By S. Hadi Abdullah                                                                                                                                   
                                                                                                                                                      
WE are progressing at an admirable pace and seem to be doing                                                                                          
many things better, from building roads and air-conditioners                                                                                          
to making cars and computer chips.  More than 80 per cent of                                                                                          
our total exports are from the manufacturing sector.                                                                                                  
                                                                                                                                                      
Malaysia's credit rating has been upgraded by international                                                                                           
agencies such as Moody's Investor Services from A2 in 1994 to                                                                                         
A1 last year, and Standard & Poors from A to A+ for the same                                                                                      
period.                                                                                                                                               
                                                                                                                                                      
At the same time, hardcore poverty has declined from four to                                                                                          
2.2 per cent.  While all this gives cause for pride, we seem                                                                                          
to have made a number of slips.                                                                                                                       
                                                                                                                                                      
My car loan is from a popular finance company. I have been                                                                                            
paying instalments through the post. I was surprised to                                                                                               
receive a letter from the finance company saying that they had                                                                                        
not received my payment and I would have to pay late payment                                                                                          
charges.                                                                                                                                              
                                                                                                                                                      
I called them the next day, only to find out that they had                                                                                            
moved. They should have informed the customers of this move.                                                                                          
Anyway, the company did withdraw the late payment charges.                                                                                            
                                                                                                                                                      
Things like this should not happen.  What ideally should                                                                                              
happen is, while advertising in the newspaper, individual                                                                                             
notices could be sent out to customers (together with the                                                                                             
previous month's receipt at the latest).                                                                                                              
                                                                                                                                                      
Another incident happened at a five-star hotel.  Settling for                                                                                         
tea, one of my companions ordered some cakes.  The tea was                                                                                            
prompt but the cakes never appeared. We had to check with                                                                                             
three persons, including the captain, before being told that                                                                                          
they were out of cakes.                                                                                                                               
                                                                                                                                                      
Two of those whom we asked did not appear to be Malaysians.                                                                                           
Later, when settling the bill, we were astonished to note that                                                                                        
we had been charged for the cakes, but this matter was                                                                                                
corrected immediately.                                                                                                                                
                                                                                                                                                      
The tight labour market does not seem to help such situations                                                                                         
at all.  The situation nowadays seems to be similar as to that                                                                                        
of the time when Frederick Taylor was around during the                                                                                               
Industrial Revolution when managers were happy recruiting                                                                                             
people as long as their hands and feet were in good condition.                                                                                        
                                                                                                                                                      
Looking for some sport shoes, we came to a store that was                                                                                             
having a big sale. After browsing for some time, making do                                                                                            
with lukewarm sales assistants, we chose a model. The quick                                                                                           
nonchalant answer from the sales assistant was that they did                                                                                          
not have the size we wanted.                                                                                                                          
                                                                                                                                                      
Having spent a good part of an hour in the shop, this was a                                                                                           
disappointment. We settled for another pair, only to be told                                                                                          
again that they did not have the size.                                                                                                                
                                                                                                                                                      
Something did not feel right. The answers came too quickly,                                                                                           
with no other suggestions. We decided to have a good look                                                                                             
ourselves. It was no coincidence that we found that both the                                                                                          
models had the sizes we wanted.                                                                                                                       
                                                                                                                                                      
I am sure many people, including tourists, would have been                                                                                            
told the same thing.                                                                                                                                  
                                                                                                                                                      
What has happened to staff training, supervision, employing                                                                                           
the right people? It would have been better if the customers                                                                                          
had been told to serve themselves Having disinterested sales                                                                                          
assistants is Worrying. If they are typical of our workforce,                                                                                         
we are in trouble.                                                                                                                                    
                                                                                                                                                      
Malaysia has about 1,5 million foreign workers in the country                                                                                         
(according to official estimates). This works out to one                                                                                              
foreign worker to every Malaysian worker.                                                                                                             
                                                                                                                                                      
Foreign workers have been filling a need in our building                                                                                              
industry, factories and other sectors. As a short-term                                                                                                
measure, one cannot argue about this move. However, companies                                                                                         
must take the initiative to improve productivity by improving                                                                                         
the skills of its workforce.                                                                                                                          
                                                                                                                                                      
The plantation sector, for instance, must be bold and invest                                                                                          
in mechanisation and modify machinery.  It must do the                                                                                                
needful, even if it means taking a slightly longer period to                                                                                          
break even.                                                                                                                                           
                                                                                                                                                      
There is not much we can learn from foreign workers.In fact,                                                                                          
one can safely say that they could bring the general standard                                                                                         
down. There is talk that some do not contribute towards a                                                                                             
harmonious workforce. Besides, there are signs of "thirdworld"                                                                              
diseases emerging again.                                                                                                                              
                                                                                                                                                      
Dr Nordin Sopiee, in an interview recently, suggested that                                                                                            
Malaysians should at least bring in talented and skilled                                                                                              
people, people in the excellent category (he talks about                                                                                              
50,000 such people).                                                                                                                                  
                                                                                                                                                      
