Home » Technological Breakthroughs Key To Competitiveness, Says Raja Nazrin

Technological Breakthroughs Key To Competitiveness, Says Raja Nazrin

News From : DagangHalal.com (13 Nov 2009)

KUALA LUMPUR, Nov 12 (Bernama) — Malaysia needs to compete with countries with high technological capabilities to secure future growth and escape from a middle-income trap, says the Raja Muda of Perak, Raja Dr Nazrin Shah.

He said this could be done only through innovation and technological breakthroughs to compete with countries like South Korea, Japan and even China.

“The government is all set to provide the necessary assistance. The responsibility rests with business entities to forge their paths to becoming more competitive in the global marketplace,” he said in his keynote address at the Third Kuala Lumpur International Trade Forum here Thursday.

“Today, Malaysia finds itself caught in a middle-income trap, squeezed between low-cost labour-intensive economies and technology-driven knowledge-intensive economies.

“Malaysia is fast losing its comparative advantage in the export of labour-intensive manufactured products and simply importing cheaper labour to feed this sector is doing nothing to propel the economy up the value chain,” he said.

The Crown Prince of Perak said the challenge for Malaysian businesses today was to emerge from a situation of mediocrity.

“For this to happen there must of course be an environment that is conducive to innovative activity where there are solid institutions, where people are healthy and sufficiently educated, where markets are efficient, where infrastructure is well developed.

“There must also be sufficient investment in research and development, the presence of high quality scientific research institutions, extensive collaboration in research between universities and industry and the protection of intellectual property,” he said, citing the Global Competitiveness Report 2009-2010.

Raja Nazrin said Malaysia does have the makings to be well on its way to becoming an innovation nation such as establishing itself as a premier centre for Islamic finance and the originator of Islamic bonds or sukuk.

He said Malaysia has also brought value to the global halal production market via the Malaysia International Halal Showcase managed and promoted by the Malaysia External Trade Development Corporation.

Raja Nazrin said business innovation in the country is still relatively low but this indicates tremendous opportunity and plenty of room to grow.

He said organisations must recognise that innovations originate with people as good ideas could come from anywhere at any level of an organisation and sometimes from outside the organisation.

He said organisations must also be committed to continuous reinvention of their products and services and should keep building core competencies as long as it is relevant in the market.

“Business innovation is not limited to products and services. A firm can also innovate by using innovative strategies,” he said, adding that business entities must also exercise moral obligation to the market they serve and not just profit-seeking.

— BERNAMA

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