MM2H) programme is also not well known overseas. Most of the investors we met overseas are not aware of the benefits offered under this programme,” he adds.

TRAINS AND BOATS AND PLANESLai Yoke is headed for Kuala Lumpur International Airport, from where she will take a flight to a company branch in Sarawak. Hers is a generation that takes the country’s fast-growing, but already extensive infrastructure for granted. Along with education, transport has provided new opportunities and improved living standards for millions.

As part of Malaysia’s aim to become a regional transport and logistics hub, the Ninth Malaysia Plan requires better use of existing infrastructure and complementing it with new facilities. Road transport has seen the most attention among all the elements of transport infrastructure and Malaysia now has about 78,000 km of roads.

The Malaysian Highway Authority (MHA) is responsible for extending the country’s highway network, another pillar of Malaysia’s future.

“Our vision is to be world-class, and to do that we need the staff to be competent, and to do that we are doing a lot of training, and that is the direction

existing tower block, tripling its size to offer nearly 350 beds, as well as six operating theatres.

“We are also developing a more customer-centric and integrated approach in our healthcare services, with several centres of excellence,” she says.

Sime Darby Medical Centre Subang Jaya CEO Ms. Elaine P.Y. Cheong says Malaysia will need a central government agency if it is better compete with Singapore and Thailand. “Medical travel to Malaysia should be seriously acknowledged as a vital source of tourism revenue for the country,” says Ms. Cheong.

“We need to ensure that healthcare providers in Malaysia are internationally accredited and that they subscribe to a high level of clinical and service excellence, besides having superior technology and patient-oriented facilities,” she says.

Yvonne Warren and her husband are also looking at the possibility of investing in Malaysia’s property sector.

Launched in 2008, Malaysia Property Incorporated (MPI), is a joint public-private sector initiative to promote Malaysia’s real estate internationally.

Promotional programmes that include road shows and conferences in the target markets of Britain, Japan and the Middle East.

“We are excited that everything is falling into place now and the MPI will be championing the country’s real estate industry in the international arena,” says MPI Chairman Datuk Richard Fong. He adds that Malaysia was still relatively unknown as a destination for international real estate investors.

Compared with other cities around the region such as Singapore, Bangkok, Phuket and Bali, Kuala Lumpur is getting just a tiny fraction of the investment in the region. This is despite the fact



The hospital has also set up five centres of excellence that cover oncology, plastic surgery, cosmetology and burns, urology, nephrology and men’s health, women and children’s health, and heart and lung.

The Pantai Group of Hospitals, which currently has nine hospitals in its stable, is targeting to add five more hospitals by 2013.

Pantai CEO Dr. Wong Chiang Yin says the company was “always in talks” with various parties for a possible acquisition or merger of hospitals.

“We’re not saying there’s an acquisition soon but our target is to have five more hospitals in the next five years,” he says.

Dr. Wong says the company’s rebranding exercise will not only give the hospitals under the group a refreshed corporate identity but also the opportunity to consolidate all their operations to achieve synergistic benefits and efficiency, with the ultimate aim of providing better quality medical services to patients.

He says that industry players together with government agencies will have to work hard to ensure that Malaysia can compete with the likes of Singapore and Thailand, which have made a name for themselves in the medical tourism industry.

Sunway Medical Centre Dr. S.L. Chong points out that the Health Ministry and Tourism Malaysia will have to team up to promote the image of Malaysia as a tourist hub for leisure, travel and healthcare.

She also points out that most of the country’s doctors are trained in the United Kingdom. “I think British training exposes you to a wider range of things before you specialise,” she says.

Sunway Medical has just completed a major expansion that added four new buildings to its >> continues on next page



to go,” says Dato’ Ir. Mohamad Razali bin Othman, the Director General of the MHA. Our goal for 2020 is to have world class infrastructure.” Meeting strict environmental criteria are important to the MHA, he says: “We plan and design our roads carefully, taking care not to damage the environment.We are concerned about our forest, animal, habitat and so on. We have achieved the ISO 14001 standard for quality environmental management.

“There are now very good linkages between our industrial areas and our main ports, Tanjung Pelepas and Port Klang. Transport to these ports and also to Penang are very good, in fact, in Penang we are building another bridge 42 kms long to cater for the export of electronic goods.”

