Malaysia lures for its Gen Y youths?

KUALA LUMPUR: Gen Y youths young people usually recognised for their savvy in communications, media, and digital technology will benefit from the Government's move to draw quality high-tech and knowledge-driven investments to the country.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said with the Government's emphasis on developing the 11.4 million youths who make up 46% of the nation, it was important for Gen Y workers to have access to companies with good training, exposure and salaries.

“The Government is adopting new methods by looking beyond hard FDI (foreign direct investment) numbers,” he said here yesterday.

“Services companies are becoming more crucial to our economy, and their presence in Malaysia is relevant to the young through their (the companies') job creation.”

Mustapa said the Government was not only giving out fiscal incentives, such as tax holidays and training grants, to attract quality investments, but had also liberalised 18 services sectors this year, to follow the 27 in 2009.

He said such measures had yielded “fruitful results” with companies like Service Source, test and design company National Instrument and computer multi-national Hewlett Packard, employing large numbers of Gen Y workers.

“Service Source, a recurring revenue management company, came to Malaysia in 2010 with only 27 people.

“Last June, it surpassed 550 staff the majority being graduates or diploma holders and more than half of them are below 30.

“National Instrument is another sterling example. It offers a salary scheme to graduates equivalent to that offered by some investment banks in Malaysia,” Mustapa added.

The Jeli MP emphasised that FDI was particularly relevant to Gen Y, as the creation of employment and knowledge spillover from foreign companies allowed youths to be exposed to new technologies and cutting-edge training schemes.

He said these companies offered competitive salary packages.

“This will increase their knowledge in the industry and improve their employability,” he said, giving the example of oilfield services corporation Halliburton, which sends fresh graduates to their training centre in the United States for up to 18 months to gain specialised knowledge.

However, Mustapa said, there were challenges to attracting such investments.

“Some companies are not willing to pay more for talent, and so might face a higher turnover rate.
“There is also competition for FDIs from countries that offer bigger incentives or huge domestic markets.

“However, Malaysia offers a value proposition as we have a sound infrastructure and legal system, investor-friendly policies, and a talent pool that will be able to complement investors.”

International Trade and Industry Minister Datuk Seri Mustapa Mohamed has been working hard to bring in investments that Gen Y can benefit from. 

In an interview, he talked about the government's approaches and challenges faced.
Excerpts from the interview:

>What do you think of the state of Malaysia's economy?

There lots of of challenges globally and regionally. Europe is still in some trouble, America is not out of the woods yet. India is going through a difficult period politically and economically as well - there was a time where India was very bullish. Although growth is still good there, it's not that good as a year and a half ago. China is still going strong. The bright spots will be ASEAN, Africa, the Middle East.

Against that backdrop, our performance has been quite credible, our economy is doing okay, steady growth that is higher than the world's average. Unemployment rate is low, inflation is manageable, we have an issue with the deficit which is being managed well by the govt. We have strong reserves. Our fundamentals are strong.

Some factors leading to Malaysia's relatively strong state of economy are the fiscal stimulus, the Economic Transformation Programme, our diversified economy, and robust customer spending.

>Do you think the youth population of Malaysia will benefit from our economy?

Yes, our employment opportunities will of course benefit mainly young people. Many come out from universities and expect to get a job, a good job. Some come out and do temporary work, which is useful - working in a hypermarket or petrol station, for example - these are very important stepping stones as they allow you to get some experience.

Our graduates are not as selective as before, they are prepared to accept these jobs to sustain them for a few years before moving on to a better-paying one. Gen Y represents a big percentage of the Malaysian population, and the Government is mindful of the fact that this is a volatile and dynamic component of the population.

The issue is quality employment. Graduates being paid RM2,000 is not true reflection of what they can contribute. Some companies are not paying their graduates too well, some graduates are accepting jobs which require lower qualifications and for that reason salaries are lower.

Job opportunities are plentiful, that's not an issue here. We have lots of job opportunities in Malaysia but the challenge for us in government is to generate more quality employment opportunities.

From anecdotal evidence, many graduates are not happy with the entry-level salaries. That's why Budget 2013 focuses a lot on young people, including measures such as the Graduate Employability Taskforce with an allocation of RM200mil. This isn't new, we have Talent Corp, we have collaborated with various institutions like Mida to help young people.

We also have the 1Malaysia Training Scheme Programme (SL1M), which will increase the employability of graduates through soft skills and on-the-job training in private companies.

