By AZHARI KARIM                                                                                                                                       
                                                                                                                                                      
THERE is talk of an impending recession hitting the region and                                                                                        
the country as a result of an economic slowdown in the United                                                                                         
States. Although some would say it will not affect us too                                                                                             
badly, skeptics would doubtlessly shout that our economy being                                                                                        
what it is - with globalisation and so on we will suffer in                                                                                           
some way.                                                                                                                                             
                                                                                                                                                      
What are some of the signs that things may not go the right way                                                                                       
with the economy?  The man in the street will say that there is                                                                                       
enough food on sale, shops are filled with people, there are                                                                                          
still many new cars on the road, and people are still buying                                                                                          
houses.  Perhaps these are the salaried class of people. For                                                                                          
when you next check with the retailers, you will get a                                                                                                
different picture entirely.                                                                                                                           
                                                                                                                                                      
The market is down, they will say. Look at the stocks that are                                                                                        
not moving up. Retailers are not making big orders anymore.                                                                                           
They would rather wait and see. They are starting to read more                                                                                        
into the recent Government pronouncements.                                                                                                            
                                                                                                                                                      
What could we make of the cut in the mandatory employee                                                                                               
contribution to the Employees Provident Fund? The opinion is                                                                                          
that the Government would like to generate more spending power.                                                                                       
This will then resuscitate the economy somewhat.                                                                                                      
                                                                                                                                                      
What of the Government's move to buy back shares in failing                                                                                           
businesses, taking over transportation facilities, and reviving                                                                                       
once-aban-doned abandoned development projects? The simple                                                                                            
answer, for most people, is that the Government has decided to                                                                                        
take a proactive attitude to arrest any untoward impact on the                                                                                        
country's economy if and when the so-called imported recession                                                                                        
comes in.                                                                                                                                             
                                                                                                                                                      
Even the recent exercise to conduct a survey of how many people                                                                                       
would be retrenched in the electronics, ICT and related                                                                                               
industries has kept people busy speculating. They are reading                                                                                         
that the move by the Government to set up a task force to                                                                                             
contain the mass retrenchment following the US-led economic                                                                                           
slowdown is a little bit alarmist.                                                                                                                    
                                                                                                                                                      
Clearly, there are two views to the situation. The first takes                                                                                        
the position that we are over-reacting, Recession or not, we                                                                                          
still have to survive and live. We will need only to tighten                                                                                          
our spending habits a little and start to save more.                                                                                                  
                                                                                                                                                      
The second view is that if you continue to believe there is                                                                                           
going to be a recession, then the thing will surely come                                                                                              
through the all-too-familiar self-fulfilling prophecy.                                                                                                
                                                                                                                                                      
A more reasonable approach is to raise the awareness among the                                                                                        
workers of how market forces work in the economy. It is                                                                                               
heartening to note that market-oriented education and awareness                                                                                       
has been strongly underlined by the Government in the just                                                                                            
released Third Outline Perspective Plan (OPP3, 2001-2010).                                                                                            
                                                                                                                                                      
The focus is rightly to upgrade Malaysia's capability and also                                                                                        
the capacity in the management of new knowledge and                                                                                                   
technologies. Implied in the Plan is the need to have a pool of                                                                                       
highly adaptable and well-heeled workforce to support the new                                                                                         
industries and economic activities expected in the next 10                                                                                            
years.                                                                                                                                                
                                                                                                                                                      
There is an important role here for training institutions.                                                                                            
Apart from management related courses, there will be a need for                                                                                       
advisory services in handling and understanding new                                                                                                   
technologies, as well as product testing and advanced skills                                                                                          
training. A relevant area is the certification of general and                                                                                         
specific competencies for managers.                                                                                                                   
                                                                                                                                                      
While taking up this challenge, training providers may also                                                                                           
want to think up a series of programmes in the area of                                                                                                
sustainability services. This will be the requirement for all                                                                                         
companies to submit to under the World Trade Organisation                                                                                             
regime. In actual fact, this will dictate what the market wants                                                                                       
in the future.                                                                                                                                        
                                                                                                                                                      
It has been the accepted practice that companies will need to                                                                                         
consider from now on how they respond to the three linked                                                                                             
elements of sustainability: economic, environment and social.                                                                                         
                                                                                                                                                      
Clearly, the markets of the future will be shaped by how                                                                                              
companies deal with these elements.                                                                                                                   
                                                                                                                                                      
Economic: Wages and benefits, labour productivity, job                                                                                                
creation, expenditures on outsourcing, expenditures on research                                                                                       
and development, investments in training and other forms of                                                                                           
Human capital.                                                                                                                                        
                                                                                                                                                      
Environment: Impacts of processes, products and services on                                                                                           
air, water, and land, biodiversity and human health.                                                                                                  
                                                                                                                                                      
Social: Workplace health and safety, employee retention, labour                                                                                       
rights, human rights, and wages and working conditions.                                                                                               
                                                                                                                                                      
A possible step for a company to take in order to react to the                                                                                        
market is to rationalise itself and begin a restructuring - if                                                                                        
it has not already started - to bring in the requirement of the                                                                                       
marketplace into the workplace.                                                                                                                       
                                                                                                                                                      
What this means is evolving a structure that will give                                                                                                
prominence to products and markets. The idea is to ensure that                                                                                        
only products that are required by the market will be produced.                                                                                       
Quality will be uppermost an it will guarantee delivery and                                                                                           
satisfaction                                                                                                                                          
                                                                                                                                                      
There is a catch here. The success of the Exercise will greatly                                                                                       
depend on the right leadership and the right team.                                                                                                    
Ineffectiveness in both will not benefit the company at all.                                                                                          
Problems of coordination, performance, and attitude of team                                                                                           
members will surface and scuttle all well-meaning actions.                                                                                            
                                                                                                                                                      
Bringing in elements of the marketplace will mean actually                                                                                            
transferring the elements of a free market into the work                                                                                              
environment.  There will be the structured chaos, constant                                                                                            
haggling, and the not too infrequent free-for-all. A regulatory                                                                                       
mechanism will need to be introduced to ensure harmony of the                                                                                         
marketplace in the workplace.                                                                                                                         
                                                                                                                                                      
Nevertheless, it is a worthwhile challenge for companies to                                                                                           
ensure they survive the inevitabilities of the future                                                                                                 
marketplace.