Malaysia’s network of new roads are lined with a bewildering array of advertising hoardings, but Peter and Yvonne Warren find themselves commenting on one company’s very visible branding presence. Jasmine started out as a humble rice mill in the northern state of Kedah, known as Malaysia’s rice bowl. After four decades, the Jasmine brand has built a range of rice products. Today, Jasmine is widely perceived to be the leading brand in the nation’s rice industry.

In many ways, says Jasmine CEO Lim Swee Keat, the company’s growth and branding reflect that of Malaysia’s.


Malaysia is blessed with an array of natural resources that have become the pillars of

the socio-economic growth. This has changed the landscape of the country in the past years. A crop which has contributed significantly to supporting this growth is oil palm, which is now almost a century old. Malaysia is the world’s leading exporter of palm oil contributing about 5-6% of the country’s GDP and providing employment for 1.4 million workers. Oil palm’s unparalleled productivity has fostered regional development and innovations that vary from healthy edible oils and trans-free formulations to versatile oleo-chemical products and palm biodiesel. Due to its

high yield of 4.18 tonnes/ha/year, oil palm produces 10 times more oil per unit area than the other oilseed crops thus requiring a smaller land area to feed the world compared to rapeseed, sunflower or soybean. The industry has an enormous importance in terms of both the macroeconomic and microeconomic perspective for Malaysia and has played a significant role in eradicating poverty and migration of labour force from rural to urban areas. In the international arena, palm oil is the only oil crop that undergoes auditing under a sustainability certification system introduced by the Roundtable on Sustainable Palm Oil (RSPO). Malaysia was the prime mover of the RSPO.

PalM oil. Malaysia’s miracle crop

“We have to continue to add value to our products,” he says, “while focusing on the need to address the country’s different markets adequately. In Malaysia, it is unique in the sense that we have three main races – Malay, Chinese and Indian. Each race has a different preference for rice. In marketing terms, we have to talk in three languages. We have to talk to these markets, and offer different products with different tastes. We

cannot have the same product for the whole market: traditions, culture, and cuisine are different.”

In the Northern Corridor Economic Region (NCER) and the Iskandar Development Region (IDR), particular emphasis will be placed on developing integrated transport and free zone complexes.

Three times the size of Singapore, Iskandar Malaysia spans over 2,217 sq km and is a mixed-use



development planned for completion in 2025. The expected investment of $110bn is split between an initial start-up of $13bn from 2006-2010 and another $97bn from 2011-2025.

Iskandar Investment Berhad (IIB) is an investment holding company which promotes and coordinates development to support Iskandar Malaysia.

“As Islamic states, the GCC countries and Malaysia share similar investment values and principles and Cityscape Dubai is the most appropriate venue for IIB to make its presence known in the Arabian Gulf,” says Arlida Ariff, Managing Director of IIB.

“With areas under development such as an Islamic banking hub in conjunction with sustainable development, commercial, education, and residential areas, Iskandar provides unique and truly global investment opportunities for interested parties in the region,” adds Ms. Arlida.

“Iskandar Malaysia is the next big thing in Southeast Asia, offering long-term investment opportunities that will appeal to an international audience,’ says Ms. Arlida.

Located in the southernmost tip of the Malaysian peninsula, the new development is looking to build synergies with neighbouring countries. Iskandar Malaysia is in the hub of ASEAN’s trade triangle and sees itself handling the anticipated trade boom resulting from the rapid and dynamic growth expected in the coming years. >> continues on next page

Dynamic energy potential, ample investment opportunities, richness of resources, coupled with stunning nature. Sarawak.

The largest state in Malaysia and a strategic gateway to South East Asia, Sarawak is a fully-fledged tertiary upstream services provider with a moderninfrastructure and investment incentives. With its unique renewable energy potential, Sarawak stands out as a frontrunner investment destinationespecially for capital- and energy-intensive industries. Initiatives such as the Sarawak Corridor of Renewable Energy (SCORE), alongside with four otherregional development corridors, trigger-off the transformation of the state into a vibrant and competitive destination to take your investment even further.

A paradise for investors, and a natural paradise. Find both in Sarawak.

FROM MELAKA TO SARAWAK…As Lai Yoke sets off for Kuala Lumpur International Airport, the Warrens are finishing a tropical breakfast on the terrace of their suite at the Maya Hotel. This five-star boutique hotel adjacent to the Petronas Towers is owned by one of the country’s leading property developers, SDB, and combines the ultimate in luxury with a decidedly ethnic feel, and is an oasis of calm in this noisy city.

The couple hop in a taxi, and head for the airport to board a plane for Sarawak, where Peter Warren will meet the Chief Minister and State Governor for an update on an ambitious energy project there.

