MALAYSIA'S smart partnerships concept has put the country on                                                                                          
the world stage once again.                                                                                                                           
                                                                                                                                                      
The move came after a hectic week which saw Prime Minister                                                                                            
Datuk Seri Dr Mahathir Mohamad taking the lead by saying that                                                                                         
Malaysia would not join in the 50th anniversary celebrations                                                                                          
of the United Nations.                                                                                                                                
                                                                                                                                                      
He even started the campaign to have the secretary-general of                                                                                         
this august body sacked from his post. Finally, the Prime                                                                                             
Minister went on the air to announce Malaysia's readiness to                                                                                          
supply arms to Bosnians.                                                                                                                              
                                                                                                                                                      
To most Malaysians, heady events like these must have caused                                                                                          
some surprises. Perhaps some might have even voiced their                                                                                             
admiration for their Prime Minister as these are the stuff                                                                                            
that could make a nation great.                                                                                                                       
                                                                                                                                                      
Implicit in the desire to push smart partnerships as a                                                                                                
Malaysian model for global business is the idea that we should                                                                                        
first try and make a success of regional economic                                                                                                     
co-operation.                                                                                                                                         
                                                                                                                                                      
Tun Daim Zainuddin alluded to this in his speech at the                                                                                               
International Dialogue on Smart Partnerships in Langkawi on                                                                                           
June 27. He stressed that Malaysians have had some experience                                                                                         
in making regional economic co-operation a going concern.                                                                                             
                                                                                                                                                      
Witness, he said, the achievements of the Malaysia                                                                                                    
Incorporated concept, the formation of EAEC and our                                                                                                   
participation in the growth triangles of IMT-GT and EAEG as                                                                                           
well as IMSGT. Having gone through all of the above,                                                                                                  
Malaysians can now look beyond our shores to conduct our                                                                                              
business.                                                                                                                                             
                                                                                                                                                      
Daim also mentioned that Malaysian companies should continue                                                                                          
to be discerning and alert enough to use their respective                                                                                             
strengths of co-operation and competition whenever these are                                                                                          
necessary to ensure progress. With these words, the Government                                                                                        
has again sounded the gong for Malaysian business to go                                                                                               
regional as well as global.                                                                                                                           
                                                                                                                                                      
The message has, of course, been accepted by the private                                                                                              
sector. But many are still reluctant and scared to take the                                                                                           
plunge despite being given government backing.                                                                                                        
                                                                                                                                                      
Clearly, numerous questions still remain unanswered. Many                                                                                             
among our businessmen believe that those who have gone abroad                                                                                         
are the big ones.  The small ones, they say, would not dare                                                                                           
venture out unless the Government could guarantee or absorb                                                                                           
their losses, if any, and they would not suffer as a                                                                                                  
consequence.                                                                                                                                          
                                                                                                                                                      
As to taking up business opportunities offered by the growth                                                                                          
triangles, many reckon that local chambers of commerce and                                                                                            
industry should be allowed to play a bigger role.                                                                                                     
Alternatively, the National Chambers of Commerce in each of                                                                                           
the component countries could be given the co-ordinating                                                                                              
function.                                                                                                                                             
                                                                                                                                                      
In the longer term, to achieve the objectives of smart                                                                                                
partnerships as envisaged in the Government's plan our                                                                                                
businessmen must take care of the three C's: Co-operation,                                                                                            
Collaboration and Co-existence. Each of these can be dealt                                                                                            
with separately, but all three must exist to ensure success at                                                                                        
building smart partnerships. (A word of caution, though. As                                                                                           
the world of international business is a complicated one,                                                                                             
there is no single formula that could be used to gain any                                                                                             
advantage.)                                                                                                                                           
                                                                                                                                                      
* Co-operation is essential for the businessmen to succeed                                                                                            
abroad. The company is required to open channels of                                                                                                   
co-operation with all levels of the government of the host                                                                                            
country.                                                                                                                                              
                                                                                                                                                      
Co-operation will need to be clearly established with the                                                                                             
agencies and institutions of banking and finance. Finally,                                                                                            
there are the consumers, the arbiters of taste and choice of                                                                                          
our products and services, to take care of.                                                                                                           
                                                                                                                                                      
Co-operation is necessary to understand the gamut of                                                                                                  
government regulations, practices and peculiarities in a                                                                                              
particular country.                                                                                                                                   
                                                                                                                                                      
The existence of goods by competitors must be recognised.                                                                                             
Promotional campaigns will have to be tailored in accordance                                                                                          
with local norms and niceties. Overdoing or going against                                                                                             
local sensitivities must be avoided.                                                                                                                  
                                                                                                                                                      
Co-operation with banking and financial institutions is also a                                                                                        
must.  These are important agencies that could assist the                                                                                             
fledgling business in the countries concerned.                                                                                                        
                                                                                                                                                      
* Collaboration refers to the ability of Malaysian companies                                                                                          
to build strong relationships with business partners and local                                                                                        
authorities.  In most cases they would benefit if they could                                                                                          
meet their counterparts face to face.                                                                                                                 
                                                                                                                                                      
It is all right to deal through faxes and telexes. But nothing                                                                                        
could replace personal contact and personal ties. Time spent                                                                                          
in establishing close collaboration with local partners and                                                                                           
local authorities will benefit future deals and contracts.                                                                                            
                                                                                                                                                      
An area that needs much collaborative effort between the                                                                                              
partners is the negotiation of business agreements. Valuable                                                                                          
discussions are sometimes lost due to improper planning and                                                                                           
poor preparation.                                                                                                                                     
                                                                                                                                                      
The idea is certainly not to be litigious in any way. Rather,                                                                                         
the approach should be to ensure a win-win outcome for both                                                                                           
sides. In some cases there must be trained lawyers present. In                                                                                        
others one may need to hire local lawyers.                                                                                                            
                                                                                                                                                      
* Co-existence has to do with the habit to be equally                                                                                                 
comfortable in dealing with competition in the host country.                                                                                          
This can come in several forms. Our competitors can be                                                                                                
multinationals, the host government itself and other                                                                                                  
brand-names.                                                                                                                                          
                                                                                                                                                      
The aim must surely be one in which we should up the                                                                                                  
competitors. How we 'can do this would rest on such things as                                                                                         
our packaging, our quality and our pricing.                                                                                                           
                                                                                                                                                      
A good and effective marketing programme is essential. The                                                                                            
company must co-exist with local marketing agencies in order                                                                                          
to present the campaign in a local colour.                                                                                                            
                                                                                                                                                      
Another requirement under this section is that the three need                                                                                         
to coexist with the ups and downs of the local market. In this                                                                                        
regard, one would have to work closely with local businessmen                                                                                         
as well as their chambers of commerce.                                                                                                                
                                                                                                                                                      
Their role and assistance will have to be given some                                                                                                  
consideration in the execution of our business plans. We must                                                                                         
strive to co-exist with them rather than dismiss them.                                                                                                
                                                                                                                                                      
Much work still needs to be done to encourage our businesses                                                                                          
to venture overseas. Efforts put in so far by the Federation                                                                                          
of Malaysian Manufacturers, Matrade and the Small and Medium                                                                                          
Industries Association have yet to be appreciated.                                                                                                    
                                                                                                                                                      
It is suggested that a national conference be organised to                                                                                            
discuss all the relevant aspects of expanding Malaysian                                                                                               
businesses abroad and the problems of setting up businesses                                                                                           
regionally and internationally.