INDUSTRIAL REVOLUTION 4.0: WHAT IS THE ALTERNATIVE FOR MALAYSIA?

INDUSTRIAL REVOLUTION 4.0:

WHAT IS THE ALTERNATIVE FOR MALAYSIA?

DR MUZAHET MASRURI

The Industrial Revolution 4.0 will dominate the manufacturing industry in the near future. Established in Germany, a group of high-tech research experts, at a cost of €500m, had conducted high-tech research project over the last decade, to become pioneer in transforming the future of the world's industrialization. The final report of the Industry Expert Working Group 4.0 was submitted to the German government in 2014 at the Hannover Fair, for implementation.

Driven by the latest development, other countries, such as China, Japan, South Korea and the United States are pursuing proactive measures to create global systems and standards to make their manufacturing industries more competitive over the next decade.

What is Industry 4.0?

Industry 4.0 is a revolution in the world manufacturing industry that combines two isolated technologies namely Information Technology (IT) and Operational Technology (OT).

Among its features are the integration of the digital industry, linking digital and physical elements, physical-cyber-based production systems and the Internet of things (IoT)

In industrial strategy 4.0, computers and machines are integrated to perform new functions and tasks in smart factories, where robots will be linked with remote computers, equipped with automation and capable of reading, interpreting systems and procedures, making decisions and directs the robot to act, with the minimum input from human resource.

Why is it called the Industrial Revolution 4.0?

It is called Industry 4.0 as it is the 4th level in the history of the global industrial revolution.

As we are aware, the Industrial Revolution is a process of change from the agricultural economy to an industry-based economy and characterized by the use of machinery. The Industrial Revolution 1.0 started in Great Britain in the 18th century and then advanced to other countries. The main feature of the Industrial Revolution 1.0 is the use of steam-powered machinery.

The Industrial Revolution 2.0 is characterized by the use of electricity and machinery for large-scale production and automation in the assembly line.

The Industrial Revolution 3.0, better known as the Digital Revolution, is characterized by the use of computer and information technology (IT). It reduces human resource requirements where robots and machinery will take over the task of performing automation functions in the production line.

The Industrial Revolution 4.0 incorporates information technology (IT) and operational technology based on the physical-cyber-system and IoT (internet of things). The use of manpower will be replaced almost entirely with robots equipped with systems and procedures that can interpret and make their own decisions.

Where is Malaysia's position in Industrial Revolution?

Malaysia is currently still in Industry 2.0, which is based on labor intensive.

Today, Malaysia fall behind other countries in the region, such as South Korea that had moved up to Industry 3.0 level, although in terms of industrial development, in 1970s South Korea was behind Malaysia

Can Malaysia disregard Industrial Revolution 4.0?

Can. But we have to accept the fact that we will be left behind by the fast-growing high-tech development which will dominate the manufacturing industry in this globalization era.

We may still recall when globalization was first introduced. We were skeptical and wanted to protect our rights. But we were unable to resist and eventually all of us were drawn into the wave of globalization as it is today.

We also have to accept the fact that foreign investors are now more focused on emerging Asian countries, such as Vietnam, Myanmar, Laos and Cambodia. Their focus on these countries is no longer because of cheap labor but because they have laid the foundation for the development of more advanced manufacturing industries in the countries.

The implication is that if now Malaysia is the 4th largest economy among the 10 ASEAN countries after Indonesia, Thailand and the Philippines, in the next decade Malaysia's ranking may go down and be replaced by countries such as Singapore, Vietnam, Myanmar, Laos and Cambodia.

The Malaysian manufacturing industry is strong and the second largest contributor to the country's GDP. Why change?

Indeed, the manufacturing industry is the second largest contributor (23.0%) after the services sector (54.5%) to the Gross Domestic Product (GDP) in 2016.

Malaysia's long-standing manufacturing industry which remained unchanged at Industry 2.0 level is the main reason Malaysia needs to import millions of foreign workers today.

The importation of foreign labor into this country had obviously deviated from the original goal of overcoming labor shortages in three major sectors, namely plantation, construction and maid services. Today, instead of fulfilling the labor shortage in the above sectors, the importation of foreign labor is directed towards the manufacturing industries and services sectors.

Currently, the importation of foreign labor has created ‘crowding out effects’ in the labor market in Malaysia.

Zahid Hamidi: Almost 2 million temporary foreign workers in Malaysia

It is true that the total exports of the manufacturing industry is high, which is RM645,768 million in 2016 (Bank Negara Report), especially electrical and electronics products which accounted for 36% of total exports.