The Sarawak Corridor of Renewable Energy, SCORE, will see Sarawak become the major supplier of energy for all of Malaysia. Malaysia has allocated $1.5 billion for the development of renewable energy under SCORE, which will involve more than half the state’s territory.

“So far, the central region’s potential has not been developed due in part to our low population,” says Chief Minister Pehin Sri Dr. Hj Abdul Taib Mahmud, who has overseen huge changes in the state since the 1980s.

For Dr. Mahmud, the principal challenge in realizing the potential of this vast territory lies in bringing together its many scattered rural communities.

“We planned out infrastructure in such a way that we could reach the closely knitted

communities and the ones with bigger numbers to become, what I call the ‘pioneer force’ to become the market economy. The key is to make people aware that we need stability and unity for development. Our vision for Sarawak is to diversify our economy away from the lines of oil and gas and traditional agriculture,” he says.

Key to this is developing a sustainable tourism industry that respects the state’s diverse ethnic make up and environment, says Dr. Mahmud.

“There are more that 30 racial groups in Sarawak and we have been able to preserve our own characteristics and culture. A lot of people have come to Sarawak to see its cultural aspects, more than the normal tourist wanting to see big cities,” he says.

Malaysia’s state oil firm is considering manu-facturing biofuels with growing interest in the renewable energy source.

Petronas is repositioning its research and deve-lopment division to look at alternative energy sources.

Biodiesel is seen as the best alternative fuel, with significantly lower emissions than conventional fuels. It utilises renewable feedstock such as palm oil.

Malaysia’s Plantation Industries and Commodities Minister Datuk Peter Chin Kah Fui says that the country is comfortably ahead of rival producers in sustaining and strengthening its traditional palm oil export markets.



He adds that while some nations that import Malaysian palm oil have begun cultivating oil palm, these plantations are not as good or productive as those in Malaysia. Mr. Chin adds that the measures taken to reinforce Malaysia’s lead in export markets include establishing plants in the importing countries to process Malaysian palm oil.

At the same, Mr. Chin says that Malaysia is looking to add value to its other plantation products such as pepper, rubber, and cocoa.

“We are looking for foreign investors who want to boost downstream activities in these plantation industries by processing the products in Malaysia: cocoa to chocolate, rubber into tyres ” he says.

“We are a trading nation. We have many bilateral free trade agreements and we are negotiating more and more, and companies who can help Malaysia grow along these areas are welcome,” he adds.

Lai Yoke and the Warrens strike up a conversation in a café at Kuala Lumpur International Airport, waiting for their flight to Sarawak. But they end up talking

about Melaka, or as it’s known in Europe, Malacca, where Peter Warren is due to attend a business conference the following week. Lai Yoke asks if this will be their first visit to this historic state, whose capital, now a UNESCO World Heritage city, dates back to the 14th century, and which has been colonised by the Chinese, Portuguese, Dutch, and English.

While tourism is an important contributor to the state’s wealth, the state government is also encouraging non-labour intensive and hi-tech industries, with attractive investment incentives from the federal government. Chief Minister Datuk Seri Modh Ali bin Mohd Rustam, sees the prosperous state as an Asian Switzerland, focused on high-revenue niche markets.

“Melaka should be vibrant like Switzerland. The population is about 3-4 million but they are strong in biotech and ICT. I believe Melaka can be the same. Melaka’s future also includes health tourism. We have many specialist centres here. We are also pushing for education with seven universities in Melaka. By 2020, 80% of Melakans will have been through higher education,” he says.

Meanwhile, back at Kuala Lumpur International Airport, the Warrens and Lai Yoke are set to board their flight to Sarawak.

Winner of the country’s Company of the Year Award in 2007, Malaysia Airports Holding now manages 39 of the country’s airports, along with five overseas.

In 2008, says Dato’ Seri Bashir Ahmad, CEO of Malaysia Airport Holdings, the company managed a 7% increase in both domestic and international passenger volume, a 28.8% increase in profit, and total passenger volume of more than 35 million.

Looking down at Kuala Lumpur as they head across the Malay peninsula to the South China Sea toward Sarawak, the Warrens pick out the capital’s landmarks, chief among them the Petronas twin towers. The city is vast, but as the plane continues its ascent, a seemingly limitless expanse of forest spreads out to the horizon on all sides, a potent symbol of this country’s potential to achieve its dream of development, a dream made real by a change in thinking.


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