From MITI's point of view, our job is to stimulate investment, both domestic direct investment and FDI. We have been working very hard.

In an average year, the companies approved by the Malaysian Investment Development Authority (Mida) will normally generate about 100,000 new job opportunities. The ETP over the next 10 years will generate 3.3 million jobs, that makes 330,000 a year. That's the kind of number we are looking at, and many of these jobs will b available to young people.

>Are we making steady progress towards this goal?

Definitely. There's a company out there, Service Source international - they started small here but when I saw them two weeks ago they had a headcount of more than 500. Their plans are to add more. This is a company of graduates, most of the staff are either diploma-holders or local graduates.

Service Source have also launched a Protg Programme in the company where many fresh graduates are given on the job training at an executive pay package.

Another of fruitful result, is a company in Penang called Agilent which has 2,800 people. 900 of them work in research and development.

In Iskandar you have Legoland, people who work in these places command high salaries.

Of course in sectors like banking and finance they will be well-paid, there has been good growth in Islamic banking and finance in the country. As Islamic finance in Malaysia grows, as the country becomes a hub for the region, there are more opportunities created for young people.

>Why are foreign direct investments relevant to the young, particularly to Gen Y?

The creation of employment - without jobs, our youth will not find an opportunity to improve their economic standing.

Panasonic, for example, employs 20,000 Malaysians as executives and also as blue-collar, factory workers.

The other reason is knowledge spillover as a result of forward or backward linkages with foreign companies possessing high technology that invest in Malaysia, our youth will be exposed to new technology on their job. This will increase their knowledge in the industry and improve their employability as they move further in the industry and perhaps opportunity for them to carry out their own business operations as a vendor to the foreign investor.

Halliburton, one of the world's largest providers of products and services to the energy industry, provide specified training to its fresh graduates from six to 18 months while they are on the job.

They also send these Malaysian fresh graduates to Halliburton Technical Training Centre in the United States. This is an example of how knowledge spillover from FDI can benefit our youth.

>What is the Government doing to attract quality investments? 

We are more focused now, more targeted. We can't compete with some of our neighbours in terms of wages, but where we can compete are the areas where companies require higher skills, productivity. We target companies that are high-tech, knowledge-intensive companies.

The Government is considering GNI creation of any project or investment while also using employment creation as a complementing tool to measure a “good investment”.

In giving out fiscal incentives such as tax holidays and training grants; the Government targets knowledge-driven, research and development based companies that budget a large amount on capital spend on technology per employee.

We have to look at the supply side as well, increase the supplies of trade and human capital.

The Government liberalized 27 services sectors in 2009 and a further 18 services sectors in 2012. The intention behind this is to drive foreign investments which can create quality, high-paying jobs.

While recording low investments, services companies are becoming more crucial to our economy and their presence in Malaysia is relevant to the young through their job creation.

>Have these approaches been fruitful?

Yes, along with companies I already told you about, there's National Instrument - another sterling example, a test-and-design company. NI Malaysia offers a salary scheme to graduates that is equivalent to the salary schemes offered by some of the investment banks in Malaysia.

More importantly, it has a unique internship programme formed in 2009. In 2012, they admitted around 30 graduates and these interns were trained in R&D and manufacturing as well as IT applications.

There is also Hewlett Packard, which has its Operation Headquarters for Asia-Pacific here. We gave them a tax holiday - one of the ways we are attracting investments, as you asked before.

>But how do you know these foreign companies will hire fresh graduates rather than someone who has already been in the workforce for a while?

Well, some companies do prefer to take people from other companies rather than train fresh graduates. There are different ways to do it, and some companies to tend to take the easier way out. But I feel they should invest in youth, employ them, train them. The companies must play a better role in training youth, it can't just be left to the Government.

I'll bring up SL1M again - we've found that our graduates become much more employable after learning these soft skills - they become more proactive, more aggressive, more forthcoming. The government is doing that, but we urge and strongly encourage companies to play a more active role and train its new recruits.

>Are there any challenges when it comes to attractive quality investment?

It's a chicken and egg issue - companies will come here if we have a large pool of skilled graduates and manpower, and that will bring in more investments as well. On the other hand, if the skills are not available then they will not come. We need to increase the supply of human capital.

Companies operate on cost factors and many companies that are interested in Malaysia are still looking at low cost factors in Malaysia. Some companies are not willing to pay more for talent.