But we have to accept the reality, not all RM645,768 million of the export value, which always been mentioned by the political leaders to show the strong fundamentals of the Malaysian economy, is accrued to the government’s coffers. Only a mere 25% were collected through corporate tax.

Yet, we have not taken into account the leakages of money from the country's economy in the form of transfer payments made by foreign labor as a result of the industrial development which is based on labor-intensive, Industry 2.0.

The happy faces of a group of foreign workers as they set foot on KLIA

Recently, I have interviewed a group of foreign workers in the manufacturing industries and services sector. Their average income is about RM1,100 per month. Nearly all interviewees send money between RM500 - RM800 to families or parents to their home country.

Just imagine, how much would it be if there were 2 million foreign workers and each of them sent home an average of RM600 to their home country? RM600 X 2 million = RM1.2 billion a month ...!

The amount of money flowing out of the country's economy is huge. The money should be spent in the country to increase private consumption which is a major contributor to the country's economic growth (GDP).

Why, after more than 50 years Malaysian manufacturing industry is still at the stage of Industry 2.0?

It is because since the 1960s, Malaysia opted a strategy of using foreign investment to develop the industrial sector in the country. Hence, there are local industries largely owned by foreign investors who maintained labor-intensive technologies at the stage of Industry 2.0 and the situation remained until today.

Contrary to South Korea where the country was committed to creating competitive local entrepreneurs in industrial sector. Hence, there are high-tech local industries in Korea with big brands such as HYUNDAI, KIA, DAEWOO, SSANGYONG and SAMSUNG

Can we rely on foreign investors to jump into Industry 4.0?

As we know, foreign investors and Multi National Corporations (MNCs) invest in Malaysia due to the various facilities and incentives provided by the government.

In reality, they will not develop Malaysian products. Instead, maintaining the strategy for using existing labor-intensive and low-level of technology in their production, as it remains today.

Has Malaysia ever stepped into Industry 3.0?

Malaysia had stepped into Industry 3.0 when the country successfully developed a high-tech industry, such as PROTON in 1983 when PROTON SAGA cars began entering the market in 1985

But after taking 34 years to develop the industry, beginning from 2017, PROTON is just left by name because PROTON is no more owned by Malaysia but owned and controlled by Zhejiang Geely.

Can Malaysia jump from Industry 2.0 to Industry 4.O?

Let's think logically. While we're shouting and telling people that we're ready to jump from Industry 2.0 to Industry 4.0, but in reality it's not that easy.

Can we attract foreign investors to implement Industry 4.0 in Malaysia?

We can attract more foreign investors to invest in Malaysia. But as mentioned above, the reality is that foreign investors will not develop Malaysian products. Instead, they will maintain the existing labor-intensive technology based production strategy, as it is today.

Should the university change the curriculum to offer new courses in line with Industry 4.0?

This agenda is being seriously discussed at the Ministry of Higher Education and universities. We should not be so excited to change the university curriculum.

Changes can be made on condition that after leaving the university, graduates are guaranteed to be employed in the manufacturing industries with Industry 4.0 standard.

The question is, when will Malaysia have manufacturing industries with Industry 4.0 standard? As we are well aware, over the past 50 years, our manufacturing industry is still in Industry 2.0

We do not want the 1970s issue to recur. When the government announced that the future nation's development will be based on science and technology, the university's intake of science students was doubled. After leaving university, graduates did not become scientists, but eventually became teachers.

What is the Malaysian strategy to face the Industrial Revolution 4.0?

The labor-intensive, Industry 2.0, which had been maintained over the past 50 years, has to change its focus to high-tech capital-intensive Industry 3.0.

History tells us that Malaysia was capable to develop Industry 3.0, such as PROTON in 1983 when the PROTON SAGA car began to enter the market in 1985. After Industry 3.0, it is best to talk and think strategies for the Industrial Revolution 4.0.

Author: Dr Muzahet Masruri. Ph. D (Economics), University of East Anglia, United Kingdom.

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APA KESUDAHANNYA PERTUMBUHAN EKONOMI MALAYSIA 2017..?

APA KESUDAHANNYA PERTUMBUHAN EKONOMI MALAYSIA 2017..?

