Can we become the Silk Route innovation hub for the Pacific Century?2

Thursday, 17 November 2011 | Filed under Nation Building

Malaysia is a country that has always been a thriving business centre for the world.

From our earliest trading history as a major stopover port for the Spice Route and the Silk Route, we have always been welcoming of new products and new ideas from every corner of the world.

Most Malaysians, I believe, are still that way. We thrive in being a melting pot of new ideas, new trends and new innovations.

So it was great news that in the recently released World Bank report Doing Business 2012, Malaysia is in the World’s Top 20 countries recognized for the ease of doing business.

We jumped 5 points from No. 23 to No 18 in one year, a highly commendable testament to the Prime Minister’s leadership in removing stumbling blocks and red tape.

But when it comes to the first cousin of business friendliness - innovation - we are not doing well.

This continues to be our Achilles heel.

Malaysia’s innovation drop must be stemmed

Malaysia’s drop in the 2011 Global Innovation Index to 31st position must be stemmed.

In 2010 we were at No 28 in the overall rankings of 132 countries; in 2009 we were 25th. The GII report refers to 2 other sub-indexes used to measure innovation - the input sub-index and output sub-index.

The input sub-index stands on five pillars - institutions, human capital & research, infrastructure, market sophistication, and business sophistication. We rank at 27.

The output sub-index stands on two pillars - Scientific and Creative Outputs. Here, we rank No. 35.

RM100 million fund for innovation

We have no excuse for this drop, when innovation has been documented as a key economic growth sector for GDP for the last 20 years.

The emphasis has been sustained by all the Prime Minister’s both with programmes and substantial funding to accelerate this innovation transformation.

In the 10th Malaysia Plan, the PM also announced a RM100 million allocation for creativity and innovation, and named 2012 being the year of the National Innovation Movement, with an allocation of RM100 million (US$31.69 million) to encourage innovation in all sectors of society.

By 2020, it is projected that Malaysia’s Gross National Income of more than RM30 billion would be generated from commercialisation of some 300 intellectual properties.

There is no doubt of the PM’s political will to make Malaysia an innovative nation, but he is constricted by a bureaucracy that is not moving fast or creatively enough with how the world is changing.

Innovation and the public sector struggle to see eye to eye.

One is about reinventing and redesign, while the other is about holding on to rules and regulations (obsolete though they may be).

One is future-focused, the other status quo and even regressive thinking.

When it comes to education, we continue to focus on linear and technological skills, with little space for creativity and the humanities.

2010 was declared the Year of Creativity and Innovation, but other than innovation carnivals, it has lacked focus and results.

Now, 2012 has been name the year of the Innovation Movement.

It’s time to get moving - fast.

Need for Innovation think tank by top business icons

I believe the time is ripe for a high-powered innovation think-tank made up of home grown business visionaries who are changing the way business is done at home and abroad.

We are not short of business visionaries in our country.

We are also not short of think tanks …but most are full of government officials.

A business innovation group will be in the best position to advise the Prime Minister on concrete actions that can be implemented immediately to stop our slide, what specific blocks need to be removed, and how best to accelerate the way forward.

The Pacific Century is here

The time is ripe to make the change now.

By all accounts, the 21st century is being called the “Pacific Century” and the coming years are likely to the Decade of Innovation for Asia.

Malaysia has just become a member of a powerful Trans Pacific Partnership (TPP), a free trade bloc with a 500 million population and over USD22 million GDP.

Once the member countries are finalized,  the TPP could create a regional economic group some 40% larger than the 27-member EU.

Malaysia has every reason to benefit greatly from this.

We have arguably some of the best DNA heritage from around the world - a mix of East and West that has been the strongest part of who we are.

We have all the key ingredients to become an innovation hub for Asia-Pacific.

Will we do what it takes to have a ‘renaissance’ that will see us once again become a dominant player in trade on the world stage?