THE Malaysia Incorporated concept became national policy in                                                                                           
1983. It was then thought to represent a new way of carrying                                                                                          
out our national development.                                                                                                                         
                                                                                                                                                      
It was envisaged that both the public and private sectors                                                                                             
would co-operate to achieve a higher economic growth.                                                                                                 
                                                                                                                                                      
The policy recognises the different roles of each sectors. The                                                                                        
public sector is to create a conducive environment that will                                                                                          
accelerate economic growth while the private sector is to                                                                                             
become the engine of economic growth.                                                                                                                 
                                                                                                                                                      
This concept has its origin in Japan Incorporated.                                                                                                    
                                                                                                                                                      
The close collaboration between government and business in                                                                                            
Japan was thought to be a major factor that helped to maintain                                                                                        
Japanese competitiveness abroad.                                                                                                                      
                                                                                                                                                      
Allied to this have been the broad characteristics of the                                                                                             
relationship which tended to emphasise company loyalty and                                                                                            
national unity. Such qualities were adapted to the Malaysian                                                                                          
experience by Prime Minister Datuk Seri Dr Mahathir Mohamad in                                                                                        
his Look East Policy in mid-1981.                                                                                                                     
                                                                                                                                                      
It was realised that workers could be encouraged to serve                                                                                             
their companies as if they were working for the country. In                                                                                           
other words, workers are required to place their loyalties to                                                                                         
the companies on the same level as that to the family and the                                                                                         
nation.                                                                                                                                               
                                                                                                                                                      
In terms of getting both the public and the private sectors to                                                                                        
work together for the sake of the country, our Prime Minister                                                                                         
believes that the Malaysia Inc policy is the best way to                                                                                              
achieve Malaysia's economic and industrial progress.                                                                                                  
                                                                                                                                                      
The policy in practice would also involve the                                                                                                         
predominantly-Chinese business community in national                                                                                                  
development. In this way the success of the national economy                                                                                          
can be presented as the joint effort of the people of the                                                                                             
country.                                                                                                                                              
                                                                                                                                                      
In the early years the policy was explained to as broad a                                                                                             
spectrum of people as possible. The main work was initiated by                                                                                        
the public sector.  Through the various training programmes                                                                                           
organised for this purpose, the members of the civil service                                                                                          
also became aware of the problems faced by the private sector                                                                                         
in implementing the policy.                                                                                                                           
                                                                                                                                                      
The Malaysian Administrative Modernization and Planning Unit                                                                                          
(Mampu) carried out consultative activities with the private                                                                                          
sector. Other joint programmes such as workshops on                                                                                                   
information technology, exhibitions and interaction over games                                                                                        
and social events were also carried out.                                                                                                              
                                                                                                                                                      
While the civil service continued to carry out the reforms in                                                                                         
the public sector, the private sector also participated and                                                                                           
provided input in the various consultative panels and forums.                                                                                         
To facilitate consultation between the two sectors, annual                                                                                            
dialogue sessions-were organised by the various ministries,                                                                                           
federal departments and state secretariats.                                                                                                           
                                                                                                                                                      
The consultative mechanism that has been in place since 1990                                                                                          
was further strengthened when in 1993 a high level committee                                                                                          
was set up, known as the Malaysia Inc Officials Committee.                                                                                            
                                                                                                                                                      
The committee's aims are to discuss issues and problems                                                                                               
related to the efficiency of-the government services, to get                                                                                          
new ideas and views on ways to improve the quality of the                                                                                             
services provided and to enable the private sector to                                                                                                 
contribute by arranging joint programmes.                                                                                                             
                                                                                                                                                      
With the establishment of the Malaysian Business Council, more                                                                                        
dialogue sessions were held which provided timely feedback on                                                                                         
the implementation of the Malaysia Inc policy.                                                                                                        
                                                                                                                                                      
The government also reported on the policy through its report                                                                                         
published annually by the office of the Chief Secretary.                                                                                              
                                                                                                                                                      
Malaysia Inc is already more than 10 years old. While there is                                                                                        
general agreement that the policy had contributed                                                                                                     
significantly in terms of economic growth, many have also                                                                                             
expressed dissatisfaction at the pace of its implementation.                                                                                          
                                                                                                                                                      