DR MUZAHET MASRURI

Banyak pihak yang memperkatakan tentang ekonomi Malaysia sekarang ini, bukan sahaja penganalisis tempatan bahkan penganalisis luar negara daripada institusi, seperti Bank Dunia, International Monetary Fund (IMF) dan Bloomberg 

Sebagai rakyat Malaysia, kita tertunggu-tunggu berita, apa kesudahannya dengan pencapaian ekonomi negara bagi tahun 2017 yang tempohnya akan berakhir tidak lama lagi?

Penantian mengenai berita ini semakin panas berikutan timbulnya kontroversi berkaitan gambaran negatif mengenai kedudukan ekonomi Malaysia semasa. Ia berpunca daripada kenyataan-kenyataan rasmi yang terlalu memperbesar-besarkan sesetengah fakta ekonomi yang tidak tepat sehingga menimbulkan kekeliruan di kalangan rakyat dan reaksi negatif pihak-pihak tertentu.

Laporan terkini yang dikeluarkan Bank Dunia mengenai pertumbuhan ekonomi ‘East Asia & the Pacific’

Pencapaian 2016

Kalau kita ketepikan kontroversi yang berlaku dan meneliti kedudukan sebenar, kita dapati walaupun pertumbuhan KDNK Malaysia rendah sedikit pada tahun 2016 (4.2%), tetapi mengikut laporan Bank Dunia, Malaysia masih merupakan negara yang mempunyai rekod pertumbuhan yang baik dalam kalangan negara-negara yang sekelompok dengannya, iaitu Emerging Market & Developing Economies, East Asia & the Pacific.

Pertumbuhan 2017

Dalam laporan East Asia Pacific Economic Update, October 2017 baru-baru ini, Bank Dunia meramalkan ekonomi Malaysia akan mencatat pertumbuhan 4.9% bagi tahun 2017 dan dijangka terus meningkat bagi tempoh jangka pendek.

Peningkatan prestasi pertumbuhan tersebut disumbang terutamnya oleh aktiviti sektor swasta dan permintaan domestik yang kukuh yang merupakan pemacu utama kepada pertumbuhan ekonomi negara ketika ini. Selain itu, ia juga disumbang oleh peningkatan eksport berikutan permintaan yang lebih tinggi bagi produk perkilangan (Bank Negara Malaysia).

Prestasi ekonomi Malaysia lebih baik

Kalau kita membuat penelitian lanjut ke atas perangkaan Bank Dunia dalam Jadual di atas, kita dapati prestasi pertumbuhan ekonomi Malaysia pada 2017 adalah lebih baik berbanding dengan negara-negara di East Asia & Pacific yang lain.

Tidak setuju?

Anda mungkin tidak setuju dan bertanya, mengapa prestasi pertumbuhan ekonomi Malaysia 4.9% bagi 2017 dikatakan lebih baik sedangkan kadar perumbuhan tersebut adalah lebih rendah berbanding dengan negara-negara lain, misalnya Indonesia (5.2%), Laos (7.0%), Myanmar (6.9%) dan Vietnam (6.3%)...??

Apa jawapannya?

Persoalan ini adalah antara kesalahan lazim yang dilakukan oleh penganalisis apabila membuat perbandingan mengenai prestasi pertumbuhan ekonomi antara sesebuah negara dengan negara-negara lain.

Dalam praktis yang sebenar, kita tidak wajar membandingkan prestasi pertumbuhan ekonomi antara negara-negara dengan merujuk kepada kadar pertumbuhan yang dicapai oleh negara-negara berkenaan pada tahun yang dinilai. Contohnya, seperti angka-angka yang disebut dalam soalan di atas.

Ini kerana kadar pertumbuhan ekonomi (KDNK) adalah merupakan catatan sejarah tersendiri yang berlaku dalam sesebuah negara dan tiada kaitan dengan negara-negara lain.

Apa yang sepatutnya dilakukan?

Bagi menilai prestasi ekonomi sesebuah negara ia harus dilihat daripada segi perubahan mengenai kadar pertumbuhan ekonomi bagi dua tempoh yang dinilai. Ringkasnya, prestasi ekonomi semasa = kadar pertumbuhan KDNK semasa - kadar pertumbuhan KDNK sebelumnya. 

Jadual di bawah (ruang terakhir berwarna merah) menunjukkan perubahan kadar pertumbuhan KDNK 2017 berbanding 2016 bagi negara-negara East Asia & the Pacific.