There is also competition for FDIs, Singapore, Hong Kong and Taiwan offers bigger incentives and has very liberal policies while countries such as Thailand, Vietnam and Indonesia continue to offer a huge domestic market which interests investors.

However, I am convinced that Malaysia offers a value proposition as we have sound infrastructure and legal system, investor-friendly policies and a talent pool that will be able to complement investors.

>What are some of the challenges a company may face in recruiting Gen Y workers?

In general, those companies which offer lower salaries are not so good with attracting good people. Those which are willing to pay a little more have better luck.

>Do you think these companies would be more inclined to hire expats?

In general, bringing in expats costs money, and if you add up, it will almost certainly be more than what you pay a local.

>Would local graduates be making more if they took their skillset overseas?

If you factor in other costs - rent, transport, cost of car... We found that at the top level, the gap is not that wide. Malaysians earn a decent income. The problem is the entry rates at base levels, entry point salary is where the difference is.

Once Malaysians leave, it is harder for them to come back because they've made friends, settled down, become part of the community. If our entry level salary is low, and because of that people work overseas, it will become even more challenging to build this talent pool.

In my view, if companies have better entry-rate salaries, it will help to prevent brain drain, and also solve some problems companies have when hiring.

>Do you think that the development of our Gen Y will meet the Government's aspirations of attracting quality investments?

In a way, some of our measures are short-term. We need more medium and long-term solutions, for example, reform the education system. It needs to be more hands-on, so we've got some measures like the National Education Blueprint.

We also need to regularly change the curriculum in schools and universities. Malaysians have to develop a love for skills, fight to get a job.

I would like to relate to you a story of a young girl by the name of Nani Abdul Rahman. She is an alumni of Yayasan Khazanah, which I chair. She read Law at IIUM and in her penultimate year, she interned at Khazanah. Khazanah Nasional offered her a job as an analyst and after working for a few years, she got an offer to do her Masters in Jurisprudence at Harvard University. Today, she is a senior personnel at one of the biggest Islamic banks in the world.

I have complete trust in our Gen Y. They are very confident and well exposed generation.

>How do MNCs feel about local graduates? Do they prefer those who graduated from foreign universities, Ivy Leagues and similar?

Some of our local graduate are good, some are outstanding. Many of our top corporate figures were trained in this country. Not every top corporate guy studied overseas. I don't think companies have a preference, it does depend on the person.

If you're a foreign university graduate but you're quiet, timid, aloof - the company will not want to take you on. It is the qualities a person holds.

Companies are looking for a person who is outgoing, passionate, ready to learn, good work ethics... These characteristics can come from a local or foreign graduate.

>You hold the importance of education in very high regard. 

Yes - even within my community in Jeli, the constituency I am MP for, I focus on developing human capital.

I run and fund the Darul Falah programme, which provides free tuition for students between 10-12 every Friday and Saturday. The focus is on English, Maths and Science.

The centre actually operates out of my house in Kelantan, it started about 15 years ago. I also have three other centres which have been up and running for three years now.

It is important in a rural area like Jeli, the children get some exposure. There has been improvement, but I am still not happy with it.

The programme has expanded to offer free computer classes, we hold camps, essay writing competitions in both Malay and English - I give prizes to the winners.

Last year when I was in Perth for work I met a number of students and one of them, a JPA scholar, came to me. She said she was an alumni of Darul Falah. Her father was a customs officer who used to send her back and forth on a motorcycle to Darul Falah when she was 10.

She is now a scholar reading Commerce at the University of Western Australia and she aspires to be a Partner at PriceWaterhouseCoopers.

It's moments like those that underline my conviction that education is the best investment.

>Do you have any advice for Gen Y looking to make a living in Malaysia?

Be prepared to start small, meaning, accept any job and learn while doing it. Shine in your job, by which I mean outshine others.

Discipline and passion are very important qualities. You need to be disciplined. Work ethics, passion - in my view, these are qualities some graduates are lacking. Passion and commitment are important.

The technical knowledge you earned is important, of course, but so are passion, discipline and commitment.

By TASHNY SUKUMARAN tashny@thestar.com.my

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Fluttering around for company

Social relationships may glitter like diamonds, but not all will last forever. And we need to accept that relationships that promise high benefits will also carry high costs.

IN our brief lives, we always look out for good company. Like butterflies, we constantly flutter in the air, gazing at flowers, and sometimes landing on a petal which gives us a good feeling like we’ve never had before.

