South Korea, Singapore, Hong Kong and Malaysia

I come across an article written by a journalist with The Edge FinancialDaily Kevin Tan title: Shopping for growth model published on The Sun dated 7 January 2006. Kevin Tan was commenting a blog post by Jeff Ooi.

The debate : Does South Korea really offer a better model of development for Malaysia than our neighboring Singapore.

Jeff Ooi is correct by pointing out that South Korea has relatively a vast population, while Singapore is a tiny red dot.

Thus, I feel it is difficult to compare South Korea with Singapore.

Comparison with Singapore : Hong Kong

People used to compare Singapore & Hong Kong. They have similar population and size and both are financial centre and their port is shipping hub in world trade.

Malaysia benchmark against Singapore?

Although constantly denied by the authority. I feel Jeff Ooi is correct that Malaysia government is benchmark against Singapore in term of government policy.

1) Merger of Bank

Singapore government has merge it country bank into 4 bank to ease control. It would be more easy for central bank to monitor 4 banks than say 20 banks. Thus, more easy work for central bank audit team. Similary, Malaysia has merge it bank to 10 anchor bank few years ago.

Hong Kong, however, is a free market. It never dictate how many bank the territory is needed. audit team do not have difficulties monitor the banking industry.

2) Dominate by Government Link Company (GLC)

Singapore Stock Exchange is dominance by GLC like Singapore Airline (SIA) and Singapore Telecom (SingTel). Malaysia, after Asia financial crisis, has change it policy from nurturing bumiputra entrepreneur to become operate as GLC. Like Renong Group, now UEM World and others.

Whereas Hong Kong do not lack of entrepreneurs like Li Ka-Shin etc.

Both of the above policy has cause the diminish of bumiputra entrepreneur. Whereas GLC has been excluded in calculating bumiputra ownership under New Economic Policy (NEP). The cause bumiputra unable to meet the 30% ownership under NEP objective. In fact, bumiputra might control more than 50% of Malaysia economy if GLC is classified as bumiputra.

Under government merger policy. All Express Bus company run by individual bumiputra has been merge to become a company call Konsortium Express Bus (KEBS). All mini bus license has been take back and give to one company call Intrakota. All Teksi license has been take back and issue to few teksi company.

In fact, transport business is less competitive business and it is an easy business to nurture entrepreneur especially bumiputra entrepreneur. By merging all entrepreneur under one company. It look like Malaysia has shift from Hong Kong policy to follow Singapore policy. Then how government going to nurture bumiputra entrepreneur to achieved NEP target.

Really, I don't understand why it call Ministry of entrepreneur Development as it never develop entrepreneur at all. It should call it old name: Public Enterprise Ministry!

I feel government need not re-implement New Economic Policy. Government can just change it policy by following Singapore policy to become a Hong Kong free entrepreneur policy.

In private sector, we do not lack entrepreneur that similar to South Korea entrepreneur. Robert Kwok, Malaysia Sugar King same with Samsung founder start with Sugar refinery. But Samsung invest the profit from sugar into manufacturing like electronic whereas Malaysia's Robert Kwok invest in Hotel industry.

Similarly, if you read Genting's founder Tan Sri Lim Goh Tong Biography, you would find he is like Hyundai founder who like to work in contruction site. Hyundai, like Samsung, invest their money in manufacuring, to be specific, automobile manufacturing. Whereas Genting group focus on hotel and casino again.

It is sad that Malaysia entrepreneur like invest in leisure industry. If they venture in manufacturing industry like their South Korea counterpart. Malaysia might have Chaebols as large as South Korea.

Related read : Benchmarking of Asia Country

Next : Samsung of Malaysia
Hyundai of Malaysia

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