An In Depth Glimpse of Malaysia's Brain Drain

JULY 11 - There is a boy I know who scored 10 A1s. His mother is a

primary school teacher and Andrew has two younger brothers. His

father, a civil servant, had already passed on by the time the son sat

SPM in 2006.

 

Armed with his excellent result, Andrew applied for a scholarship to

study mechanical engineering. The government rejected his application.

Petronas rejected his application too. Can you imagine how

disappointed and frustrated he was?

 

As soon as I learned of Andrew's difficulty, I offered him financial

assistance to do accountancy in Utar. He has been scoring top marks in

every exam to earn a scholarship from the university. Although Andrew

is now exempted from paying fees, I still bank him RM400 a month to

cover cost of living.

 

I have given assistance and allowances to more than 40 poor students

to study in Utar in Kampar, Perak. Andrew is typical of their calibre;

he prefers to get what is his due on merit, and his university has

seen fit to waive his fees.

 

On my part, I expect nothing from those that I've supported except for

them in future to help young people in similar circumstances, and to

hope that they will all stay back in Malaysia so that they can lend

their talents to building up our nation.

 

There are others with deeper pockets who have extended a helping hand

to our youngsters. One of them offers the cost of school and exam

fees, hostel accommodation, RM5,800 a year for expenses, RM1,200

settling-in allowance, and transport/air ticket. Furthermore, the

recipient is not bonded. In other words, the giver asks for nothing

back.

 

I'm talking about the pre-university Asean scholarship extended to

Malaysians by 'the little red dot' Singapore.

 

Of course, Singapore is not doing it for purely altruistic reasons.

The country is giving these much coveted Asean scholarships to build

up her national bank of talent.

 

Some Malaysians accuse them of 'poaching' the creme de la creme of our

youngsters. I don't look at it as poaching. Their far-sighted

government is doing it in their national interest.

 

And why not? Singapore can afford it. It has three times our GDP per

capita. On another comparative note, the GDP per capita of Taiwan and

South Korea are 2.5 times and double ours respectively. Before the

NEP's introduction in 1970, the four countries were at parity.

The big question is why are we surrendering our assets which Malaysian

parents have nurtured but the state neglected?

 

Tens of thousands of young Malaysians have left our shores on the

Asean scholarship. I am not sure if Singapore is willing to give out

the figure.

 

But I am pretty sure the Malaysian authorities do not give two hoots

about this, whatever number they may have arrived at. If they do,

there seems to be no policy change to stem the outflow.

 

Malaysia is optimistically indifferent to the continuous brain drain,

little caring that it is detrimental to our aspiration of becoming a

developed country (I hate to say this) like Singapore.

 

Behaving like a failed state

Consider this startling statistic: There are more Sierra Leonean

doctors working in hospitals in the city of Chicago than in their own

homeland. More Malawian nurses in Manchester than in Malawi. Africa's

most significant export to Europe and the United States is trained

professionals, not petroleum, gold and diamond.

 

The educated African migration is definitely retarding the progress of

every country in Africa. Today, one in three African university

graduates, and 50,000 doctoral holders now live and work outside

Africa. Sixty-four per cent of Nigerians in the USA has one or more

university degrees.

 

If we carry out a study, we are likely to find a very large number of

non-Malay graduates emigrating to Singapore, Australia and other

countries that is proportionately similar to the African exodus.

However the compulsion is different, seeing as how some African

countries are war-torn and famished, which is certainly not the case

with Malaysia.

 

The push factors for our own brain drain lie in NEP policy and this

needs to be addressed with urgency.

 

State Ideology: Be grateful you're Malaysian

Try putting yourself in the shoes of an 18-year-old. This young

Malaysian born in 1991 is told that Umno was very generous in granting

citizenship to his non-Malay forefathers in 1957. Thus as a descendant

of an immigrant community - one should be forever grateful and respect

the "social contract".

 

Gratitude is demanded by the state while little is reciprocated. Under

the NEP - and some say this policy represents the de facto social

contract - every single Vice Chancellor of every single Malaysian

public university is Malay.

 

Promotion prospects for non-Malay lecturers to full professorship or

head of department are very dim, hence we have the dichotomy of

non-Malays predominant in private colleges while correspondingly, the

academic staff of public institutions proliferate with Malays.

The civil service is staffed predominantly by Malays, too, and

overwhelmingly in the top echelons. The government-linked corporations

have been turned into a single race monopoly.

