A recent World Bank Report concludes that Malaysia risks jeopardizing its economic development if it does not ameliorate its “brain drain” problem. The Bank singles out the country’s affirmative action program as a major contributor to the problem.
Brain drain, as the Bank rightly acknowledges, is a universal problem. For the Bank to conclude as it did, it must present comparative international data showing that Malaysia’s problem is worse off than those without similar affirmative action programs. Alas, this is precisely the glaring deficiency of the report, its lack of comparative data.
The Report nonetheless contains a wealth of valuable data. However, as the information sage Edward Tufte observed, nature’s laws are causal; they reveal themselves by comparison and difference. This absence of comparisons makes the report’s conclusion not credible.
The Bank has it backwards. Brain drain does not impact economic development rather the other way around. Have a robust economy and then watch talent – and not just native ones – flocking in. We saw this with Japan of the 1960s, South Korea in the 1980s, and Ireland in the 1990s. Ireland is a particularly pertinent example. Today with its economy sputtering, Ireland is again suffering a brain drain.
There is no indication that Malaysia’s problem is worse off than that of China, India, or Singapore. On the contrary those countries may suffer even worse, and they do not have any domestic affirmative action program, except for a perfunctory one for India’s “untouchables.”
In California there are more émigrés from Singapore than from Malaysia. Nearly all my college mates in Canada in the 1960s who were from Singapore are now émigrés. Considering the republic’s much smaller population, we can infer that it has a bigger brain drain problem. Heck, even its former head of state emigrated! Yet that does not impact its economic development.
China suffered through massive “brain drain” for the past few decades; it still does. Yet it continues registering spectacular economic growth. Only now with greater opportunities as a consequence of that growth is China seeing an improvement to its brain drain problem.
Despite that, China now has a new problem. According to a China Merchant Bank’s report, those Chinese with assets in excess 100 million yuan, a stunning 27 percent have already emigrated while another 47 are considering it. In Malaysia, at least according to the World Bank Report, only the smart Chinese are emigrating; the rich ones stay put. I let readers conclude who really are the smart ones!
Snared by the Race Trap
The Report’s other major disappointment is its less-than-rigorous teasing out the race factor in its analyses. Consequently its authors, like many commentators both native and foreign, get unnecessarily entangled with the nation’s sensitive race issue. No surprise then that the report succeeded only in unleashing suppressed chauvinism and resurrecting ugly stereotypes.
Consider its findings that the overwhelming majority of emigrants are Chinese and those with tertiary qualifications from or recognized by foreign (specifically Western) institutions. Only those not attuned to the Malaysian scene would miss the redundancy to that statement.
To tease out the delicate race factor, you must present data that show Malays with similar qualifications as non-Malays do not emigrate, at least not in comparable proportions. The Bank does not have that data.
Anecdotal evidence may indicate otherwise. When I visit American campuses, the one frequent question posed to me by Malay students is: How do I get to stay back? Most Malays are on scholarships and tightly bound to their contracts. Emigration is not an option for at least ten years; that alone would skew the figures, race-wise.
The West is a magnet for the talented. Outstanding athletes and artists excepted, talent to the West means those conversant in English and have qualifications issued by its institutions. In Malaysia that means non-Malays. They may hate Malaysia’s affirmative action program but that is not enough for them to emigrate to Australia or America; they have to have the needed qualifications.
Now if Malaysian Chinese were to emigrate to China and Indians to India, then that would really indicate something rotten in Malaysia. I do not see that happening – as yet. This salient fact indicates that the “pull” of the West far exceeds the “push” out of Malaysia. In China and India however, the “push” factor is overwhelming, reflecting their general economic status and not because of any domestic social policies a la affirmative action. There the prime consideration is to get out; regardless whether you are among the rich, talented or the unskilled, hence the all too frequent tragedies of their poor citizens caught in abandoned rusty trawlers on the beaches of the Pacific and Atlantic.
The Bank noted that Malaysia’s brain drain is worse only within the last decade, a period that coincides with Malaysia’s less-than-robust economic performance. Affirmative action however, has been a fixture for over half a century. If it were to be the reason for emigration, as claimed by the Bank, then we would expect the rate to be constant all these years.
There are many good reasons to jettison the current corrupt and ineffective affirmative action program, but hoping that it will solve our brain drain problem is, well, just hope.
Surprisingly, the Report’s many nuggets of information escape comments both by the report’s writers as well as by the mob of commentators. The latter is no surprise as any issue that parallels (or seem to) the racial divide inevitably invites such Pavlovian race-tinged responses. That the report’s writers who are experts would fall into the same trap is a surprise.
