According to Deloitte’s recent report, Malaysia is not even in the list.
Here’s what I think about each drivers for competitiveness:
1. Talent – driven innovation: Malaysia faces a serious outflow of highly skilled workers.
2. Cost of labor and materials: Nobody wants to be factory operators or cleaners or construction worker. Most factory labors are foreign workers. Engineers in factory are mostly supporting manufacturing activities and does not require very high skill. Their wage is not as low as say…those from Thailand or Vietnam. Why hire Malaysian engineers when people can hire Thai/ Vietnam engineers for half or 1/3 the cost?
3. Energy cost and policies: There’s a severe lack of initiative to promote green energy. Our petroleum reserves is running out. Cost of fuel will continue to rise. Policies to address this issue is non-existent or ineffective.
You know what…I’ll stop here. Go read that report yourself.
I’m always a strong proponent of creating our own industry and not continue to rely on foreign investment. If Malaysia fail to do this it might as well strive to become good at agriculture.
I’ll make my vote count in the next GE. If worse comes to worst, an exit strategy is in order.
