>> MIM Speaks
A PITCH FOR THE NEW ECONOMY
AUGUST 12, 2001 (P.37) -
THE STAR
IN 1997, Malaysians braved themselves to prepare for the worst
ever financial crisis that hit the country. Then, Y2K's
overpowering grip was easily prised open when both the
Government and industry joined forces to confront its
purportedly damaging effects.
When the dotcom bubble burst on the Nasdaq, similar companies
around the world keeled over in despair; but for Malaysians,
the experience was deeply enriching.
Knowledge was resurrected to become once again the key
performance indicator for the development of human capital. New
strategies were drawn up to prepare contingency plans to meet
the unexpectedly high demand for knowledge workers in the new
industries. Malaysians will soon have its own K-economy plan.
The deadlines for WTO and AFTA are fast approaching and this
fact alone has been driving business competition throughout the
region. For Malaysians, the bank mergers are almost completed.
Those to follow are the stockbrokers and the insurers. Here,
we are not sure how ready we are going to be in this already
borderless world.
Welcome to the Now Economy
The developments outlined above convey a sense of the anxiety
and expectations that Malaysians are feeling right now. The
biggest question is when does it really begin?
For most, the New Economy began after the Berlin Wall came
tumbling down in 1989. The only choice left for most countries
trying to develop their economy was the free market model.
Some have succeeded in implementing this, but many just have
not been able to cope with the new rules and new demands.
As seen from recent developments, Malaysians have been
preparing themselves well. However, in the next phase where the
competition will heat up globally, Malaysians will need to
recognise the following warning signals in order to survive:
* THE increasingly global nature of market reach;
* THE importance of correct branding of products and services;
* The speculative ebbs and flows of financial transactions;
* THE new code of transparency;
* THE real-time delivery of market information; and
* THE multiplicity of choices available to the customers.
What is the Malaysian entrepreneur to make of all this? As he
ponders his next step, the better advice is for him to weigh
the challenges and fashion out his responses rationally.
Judging by the issues and topics to be discussed, he will also
be able to obtain some answers, and much more, at the "New
Economy Conference: Challenges and Response" from Sept 6 to 8
at the Palace of the Golden Horses.
The conference is the effort of three national organisations -
the Malaysian Institute of Management (MIM), Multimedia
Development Corporation (MDC) and the Asian Strategy and
Leadership Institute (Asli) - to put Malaysians in contact with
the top minds of the ICT industry and exchange views on the
development of the New Economy.
The conference is designed to deliver significant insights into
the key parameters of the new economy. Participants can expect
to gain:
* A THOROUGH understanding of the emerging New Economy and the
consequent demands on the performance of management; and
* AN appreciation of how successful companies and business
leaders have managed key aspects of organisational well-being.
On the challenges side, five critical issues are involved:
Challenges of Globalisation and Technology: It is recognised
that the adoption of new technology and the acceptance of
globalisation as a new trading link have contributed to
bringing in the New Economy. This has led to improved economic
performance in some countries. Many others have chosen to wait
and see.
Countries that have decided to move ahead have already prepared
master plans and presented policies that are all encompassing.
A review of some of the steps outlined by these countries in
their preparation and the extent of the discussions that have
emanated from the planning process will serve to focus
attention on the challenges facing countries wanting to move
into the new economy.
Likewise, corporate enterprises have also come to terms with
the new challenges of globalisation and technology, and some
have managed and spelt these out in clear and definitive ways.
Strategic Challenges in shaping our Digital Future: The era of
the new economy is attributable to the advent of the Internet
and the attendant advancement in the technology of
communications and information dissemination and retrieval. The
question is who can gain the technology first and how is it
shared between countries.
Essentially, we are concerned with the steps countries have
taken to overcome some of the hurdles faced by them in closing
the digital divide, and how the benefits of the New Economy can
be disseminated to as many people as possible. Of interest will
be the role of the industries involved in ICT in assisting
these governments. We are also focusing on new regulations and
conditions, both nationally and internationally, that are being
introduced in countries under the guise of security.
Convergence, Connectivity and Competition - New Rules, New
Technologies, New Trends: The New Economy has also been
characterised as one that is introducing software, CDs and
digitised DNA codes. These are all products that have a
knowledge base. The factor of knowledge that has entered the
domain of economics has also shaped the thinking on the
creation of new jobs, new wealth, new products, new industries
and new trading links.
It will be useful to explore the context of these developments
in terms of determining the correct responses from governments
and industry. Are we moving into a new regime of standards and
monitoring measures to protect the end users? Or are we leaving
it to market forces to determine the outcome?
plications: We are focusing here on the enabling technologies
that can position countries well into the new economy and
become more competitive. These include ICT, biotechnology, new
materials and nanotechnology.
The impact of countries moving principally into the services
sector will need to be looked at from the perspective of the
new technologies and new ventures, including venture capital.
Other issues of significance are the supply of
knowledge-workers and adequate infrastructure.
Global marketing and competitive positioning - How can Asian
companies compete against the world's best?: An examination of
how a country's high technology exports could be sustained in
the light of competition from well endowed countries. Central
to this is the consideration of several domestic and external
issues.
Among the domestic issues are the exchange rate policy, FDI
policy, export diversification programmes, and human capital
development. On the external side, we can expect more vigorous
global competition as well as from rising Asian economies like
China. Branding is one delivery mode considered effective for
some countries. The pros and cons of the new branding in a
connected world will be useful information.
Additionally, consideration of the following aspects is
required:
New ventures One requirement for investing in human capital,
one of the essential ingredients for moving into the New
Economy, is the commitment from venture capitalists to finance
high- technology projects. More and more commercial
organisations are joining the fray.
The problem is how to balance between too much capital and a
shortage of organisational capabilities. Various approaches
have been tried. An exchange of views on what's on and what's
out will be beneficial.
New responses In meeting the challenge of the New Economy, it
is worthwhile to know what's new. We then move on to
considering how countries and corporate enterprises have
reacted to this development of knowledge as a factor of
economic and wealth creation.
It will be informative to look at the experiences of both
government and businesses in handling such issues as hiring and
training of knowledge workers, new technologies, and building
trust and awareness of the new economy.
The changing role and responsibilities of executive leadership
in this process will be decisive in meeting the challenges of
the New Economy.
|