Consider the report’s findings that fewer than 10 percent of its respondents (Malaysians who emigrated) spoke our national language. If you were born and raised in Malaysia you have to be literally an idiot or a hermit not to know our national language, as it is widely spoken. Both idiots and hermits have their place, but they are not regarded with esteem in any workplace.
Their lack of fluency in Malay reflects their commitment to Malaysia. To them Malaysia is only a staging ground, to prepare themselves for subsequent migration to greener pastures. There is nothing wrong with that; it is only human. The error is in imputing evil motives on those they leave behind and who have kindly provided them their launching pad. They should be grateful, not spiteful to Malaysia. The quota lines (yes, America has quotas too!) for green cards for those from China and India are closer to infinity; not so for those Malaysian-born.
Focus on Retaining Talent
It is futile to tailor your policies in the hope of attracting people who have long ago decided to emigrate. Instead, the emphasis should be on two areas. One, treat your present personnel so well that they would not even consider leaving. Two, attract talents worldwide without regards to whether they are Malaysians, former Malaysians, or complete foreigners. The market for talent is truly global; there is no place for nostalgia, insularity, or misguided notions of nationalism.
Contrary to popular perception, pay is not the only consideration, but a decent one would help smooth out the many other frustrations, including those of affirmative action. Once you treat your current talent well, word will quickly spread out and you will be inundated with enquiries.
Stop tinkering with the tax code or hiring expensive foreign consultants to produce yet another thick report that would soon be forgotten. Disband the costly Talent Corporation; it is just another bureaucracy whose budget for foreign travel rivals that of the Foreign Ministry. Divert those funds to compensate the highly talented you have at home.
You do not have to match exactly the global pay rates to attract talent. A modest increase in the current pay scale in the range of 30 to 50 percent would go a long way in encouraging Malaysians to stay put. We all know the variables of purchasing power and the cost of as well as standard of living even within a country. If you make US$100K and live in San Francisco you may be lucky to afford a one-bedroom condo. In Wyoming you could live in a “McMansion.” For that same pay, in Malaysia you could live in a real mansion, with maids, drivers and gardeners to boot. Salaries in Singapore may be considerably higher but try finding a house with a yard for your children to play. Yes, you can readily afford a car so you can drive around the island in half an afternoon.
Focus on attracting talent from wherever; practice meritocracy on a global scale. All things being equal, I would choose talent already in Malaysia. You cannot beat local knowledge and perspective. My next choice will be a complete foreigner; I prefer that over a Malaysian émigré, especially one who cannot speak our national language.
My rationale is simple. The one trait I value most in an employee is curiosity, for with it comes the eagerness to learn. The complete foreigner has demonstrated his adventuresome by wanting to work in a foreign country. He considers that a challenge; his learning curve will be steep. He is also enthused about his new assignment. A Malaysian who cannot speak our national language clearly shows his lack of interest in his surroundings. He is not even curious enough to learn a language that is widely spoken. An uncurious worker is rarely an asset.
A returning émigré also carries with him his old baggage; he may find it difficult or unwilling to re-adjust. When faced with a problem his only response would be, “Back in old England …. ” If he were to be reprimanded by a superior who is other than his own kind, he would more likely dredge up his old prejudices.
Malaysia should not have any hang-ups about recruiting talented foreigners. Its priority however, should be on retaining the talents it already has and on producing more. Not too long ago Malaysia commissioned the same World Bank to review our universities on improving their performance. Few could recall that report now.
Najib has a penchant for employing legends of foreign consultants. Unlike his predecessor Abdullah, Najib at least reads those reports. However, if you do not have handle on a problem to begin with, calling in the various experts would only confuse you. Consider this World Bank report. Just a month after its release, the Bank published another study, “Eight Questions About Brain Drain,” prepared by yet another set of its experts. This second report essentially questions the findings of the earlier one. Dismiss these expensive consultants and divert the money to reward the talents you already have.
The executive talent of a leader is inversely related to his penchant for calling in consultants. Meaning, the more inept he is, the more likely he is to call in various experts. Najib reaffirms my conviction. If he is not already befuddled, this latest World Bank Report would do it for him.
Quite a pragmatic view. Straightforward and direct. But that means less money for umnoputras to make. The usual layers and layers of work introduced just to increase the number of money making opportunities would be gone.
So bakri you suggestion will fall on ears that cannot hear.
Well written review of a serious subject.
Unfortunately, most so-called ‘experts’ are less than what they claim to be.
Too bad the writer is not part of the expert team that produced the report.
///The West is a magnet for the talented. Outstanding athletes and artists excepted, talent to the West means those conversant in English and have qualifications issued by its institutions. In Malaysia that means non-Malays. They may hate Malaysia’s affirmative action program but that is not enough for them to emigrate to Australia or America; they have to have the needed qualifications.///-M Bakri Musa
It is the hatred that motivates them to leave. That is why two million left Malaysia since 1970. Was that enough? Talents was not the sufficient condition for migration.