Dalam jadual di atas, prestasi pertumbuhan 2017 berbanding 2016 bagi Malaysia ialah (4.9% - 4.2%) = 0.7%; Indonesia (5.2% - 5.0%) = 0.2%; Laos (7.0% - 7.0%) = 0%; Myanmar (6.9% - 6.5%) = 0.4%; dan Vietnam (6.3% - 6.2%) = 0.1%.

Angka-angka tersebut menunjukkan prestasi pertumbuhan ekonomi negara-negara berkenaan, iaitu sama ada meningkat (+) atau menurun (-) dan setakat mana tahap peningkatan dan penurunannya.

Rumusan

Malaysia dijangka mencatat pertumbuhan 4.9% bagi tahun 2017. Berasaskan perangkaan Bank Dunia, prestasi pertumbuhan ekonomi Malaysia yang meningkat 0.7% pada tahun 2017 berbanding dengan 2016 adalah antara yang terbaik dalam kalangan Emerging Market & Developing Economies, di rantau East Asia & the Pacific.


Baca artikel berkaitan: EKONOMI DUNIA DIJANGKA TUMBUH 2.7%, 2017 

Dr.Muzahet Masruri.  Ph.D (Economics), University of East Anglia, United Kingdom

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BOLEHKAH KITA BANDINGKAN HARGA PETROL DI NEGARA LAIN DENGAN HANYA MENUKAR HARGANYA KEPADA RINGGIT MALAYSIA?

BOLEHKAH KITA BANDINGKAN HARGA PETROL DI NEGARA LAIN DENGAN HANYA MENUKAR HARGANYA KEPADA RINGGIT MALAYSIA?

DR MUZAHET MASRURI

Mungkin anda selalu melihat perbandingn mengenai harga petrol antara sebuah negara dengan negara-negara lain dengan cara menukar harga petrol negara berkenaan kepada mata wang sebuah negara yang dijadikan perbandingan (misalnya ringgit Malaysia). Contohnya adalah seperti rajah di atas.

Persoalannya, adakah kaedah itu wajar?

Pada mata kasar, perbandingan tersebut menjelaskan perbezaan harga petrol antara negara-negara berkenaan. Bagaimanapun, perbandingan tersebut adalah tidak wajar dan tidak mengikut kaedah yang lazim digunakan dalam analisis ekonomi. Ini kerana perbandingan antara negara perlu mengambil kira faktor-faktor, seperti perbezaan mata wang, struktur ekonomi, tahap pembangunan, pendapatan negara, inflasi, kos sara hidup dan faktor-fator lain yang berbeza antara negara-negara tersebut.

Apakah kaedah yang lazim digunakan?

Kaedah yang lazim digunakan dalam analisis ekonomi bagi membandingkan harga barangan dan perkhidmatan dengan negara lain adalah dengan menggunakan Index Purchasing Power Parity (PPP). PPP adalah suatu kaedah di mana kos/harga bagi sekumpulan barangan (a bundle of goods) yang hendak dibandingkan mestilah sama dengan negara-negara lain dan menukar nilainya kepada matawang utama dunia. Dalam erti kata lain, ia bermaksud kuantiti matawang yang diperlukan untuk membeli suatu unit barangan dan perkhidmatan adalah sama di negara-negara yang dibandingkan.

Apa bezanya Indeks PPP dengan Indeks Harga Pengguna?

Umumnya, PPP adalah indeks yang sama seperti Indeks Harga Pengguna (CPI) daripada segi konsep dan kaedah pengiraan. Cuma bezanya ialah CPI mengukur indeks perubahan harga dari semasa ke semasa. Sebaliknya, PPP mengukur indeks perbezaan paras harga antara negara-negara.

Bagaimana kaedah mengira Indeks PPP?

Artikel ini membuat perbandingan indeks harga petrol (RON95) di beberapa buah negara ASEAN dengan menggunakan kaedah PPP. Perbandingan adalah berasaskan kepada harga RON95 pada 1 Januari 2017. Kaedah pengiraan adalah diperincikan dalam Jadual 1 di bawah.

Ruang (1) adalah mata wang negara-negara yang dirujuk.

Ruang (2) adalah harga petrol RON 95 di negara berkenaan pada 1 Januari 2017 dalam matawang tempatan.

