We have just changed the political leadership of the country.
After 22 years of leading the country, Tun Dr Mahathir Mohamad
has brought about enormous economic development through rapid
modernization and transformation of an economy based largely on
agriculture and commodities to an economy that is now strongly
supported by manufacturing and the service industry. Indeed,
much credit is due to him for turning the country into a
worldrecognized hub for ICT, private education, transportation
infrastructure, magnificent buildings and a strong voice in
international affairs.
 
As Dato' Seri Abdullah Ahmad Badawi assumes the responsibility
of office of the Prime Minister, it is likely that he will want
to take Malaysia forward to even greater heights. Already he had
shown his inclinations when he unveiled the National Social
Policy. In the headlong drive towards economic growth, we have
not given sufficient attention to social development and now,
some 16 years to 2020, we hope that more resources can be
released to fulfil the nine challenges of Vision 2020.
 
The first step in moving forward is to take stock of what has
been achieved. In the management field, we need first to know
what practices companies have adopted and how effective these
practices are. Then we need to know what lies ahead. What
specific opportunities are there for Malaysia to move forward?
 
First, the practices. Five articles have been selected to
highlight our competitive position in respect of managerial and
business practices. The article by Mohd Khairuddin Hashim and
Intan Omar attempts "An Evaluation of the Business Practices in
Malaysian SMEs" and arrives at the conclusion that business
practices generally focus on technology utilization, marketing,
human resource management, financial management and that SMEs
have some awareness of the need for strategy. For example, most
of the firms surveyed indicated that they are guided by a low
cost strategy.
 
The second article by Viky Novriza and Shaharir bin Mohamad Zain
focuses on the "Efficiency of the Local Commercial Banks in
Malaysia" and arrives at the conclusion that most banks are not
operating at full efficiency, except for Hong Leong Bank, which
takes first ranking. The bank that is ranked lowest in terms of
efficiency is Affin Bank, and the authors in fact came to the
suggestion that it should be closed down!
 
A big issue and concern in management is the ability to
innovate. History has shown that the leading companies have been
those that have contributed to a breakthrough in technology,
markets or products. It is towards promoting innovation that
SMIDEC and Accenture have jointly been organizing the annual
Enterprise 50 awards. Since it was first introduced in 1996,
there have been 210 winners by 2002. Of these, 32 companies
agreed to participate in a survey to establish the "Innovative
Practices of Malaysian Firms: Some Evidence from the Enterprise
50 Winners". Authored by Mohd Khairuddin, Abdul Jumaat and
Sa'ari Ahmad, the study suggests that these companies obtained
stimulation for innovation from the nature of their
organizational structure, human resource practices and
organizational culture.
 
Strategic management is another important manpower issue and
Mohd Khairuddin, Syed Azizi Wafa and Mohamed Sulaiman's article
"Strategic Management in Malaysian SMES: An Empirical
Assessment" provides evidence that SMEs in the Malaysian
manufacturing sector do practise some form of systematic
strategic management. The process is however dependent on
industry, with most adopting a differentiation strategy, a low
cost strategy or a niche strategy.
 
The in thing in management is the management of knowledge. With
the turbulent change in the business environment, it will be the
ability to access relevant knowledge and the competence to put
it unto good use that will make the difference. The article by
Rumesh Kumar on "Managing Knowledge In Tlirbulent Business
Environments: An Empirical Study in the Malaysian Context" among
firms in the electrical and electronics industry shows that most
companies do not have a clearly defined and explicitly
identified knowledge management strategy in place. In
particular, much more emphasis is given to human orientation
than to the codification of knowledge.
 
Given the management and business practices outlined above, how
can Malaysian businesses exploit new opportunities? One proposal
is to seriously consider the services sector as a strong
potential. Sieh Lee Mei Ling examines "The Services Sector as an
Engine for Growth: Niches for Malaysia". Some of the niches
identified include higher education and training services in
English, specialized t6urism packages, professional and
busirless services, and trading, distribution and market related
logistical services.
 
The final article analyses one particular service, viz.
education. "The Development of Global Education in Malaysia:
Strategies for Internationalization" by Mohd Hanapi, Zahiruddin
Ghazali and Mohd Shah Kassim, takes the proposition that the
country should pursue a coherent global education model ~6f
higher education, constructed on an eclecticlocational approach
rather than on the more traditional multidisciplinary approach.
Their study suggests that course attributes, country
characteristics, cost and administrative easiness are
significant predictors in influencing the decision to study in
Malaysia. Hence, greater improvements in course content, quality
of support services, qualified teaching resources and competent
administrators are essential drivers towards
internationalization.
 
Given the above scenario, Malaysia is in a reasonably good
position to continue to prosper. But we need to be more
effective in our ability to manage our enterprises and to
exploit the opportunities that lie ahead. It is hoped that under
the new administration of Dato' Seri Abdullah Ahmad Badawi,
these competencies will indeed be forthcoming.