///Now if Malaysian Chinese were to emigrate to China and Indians to India, then that would really indicate something rotten in Malaysia. I do not see that happening – as yet. This salient fact indicates that the “pull” of the West far exceeds the “push” out of Malaysia.///-M Bakri Musa
If not for the push factor, the net emigration might be minimal. China is too competitive for Chinese from Malaysia, even though there are as much opportunities as in the west. The fact that Malaysia is truly rotten does not needed to be tested on migration to India or China. It just means that people leave Malaysia. The author might think that only those who are not wanted in the West would choose to go to China and India, and when it is only then that Malaysia is truly rotten. That thought underestimates the capacity of China and India. They do not cheap labour like Malaysia does.
///There are many good reasons to jettison the current corrupt and ineffective affirmative action program, but hoping that it will solve our brain drain problem is, well, just hope.///–M Bakri Musa
It is a fact that NEP causes the emigration of two million Malaysians. Without NEP, the rate of emigration will certainly be much reduced and so is the rate of brain drain. It is a statistical reality, not just hope.
///The Bank noted that Malaysia’s brain drain is worse only within the last decade, a period that coincides with Malaysia’s less-than-robust economic performance. Affirmative action however, has been a fixture for over half a century. If it were to be the reason for emigration, as claimed by the Bank, then we would expect the rate to be constant all these years.///–M Bakri Musa
That must be the nugget of information to Bakri. Has the bank the relevant data since the inception of NEP? It did not. The Bank could only comment on the period where it had sufficient data to show. Migration started in a big way as soon as NEP was introduced in 1970. The rate of migration is different from the export of commodities where there could be constant supply and constant demand. It is certainly true that economic performance outside Malaysia has a pull effect as much as the poor economic performance which added to the push effect, resulting in an unequal rate of export of brains over the years. That could not negate the fact that NEP is a push factor, and it cannot be absolved from the cause of emigration. It shows that emotion can affect logical deduction.
///Focus on attracting talent from wherever; practice meritocracy on a global scale. All things being equal, I would choose talent already in Malaysia. You cannot beat local knowledge and perspective. My next choice will be a complete foreigner; I prefer that over a Malaysian émigré, especially one who cannot speak our national language.///–M Bakri Musa
This agrees with Tun Razak’s comment that it was good riddance that they left they country. When must non-Malay talents have left Malaysian shores, what remains are Malays. As for complete foreigners, there is a good chance that they are Muslims. In fact that can be a criterion for selection. Why attract Malaysian emigre when most of them are Chinese or non-Malays? What is in the mind of the author is clear!
If we are going to look at this problem in a practical manner;
It should be noted, while it is a popular for everyone to say “The Chinese are leaving because of the NEP,” Malaysia gov, own figures for migration indicates the Malays make up ~70% of the people migrating out. ~25% chineses. Only the indians are under represented.
Thus it would mean, rather than only the cream of chinese workers leaving, Malaysia is actually experience a lost of talent from all across the board. Losing only chinese talent is survivable. But losing Malay, Chinese and Indian talent is not good.
One last thing I would add, hiring foreign talent comes at a price. They are usually paid expatriate salary, which is now above and beyond what is paid to locals. While foreign expats are without emotional baggage, they do not come cheap.
But this is all good and fine so long Malaysia has the money. But there is a problem and it is reflected in our economy, 40% of Malaysia’s GDP(2009) is dependent on oil, up from 15% (1989) . This a non renewable resource of income, unlike say manufacturing or services.
This means, hiring foreign expats is not a long term option, unless we can convince them to accept a Malaysia salary. Such a move will not work so long as Malaysia’s currency is weaker than other major currencies.
The solution is simple though, in the duration that Malaysia’s oil reserves last, Malaysia must reach economic strength on par with a developed nation. Malaysia’s economy must leave crude oil.
If not, hiring foreign talent in a meaningful quantity will no longer be an option.
///It should be noted, while it is a popular for everyone to say “The Chinese are leaving because of the NEP,” Malaysia gov, own figures for migration indicates the Malays make up ~70% of the people migrating out. ~25% chineses. Only the indians are under represented.///–PoliticoKat
The reliability of that statistics equates that of Malays’ equity share, which never reaches 30%. Since 1970 over two million Malaysians migrated. Would that amount to 1.4 million Malays. Does the statistics quoted refer to one week, one month, one country?
/// There is no indication that Malaysia’s problem is worse off than that of China, India, or Singapore. On the contrary those countries may suffer even worse, and they do not have any domestic affirmative action program, except for a perfunctory one for India’s “untouchables.” ///
Well, MBM, you are partly correct there. China and India both have negative net migration, meaning its emigration is greater than its immigration.
