By Jonathan Di Rollo
Independence has been cherished by Malaysians for decades but in a rapidly changing world creating sustainability through economic self-sufficiency has become an increasingly important priority. With sustainable independence as a new priority, the questions of how to achieve this and in what time frame are important and need-considered answers.
Malaysia’s government has ongoing development plans to address these issues and answer these questions but every nation depends on, and serves, all of its people.
Public and private sector decision-makers are faced with leading and managing local talents and global partnerships in different sectors requiring different governance for achieving optimal outcomes. Leaders in each field have diverse experience to offer that can be used to keep independence going in sustainable directions through self-sufficiency that protects the country from global fluctuations and shocks.
Malaysia’s Self-sufficiency Milestones
- Early Development (1957-1970)
- 1957: Independence from British colonial rule.
- 1963: Formation of Malaysia, including Malaya, Sabah, Sarawak, and Singapore (until 1965 when Singapore separated).
- 1965: Establishment of Bank Negara Malaysia to manage the country’s monetary policy.
- New Economic Policy (1971-1990)
- 1971: Introduction of the New Economic Policy (NEP) aimed at reducing poverty and restructuring society to eliminate the identification of race with economic function.
- 1974: Establishment of Petronas, the national oil and gas company, marking a significant step towards energy self-sufficiency.
- 1981: Launch of the Proton car project, Malaysia’s first national car manufacturer, to reduce dependency on imported vehicles.
- Industrialisation and Modernisation (1991-2000)
- 1991: Introduction of Vision 2020 by Prime Minister Mahathir Mohamad, aiming for Malaysia to become a fully developed nation by 2020.
- 1994: Completion of the North-South Expressway, enhancing transportation infrastructure and boosting economic growth.
- 1996: Launch of the Multimedia Super Corridor (MSC) to transform Malaysia into a knowledge-based economy.
- Economic Diversification and Innovation (2001-2010)
- 2001: Implementation of the Third Industrial Master Plan, focusing on strengthening the manufacturing sector and developing new growth areas.
- 2005: Malaysia becomes a net exporter of oil and gas, achieving significant energy self-sufficiency.
- 2007: Introduction of the Ninth Malaysia Plan, emphasising human capital development and innovation.
- High-Income Economy and Sustainability (2011-2020)
- 2010: Launch of the Economic Transformation Programme (ETP) with the goal of making Malaysia a high-income economy by 2020.
- 2012: Introduction of the National Automotive Policy to further develop the automotive industry and encourage the production of energy-efficient vehicles.
- 2015: Implementation of the Goods and Services Tax (GST) to diversify government revenue sources.
- 2020: Achievement of several Vision 2020 goals, although not fully reaching high-income status, significant progress in economic development and self-sufficiency.
- Post-2020 Initiatives and Ongoing Efforts
- 2021: Introduction of the 12th Malaysia Plan, focusing on sustainable growth and enhancing the resilience of the economy post-COVID-19.
- 2022: Continued efforts in renewable energy adoption, aiming for 31% renewable energy capacity by 2025.
- 2023: Strengthening food security measures to reduce dependency on imported food products.
Malaysia’s Brand Ambassadors
Ambassadors perform as diplomats for their country all over the world but a country is a brand too and brand ambassadors represent the soul of the nation and embody all points of contact with the rest of the world.
Independent countries are still dependent on their people; their politicians, business people, artists, lawyers, scientists and inventors. High profile brand ambassadors for Malaysia include Datuk Lee Chong Wei, the celebrated Olympic medallist turned corporate and educational brand ambassador who embodies how a country will always depend on its people as leaders to carry on global partnerships that benefit themselves as well as the country. Leading in sport then business and education shows connectivity and influence in independence.
There are many more worthy Malaysians who have and continue to contribute to brand Malaysia in different ways in different sectors. The influence of these leaders to self-sufficiency is achieved through economic policies, development programs and well-managed resources. These key people are also role models for others showing us that we are always in dependence.
Food Security
In a country whose economy depends greatly on for agriculture, self-sufficiency in food is a top priority. In 2023 Malaysia’s self-sufficiency rate (SSR) for rice was at 62.6%, vegetables 44.7%, and fruits 78.1%, according to Datuk Chan Foong Hin, Deputy Agriculture and Food Security Minister. These headline figures for food security are just one part of the story in Malaysia’s self-sufficiency journey.
Ramly Processing Sdn. Bhd. the renowned Malaysian frozen and fast-food company, founded by Ramly bin Mokni, tells an equally important story. From humble beginnings starting in 1984 with the aim of developing a clean and good-quality halal Western fast-food chain in Malaysia, Ramly began selling burgers with his wife. He discovered that it was unknown whether most fresh-meat sources were halal or not and decided to produce a halal-certified meat source for all Muslim consumers in Malaysia. With the halal economy expanding they increased production whilst maintaining stringent quality control. The Ramly Burger brand began to gain recognition not only for its halal certification but also for its taste and affordability becoming a national success story before starting to export to neighbouring countries of Singapore, Brunei, and Indonesia.
Halal certification contributes towards self-sufficiency by implementing legal frameworks and enforcement to promote the halal industry as a source of economic growth. Integration between halal finance and halal foods can create a new source of growth. Implementing halal standards and obtaining halal certification is crucial for industry players to export their products to Muslim markets and attract Muslim-friendly tourism.