 

Hence is it any surprise that almost all the scholarships offered by

government and GLCs seem to be reserved for Malays?

 

Youngsters from the minority communities see that Malays are the

chosen ones regardless of their scholastic achievement and financial

position. Some are offered to do a Master although they did not even

apply (but the quota is there to be filled, so these disinterested

Malays are approached).

 

Our lesson today is ...

How the government apparatus conducts itself and the consequences of

its policy implementation will upset an individual's innate sense of

justice.

 

The government pays about RM1.8 billion in annual salaries to

teachers. A child is taught moral studies in class but he learns in

life that adults condone and conspire to immorality by perpetuating

the unfairness and injustice which impacts on Malaysia's young.

On the other hand, the favoured group is given more than their just

desserts without either merit or need. When one is bred to think that

privilege is only his rightful entitlement, we would not expect this

young person to pay back to society in return.

 

Our Malaysian education system has been flip-flopped, pushed and

pulled this way and that until standards dropped to alarming levels.

The passing mark for subjects in public exams have fallen notoriously

low while the increasing number of distinctions have risen fatuously

high with SPM students notching 14As, 17As and 21As.

 

With top scorers aplenty, there will not be enough scholarships to go

around now that the Education Ministry has decided to put a cap on the

SPM, limiting takers to 10 subjects.

 

The human factor

It's unrealistic that the education system can be effectively

overhauled. Even tweaking one aspect of it, such as the language

switch for Math and English, created havoc.

 

It's not that our educational framework is so bad as, after all, a lot

of study and planning did go into it.

 

It's only when the politicians dictate from on high and overrule the

better judgment of the educationists - Dr Mahathir Mohamad being case

in point - that we slide deeper into the doldrums.

 

The politicisation of education and the hijacking of the country's

educational agenda has clearly cost us heavily in terms of policy

flip-flops and plummeting standards, and the loss of a good part of

our young and talented human resources.

 

Matters become worse when Little Napoleons too take it upon themselves

to interfere with teachers. For instance, the serial number assigned

candidates when they sit public exams. Why is a student's race encoded

in the number? What does his ethnicity have to do with his answer

script?

 

There is further suspicion that the stacks of SPM papers are not

distributed to examiners entirely at random (meaning ideally examiners

should be blind to which exam centres the scripts they're marking have

originated from).

 

A longstanding complaint from lecturers is that they are pressured to

pass undergrads who are not up to the mark, and having to put up with

mediocre ones who believe they are 'A' material after being spoilt in

mono-racial schools.

 

Letting teachers do their job properly and allowing them to grade

their students honestly would arrest the steep erosion of standards.

And, unless we are willing to be honest brokers in seeking a

compromise and adjustment, the renewed demonising of vernacular

schools is merely mischievous.

 

Either accept their existence or integrate the various types of schools.

But are UiTM and its many branch campuses throughout the length and

breadth of the country, Mara Junior Science Colleges and the

residential schools willing to open their doors to all on the basis of

meritocracy if Chinese, Tamil, and not forgetting religious schools,

were abolished? Not open to a token few non-Bumiputera but genuinely

open up and with the admission numbers posted in a transparent manner.

 

Finally, there are teachers genuinely passionate about their

profession. There are promising teachers fresh out of training college

who are creative and capable of inspiring their students. It's not

only Form 5 students who have been demoralised. Teachers are human

capital that we seem to have overlooked in the present controversy.

 

Conclusion: Ensuring fairness for the future well-being of our young

A segment of Johoreans cross the Causeway daily to attend school in

Singapore. Many continue their tertiary education in Singapore which

has among the top universities in the world. Eventually, they work in

Singapore and benefit Singapore.

 

Ask around among your friends and see who hasn't got a child or a

sibling who is now living abroad as a permanent resident. I can't

really blame them for packing up and packing it in, can you?

It's simply critical at this juncture that we don't let our kids lose

hope and throw in the towel.

 

The system might be slow to reform but mindsets at least can be changed

easier.

 

It starts with the teachers, the educationists and the people running

the education departments and implementing the policies.

Please help Malaysian youngsters realise their full potential. Just

try a little fairness first. - cpiasia.net

 

 

 

 

A Long Malaysian Story of Contractors

This article is too important not to be read by more people. It is

written by Koon Yew Yin. Who??? Well, if you like Mudajaya, IJM or

Gamuda, Mr. Koon was one of the founders for all three companies. We

certainly do not need more contractors - we must ensure that our

resources are put into creating value to industry and economy, not

creating layers after layers of profits being hived off.

