Move to K-economy - The 3 Es strategy

The Government has since the mid 90’s embarked on an ambitious policy to migrate the economy from an industrial based economy to a knowledge based economy. Although it could have been better implemented, the Government and the Prime Minister must be commended for their insight and imaginative thinking in embarking on such an arduous journey.

It is never easy to change the mindset of an entire nation. We have done it before by rapidly moving from an agricultural economy to the industrial economy with great success. Now the task is even greater, but not one that is unachievable. The key is in developing a comprehensive end-to-end strategy with execution being a priority. Most strategies fail not for lack of planning or thought but because of poor execution.

The necessary strategies are embodied in the three E’s of Education, Environment & Entrepreneurialism.

Education begins with the very young. We need a comprehensive education policy with computer education from year one. Computer education and familiarisation with the Internet and Information & Communications Technology (ICT) must begin from primary education. The smart schools project while commendable does not provide computer literacy for all children. While some of the brightest in such schools may become computer literate the majority of children will miss out on proper computer education.

We have to accept the fact that the future lies in ICT and Science and Technology. From the medical sciences to robotics and sports, ICT plays a key role. All children that progress to tertiary education in the future must possess more than merely a cursory knowledge of computers. Thus they must start at a very young age.

Computer education must be a compulsory examinable subject like Maths and Science from year One. All schools must be equipped with computer labs adequate for the school’s population. Education must include both software and hardware. Students should take apart computers, study what each part is about and put them together again. This will also enable the recycling of old computers. They should also learn programming, coding and analysis of computers. A curious and creative culture needs to be inculcated into the young.

To do this there must be a program to train teachers firstly in the art of computer education and then in the software and hardware aspects itself. Teacher Training Centres should include programs conducted by the major Software and Hardware companies, who I am sure, will be more than willing to assist. Companies like Microsoft, Oracle, SAP, IBM and Hewlett Packard will probably even sponsor such programs as the education of the young provides further avenue for branding and awareness of their products. All of these companies also have funds for social programmes.

Then there is the need to educate the public. The Government should encourage the provision of classes under the Human Resources Development Fund for such education, subsidised by the Fund. Tertiary institutions that conduct classes on computer education for the masses should be tax exempt to enable them to provide cheaper classes. The government may also want to consider other incentives like Investment Tax allowances for such organisations.

Education can include free computer courses conducted either on television or over the Internet. For example Barnes and Noble (www.bn.com) an Internet books website has a Barnes & Noble University where visitors to the site can take many different courses free online. With the advent of Broadband our local Universities like Uniten can provide simple courses free online. Even without broadband, simplified courses can still be conducted online. Many major software companies already provide such courses online including online examinations. With the Internet, education knows no bounds. All that is required is for the Government and local Universities to be more imaginative in their thinking and being generous enough to do much of these without cost.

The second “E” is for the Environment. This refers to the creation of a better Environment for the growth and development of ICT in Malaysia, an environment that provides equal opportunities for all Malaysians. One glaring point is the Multimedia Super Corridor itself. By restricting the provision of MSC status to companies located only within the Corridor, we have excluded 95% of the nation. Companies in Pulau Pinang, Johor, the East Coast and Sabah & Sarawak are therefore automatically excluded. The only alternative is for them to move to the Corridor and this not only takes them away from their families but also takes opportunities away from their communities and regions.

There should instead be the creation of clusters of “little” Corridors within each region where MSC companies can be located. Thus Pulau Pinang can have its own MSC Cluster, as can Kuching and Kota Kinabalu. This will encourage greater research and development on a larger scale and helps the development of regional R&D communities and regions. Taken a step further, we should even consider MSC Clusters outside the country. Thus MSC status companies can be located in an MSC Cluster in Silicon Valley, New York, Germany or Japan. Imagine the impact this will have on the development of R&D for the nation. Malaysians can run these companies while enjoying the benefits of contact with and knowledge of foreign experts and foreign institutions.

Other aspects of the Environment are the provision of funds, grants and subsidies for ICT. The subject of funds has always been a thorn in the side of the Government and this must be adequately addressed. Although the Government is taking some action, it must consider if this is adequate towards achieving its goal of creating a knowledge economy. This issue also does not seem to be adequately addressed in the Government’s 8th Master Plan unveiled on Monday.

The Grant schemes are desperately lacking. Many Grant schemes are poorly administered with some taking more than six months for approval. There are also schemes which once approved are never executed. Many of the Grants approved have not been taken up and the reasons for this need to be studied. Contrast this with the Grant schemes of our neighbour, which are often approved in 30 to 60 days with very high adoption rates. In Malaysia, the Government provides, the Administrators procrastinate, the Entrepreneur becomes disillusioned and the Nation loses.

One other aspect sorely felt by Citizens and Businesses alike are the high costs of telecommunications, especially high-speed bandwidth. Malaysia’s lease line costs are among the highest in the region and for a nation embarking on a journey towards the k-economy this is one factor that is holding us back.

For example without Broadband and high bandwidth audio-video education cannot be provided online. While the technology to deliver real-time lectures is currently available, the lack of high-speed access prevents this delivery especially to rural and sub-urban communities, the very communities that need them the most. This will also delay the deployment of e-Government initiatives like Telemedicine to these communities.

The final “E” is for Entrepreneurialism. We need to create a climate suitable for the development of great Entrepreneurs. This also begins with education. Entrepreneurship should be taught from upper secondary through to tertiary education. How many engineers know how to read financial accounts, how many IT graduates can write a business plan and how many biochemists know how to market their discoveries globally?

Whether Entrepreneurs are born or made, everyone can benefit from such knowledge. We don’t have to learn only from mistakes because there is a better way. If every Entrepreneur knows from the beginning that the Cash Flow is the key to financial management, there will be fewer failures and we can create a better educated and smarter Entrepreneur. The success of developing the k-economy depends on the success of Malaysian Entrepreneurs. Without them, there is no k-economy. We must do all that we can to nurture them, educate them and finally assist them in their search for glory.

It is not easy to do what our Government has embarked on. Many lesser Governments would have failed by now especially with the magnitude of the crisis that hit us in 1997-1998. Yet there is a better way and much more that needs to be done. I am confident that we can do it but only if we choose to do so.

25 April 2001