Tech: Towards a Knowledge-Based Economy (K-Economy)
Malaysia has been embracing digital transformation for decades and continues to transition towards becoming a k-economy. With the government continuing to recognise that self-sufficient economic growth requires innovation, technology, and human capital development, initiatives taken include the Multimedia Super Corridor (MSC) started in 1979, followed by the Malaysia Digital Economy Blueprint. These technological advancements are pivotal for Malaysia to achieve greater self-sufficiency by reducing its dependency on external resources and foster innovation-driven growth. Former MDEC CEO Surina Shukri left a legacy through the development and execution of the Malaysia Digital initiative, which aims to create substantial digital economic spillovers through equitable access to digital tools, knowledge, and income opportunities.
“Predicated on a new framework built upon three primary components – Agility, Flexibility, and Relevance – the blueprint is set to enhance Malaysia’s value proposition to attract digital investments, firmly establishing Malaysia as the digital hub of ASEAN,” Shukri said during her tenure.
This strategy was validated by attracting major global tech investors, including Alibaba, which established its first regional e-commerce and logistics hub in Kuala Lumpur and more recently award-winning e-wallet provider Boost. These technological advances have also assisted SMEs in reducing transaction costs and expanding marketing enabling more self-sufficient business.
Most recently digital services have expanded to include telemedicine and E-Government and policies and strategies for adopting and using technology have also been applied to agriculture, fisheries and renewable energy in Malaysia reflecting the broad reach and impact of technology and its influence on self-sufficiency.
Internationalising Malaysia
One of the most high-profile Brand Ambassadors in Malaysia, Tan Sri Tony Fernandez, Capital A Sdn Bhd’ CEO, is an aspirational leader for Malaysians and foreigners alike. Air Asia has not only allowed more people to fly to more destinations than ever before but has also contributed to internationalising the nation.
Internationalising countries that lead the world can be seen by the boom in the Japanese economy, followed by China, turning them into world leading countries. However, these gains come with costs, and this is now a hot topic for sustainability. The environmental impact of air travel is closely watched by all airlines with transportation companies being major global contributors to carbon emissions. Addressing sustainability, Fernandez recently called on governments and aviation regulators in the region to improve air traffic management at airports so that airlines can burn less fuel instead of mandating them to use green fuel or sustainable aviation fuel (SAF) that are currently low in production.
“SAF is not going to change the world any time soon but there are things that we all can do now…SAF is just too expensive at the moment. There has to be a bigger supply…One per cent (of SAF) is not going to change a lot of things and passengers would have to fund this. Every passenger coming in has to pay a surcharge for SAF.”I would urge (the) governments inclusive of the Singapore government to sort out air traffic control. That’ll be a great place to start in terms of conserving fuel,” he said in a recent interview with local newspaper, New Straits Times.
The spill-overs from internationalising Malaysia may be difficult to quantify but there are strong arguments towards contributing to self-sufficiency.
Energy and the Environment
Any economic activity comes with costs as well as benefits and, with Oil & Gas contributing up to 30% of Malaysia’s GDP, strategies for sustainability in the energy sector have become a top priority. Given the importance of the oil price and its instability, the strategies of key energy sector players are influenced by national as well as international governance. Compliance with global sustainability goals has influenced decision-making and the dependence of the energy producing sector on self-sufficiency.
Strategies that diversify economic dependence may be equally important on the nation’s journey to self-sufficiency but these now include legal compliance and investor satisfaction which mean that economic independence is not the former only goal and sustainability is now an essential aspect of creating self-sufficiency.
Malaysia’s former Minister of Energy, Science, Technology and Climate Change (MESTECC) who did much during her tenure for adopting sustainable elements to Malaysia famously said, “Malaysia will not be the dumping ground of the world” in the Netflix documentary “Broken” that highlighted Malaysia’s plastic dumping problem. Another initiative by the ex-minister included setting-up a pollution monitoring system in Pasir Gudang Johor in 2019, following the incident where 4,000 people there experienced breathing difficulties. It was discovered that the main cause was due to gases released by chemical industries in the area. Lynas, a rare-earth processing company was also regulated after concerns were raised on radioactive waste.
These actions highlight that different levels of action on regulation are required even within the same economic sector and that self-sufficiency and independence are deeply intertwined.
Future self-sufficiency
Despite many milestones and significant progress made to date, Malaysia still faces challenges on its path to self-sufficiency. Economic inequality, regional disparities, and the need for continuous innovation are some of the issues that require ongoing attention.
External shocks such as the COVID-19 pandemic have highlighted vulnerabilities in global supply chains, underscoring the importance of building a resilient and self-sufficient economy. Investing in education, technology, and sustainable practices to remain relevant are key as well as managing the impact of these developments on enhancing social safety nets and addressing regional inequalities.
The Malaysian government’s commitment to the Shared Prosperity Vision 2030 (SPV 2030) is part of a vision that emphasises inclusivity and sustainability and by focusing on high-value industries, innovation, and human capital development, SPV 2030 can contribute to achieving self-sufficiency for Malaysia.
On the journey Malaysia will still rely on its people to make all these actions effective. National strategies, coupled with the contributions of individuals across various sectors, have laid the foundation for a self-sufficient, knowledge-based country that is globally connected.
As Malaysia and its people celebrate Merdeka month, reflecting on past achievements can yield lessons for future guidance that help clarify the path to self-sufficiency. The stories of entrepreneurs, educators, and environmentalists illustrate the human power of Malaysia’s economic vitality. Each individual’s contributions must be considered a source of inspiration, embodying the values of independence, innovation, and resilience that define Malaysia’s journey towards a prosperous and self-sufficient future. – (TSI)