The article was taken from Center For Policy Initiatives:

http://english.cpiasia.net/Article by Mr. Koon can be linked to:

http://english.cpiasia.net/index.php?option=com_content&view=article&id=1783

:bumiputera-contractors-a-wasteful-national-mission-to-date-&catid=211:koon-

yew-yin&Itemid=156

Note on the Author

I am a 76-year-old chartered civil engineer and one of the founders of

the three larger construction companies listed in Bursa Malaysia.

These are Gamuda Bhd, Mudajaya Group Bhd, and IJM Corporation Bhd.

I was a member of the Board of Engineers, Malaysia for three terms. I

was also on the Sirim Board responsible in writing the Malaysian

standard specifications for cement and concrete. In addition, I was

the Secretary General of Master Builders Association, Malaysia for

nine years.

These days, I am completely retired. My intention in writing this

article is honourable. Many people may not like reading what I have

written and the truth may be difficult to accept. Nevertheless, this

is my considered analysis for the benefit of my country, the

Bumiputera contractors and the construction industry.

-------------------------------------

Written by Koon Yew Yin

Wednesday, 18 November 2009

It is an indictment of our system that IJM is able to compete

internationally for contracts but yet is required to work as a

sub-contractor to Bumiputera companies on the North-South Highway in

Malaysia.

On Oct 25, 2009 our Second Finance Minister Ahmad Husni Mohamad

Hanadzlah said that government has vowed to cut down on wasteful

spending to lower its budget deficit and all major public projects

must go through the open tender system.

Earlier, the Auditor-General's report for 2008 revealed continuing

financial management weaknesses at every level of the government.

Delays in project completion seem to be a perennial problem and the

lack of oversight by various ministries and departments in the

procurement of goods and services continue to cost the government

hundreds of millions of ringgit.

These statements indicate perhaps that our Prime Minister Najib Razak

may want to reverse his announcement on January 9 in Kuala Teregganu

that the government would always look after Class F contractors. (Non-

Bumiputeras cannot register as a Class F contractor).

The government had in fact already set aside RM900 million, which was

RM300 million more than last year, for works to be undertaken by Class

F contractors this year.

Producing competitive Bumiputera contractors

As reported on May 1, 2005, Malaysia had one contractor for every 614

persons. Most likely there are more contractors by now. This ratio is

again likely to be amongst the highest in the world and is obviously

costing the public a significant amount of money besides affecting our

overall economic performance.

I would like to pose a few questions which may appear unkind or

insensitive but nonetheless need to be asked.

Out of hundreds of high-rise buildings in Kuala Lumpur does anyone

know of any Bumiputera contractor who has won any of the building

contracts through an open competitive tender process? Out of hundreds

of kilometers of highway in Malaysia, can any Bumiputera contractor

who won any part of the highway contracts through open tender be

identified?

The answer to the above questions unfortunately is in the negative.

The evidence is that all the government's well-intentioned efforts in

trying to produce competitive Bumiputera contractors since 1957 have

failed.

Why this has happened needs to be openly discussed rather than swept

under the carpet. In this note, I share my experiences as a contractor

and my knowledge of why Bumiputera contractors have failed in the past

and what needs to be done by the government to correct this unhealthy

situation.

Facts of life in the contracting business

Contracting is a very difficult business yet it is so easy to register

as a contractor.

To register as a Class F contractor one has only to show that he has

RM5,000. He does not even require a pass in Lower Certificate of

Education (LCE). But it will take at least 10 years to learn how to

overcome all the inherent difficulties and become competitive and

efficient. Continuously giving out lucrative and over-priced contracts

without open tenders will only make the recipients less competitive.

Secondly, studies have shown that there are more failures and

bankruptcies in contracting than in any other business, and also

almost all construction projects are NOT completed within the original

scheduled time.

The delay will cost the contractor more and that is why you can often

see uncompleted buildings and abandoned projects which have been

undertaken by inefficient contractors. There are many reasons for this

peculiar phenomenon.

1. Open tender system

Although this system is the best way to ensure completion of any

project/contract at the lowest price, it is the most difficult

obstacle any contractor has to face in the real competitive world. He

must know his business very well and be efficient to face the open

competition all the time. Like a good athlete, he has to keep fit and

constantly be aware of the market conditions and his competitors.

There is a classic saying, 'a cheap thing is not good and a good thing

is not cheap'. But contractors always have to produce good work at the

cheapest price.