Ruang (3) adalah PPP di negara berkenaan dalam USD. Ia dikira dengan membahagikan harga pertrol di negara berkenaan dengan harga petrol di Amerika Syarikat (USD digunakan sebagai asas kadar tukaran mata wang kerana ia adalah mata wang utama dunia dalam perdagangan antarabangsa). Misalnya, PPP dalam USD bagi Singapura ialah 1.99/2.08 = 0.95. Maknanya, pengguna di Singapura membayar seliter petrol sebanyak SGD 0.95 berbanding dengan $1.00 di Amerika Syarikat.

Ruang (4) adalah kadar tukaran mata wang bagi setiap negara berbanding dengan USD. Misalnya, di Malaysia, pada Januari 2017, USD1.00 adalah bersamaan RM4.45.

Ruang (5) ialah berapa banyak wang USD diperlukan untuk membayar seliter petrol RON95. Misalnya, di Malaysia jumlah wang USD yang diperlukan ialah dengan membahagikan harga petrol RON95 di Malaysia dengan kadar tukaran mata wang USD, iaitu, 2.30/4.45 = 0.52. Indeks ini menunjukkan harga seliter petrol RON 95 di Malaysia berbanding harganya di USA (USD2.08). Ruang yang sama juga menunjukkan indeks harga seliter petrol RON 95 dalam nilai USD di negara-negara lain di ASEAN berbanding harganya di USA.

  

Akhirnya, Ruang (6) adalah Indeks ‘Purchasing Power Parity’ (PPP), iaitu kadar harga dalam USD yang diperlukan untuk membeli seliter petrol RON95 di negara-negara ASEAN. Misalnya bagi Indonesia indeksnya ialah 0.61/2.08 = 0.29.

Rumusan keputusan analisis PPP 

Rumusan keputusan analisis PPP mengenai perbandingan harga petrol RON95 di ASEAN adalah seperti dalam Jadual 2.

Kesimpulan

Adalah tidak wajar membuat perbandingan harga petrol RON95 antara negara-negara ASEAN dengan hanya menukar harganya kepada nilai matawang ringgit. Kaedah yang lazim bagi membandingkan harga petrol RON95 seperti di atas ialah dengan menggunakan 'Indeks Purchasing Power Parity' (PPP).


Baca artikel berkaitan:
HARGA PETROL DI ASEAN – PERBANDINGAN EPAL DENGAN EPAL

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KEJATUHAN RINGGIT TERBURUK DI ASIA?

KEJATUHAN RINGGIT

TERBURUK DI ASIA?

Dr Muzahet Masruri

Kejatuhan nilai matawang bagi kebanyakan negara di dunia ketika ini adalah disebabkan oleh fenomena global. Di Asia, negara yang mengalami kejatuhan nilai matawang paling buruk ialah Malaysia.

Kejatuhan nilai matawang bermakna nilai ringgit menurun berbanding dengan nilai matawang utama dunia. Selalunya perbandingan dibuat dengan USD kerana matawang ini paling banyak digunakan dalam transaksi perdagangan antarabangsa.

Nilai ringgit jatuh ke paras RM4.44/USD pada 22 November 2016 berbanding RM3.80/USD pada tahun-tahun sebelumnya. Nilainya semakin menurun kepada RM4.47/USD pada 23 Disember 2016 dan dijangka akan terus menurun.

Kejatuhan nilai ringgit ada kebaikannya

Kita selalu mendengar kenyataan di TV, media elektronik dan cetak supaya rakyat tidak perlu bimbang kerana kejatuhan ringgit mempunyai kesan positif kepada ekonomi Malaysia. Antaranya adalah seperti berikut:

1. Harga barangan eksport yang dikeluarkan di Malaysia akan menjadi murah dan kompetitif. Kesannya, permintaan bagi barangan keluaran negara akan meningkat dan menyumbang kepada peningkatan pendapatan eksport.

2. Barangan yang diimport dari negara luar akan menjadi lebih mahal dan permintaannya akan berkurangan. Kesannya akan mengurangkan perbelanjaan negara bagi barangan import.

3. Dengan peningkatan pendapatan eksport dan pengurangan perbelanjaan import akan menyebabkan 'imbangan perdagangan’ (terms of trade) akan menjadi positif. Pada masa yang sama ia juga akan mengurangkan ‘defisit akaun semasa’.

4. Kejatuhan nilai ringgit akan menarik lebih ramai pelancong asing datang ke Malaysia kerana kos sara hidup yang murah, seperti kos perjalanan, pengangkutan, hotel, restauran dan perkhidmatan lain yang secara relatifnya murah. Kesannya, ia akan meningkatkan pendapatan negara dalam sektor ini. 

