Malaysia Maju 2020

Malaysia, is a federation consisting of thirteen independent states which include Perlis Indera Kayangan, Kedah Darul Aman, Penang The Pearl Island, Perak Darul Ridzuan, Kelantan Darul Naim, Terengganu Darul Iman, Pahang Darul Makmur, Johor Darul Takzim, The Historical State of Melaka, Negeri Sembilan Darul Khusus, Selangor Darul Ehsan, Sabah The Land Below The Wind, and Sarawak the Land of the Hornbills; together with the Federal Territory of Kuala Lumpur, Labuan and Putrajaya. The capital and largest city is Kuala Lumpur, while the seat of government administration is in Putrajaya. Labuan is designated as an offshore financial centre. Malaysia is the third largest economy in South East Asia, with the third highest GDP per capita. It is an advance emerging market nation, with a population of 28 million people and the leader in Islamic financial services in the world. Malaysia aspires to become a developed, high-income nation by the year 2020, when it aims to achieve per capita GDP of US$15,000, from US$8,000 now.
Showing posts with label Singapore. Show all posts
Showing posts with label Singapore. Show all posts

Tuesday, February 28, 2012

Malaysian Union - A Dream Too Far? (Part 1)

In recent years some economists have emulated an economic union between the two nations on the Korean peninsular. Yes, you read that right, a united Korea between the communist north and the capitalist south. The union between the two countries have been suggested and discussed among the economic and political sphere for quite a long time, taking precedence from the unification of the Germans in 1989. However, the unresolved war between the two nations have made the idea of a "United Korea" on the back burner of the global agenda.

The unification of the two Koreas will create a an economic and military superpower, of which according to many, will surpass that of other first world and G20 economies such as Germany, France and even Japan. Currently, South Korea has the 15th largest economy in the world, and a major industrialist in Asia and the world. The North, however, has among the poorest in Asia, with a government-led economy and an autocratic regime.

The differences of the two Koreas have caused the idea of a reunification between the two become more complicated than it sounds. For almost 60 years, since the end of World War 2, the Koreas has been divided and ruled in a completely different ways. The North has been ruled and aligned to the communists, after being put under Russian administration right after the War, while the South has been ruled as a democratic, capitalist country pursuant to it being administered by the United States in 1945.

Despite the economic and social benefits that could be created out of a united Korea, the idea is hard to be realized. Although the two governments have made several commitments towards the unification, the most prominent ones being the June 15th North-South Joint Declaration, the economic and social disparities between the two nations is so vast that there's more oppositions to the idea rather than constructive actions by both parts.

Forget about the Koreas. This article is not going to discuss about the possibility and feasibility of a United Korea. Rather, this article seek to revive an idea which has been on my hearts, and I believe, many who call themselves "Malaysians". This article seeks to put forward the idea of a united Malaysia, or better worded or construed as - the formation of a Malaysian Union or Malaysian Confederation.

Since 1946, when the Imperialist British put forward a form of governance to the then Malaya, the Malayan Union, which consisted of the 11 states of the then British Malaya (now Peninsular Malaysia), the British was the one who separated Malaya's most precious jewel - Singapore. The Malayan Union was vehemently opposed by the Malay Nationalists back then because it took away the power of the states' Sultans over the governance of the country, while the democratic-socialist movement of All Malayan Council of Joint Action - Pusat Tenaga Rakyat (AMCJA-PUTERA) opposed it on the ground that it was done undemocratically and excluded Singapore from the Union.

After nationwide opposition in the form of public disobedience famously called "Hartal", the British government proposes the Federation of Malaya instead, in 1948, replacing the Union. Once again, the British separated Malaya and Singapore into two different political entities. This was however excepted by the Malay elites who pose major influence onto the people, as the governance form of the Federation recognises the function of the states' Sultans as the Head of States, although it remained largely ceremonial up to this day. By the time the Federation came into form, the idea of a united Malaya and Singapore fought by the AMCJA-PUTERA was largely dismissed.

However, after Malaya gained independence from the British in 1957, consequently the young government reignited the idea of a united Malaya and Singapore, which will be called "Federation of Malaysia". Together with the British territories of Sarawak and North Borneo (now Sabah), the Federation was realised in 1963. Nevertheless, after only two years of unification, Singapore was expelled in a highly emotionally-charged affair. The dream of a united, progressive Malaysia together with Singapore once again diminished in 1965. Since then, the two young countries has grown into among Asia's best economically and socially in their own rights.