In order to submit the cheapest tender, the contractor must be very

optimistic in all his assumptions to get the cheapest rates. He must

assume that he will not encounter any cash flow difficulties and that

he will always get his progress payments on time to pay his creditors.

He must also assume that he will not encounter any difficulty in

getting all the required materials on time to avoid any delay and also

that there are ample workers for him to pick and choose from.

Furthermore, he must also assume that the heavens will be kind to him

and he will not meet any inclement weather during construction.

Invariably, many of these assumptions are proven wrong and thus

completion delayed, and the infrastructure will cost more to complete

than provided for in the contract.

2. The importance of teamwork

Teamwork is important in all business endeavours. It is more so in the

contracting business. Every contractor must realise that his success

is not going to be determined by his own knowledge, talent or

abilities. It is going to be determined by his ability to develop a

great team. Those who are closest to him will help determine the level

of his success.

Every efficient contractor must have a reliable team comprising

managers, sub-contractors, material suppliers, foremen and skilled

workers. All the team players must cooperate with one another, bearing

in mind that the main contractor's survival depends on their

contribution. Their main goal must be saving cost. If they cannot

complete the contract within the tender price, all of them will also

be affected.

3. Construction material pricing

There was no material price escalation clause in the conditions of

contract before I became the Secretary General of the Master Builders

Association. During the unprecedented oil crisis, building material

prices shot through the roof. As a result, many contractors could not

complete their contracts for schools and other projects. After several

appeals the Public Works Department (PWD), now known as Jabatan Kerja

Raya (JKR), eventually allowed only cement and steel for price

variation reimbursement.

This was only a partial solution as hundreds of other items were excluded.

Without a protective price fluctuation clause for the other items,

contractors are exposed to risk. At the same time, knowing that they

have to undercut their competitors during the tender process,

contractors would normally under-price to achieve the lowest tender.

Invariably, most materials would increase in price due to inflation

and other reasons. Contractors require many years of experience to be

able to anticipate such price changes and to make adequate provisions

for them whilst at the same time not overpricing their tenders and

losing the bid.

4. No contract is exactly the same

No two high-rise buildings in KL are the same.

Construction of a building, a bridge or a stadium is always akin to

making a prototype. The process is much more difficult than

manufacturing any product where there is repetition. For example in

making cars, the first prototype and the initial few cars may be more

difficult to make but once everyone gets used to the routine, the

manufacturing process will normally proceed smoothly.

However, in the construction of buildings or any civil engineering

works, there is very little repetitive work. Every construction site

is different and most of the people involved have never worked

together before.

On top of this, there may also be inexperienced supervisory staff that

can create a lot of difficulties for the contractors. Invariably, by

the time all parties get used to the routine, the scheduled time is

over.

5. Financing

Most contractors do not have sufficient capital to finance their

undertakings.

Contractors generally do not have fixed assets like most

manufacturers. They usually do not have land and buildings but,

instead, they have construction equipment. Unfortunately, banks do not

accept these moving assets as collateral for a loan. Without bank

financing, contractors will obviously find it more difficult to

undertake their business.

Beginning at the bottom: The key to success

I have provided some insight into why contracting is not a business

that is as easy or profitable as it is commonly perceived to be.

There are other factors explaining why or how some of the most

successful tycoons associated with the building or construction

industry have managed to get where they are.

Firstly, it should be noted that the majority of listed companies were

started by Chinese merchants most of whom incidentally did not have

tertiary education. For example, Lim Goh Tong of Genting began his

working career as a scrap iron dealer and a contractor; and Yeoh Tiong

Lay of YTL Corp. started off as a small contractor.

Generally, Bumiputeras are not interested in working long hours in

managing small businesses earning marginal profit. Because of the NEP,

many have hopes of securing permits or concessions for big deals so

that they can become instant millionaires. There are relatively few

Bumiputeras involved in small and medium-scale enterprises (SMEs).

More Bumiputeras should follow the humble footsteps of the Chinese to

become traders and merchants for building materials and similar goods.

The business skill they can learn from these humble beginnings will

carry them a long way. I am very sure some of them will eventually

become good contractors and successful businessmen if they learn the

trade at the bottom and not try to parachute into the contracting

business.

The importance of skilled workers

Although there are already many Bumiputera engineers unable to find

employment, most of the universities are still producing more and more

engineers every year. But without a sufficiently skilled workforce,

all the engineers in the world would not be able to complete a single

project.

There are so few Bumiputera construction foremen, carpenters and other

skilled workers. If you were to go into any building construction

site, you would see the truth of what I am saying. How many Malay

carpenters have you seen in KL?

