Why Creativity and Innovation is Important to Malaysia

8/20/2019 Why Creativity and Innovation is Important to Malaysia

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Why Creativity and Innovation is Important to Malaysia

Written by : Bugs Tan 20th December 2015

In general a government elected into power to rule a country has a couple of major

responsibilities. One of them is to keep her citizens safe at all time. The government uses its

might to defend the citizen if her people is threatened and is in risk of harm, danger, war,

epidemic or natural disasters. And secondly, the governments primarily responsibility is to

keep the country peaceful and her people living in harmony at all time.

Apart from these major responsibilities, the government also have other important duties to

do. Among the few significant duties, the government is re!uired to look after the welfare of

her people and to bring prosperity to the country. "o that the standard of living can be raised

and her people lived a better and !uality life.

#alaysia secured independence from the $ritish %mpire in &'(). $ack then the country was

a poor nation relaying only on agriculture produce. *eople lived with just basic amenities and

the standard of living was low. #alaysia then was a typical poor and backward third world

nation.

+owever, the passion for a better standard of living has driven #alaysian to become a

progressive nation within a short period time of just over a few decades. The below short

passage found on ikipedia summarized this e-traordinary phenomenon that #alaysia has

e-perienced for her economic success.

"ince its independence, #alaysia has had one of the best economic records in Asia, with its

/* growing at an average of 0.(1 per annum for almost (2 years. The economy has

traditionally been fuelled by its natural resources, but is e-panding in the sectors of science,

tourism, commerce and medical tourism. Today, #alaysia has a newly industrialised market

economy, ranked third largest in "outheast Asia and 3'th largest in the world. It is a founding

member of the Association of "outheast Asian 4ations, the %ast Asia "ummit and the

Organisation of Islamic 5ooperation, and a member of Asia6*acific %conomic 5ooperation,

the 5ommonwealth of 4ations, and the 4on6Aligned #ovement. "ource 7 ikipedia


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This economic success did not just happened by accident. $ut it was made possible by a well

thought off strategic blue print placed by the government ever since #alaysia was given the

full sovereign rights to rule her own country without the interference and influence of any

ideology or control from other country.

/evelopment planning in #alaysia began in &'(2 with the publication of the /raft

/evelopment *lan of #alaya . Of the twenty6 seven development planning document that has

been provided up to now 832&09 , three represents Outline *erspective *lan and the twenty6

four is the five6year development plan , including #alaya /raft /evelopment *lan covering a

period of si- years and a mid6term review of the five6 year plan

Item Plan Title Duration

&. /raft /evelopment *lan of #alaya &'(26&'((:

3. *rogress ;eport on /evelopment *lan &'(26&'(3

ive ?ear *lan &'0&6&'0(

0. >irst #alaysia *lan &'006&')2

). #T; >irst #alaysia *lan &'006&')2

@. "econd #alaysia *lan &')&6&')(

'. #T; "econd #alaysia *lan &')&6&')(

&2. Third #alaysia *lan &')06&'@2

&&. #T; Third #alaysia *lan &')06&'@2

&3. >irst Outline *erspective *lan 8O**&9 &')&6&''2

&ourth #alaysia *lan &'@&6&'@(

&=. #T; >ourth #alaysia *lan &'@&6&'@(

&(. >ifth #alaysia *lan &'@06&''2

&0. #T; >ifth #alaysia *lan &'@06&''2

&). "econd Outline *erspective *lan 8O**39 &''&63222


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Item Plan Title Duration

&@. "i-th #alaysia *lan &''&6&''(

&'. #T; "i-th #alaysia *lan &''&6&''(

32. "eventh #alaysia *lan &''063222

3&. #T; "eventh #alaysia *lan &''063222

33. Third Outline *erspective *lan 8O**


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BECOMING A HIGH-INCOME NATION THAT IS BOTH INCLUSIE AND

SUSTAINABLE

The overnment is aiming for #alaysia to become a high6income nation that is both

inclusive and sustainable by 3232. These goals will be reached jointly. The overnment will

not seek short6term progress on one goal at the e-pense of delaying progress on the others.

The %conomic Transformation *rogram 8%T*9 is designed to drive #alaysia forward from its

current stagnant situation to be a high income economy which is both inclusive and

sustainable as shown in firgure no. 3

>igure no. 3

BUSINESS AS USUAL IS NOT ENOUGH

$usiness as usual will not be enough to deliver on the goals of high income, inclusiveness

and sustainability. #alaysia is at a critical point in its economic development. There has been

a loss of growth momentum over the past decade, and it has become increasingly clear that

the historical drivers of growth can no longer be relied on to deliver strong economic


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outcomes. In an increasingly competitive global economy it is more difficult to generate high

rates of economic growth. rowth can no longer be taken for granted, but needs to be earned.

To achieve developed nation status by 3232, economic growth of 0 percent a year will be

re!uired. /elivering this level of growth demands a comprehensive, structured transformation

of the economy.

Hi!tori"al Gro#t$ En%ine! are Slo#in% Do#n

#alaysias relatively sluggish economic performance over the past several years indicates

that the historical engines of #alaysias economic growth are slowing down . After strong

growth through much of the &''2s, #alaysias economic growth over the past decade has

been considerably slower B at about half of the average of the previous decade, as shown in

5hart no. <

5hart no.