A study of the relevant documents reveals there were problems                                                                                         
on both sides. First, the Government being more homogeneous                                                                                           
could organise a better publicity campaign on Malaysia Inc.                                                                                           
                                                                                                                                                      
The private sector on the other hand needed more time as it                                                                                           
had no coordinating body to undertake an effective exercise.                                                                                          
As a result the private sector was blamed for being less then                                                                                         
enthusiastic.                                                                                                                                         
                                                                                                                                                      
Second, and here the Government is at fault, whenever the                                                                                             
private sector had willingly supported the sports and social                                                                                          
activities organised by the public sector, the latter's                                                                                               
response appeared constrained by existing rules and                                                                                                   
regulations. The situation later improved when the Government                                                                                         
issued several circulars.                                                                                                                             
                                                                                                                                                      
Third, in its effort to encourage discussions on Malaysia Inc.                                                                                        
the private sector could not involve as many of its members in                                                                                        
the panels and dialogues that were held.                                                                                                              
                                                                                                                                                      
For a while it was believed that the Malaysian Business                                                                                               
Council that came into being in 1991 could provide a fillip to                                                                                        
the Malaysia Inc idea but unfortunately only the bigger                                                                                               
businesses were represented.                                                                                                                          
                                                                                                                                                      
However it was a different picture when the Government invited                                                                                        
the private sector to participate in the Budget dialogues.                                                                                            
This was the only occasion when private sector views were                                                                                             
actually heard and taken notice of.                                                                                                                   
                                                                                                                                                      
A similar opportunity was provided for the private sector in                                                                                          
the Annual Dialogue organised by the Ministry of International                                                                                        
Trade and Industry.                                                                                                                                   
                                                                                                                                                      
This year the dialogue was honoured by the presence of Dr                                                                                             
Mahathir who fielded questions from the participants for two                                                                                          
hours on a wide range of subjects.                                                                                                                    
                                                                                                                                                      
Presently, the support of the private sector for Malaysia Inc                                                                                         
is growing. According to officials of the Malaysian External                                                                                          
Trade Development Corporation (Matrade), more and more                                                                                                
companies are joining the exhibitions and fact-finding                                                                                                
missions.                                                                                                                                             
                                                                                                                                                      
Matrade had succeeded in providing the environment by which it                                                                                        
is hoped Malaysian brand names would be recognised overseas.                                                                                          
Matrade however observed that more companies should take part                                                                                         
in their development programmed in particular the small and                                                                                           
medium-sized industries.                                                                                                                              
                                                                                                                                                      
The private sector has also responded to the call by the Prime                                                                                        
Minister to establish themselves overseas. The few that have                                                                                          
made it did so because of government backing.                                                                                                         
                                                                                                                                                      
These companies are mainly involved in construction, property                                                                                         
development, communication and electronics and engineering                                                                                            
services.                                                                                                                                             
                                                                                                                                                      
But the success of such ventures should be followed up by                                                                                             
others.                                                                                                                                               
                                                                                                                                                      
Many believe that for Malaysia Inc to grow there must be                                                                                              
adequate support shown by both parties.                                                                                                               
                                                                                                                                                      
There are certain practical aspects to be attended to,                                                                                                
including the establishment of a secretariat to service the                                                                                           
needs of both sectors, bringing out an annual report on                                                                                               
Malaysia Inc and launching a public awareness campaign in                                                                                             
government offices, factories and company headquarters and                                                                                            
schools.                                                                                                                                              
                                                                                                                                                      
It must be emphasized that the general public need to be                                                                                              
informed of Malaysia Inc as well. Their support is essential                                                                                          
in order to provide the foundation to build upon Vision 2020.                                                                                         
The public must also be made to become part of Malaysia Inc.                                                                                          
otherwise the benefits of such an alliance will not be                                                                                                
understood and appreciated by all.                                                                                                                    
                                                                                                                                                      
As Malaysia expands its markets globally, Malaysia Inc would                                                                                          
have to appeal to a much bigger audience both at home and                                                                                             
abroad.