Without skilled Bumiputera workers, it would be more difficult for

Bumiputera contractors to succeed. In fact, most of the Chinese

contractors started as apprentices and rose from the bottom to become

successful contractors. More Bumiputeras should be encouraged to work

as apprentices in construction sites. This is a necessary good

practice to produce really good Bumiputera contractors.

The role of trade schools

There should be more trade schools and more Bumiputeras should be

encouraged to learn construction skills like carpentry, welding,

plumbing, bricklaying, etc. Very soon, skilled tradesmen will be able

to earn more than degree holders as is the case in Australia or

England.

The government should build more trade schools and not hesitate to

offer scholarships to Bumiputeras to be trained in these trade

schools. Presently, the construction industry is not short of

engineers but it is very short of skilled workers and supervisors. If

more Bumiputeras are properly trained in various crafts and blue

collar skills, some of them will go on to become good contractors.

Time and more time

They say Rome was not built in a day. It is easier to produce

engineers, doctors and other professionals than to produce efficient

and competitive contractors who do not need government financial aid.

Just giving out lucrative contracts to Bumiputeras is not the answer;

in fact it is counter-productive as it simply makes them more

inefficient and less competitive.

IJM Corporation Bhd has taken more than 40 years to attain a

competitive level of competence. The record shows that IJM has secured

on competitive tenders five toll road concessions in India. Three are

currently in operation and two are under construction. The total

length of the roads exceeds 1,000 kilometres, longer than our

North-South Highway.

In addition, IJM completed a toll bridge in Kolkata and sold its

interest for RM65 million profit after a short period of three years.

IJM is also a very reputable LRT builder, having to date completed

15km of the elevated sections of the New Delhi Metro and it was

recently awarded another 8km.

Based on open competitive tender, IJM won the contract to build the

tallest building, a prominent future landmark for the Delhi

Municipality, in New Delhi.

It is an indictment of our system that IJM is able to compete

internationally for contracts but yet is required to work as a

sub-contractor to Bumiputera companies on the North-South Highway in

our own country.

Conclusion: Half-baked contractors are not in our national interest

Contracting is one of the most, if not the most, difficult business

and it takes a very long time to produce competent contractors.

It is very dangerous to quickly produce half-baked ones as they will

soon find themselves in financial difficulties and require bailouts.

The bankruptcy record shows that a large number of debtors are

Bumiputera contractors with many of them unable to pay back the loans

given by government-controlled financial institutions.

The government must change its methods and policies which have proven

unworkable. There is no urgency in producing more Bumiputera

contractors as many of the key industries e.g. the banks, plantations,

motor vehicles, taxis, rice etc are already under the control of

Bumiputeras.

Our government must not be narrowly communalistic and should make use

of all the groups, irrespective of race, that are more efficient in

the contracting business.

Giving out contracts without a full tender process is akin to

corruption. I urge the government to stop this corrupt practice and to

utilize the savings from these enormous sums to implement the options

suggested above.

Malaysia Going Down the Drain?

Read both these excellent articles about Malaysia to know that its going backwards under the current governments ruling.

1. Beware of 'terrorist's Within by Marian Mahathir

2. Malaysia to Export Maids by Lee Wei Lian

Both articles highlight how the current government is struggling to manage the country as the Malaysian leaders focus on power and money. Ms. Lee is right on the dot when she said Malaysia produces less expats now that we did 30 years ago. 30 years ago we have professionals who could command a job any where in the world. 30 years later, only a tenth of those can do so. Doesn't it point out so clearly that since 1980, the Malaysian education system has been going down the drain. No wonder all our best students opt for Singapore and other counties who gladly provide Malaysian students with scholarships, which the Malaysian government refuses to do mainly because of racial preference.

Why Would Daul Kim Kill Herself?

How could someone, who has everything and so much more to come, take her own life at the tender age of 20?

Daul Kim, Korean supermodel at the age of 20, took her life at her Paris flat.

Apparently she had been feeling depressed and lonely.

What the hell - there are lots of people who are depressed and lonely in their lives - only the stupid give up and take their lives.

We're all in control of our lives. There is always a way out or a way to change the course of our lives.

Ending such a beautiful life is such a waste of talent and very hurtful to loved ones.

To end your life just because you're lonely - so pathetic  and shallow - I guess if you're that pathetic and shallow, then the loss of your life wouldnt mean a thing to the world. 

Enjoy.