5. Kejatuhan nilai ringgit juga akan mengurangkan ringgit dibelanjakan di luar negara. Ini kerana bilangan rakyat Malaysia yang melancong ke luar negara dan pelajar-pelajar yang menuntut di luar negara akan berkurangan disebabkan kos yang mahal. Dengan itu, aliran keluar ringgit ke luar negara akan berkurangan dan bekalan ringgit dalam negara akan stabil.

Benarkah kejatuhan ringgit menguntungkan Malaysia?

Daripada mata kasar, kenyataan-kenyataan tersebut ada kebenarannya. Tetapi realitinya ia tidak semudah seperti yang dijangkakan. Antara sebabnya:

1. Barangan eksport Malaysia akan murah dan kompetitif kalau hanya ringgit sahaja yang mengalami kejatuhan nilai matawang. Tetapi kalau kebanyakan negara lain juga mengalami kejatuhan matawang, barangan mereka juga akan menjadi murah dan kompetitif. Dalam hal ini, eksport barangan Malaysia tidak semestinya meningkat.

2. Bayaran kepada import negara tidak semestinya akan menurun. Ini kerana banyak sektor ekonomi dalam negara, seperti industri dan perkilangan di negara ini yang memerlukan barangan modal dan barangan pengantara yang perlu diimport, seperti komponen, alat ganti, aksesori dan lain-lain untuk mengeluarkan ‘final product’ mereka. Cuba bayangkan industri pengeluar seperti Proton dan Perodua, berapa banyak bahagian komponen yang perlu diimport untuk mengeluarkan sebuah kereta?

3. Bayaran kepada import negara juga tidak semestinya menurun kerana rakyat Malaysia bergantung kepada sebahagian besar barang makanan dan minuman yang diimport bagi keperluan isirumah. Cuba lihat di dapur kita, lebih 50% daripada barangan adalah diimport. Tetapi kita tidak akan ‘sacrifice’ untuk tidak makan sambal tumis disebabkan cili kering, bawang besar, bawang kecil, bawang putih dan rempah ratus itu adalah diimport dari India dan harganya telah meningkat.

4. Begitu juga dengan industri pelancongan, kalaupun meningkat mungkin dalam peratusan yang sangat kecil. Pelancong yang berfikir hendak datang ke Malaysia bukan semata-mata disebabkan nilai ringgit turun. Lagipun lebih 50% daripada 26 juta pelancong pada 2014 yang dicatat oleh Kementerian Pelancongan adalah warga Singapura. Ramai mereka datang menginap semalam dua di hartanah yang mereka beli di Malaysia, guna petrol murah, makan-makan, guna tandas awam percuma di lebuhraya, kemudian balik. Selebihnya adalah pelancong Indonesia (10%) dan China (6%). 

Kesimpulan

Nampak pada zahirnya bahawa realitinya, penurunan nilai ringgit lebih meninggalkan kesan negatif daripada positif ke atas ekonomi Malaysia ketika ini. Yang pasti ialah kejatuhan ringgit akan memberi tekanan kepada peningkatan inflasi dan kenaikan harga barang-barang yang sering menjadi rungutan pengguna. Yang lebih ditakuti ialah dalam keadaan ekonomi negara yang lesu dan ketiadaan usaha-usaha drastik bagi memulihkan ekonomi, kejatuhan ringgit akan melunturkan keyakinan pelabur untuk melabur di negara ini. Ini kerana kejatuhan nilai matawang yang ketara adalah antara indikator yang menunjukkan keadaan ketakstabilan ekonomi sesebuah negara.

Dr.Muzahet Masruri.  Ph.D (Economics),  University of East Anglia, United Kingdom.

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Why I Became a Government Servant?

Why I Became a Government Servant?

DR MUZAHET MASRURI

There are reasons why some people prefer to work in government. The attractive selling point is that working for the government is steady and secure, especially when economic times are tough. The government offers average salaries that are considered competitive with the corporate sector and the pay can also increase fairly quickly for top candidates with strong education and experience. There are also other reasons; health benefits, retirement schemes, training and annual leaves that are extremely competitive with, if not superior to the private sector.

Although you’re not likely to become extraordinarily wealthy on your government salary as compared to the corporate sector, many people, including me, would think that working under the government is the preferred alternative.

After graduating from University of Malaya back in 1976, I received several job offers from the Government agencies. Being young and naive back then, the best job to me was the one with the highest pay. Most of us make this mistake early on in life, so don’t worry you’re not alone on this.

