CHANGE OF MINDSET IS VITAL FOR NEW ECONOMY

I theorized that the New Economy was indeed a reality and that fresh policies are needed to meet the challenges posed by this revolution. Policies based on the old industrial economy especially the ones on low labour costs, better physical infrastructure and tax incentives are outdated and are no longer as relevant in the New Economy.

Although Malaysia's industrialization policy is not going to change overnight and manufacturing will continue to play an important role in the economy for the short term, the longer term will see a diminishing role for low margin low tech manufacturing. This role will be usurped by nations such as China, Vietnam and Cambodia.

Malaysia's future lies in the high technology industry and the knowledge economy and this requires a change in mindset among our leaders and policy makers. There are three key aspects that require a change in mindset: education, social and cultural values and government policy.

The most important and one of great long term significance is education and the role of technopreneurship in our education system. The Malaysian education system is still based on developing basic knowledge and technical skills at all levels of education. Our education system has been built on a system of rote learning for the sake of passing exams. Students are not taught to think, analyze or question.

To create a nation of technopreneurs, technopreneurship programmes begin in secondary school. This should include classes for all students in basic accounting, management, human relations and other business skills.

Technopreneur clubs should be formed in all schools and children should practice entrepreneurial skills and be encouraged to start small businesses even if only for the sake of learning and practice. Business plan and management competitions should be held to foster interest in technopreneurship. These clubs should also invite successful corporate leaders and business personalities to present talks and provide mentoring thereby creating a culture of valuing and respecting entrepreneurship. Gone are the days when parents wanted their children to become civil servants or work in banks.

Opportunities must also be created for research and innovation especially in tertiary institutions. These institutions need to form partnership and strategic alliances with institutions of higher learning in successful nations and share their resources and methodologies.

Oxford and Cambridge both have special centres for entrepreneurship which focuses on all aspects of entrepreneurship including teaching, training, research and development. Yet none of our universities has any major collaboration with these leading institutions while National University of Singapore has special programmes with MIT, Harvard and Cambridge. Malaysian academia can learn much from such collaborations and these universities are willing to share. We have to take the first step to form such partnerships.

Social and cultural norms too are important if we are to create a nation of technopreneurs. The fear of failure and its consequences means that many potential technopreneurs never take up the challenge to start a business. This is exacerbated by the media that vilifies failure.

In America, failure is a badge of honor and something to be proud of. It is treated as a learning experience that creates a better individual.

The fact is no entrepreneur, whether in the New Economy or the old, has ever made it big the first time around. Entrepreneurship is skills and talent, but experience is the best teacher. There is no substitute for experience but if the fear of failure keeps an individual form starting a business, then he will never learn and will never be able to succeed. The media and society must change its mindset and celebrate success as well as failure.

Rules and regulations need to be changed to create less fear of failure. In Malaysia, if an individual fails in business and has debts, he will never again have an opportunity to start a new business. This is because of strict bankruptcy laws and credit rating agencies.

If you fail in business and have any form of debt, your name will be blacklisted and banks will not lend you money. A bankrupt will also have his passport impounded and is forbidden from traveling abroad. Unless you pay your dents in full, you can never be discharged as a bankrupt as even the five year review rule is discretionary and if your creditors object, discharge will not be given.

You become a prisoner in your own country with no opportunity to start a business, no chance of getting a loan and never being able to travel again. Not exactly the most conducive of environments for technopreneurship, is it? It is no wonder that the risk taking element is lacking in Malaysia.

The regulators need to review these rules to create a strong culture of risk takers and entrepreneurship that includes norms and rules that are supportive of entrepreneurs.

KHAIRUL IDZWAN IDRIS

Timbalan Pengerusi
Biro Ekonomi dan Pembangunan Usahawan
Pergerakan Pemuda Umno Bahagian Setiawangsa
Wilayah Persekutuan