Although rarely do we linger for long, deep inside we all secretly hope to find that perfect petal to rest upon forever till the end of our brief lives.

Sometimes, people want much more than a social contract.

They yearn for a closer social relationship, with greater social commitments.

They are willing to invest all their efforts and emotions on a single relationship.

It can revolve around family, friendship, work or even a political, religious or social organisation. Wel- come to the Social Company.

Finding the right petal is very much like starting the right business company. A company is formed by business people of similar business interests.

They become shareholders and partners, and they have rights and responsibilities against each other. Whilst a contract is used for a one-off transaction, a company is used to get down to serious business for the long haul.

When a company is riding the high tide of success, its members have every reason to grow in confidence of greater things to come.

Why fear for the future? When the party is rocking, everybody’s singing and dancing, and nobody cares too much about who’s cleaning up the pool and picking up the broken shards later on.

But sometimes it’s good to turn on the lights, and check that everything’s alright. When the party’s over, and it will be over, there’s a heavy hangover waiting the morning after.

Likewise, when a company collapses, and no company is too big to fail, its shareholders, creditors and employees are bound to suffer heavy losses. Think of Enron, Lehman Brothers and Kodak.

That’s the difference between a mere social contract, and a social company. In a breach of contract, only the parties involved will be busy squabbling with each other.

However, in a breakdown of a company, there’s collateral damage to various third parties.

Thus, as much as it’s important and cool to live the moment, it’s also important (though less cool) to occasionally stop to think, have a sobering reality check, and account for what’s been said and done.

Under the law, it is mandatory for a company to perform annual audits on their financial affairs.

Likewise, people should constantly review their deep social relationships, to make sure that their company doesn’t turn from good to bad.

A simple example of a social company is marriage. It’s about two people exchanging vows to stick together through good times and bad times.

Sadly, nowadays, many people fail to follow through such vows. Divorces may be hard on the innocent spouse, but it’s definitely devastating to the innocent children.

They are robbed from enjoying a normal childhood filled with love and affection, and sometimes, deprived from sufficient maintenance and educational support.

So before entering into a marriage, think hard about the serious commitments that come with it, and the catastrophic consequences that follow if the marriage falls apart.

Think about your future children. Think about your relatives who will be forced to take sides, and spilt into irreconcilable clans.

Problems may also arise during the courtship stage, prior to marriage. Many of us are guilty of being consumed by love, or at least what we perceive as love.

After all, two’s a company, three’s a crowd. It’s easy to manage a company of two, whilst letting the rest of our family and friends fall by the wayside.

We ignore their calls and advice. We tell them to mind their own business and get the hell out of our lives.
But the easy thing to do is not always the best. Someday, you will long for their company.

Being married to our career can also be taxing on our social lives.

We burn all our days and nights for the sake of levelling up our corporate status.

We console ourselves that it’s only momentarily, until comes harvest time when we can reap the fruits of our labour.

But there is truly no end to the cycle. By the time we eventually find the pot of gold at the end of the rainbow, chances are we are too old, too weak and too late to share our riches with our loved ones.

These are mere examples of the larger problem, which is putting one’s entire mind, heart and soul into a single social company.

The key is to be aware that every deep social relationship takes a toll on our other relationships.

Social relationships may glitter like diamonds, but not all will last forever.

And we need to accept that relationships that promise high benefits will also carry high costs.

Hence, we need to think deeply before we leap into any social company. If we cannot bear the high cost, then don’t.

But if we do, we need to be bold enough to back out from a social company once the cost spirals beyond what we can bear.

In our brief lives, someday our wings will turn brittle and our favourite flowers will wilt away.

Until that day comes, we should cherish the freedom of the skies.

Sometimes, we may flutter too closely to a pretty petal in a thicket of thorns, and get our wings clipped.

But even then, we should never fear to flutter away. For there will always be a bed of flowers below to catch our fall.

Putik Lada By Raphael Kok
> The writer is a young lawyer. Putik Lada, or pepper buds in Malay, captures the spirit and intention of this column – a platform for young lawyers to articulate their views and aspirations about the law, justice and a civil society. For more information about the young lawyers, visit www.malaysianbar.org.my

Freedom & hate speech hypocrisy

Freedom per se has no value. It is what freedom is for. It is the use to which it is put. It is the sense of responsibility and restraint with which it is exercised. 