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Ri!& o' Bein% Stu"& in t$e Mi((le

There are also signs that #alaysia is at risk of being stuck in the middle6income trap, as

shown in 5hart no. =. #alaysia is no longer able to remain competitive with low6income

countries as a high6volume, low6cost producer. At the same time it has not yet moved up the

value chain and become competitive with high6income countries. Other countries are more

competitive than #alaysia in both low6cost production and in high6value markets. This is not

a sustainable position.

"trategies that were successful in driving #alaysias transformation from a poor country,

reliant on rubber and tin at Independence into a diversified middle6income economy, are not

appropriate for the ne-t stage of #alaysias developmental journey.

Indeed, many other countries that grew rapidly through the &')2s and &'@2s found it difficult

to continue their growth once they reached middle6income status. Of the &< countries to have

sustained ) percent growth for 3( years or more, just 0 have successfully transitioned to high6

income status. It was only those countries that undertook a systematic programme to

transform the underlying structure of their economies that were able to rise from middle6

income status to become high6income countries.

5hart no. =


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Go)ernment Tran!'ormation Pro%ramme

The overnment Transformation *rogramme was introduced in 32&2 to transform the

overnment to be more effective in its delivery of services and accountable for outcomes.

The programme incorporates si- 4ational Cey ;esult Areas 84C;As97 reducing crime,

fighting corruption, improving student outcomes, raising living standards of low6income

households, improving rural basic infrastructure and improving urban public transport.

4ational key performance indicators have been specified for these 4C;As, and a new

organisation, the *erformance #anagement and /elivery nit 8*%#A4/9, was created to

manage delivery against these targets.

"ource 7 %conomic Transformation *rogramme 6 A ;oadmap >or #alaysia 6 5hapter &

U!in% Creati)it* an( Inno)ation a! a Catal*!t o' E"onomi" Gro#t$

In year 32&2 too, the government has also simultaneously announced that 5reativity and

Innovation has become part of the nations agenda. The government intended to formulate a

new economic model based on creativity and innovation.

This new government policies and initiatives are aimed at creating a competitive economy

via strategic public 6 private collaborations. The government hopes that business e-cellence

which incorporates the integration of products and services innovation processes will enable

firms to build innovative capabilities and venture into the global market.

ltimately, through this new agenda for creativity and innovation, the government hopes to

see add value to the economic growth. The government aims to make #alaysia to become a

>irst orld 4ation by the year 3232. And this re!uires a sustainable */ growth of 01 per

year for the ne-t few years till 3232. The government is in the last lap and has only a period

of &2 years 8out of the irst orld 4ation by 3232.


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5hart no. (

The above chart no. ( shows the /* growth for #alaysia for a period of 33 years from year

&''2 to 32&3. The governments goal for achieving a >irst orld 4ation was initiated in year

&''2. This gives the government a period of irst orld. The main key target is to achieve a minimum 4* per

capita of "/ &(,222 by year 3232.

Ive taken a look at the #alaysian governments initiative of using creativity and innovation

as the catalyst of growth to leap frog the economic growth. "o Ive researched on


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To+ , Mo!t Inno)ati)e Countrie! in t$e .orl( 'or /01

Ran& To+ Inno)ati)e "ountrie! Ran& To+ Inno)ati)e Countrie!

& "witzerland &0 5anada

3 nited Cingdom &) Australia

< "weden &@ Austria

= 4etherland &' Fapan

( America 32 4orway

0 >inland 3& >rance

) "ingapore 33 Israel

@ Ireland 3< %stonia

' Gu-emburg 3= 5zech

&2 /enmark 3( $elgium

&& +ong Cong 30 #alta

&3 ermany 3) "pain

&< Iceland 3@ "lovenia

&= "outh Corea 3' 5hina

&( 4ew Healand


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3 "witzerland @3,&)@ &) >inland =3,&('

< Jatar )@,@3' &) +ong Cong =3,2')

= 4orway )0,300 &@ ermany =&,30)

( America ((,'2= &' $elgium =2,=(0

0 "ingapore (rance 37,728

) Australia (&,0=3 3& 4ew Healand


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"weden < && Austria &@ &0

4etherland = &< Fapan &' 3=

America ( ( 4orway 32 =

>inland 0 &) >rance 3& 32

"ingapore ) 0 Israel 33 33

Ireland @ &3 %stonia 3< 6

Gu-emburg ' & 5zech 3= 6

/enmark &2 @ $elgium 3( &'

+ong Cong && &) #alta 30 6

ermany &3 &@ "pain 3) 3'

Iceland &< ' "lovenia 3@ 6

"outh Corea &= 3@ 5hina 3' 6

4ew Healand &( 3& *ortugal


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T$e Relation!$i+ 2et#een Inno)ation an( Bein% a Hi%$ In"ome Nation

>rom the analysis, Ive found out that 3= top innovative countries have made it into the


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recorded. The /* over the last ( years from 32&2 to 32&( did not reached the targeted /*

of 01 growth per year.

5hart no. ' below shows the /* growth for #alaysia from 32&2 to 32&(. The economic for

year 32&2 managed to surpass 01 where else the rest of the other years has recorded a

growth below the targeted mark.

5hart no. '

+ence, I think more research is needed find out what are the factors and challenges faced by

the government departments and agencies in this area.

I hope this article is able to show you the importance of creativity and innovation for a

country economic growth. I also hope this article has given you some food for thoughts to

look at the issue faced by the government when implementing such policy.

If you have comment to share, pls do write to me at bugstanLgmail.com. I would to keen to

hear your thoughts too.

$e cre@tive selalu

Un"le Bu%!

Inventor

mailto:[email protected]:[email protected]


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Why Creativity and Innovation is Important to Malaysia

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