17/5/11 PRODUCTIVE GROWTH - ORGANIZATIONAL PERSPECTIVE

A country is made of numerous functional units: citizen, endowments, organization, etc. Thus for a country to achieve what it should be achieving; it is then not merely a political wish or struggle of a leader(s). The citizen, public bodies, corporate sector, and even NGOs must also struggle along the same objective.

(2) Let me now dwell on the need for an Organization, doesn't matter whether it is a public, GLC, private or even NGO to be concerned to produce or generate Productive Economic Growth. Nonetheless I would place a caveat, especially for the private and GLCs, Productive Growth shouldn't take into account of growth due to speculation. Strictly as Muslim, speculation can amount to Riba, and Riba is not allowable under the Islamic deed. Riba in Islam is the element of destruction. This now is proven to what is happening in Europe, America, and even in many part of Asia. Riba through speculation had caused Economic Balooning, Economic Heating, Financial crisis, and all sorts.

(3) To illustrate the need for the Organization to pursue Productive Growth, let take two corporate entities as a case. Firstly take FELDA. Tun Razak engineered FELDA to work on poverty eradication among those landless population. He in fact brought in the Kelantanese, Trengganus, Kedahan, and even Perlis poor fishermen, despite a lot of them were inclined to PAS (as against UMNO) to be resettled in Pahang, his home State. The first phase of FELDA responsibilities was done, yet the poverty issue becoming a cyclical phenomena among the FELDA settlers. Thus, they was a serious called for FELDA to work on the social problem among the second generation.

(4) Basically, as FELDA population increased, yet the business, the income source for the settlers, remained the same. Thus, the population growth (second and now third generation)was not properly matched with the sort of stagnant or even diminishing income growth earned by the first generation. Thank god, Najib relised this, and he now making a serious move to push FELDA into growth hunger GLC. Except probably, FELDA is an old grown elephant, thus his called rest on hard anchored solid rock, tough to move. I would say, FELCRA, RISDA, STMB, KTM, BERNAS, and many others now public turned GLCs are not moving fast to gain Productive Growth.

(5) In fact while writing this article, I got a called from STMB, asking whether I have a PC and using Streamix at home. My reply to the call was:"I used to have one, but I have to forget about Streamix, for STMB (streamix) is not user friendly, doesn't meet my mobility living style". This in fact an example, how our GLCs seem to ignored today trend of life-style. Thus, their growth being twarfted by new comers.

(6) Let now look, say at IOI. The owner, the majority shareholder, merely started the corporation by firstly having a 200 acres of oil palm mini-estate, when he was employed as Estate Supervisor. His attitude was never being satisfied to work for others, and he also not complacent with his prevailing income. Later with the fortune of selling the 200 acres of well developed mini-estate, he ventured into a small property development. Thereon, he saw a greater opportunities by meant of using public fund to venture further. Thus, with some money in hand, he acquired IOI, a small but public listed as his fund organizing mechanism. He then used IOI to spread into larger and excellent managed plantation, acquiring even the interest of many public listed companies and move oversea to venture into greater down stream processing.

(7) IOI is now one of the largest properties developer and owner in Kuala Lumpur. They are now moving into retail and hospitalities venture. Basically, they never stop wanting to grow. This is proven from few times bubbling of their share price, which they managed efficiently and making everybody confident to grow with them. Other organbizations such as EPF, Pension Fund, PNB, etc willingly invest in IOI.

(7) In a country, it is not merely a duty of the Prime Minister to move the country to the higher income level. All the public and private organization must also strategised themselves to move fast along the nation intent, without which, the organization becoming irrelevant. We could see lots of such organization in Sarawak and the nation as a whole.

(8) I would believe, the CEOs of any Organization must keep challenging themselves to be much better and bigger to worth having their existence. We can't be just happy at where we are, just as what is happening in the Arab world where almost everything great are either American or western run, yet they just milk the water (take the bone). In Malaysia, the Malays in particular those that had been given the responsibilities to head the GLCs, must take serious note of this, so as not to make the Malays: "Seperti ayam, kelaparan di kepuk padi, itik mati kehausan di kolam".


Kuching, Sarawak
18 May, 2011