THE crude and disgusting video by some American citizens mocking Prophet Muhammad has caused great anguish to Muslims around the world. Blasphemous provocations by some media mavericks in France are adding insult to injury.

Even before the sacrilege perpetrated by the video Innocence of Muslims, the deeply-wounded Muslim community was living in humiliation and helplessness.

The 65-year-old American-aided genocide in Palestine continues to rage unabated.

In Syria, Western mercenaries are leading the civil war with overt and covert help from the Western alliance. Iran is under daily threat of annihilation. In blatant violation of international law, American drone attacks continue mercilessly to murder innocent civilians in Afghanistan, Iraq, Libya, Yemen, Somalia and Pakistan.

There is in most Muslim minds a perception that Islam is under attack; that Muslims are under siege; that behind the beguiling rhetoric of democracy, human rights and the war against terrorism, there is a cunning plan to re-colonise Muslim lands and seize their wealth for the insatiable appetite of Western economies.

It is in this background that the exploding Muslim rage against blasphemy must be understood.

However, understanding something does not mean justifying it. Human life is sacred and no idea and no theory can excuse the murder of innocents.

It is with sadness and shame that I note the violence and deaths resulting from the airing of the obnoxious video. Equally painful is the mindless damage to Buddhist religious places in Bangladesh because of Facebook insults to Islam.

Having said that I must state that we all have a duty to show respect to others and to not denigrate what they hold as sacred.

We have a duty to censor ourselves when we speak to others about what lies close to their hearts and souls.

Blasphemy violates the sacred; it trespasses boundaries that must exist in every civilised society; it causes pain to millions.

God and all His prophets must not be defiled. Blasphemy should be a punishable criminal offence in much the same way sedition and treason are.

Unlike free-speech advocates who place this freedom at the heart of their new abode of the sacred, I think that freedom per se has no value.

It is what freedom is for. It is the use to which it is put. It is the sense of responsibility and restraint with which it is exercised.

Blasphemy is a form of hate speech. Andrew March admits that “many in the West today use speech about Muhammad and Islam as cover for expressing hatred towards Muslims”.

Geert Wilders and makers of Innocence of Muslims are hate mongers, not human rights pioneers.

Behind hate speech is the ideology of racial or religious superiority. Hate speech amounts to discrimination.

It promotes denigratory stereotypes. It attacks basic premises of the human rights system, premises as deep as equal human dignity, respect for others and equal protection.

It must be asserted that Islamophobia is a new form of racism.

Further, the claims by Western leaders, including President Barrack Obama and Secretary of State Hilary Clinton that the constitutional principle of free speech permits no state interference is an overstatement.

In the US, the First Amendment of the Constitution has since the beginning been interpreted to mean that “prior restraints” on freedom of expression are not allowed.

But this does not exclude the legal possibility of post-event prosecutions and sanctions. For example, defamation is actionable. Contempt of Court is punishable.

For much of its history the USA has had a Sedition Act. Supreme Court decisions over the decades have vacillated between various criteria for determining the justification for invasion of free speech.

But there has always been the possibility of post-event restrictions to avoid danger to society. There is freedom of speech but sometimes no freedom after speech!

An Espionage Act exists. Whistleblowers are prosecuted. Under the Obama administration, six prosecutions under this Act were all directed against journalists exposing government wrongdoing.

At the Food and Drug Administration, they spy on their own employees’ email. At the Department of Defence any soldier who speaks about government lies in Afghanistan or Iraq is jailed. Twenty-seven laws exist to monitor social media content.

The State Department blocks Wikileaks with its firewall. The founder of Wikileaks is being hounded.

European record is even more reflective of double standards. Public order laws are used regularly in Britain and Germany to criminalise “politically incorrect” expressions or pro-Nazi ideas and to punish any comment, research or analysis that departs from the officially sanctioned version of the holocaust.

In February 2006, Austria jailed British historian David Irving for three years for denying the holocaust.

Overt and covert censorship is very much part of Western societies. Only that it is more refined; it is non-governmental; it is de-centralised. Its perpetrators are publishing houses, financiers, advertisers, interest groups, editors, publishers and other controllers of the means of communication.

Obviously free speech in the USA and Europe is not absolute save when it demonises, dehumanises and denigrates Islam and Muslims. Then it is part of the new abode of the sacred.

COMMENT
By PROF SHAD SALEEM FARUQI

Shad Saleem Faruqi is Emeritus Professor of Law at UiTM 

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