MRCA Women Division: Malaysia’s Future Economy Outlook

MRCA Event

MRCA Women Division: Malaysia’s Future Economy Outlook

Moderated by Ms Debbie Choo, Executive Director of Social Enterprise Projek57, the webinar featured the distinguished Tan Sri Rafidah Aziz, former Minister of International Trade & Industry, speaking about the outlook for Malaysia’s future economy.

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s Malaysia emerges from the pandemic and battles towards economic recovery, Tan Sri Rafidah says that the country’s hope for recovery depends on the long-term vision of the leadership, the resilience of the people and the focus on addressing real issues. Despite that, she advises all parties to take stock as there has been tremendous collateral damage across various sectors as a result of the pandemic.

She highlights future economic planning should take into consideration the realities of the damage done to the Malaysian economy. “Now the foundation of Malaysia is being eroded already. One thing is because of COVID-19 and its impact, and secondly because of policies that are not coherent. We have to rebuild that foundation,” says Tan Sri Rafidah.

IS MALAYSIA READY FOR OPPORTUNITIES AND TO DELIVER?

She says that there are many opportunities for Malaysia to harness, however the question remains, is Malaysia in a position to optimise those opportunities and deliver as the country still reels from the impact of COVID-19. She points out that there is no coherent report

on the impact of the pandemic on Malaysia, and instead just piecemeal reports. Tan Sri Rafidah states that to-date close to 150,000 SMEs have closed down and this has impacted many families who have lost jobs and are unable to tide over.

REBUILDING MALAYSIA’S ECONOMIC FOUNDATION

On rebuilding the foundation of the economy, Tan Sri Rafidah advises to look at how the new normal relates to one’s particular business and how that business dynamics have changed. She highlights that the “one-size-fits-all” concept cannot be applied for all businesses, and just advising all businesses to go digital is not the answer to the problem. “Not all businesses can go online,” she stresses. She advises to look at things from a broader spectrum yet considering the smaller sub-sectors for relevance.

“Do your analysis properly before you even talk about future plans. Now is the time to analyse before the year ends,” she cautions.

“Relook where you stand in the value chain, look at what other markets are open, or if you are too small to service a bigger market would it be time for you to get partners?” she adds.

DRIVING BUSINESSES FORWARD IN THE NEW NORMAL

Tan Sri Rafidah advises businesses to consider collaboration in moving forward because it gives the business strength.

Talking about the main lessons learnt, Tan Sri Rafidah highlights that from a micro-level, it is time to consider strengths and weaknesses amidst the opportunities and threats. Build on strengths and think about what to do further to grow the businesses, how to manage and plan in crisis while also continuing to have a practical viewpoint, she advises.

“It’s a time for businesses to prepare and not to moan and groan,” says Tan Sri Rafidah.

She points out that the new normal is not only about SOPs but it also concerns the ways of doing things that have changed. There are many ways that people can change their business models to suit postpandemic conditions, she adds.

“The imperatives in the market place are continuing to change. We now have the 3Ps bottom line, meaning Profits, People, and Planet,” says Tan Sri Rafidah.

She adds that key concerns involve wages, labour conditions, sustainability and environmental issues, among others. If these are not addressed, then competitors can take over because they take these issues seriously. She stresses that the traceability factor is a very important business and market driver.

Tan Sri Rafidah stresses that all business owners need to do a SWOT (Strength, Weaknesses, Opportunities and Threats) analysis in order to survive the aftermath of the pandemic and the new normal.

ADDRESSING ECONOMIC ISSUES

On a question about unemployment, Tan Sri Rafidah says that with unemployment at approximately 5%, it is important to analyse the underlying issues of unemployment. “It’s not about new employment, it’s about getting people re-employed. The unemployed and the retrenched – that’s what we should be catering for,” she stresses.

She adds that there have been no thorough analyses on the issues in the business, education and healthcare sectors. “How can you look at the future without knowing what the present really looks like?” she asks.

“Young Malaysians have a lot of things going for them because they are living in an era where the support facilities are available to them – ICT for instance. they have the whole spectrum. It’s a matter of whether they want to learn or not; and, apply optimally. This puts them at a better place,” explains Tan Sri Rafidah.

Tan Sri Rafidah advises that entrepreneurs have to adopt whatever the market demands of them in their business, in terms of technology. She adds that first of all, entrepreneurs need to understand how specific technology is relevant to their businesses.

On a question about electric cars, Tan Sri Rafidah says that these vehicles have always been in the market for a long time, however currently, technology has made them more efficient, high-tech and environmentallyfriendly.

Addressing a question on the correlation between ESG and investments returns, Tan Sri Rafidah advises to think about the future and reflect on the long-term effects as well as consequences of not safeguarding the environment and upholding responsible business practices. “Ultimately the ‘rakyat’ suffers and there will be a boomerang effect on businesses. As a business owner, your license may be revoked due to noncompliance, or your reputation may be damaged,” she cautions.

On the strengths of youths today, she adds that youths should have the motivation to work, enhance their workplace skills and build their marketable skills. She adds that entrepreneurs should groom these youngsters and coach them, especially on digitalisation, and harness their talents for industry. “Give them a head start and guide them,” she advises.

In essence, Tan Sri Rafidah says that the SWOT analysis is sufficient to guide business owners in driving their businesses forward.