Dewan Bahasa & Pustaka (DBP) was the first semi-government agency I ever worked for. Not many know this but for the purpose of putting some sense into the younger generation that focuses on cashing in their degree at an early stage, I’m telling you don’t be naïve like how I was.

After a couple of years earning an earnest RM1200 per month which was an extra RM120 from the other job offer, I began to question myself in terms of job perspective. Being the patriotic kind since my school days and living as a ‘kampung boy’, I always dreamt of having a job where I’m able to contribute to the nation. A job that can have an impact to the country I lived in, a job that could offer me satisfaction.

I decided to look for another job that met my needs and by needs I don’t mean monetary. I accepted a new job offer, a researcher in Socioeconomic Research of the Prime Minister's Department, which came at a lower salary than what I used to get at DPB.

I remember many of my friends congratulating me and smiling at me with cynical faces. But it didn’t bother me, becoming a field researcher where the findings of the research will be used as inputs for policy formulation and planning for the nation’s development plan, I felt this new job suited me and will offer me the job satisfaction I craved.

The aspiration that I’ve always kept in my heart is that I must like the job, enjoy doing it professionally and perform the best that I can.

My days serving the Government was not all smooth sailing and laid back like what most people assume it to be. The biggest challenge I faced was being stuck in a time scale officer position (N41 as it is called now or executive position in the corporate sector), for close to 15 years despite having Ph.D qualification.

I was not eligible to be promoted simply because I was not a PTD officer (M41). But that didn’t discourage me from continuing to serve the Government as I liked my profession, the knowledge, skills and professionalism that have been nurtured really helped me in preparing my Ph.D dissertation.

The scenario changed after I was posted to the Economic Planning Unit (EPU) and with the proven track record of the various works I’ve done, I was among the earliest few officers seconded to Majlis Tindakan Ekonomi Negara (MTEN) which became the focal-point of the nation economic management. I was then converted to a PTD scheme and promoted to a senior position.

It was a big relief to me as the additional income from the promotion can be spent for a family with 3 growing children and I was able to send some money to my parents in ‘kampung’ which in those days was considered a must.

Again the good track record, the high performance and high reputation paid-off when I was promoted to a Senior Director after I left MTEN, another promotion after 1⅟2 years as a Deputy Secretary General and 4 months later I was appointed as Secretary General, the number one position in one of the Ministries.

Dr Muzahet received an appointment letter as Secretary-General, Ministry of Unity, Culture, Arts and Heritage (KPKKW) from Tan Sri Mohd. Sidek Hassan, Chief Secretary to the Government of Malaysia, Convention Center, Putrajaya, April 2008

The moral of the story, everything needs money but money is not everything. Choose the profession that suites you, nurture your interest and enhance your knowledge and skills to become a professional in your field and prove your high performance.

Job satisfaction is what keeps your job interesting and when you enjoy what you’re doing I believe you’ll be doing a great job. Frankly speaking, the benefits won’t be immediate, but believe me, it pays-off in the future.

Writen by: Dr.Muzahet Masruri.  Ph.D (Economics), University of East Anglia, United Kingdom.

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The Neglected ‘Think-tank’ (Part 2) - Response to the current slow economic growth

6 August 2016

Special interview with Dr. Muzahet

Continued from  "The Neglected Think-tank" (Part 1) 

Response to the current slow economic growth

A few days back, I managed to bring my Dad for tea at one of his favorite ‘makan spot’ in Putrajaya, the café at Kelab Tasik Putrajaya. We ordered the usual, dad’s favorite combo there was ‘mee goreng mamak’ and ‘teh panas’. While waiting the food to be served, I posed a few questions on the current economic situation. He seemed quite reluctant to respond at first, but then one question struck his attention:

Azzad: Dad, you mentioned earlier that measures taken by MTEN during 1997/98 economic crisis managed to salvage our economy just within a year.!! Why don’t we use the same measures to rescue our economy from the current prolonged slow growth now?

Dad: You must be joking Son! If you were a doctor would you give the same prescription for patients suffering from diabetes and those who suffer from cancer? And with that prescription you’re expecting both patients to recover from their illness within a year!

Azzad: You mean we cannot use the same prescription.?!

Dad: Definitely not.!! Because the root cause of the problems are different! The 1997/98 crisis was regional in nature caused by currency speculators which seriously affected our banking system and finally spread to other sectors in the economy. Whereas, the 2008 crisis was originated from the subprime mortgage in the US, this affected the international banking system and finally became a global phenomenon.