Singapore today has a highly-advanced capitalist economy, governed by a semi-autocratic, but democratically elected representatives. It is a high income economy, with a GDP per capita of USD50,123. It is the financial capital of South East Asia, and also its major advance technology manufacturing base. Despite its tiny geographical size, population and lack of natural resources, its visionary leaders have managed to turn the once back water economy into one which is highly regarded in the international stage.

Malaysia too has done relatively well on its own right. Since the 1960s, the country has grown to become the third largest economy in South East Asia, surpassing its larger neighbors such as the Philippines and Vietnam, and only behind Indonesia and Thailand. However, in terms of GDP per capita at USD8,617, it stands as the third richest as well, but behind its smaller neighbors and once brothers Singapore and the oil-rich Brunei. It is the second largest producer of palm oil, third largest producer of natural rubber, and has the largest Islamic capital market in the world.

In terms of governance and political form, there are not many differences between the two countries. Malaysia and Singapore are both governed by democratically elected representatives and both uphold common universal values and human rights. Both have a prudent and sound economic and social policies, which are formulated to govern the various ethnics which made Malaysia and Singapore as their home.

The challenges faced by both countries could be deemed as reasonably similar, as both countries are trying to find the right balance for equitable growth across all races, while maintaining fair economic and social policies. For example, since the racial riot in 1969, Malaysia has adopted a positive discriminatory stand in favor of the Malays to increase the ethnic's participation in the country's economy, while Singapore has been to dependent on foreign labor to maintain high sustainable growth rate, in the expense of its very own delicate social fabric.

Actually, through the re-unification of Malaysia and Singapore, several economic and social problems which the neighboring countries are currently facing could be managed and handled better than if they were to stay separated as of now. For example, Singapore's labor shortage could as well be overcome by the larger labour force of which Malaysia has, while skilled labor currently based in Singapore could be utilised by Malaysian companies as well.

In terms of ethnic proportion, Singapore has a majority Chinese population at about 60% to 70%, while Malaysia has a majority Malay/Bumiputera population of about the same percentage. The increase in Chinese population would not make any major disruption to the social fabric in Malaysia, as it has already a large chunk of ethnic Chinese population. Although ethnic Chinese comprised about 2/3 of Singapore's population, that is actually only about 4.2 million additional Chinese population in absolute number. Malays would still be the largest ethnic in a reunified Malaysia at about 16.8 million in absolute number.

Economic and political policy, such as ethnic preferences in Malaysia and meritocracy and survival of the fittest in Singapore could actually be reconciled. In fact, Malaysia's ethnic preference policy is not blatantly used that it disregard merits at all cost. Meritocracy is still a prerequisite in Malaysia and ethnic preferences is just a tool to re-balance economic growth across all ethnics. Singapore's expertise could be tapped to bring in the culture of merits in Malaysia, and through time, ethnic preference could be dismantled, given strong political will by the federal government.

With the abundance of natural resources Malaysia is endowed with, and the greater population that it has compared to Singapore, could actually bring in more economic prosperity to Singapore. Already, Malaysia and Singapore is regarded by foreign investors as a single market, whereby both countries are the largest trading partner to each other. Malaysia exported raw materials such as crude oil and palm oil to Singapore to be refined (notwithstanding the fact that Malaysia too has a significant refineries) and re-exported to other countries in the region, for example.

(to be continued)




Tuesday, April 12, 2011

500 km MRT for Iskandar Malaysia

Iskandar Region Development Authority (IRDA) was reported to proposed a 500km Mass Rapid Transit in Iskandar Malaysia, Southern Johore. The project, if it was approved by the Malaysian cabinet would likely to be build in 6 phases, with the first phases to be operational by 2020.

The project might be the one that is proposed by the joint-venture company between Malaysia Steel Works (KL) Bhd and KUB Malaysia Bhd. The joint-venture company, Metropolitan Commuter Network Sdn Bhd, is reported proposing for a world-class commuter rail network, which will utilize the existing Keretapi Tanah Melayu Bhd (KTMB) lines in southern Johore area as well as its reserve lands.

The Malaysian government had given the go ahead for a MRT line in the Klang Valley region, which is likely to start in July this year. The Sungai Buloh - Kajang line, which is about 51 kilometres length, and would likely to cost at least RM20 billion for the first line. The entire MRT ecosystem in KL was slated for a price tag at least RM50 billion for a comprehensive MRT lines of 150 kilometres.

