GEORGE TOWN: Malaysia must fundamentally rethink its economic model to withstand twin geo-economic challenges of direct global competition and superpower protectionism.
Human Resources Minister Steven Sim Chee Keong stated the country must transition towards a high-value innovation-driven economic model to remain competitive.
Continuing with a business as usual approach would risk economic stagnation amid rapid geopolitical shifts.
“The economic model of the last fifty years has benefited our country and all of us,“ Sim said during a sharing session at the Federation of Malaysian Manufacturers Penang anniversary dinner.
He described the traditional approach as a low-cost ‘made in Penang’ model where foreign investors built factories and manufactured products locally.
Sim questioned whether this model could remain sustainable for the next fifty years given current global economic headwinds.
“If we are frank with ourselves, the answer is clear — business as usual means more businesses will be out of business,“ he added.
Penang has built a strong reputation over five decades as a key global semiconductor industry player housing major multinational companies.
The minister emphasised that the current growth model must evolve to meet the demands of the next fifty years.
Sim called for a strategic shift from ‘made in Penang’ to ‘made by Penang’ model driven by homegrown talents, technology, products and trademarks.
“We need to invest in our own homegrown four T’s — talents, technology, things and trademarks,“ he explained.
Penang already possesses numerous products and services created by local talents and enterprises.
The minister advocated moving from being a cost centre to becoming a value centre within the global economy.
“We must not just be a factory of products but also a factory of ideas— new ideas, the next ideas, brave ideas,“ Sim concluded.
The dinner was attended by Penang Governor Tun Ramli Ngah Talib, Chief Minister Chow Kon Yeow and FMM president Tan Sri Soh Thian Lai. – Bernama