Kelab Tasik Putrajaya Open Area

Azzad: What do you mean ‘regional’ and ‘global’ phenomena?

Dad: ‘Regional’ means only Asian countries were affected by the crisis. In particular, Thailand, Philippines, Malaysia, Indonesia, Singapore, South Korea and Taiwan, while the rest of the world were not. ‘Global’ phenomenon means almost all countries in the world were affected and experienced slow growth performance in their economy, especially the advanced countries in the US and European Union.

Azzad: Are there any policy implications in terms of measures to be taken by the Malaysian government between these two scenarios?

Dad: Of course they are! Especially the revenue from export. We are an ‘open-economy’ or ‘market economy’ where our revenue from exports accounts for about 130% of our GDP, which is huge. The implication is that, the economic contractions in other countries globally will reduce demand of our export and this will upset the growth performance in our domestic economy.

Kelab Tasik Putrajaya Outdoors Open Area

Azzad: Since we have no control over the world economy, there’s obviously not much that we can do, except wait for the global economy to recover. Right?!

Dad: Indeed, you’re right son, like many other people think. But the reality is that the general public is beginning to feel the pinch – downsizing economic activities, closing down businesses, layoffs, retrenchments, shorter work week (4 instead of 5 days a week), etc.  That’s if we talk about the business among the self-employed. Other sectors are expected to be affected too, especially manufacturing, services sector, housing and property development.

Azzad: So, what’s our option now?

Dad: We cannot solely be dependent on external market to safeguard our continued growth performance. Besides export, we should take necessary actions to stimulate our domestic economy by raising consumption and investment, especially from the private sector.

Food at Kelab Tasik Putrajaya

Azzad: I thought the Government has done something in stimulating domestic economy and to increase consumption, such as Bantuan Rakyat 1 Malaysia (BR1M).

Dad: Yes, you are right. The stimulus packages introduced in 2012 Budget, the Economic Transformation Program (ETP), National Key Economic Areas(NKEAs) and low cost housing programs, are among the examples. I think the Government should continue to use this approach. Our previous experience shows that these stimulus packages were very effective in managing the economy during the crisis because they create ‘chain effects’ or ‘multiplier effects’ to increase economic activities in other sectors.

Azzad: What do you mean by ‘multiplier effects’? How does it work?

Dad: For example, when we develop low cost houses, we were actually creating demand for other goods and services – cement, wood, tiles, steel, manpower, workers, draftsmen, engineers etc. Similarly, when the houses were completed you wouldn't move into an empty house. You need new lighting, fans, refrigerators, carpets, sofa, bed, mattress and etc. In such a way that all the related industries and businesses react and create positive impacts to the overall domestic economy, that’s how ‘multiplier effects’ work.

View of Prime Minister's Office from Kelab Tasik Putrajaya

Azzad: Dad, what do you think about BR1M?

Dad: Son! If you were given RM500 cash in hand, how will you spend the money?

Azzad: Well if it was me, I would just save it up in my ASB account. But then again talking about stimulating domestic economy I’d probably buy some new clothes or shoes or a new watch and the balance go for makan-makan!

Dad: Hahaha.!! Do you think your spending will help to stimulate the affected sectors in the economy?

Azzad: Well, to tell you the truth I’m not really sure.

Dad: The intention of BRIM is to increase the real income of people, in particular those who are in the low-income group. By giving additional cash we actually increase their purchasing power so that they can spend for their basic needs, such as food, water, clothing, shelter, education, and healthcare.

MTEN approach was different, we didn’t spend money by giving cash to the people. Rather, the money was spent in the form of projects or programs which could create economic activities and stimulate the affected sectors through ‘multiplier effects’ or ‘chain effects’, explained above, which I feel was the effective way of stimulating domestic economy during the crisis.

Azzad: What else should the Government do to increase economic growth?
Dad: I think to gain support, the rakyat should be informed of what the Government is doing now in managing the economy during this difficult time. In those days, the public were informed through various channels of decisions made by MTEN as a ‘think-tank’. As a result, the Government received full support from the public and they were marching in the same rhythm and tune. As it is now, it seems the Government and the rakyat are marching in different rhythms and tunes

Dr. Muzahet Masruri, Ph.D (Economics),  University of East Anglia, United Kingdom

READ:  "The Neglected Think-tank" (Part 1) 

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