Even though the land price in Southern Johore (not including Johor Bahru city area) is much lower than that in the Klang Valley, it is safe to say that the 500 km MRT projects would costs at least a whopping RM100 billion to say the least, considering that less land acquisitions to be made compared with the KL MRT projects, and that the project manager will utilize the existing KTMB's lines and land reserves.

The project might be a catalyst for more liberalization of the construction and infrastructure sector in Malaysia, as it was reported earlier that Singapore would help the Iskandar Malaysia to put in place MRT lines in the economic zone. This is due to the KTMB relinquishing its lands in Singapore (the relocation of KTM stations in Tanjung Pagar and Woodlands in Singapore) to the government of Singapore.

More details of the project and studies should be made in order for Iskandar Malaysia to have an orderly systematical mass public transportation system, which would attract more people to reside there and fully optimize its potential to become a vibrant metropolis.












Monday, April 11, 2011

Singapore to Venture into Nuclear Power

Singapore is studying the possibility for the city-state to utilize nuclear technology for its future power generation.

According to the state's senior minister for trade, industry and education S Iswaran that the government of the city-state has begun preliminary studies on the possibility of the city-state to use nuclear in power generation.

Asian countries has been ambitious in their planning in utilizing nuclear as an energy source, with Indonesia, Vietnam, Thailand and Malaysia has stated their plans to do so in the next decade or so.

However, due to the Japan's earthquake and tsunami which devastated much of the country's north eastern shores last month, which triggered nuclear crisis due to the destruction of the Fukushima Daiichi nuclear power plant in Sendai prefecture, which was caused by the earthquake and tsunami, many Asian countries has put their nuclear ambition on hold.

Risks for earthquake and tsunami is very much high in countries which is situated on the pacific ring of fire, which includes the Phillipines and Indonesia. Indonesia has stated their plans for a nuclear power plant, but stated that they will undertake the highest level of safety precautions if they were to build and commission nuclear power plants for energy generation of the country.

Thailand, though not directly located on the pacific ring of fire, has put their nuclear power plants plans on hold in reaction to the Japan's nuclear crisis in Fukushima. Malaysia has also postponed such plans, as it incurs high capital outlay and there are still more studies should be conducted in the event of nuclear power plant to be commissioned in the country.

Geographically, Singapore is not an earthquake prone island, but its tiny size will make it highly risky for the island-state to commission such a highly dangerous undertakings, even though the Singapore government could boasts of having the best safety precautions for a nuclear power plant to be commissioned there.

Maybe the best option would be for ASEAN member countries to come out with a joint regulation for any member countries to venture into nuclear power plant to comply with ASEAN's best standard of governing and administer the nuclear power plants set to be commissioned here. The ASEAN's best standard should comply with the world's best standard, approved by the International Atomic Energy Agency and the Organisation of Economic Cooperation and Development.























Tuesday, February 1, 2011

Dr Mahathir hits out Singapore

Malaysia does not sabotage Singapore by developing its own ports, said Dr Mahathir Mohamad. In his letter to Utusan Malaysia today, the former Prime Minister of Malaysia said that it is not wrong for an independent country like Malaysia and Indonesia to develop their own ports.

According to him, what Malaysia and Indonesia did was not an act of sabotaging the Singapore port, but as a competition to the latter.

Singapore's Port operation is said to be affected by the growing and fast developing ports on southern Johore, such as the Port of Tanjung Pelepas (PTP) and the Johor Port at Pasir Gudang.

PTP for instance, set the world record as the fastest growing port with 1 million twenty foot equivalent unit (TEU) in just 571 days of operation in 2000. This is due to its strategic location which is on the busy sea lanes of which the Port of Singapore derived its growth.

Previously, there was also call from MMC Corp, a power-to-ports conglomerate which owns both ports (Pasir Gudang and Tanjung Pelepas) to the government for a consolidation between the operation of both ports. According to persons who are informed with the proposal, the consolidated operation between both ports could pose a greater competition to Port of Singapore in the medium to long term.

PTP and Johore Port could become the alternative choice to Port of Singapore based on their competitive rates and efficient container handling and throughput. This is reaffirmed by the growing sea liners which opted to dock at PTP such as MAERSK, Evergreen and CMA-CGM, which are three of the world largest sea liners.

The government should play more roles in promoting PTP and Johore Port as the choice ports in South East Asia. More investments should be injected into expanding the ports berthing facility and also for increasing the connectivity between the ports to the rest of Asia.

With the area of southern Johore being gazetted as the next growth region for the country through the implementation of the Iskandar Development Region (IDR), there are much more potential for both ports to expand and increased in prominence as the next international port destination in Asia.