Ricky’s Online Business Blog

I recently wrote a paper on whether globalization is good for Malaysia or not, as an assignment for the subject International Business Management & Policy in my MBA study.

To complete the 4000-word essay (I managed to write 2800 words only), I thought of 10 points and expanded from there. I published in Facebook before and have drawn many comments.

Here are the 10 points for sharing to all.  Welcome to comment and criticize. I’d like to discuss and learn from your viewpoints.

Introduction

The question “Is globalization good or bad for Malaysia?” is not relevant any more. Globalization will happen and is happening to all countries including Malaysia, no matter it’s good or bad.

Quoting an unusual example – The late Qing dynasty in China in late 19th century and early 20th century. They locked the country out from the rest of the world. Unlike the Meiji Restoration that propelled their neighbour Japan into a world power in just a few decades, the Qing dynasty eventually fell in 1911.  Refuse to follow the world trend? It’s either downfall or extinction.

The 10 Points

#1 Malaysian businesses need the global market. The local market is just too small. It’s a matter of survival in the globalized 21st century. Don’t be content with just being a jaguh kampung (champion in home country).

#2 Malaysia needs to specialize. Want to get out of the middle income trap? Do something new, something different. Don’t insist on attracting FDI in labor-intensive businesses. Move up the value chain.

#3 We have been trying to “prepare” for globalization for too long time, even decades. It’s true some of us, some industries, some businesses are not ready. But when will we be ready? Perhaps when we are truly ready, we are irrelevant in the world economy any more.

#4 Globalization raises our competitiveness. Being a frog in a well (Malay proverb: katak dalam tempurung) does not improve our competitiveness. In business, it’s only when we face the real challenges that we grow. Just open up and the competition will hasten up our readiness.

#5 Globalization raises our human capital. Yes, brain drain is a real problem. But don’t dwell on it too long. How about using these “drained brain” in overseas for our advantage instead? How about getting foreign talents into our country instead? Who say Malaysia can’t attract talents? Learn from Mind Valley, the Google workplace of Malaysia.

#6 When we close ourselves out, people will not admire us. When we become an open book and have transparency, investors will come. A 81% drop in FDI is a wake-up call, much too late. Learn the lesson and open up.

#7 Communities in Malaysia have been sharing the same country, yet living segregated. But our diversity should be a great blessing to foray into the largest markets in world. Globalized Malaysian businesses with true partnership among different races and spirit of 1Malaysia can help national unity.

#8 We are living in an integrating, interdependent world economy. We need to keep up this reality. Want to close our market? Check the fate of Qing dynasty.

#9 We are good in many areas. We have leadership in many markets, such as Islamic finance and palm oil. Why can’t we excel in other areas as well? Malaysia Boleh (Malaysia can)? Don’t be defeatist. Think boleh and we boleh!

#10 I never advocate opening up 100% completely without reservation. There are limits. But we need to embrace globalization and even be an advocate in it. Globalization will change us, for the better.

What do you think of globalization? Is it good or bad for Malaysia? Welcome to voice your opinions.

It’s finally countdown to 2009 now.  Happy New Year everyone!

No matter whether you are working, running your own business, studying, home-making, retired or somewhat in between, I wish you achieve new heights of success in career and life in this new year!

People say it’s going to be a bad year.  Many will lose their jobs.  Disposable income will become less and less.  Businesses will suffer.  So on and so forth.

We can read or hear so much bad news everyday that some people I know started to automatically develop a response of “immunity” and even “rejection” to these negative bombardments.

According to some really successful people, now is actually a great time to do many things, including developing your business.  So instead of lamenting on the economic situation, let’s learn to take advantage of it – we don’t have such opportunity many times in our lifetime!

So instead of expecting bad things to happen, let’s together hope for and work for good things to come up in our life, work or business this year!  Well, according to the law of attraction, we get what we expect.  We reap what we sow, starting first in our minds.

At the end of 2009, I wish I will have lived a fruitful year.  So I wish for you.  God bless you a successful year ahead!

Selamat Tahun Baru!

新年快乐,心想事成!

新年おめでとうございます！

People have been talking about economy getting worse.  Prices are going up everywhere.  Individuals are having less disposable income.  Banks are tightening their lending.  Sales are going down and companies are going to find it hard to do business.

In such a time, what can a business do?  Apart from looking inwards to protect ourselves by keeping cash reserves and being more prudent in spending, is there anything we businesses can look outwards to help others?  These are some thoughts gathered from others.

• Be honest and maintain integrity in dealing with employees, customers and stakeholders
• Don’t raise prices to burden customers just because others raise prices
• Be fair to employees and treat them well even in recession
• Use entrepreneurship to help others

In particular, business people possess something others do not, that is called entrepreneurship.  How can we use this quality to help others?  Can we use it somehow to generate income for others?  I do have some thoughts on this and will blog more on using entrepreneurship to bless others when time comes.

Of course it’s easier said than done.  But for those businesses who have more resources, why not consider it? Even those without much resources can also do a part, at least be honest, for example.

I strongly believe in the societal marketing concept, where businesses exist for a purpose in the society.  There is a social responsibility to bear.  There is a mission to fulfill, of course not the one hanged on wall only.

Yes, corporate responsibility (CR) can do a part in differentiating a business from others.  I believe businesses who give to the society can really gain from it in the long run.  But we should not try to give in order to be given.

A business exists not only to make money but also to serve and bless others.  Those who bless others will be blessed in return.  The more we bless others, somehow we will be blessed even more.  We are to become a channel of blessings to others, not a reservoir of blessings by keeping everything to ourselves.

In times of bad economy, how can you help then?