They would help accelerate our research and development,                                                                                              
innovation and productivity. The overall result would be a                                                                                            
"pull-up" effect, just the opposite of the "pull-down" effect                                                                     
we are now having.                                                                                                                                    
                                                                                                                                                      
A good example of this foreign labour situation is seen in the                                                                                        
Middle East, where much of the labour comes from India,                                                                                               
Pakistan, Bangladesh, the Philippines, among others.                                                                                                  
                                                                                                                                                      
The Middle East countries are not learning much from these                                                                                            
people except to witness a drain in their foreign exchange and                                                                                        
assist their own lack of urgency. Things can become too easy                                                                                          
for one's own good.                                                                                                                                   
                                                                                                                                                      
Professor Michael Porter from Harvard University says that in                                                                                         
today's world, quatity is taken as given-that is, it must be                                                                                          
there all the time.                                                                                                                                   
                                                                                                                                                      
He says that the first step to productivity is operational                                                                                            
effectiveness, where companies have reduced costs and improved                                                                                        
production.  Their productivity is high, what he calls "state                                                                                    
of best practice." They have the best technology, systems,                                                                                       
delivery-in short, the works. Like quality, this is taken as                                                                                          
given, he says.                                                                                                                                       
                                                                                                                                                      
Companies and countries must look at their strengths and work                                                                                         
around them. Anything that is a national passion, like the                                                                                            
English producing the best garden tools and raincoats, and the                                                                                        
Dutch using their scarce land and ingenuity to produce flowers                                                                                        
for all season in glass houses for the world market.                                                                                                  
                                                                                                                                                      
As suggested by Dr Nordin, bringing in talented people helps                                                                                          
the country.  He cites the examples of the Greeks (building,                                                                                          
carpentry), Koreans (shops), Italian, Chinese and others who                                                                                          
helped America prosper.                                                                                                                               
                                                                                                                                                      
Possessing the assembly of standard products and services                                                                                             
which have been designed by somebody else is a sunset                                                                                                 
industry. Countries and companies must choose activities that                                                                                         
suit their national character and strengths.                                                                                                          
                                                                                                                                                      
Talking of innovation, quality and the willingness to compete                                                                                         
Prof Porter cites the example of Benetton which wanted to be a                                                                                        
world-class apparel company.  The best way to do it, they                                                                                             
thought, was to put up with a very demanding and discerning                                                                                           
customer.                                                                                                                                             
                                                                                                                                                      
From Italy, they decided to pick their first foreign location                                                                                         
at Paris.  They used it as a learning experience which they                                                                                           
successfully used in all parts of the world. To acquire this                                                                                          
experience, they were not looking for profits but merely a                                                                                            
break even situation.                                                                                                                                 
                                                                                                                                                      
According to Prof Porter-who commands a US$10,000 per hour                                                                                            
consultation fee and who is said to advise more than 40                                                                                               
countries successful countries and companies have a very high                                                                                         
proportion of their income generated through the service                                                                                              
industry, namely finance insurance, shipping, hospitality,                                                                                            
logistics management and design creations.  Japan is said to                                                                                          
have more than 65 per cent of its national income from this                                                                                           
sector.                                                                                                                                               
                                                                                                                                                      
Likewise, Malaysia needs to move more rapidly into this area.                                                                                         
Our national shipping lines have been mentioned for efficiency                                                                                        
but our financial sector, design creativity, logistic                                                                                                 
management have some catching up to do.                                                                                                               
                                                                                                                                                      
We have taken positive steps in infrastructure, roads,                                                                                                
railways telecommunications, and electricity although we could                                                                                        
improve on our technical engineering and IT related education.                                                                                        
                                                                                                                                                      
One of the crucial issues that Malaysia is facing is its human                                                                                        
resource management. Where are we going to get all the trained                                                                                        
people we need? This begs the question of our having to make                                                                                          
mid-course correction, shifting emphasis, training our people                                                                                         
in new skills, knowledge and know-how.                                                                                                                
                                                                                                                                                      
We need to move away from assembly plant set-up, and bring in                                                                                         
foreign labour which is educated talented, demanding and                                                                                              
asking for a high price.                                                                                                                              
                                                                                                                                                      
We should also encourage Malaysians who have settled abroad to                                                                                        
return, by making immigration rules and other incentives                                                                                              
attractive to them.                                                                                                                                   
                                                                                                                                                      
So be it if they are going to help us overcome our weaknesses,                                                                                        
while "teaching" our own. As Prof Gerry Randell of Bradford                                                                                 
University says, this is one of the best ways to learn. It can                                                                                        
result in a mentor-student situation.                                                                                                                 
                                                                                                                                                      
Through observation, repeated practice and reinforcement, we                                                                                          
can improve and excel. We should not let our tremendous growth                                                                                        
blind us to the need to change, learn and improve. We should                                                                                          
not sacrifice quality, productivity and vision for short-term                                                                                         
gains.