However, Singapore is clearly a net gainer in terms of net migration. In fact, it is ranked 10th in the world (more people coming in than going out). Used to be the top, or 2nd ranked, until the infrastructure is bursting at the seams. The resident population in Singapore shot up from 3 million in 1990, to 4 million in 2000 and 5 million in 2010.
So much so that the PAP’s popular vote went down in the recent election despite their promise to scale down the admission of foreigners.
Malaysia is ranked joint 70th position in the world, with about zero net migration, meaning those coming into the country is about equal to those going out. The only problem in Malaysia’s case is that those going out are the real BRAIN drain, while those coming in are the blue-collar workers from Indonesia, Burma and Cambodia and other manual workers.
India is ranked 120th and China 131st. But then again, India and China can afford to lose their citizens as they literally have more than a billion people each.
http://www.geographyiq.com/ranking/ranking_net_Migration_Rate_dall.htm
China and India should not be taken as comparison because of their population which have minimal impact on the nation as a whole; though in practical, a single Einstein might change the progress of the whole world. These 2 countries produce thousands of engineering graduates each year, they can afford it. Though in China, some do return when the offers are equally comparable. Malaysians may not be able to compete with China in term of mere production cost; but our tri-language skill is an an advantage. MNCs are willing to pay Malaysians for their skill in managing set-ups, but the same skill is rejected back home; that is the issue. As a person, it is alright that our people are appreciated overseas for their skill provided they do it not because of an endorsed policy based on other factors. Strictly speaking such experience will enrich the nation in many ways.I do agree with the writer that it is a shame that many Chinese could not speak Bahasa well. This has very much to do with up bringing. Sad to say,, most of such Chinese are the very ones in the crony camp of the present gomen! So we can only conclude, ours is a money driven society!!!
Development and progress will result in brain gain. Oh no. My head size is alright now. Just perfect. So no thank you. I really dont need a larger brain.
But hey malaysia is really in a catch 22 situation. No doubt development and progress will attract talents. But to develop and progress we need talents! And we have none. Now that is the trouble.
Deng Xiaoping started sent china’s creme de la creme to american universities and elsewhere soon after he took over control of china when mao passed away.
His advisers warned him that those students might never return. To which he said (something like) never mind for they will then serve as chinese contact points outside china. And he was right. When he opened china’s doors back then americans predicted that it would take china 30yrs to catch up with the then japan. 30 yrs later china replaced today’s japan as the second largest economy in the world. To my mind the americans underestimated the power of tapping into the talents of those foreign chinese contacts.
A lot of malaysians are out of the country. They are not necessarily an absolute loss to us. Malaysians who expanded their businesses overseas often do so through their contacts with fellow malaysians who are already out there. But umno’s emphasis for the last 40-50 yrs is on umnoputras. So this advantage is never really utilised fully.
Vote pakatan in GE13 for a better tommorrow. Umno can continue with its fight for ketuanan as an opposition party.
MBM – your assertion that brain drain does not impact economic development flies in the face all the empirical evidence available. It is you who got it backwards, not the World Bank.
China didn’t really take off until Deng Xiao Peng’s black-cat-white-cat-also-catches-mice adoption of the capitalist system.
There was brain-drain a plenty. You have the Cultural Revolution which set China back decades. Talents were deliberately hunted down, some were killed, the rest where sent to the countryside where their talents are wasted. This is brain drain of the highest order. Then you have the upheaval caused by Mao – huge numbers of talents relocated to HK, Singapore and SEA.
Due to China’s huge population, even though there was brain drain overseas, those that remain still constitute a large pool of brains. These brains are needed for economic development.
Once the black or white cat started catching mice, the talents within China (who were misused in the country-side to till the land, or melt their pots and pans to feed the home-made iron mill), are there to jump-start the economy.
A country’s economy does not grow by itself – you need competent people to nurture its growth. Correction, the economy can grow somewhat if it is agricultural based or petroleum based. Witness Mr Rambutan sitting under the rambutan tree, coconut tree and durian tree waiting for the fruit to fall down. Or the oil to ooze up from the ground. Yes, for these you don’t need real talent.
Your assertion is only true for those oil-rich countries. Dubai’s oil wealth was used for massive development to reduce its future dependence on oil. Those massive property projects attracted talents from all round the world. But these are transient talent who will leave once the property bubble bursts.
Korea, Taiwan, Hong Kong, Singapore and Japan, like China, already have a base-load of brains before their economic take-off. (BTW, all these are chopstick-wielding countries – my favourite hypothesis about these countries and economic development and IQ – but that is another story altogether.) Their economic development were kick-started by these brains. With the economic take-off, then more brains are drawn there, either from returning brains or foreign talents.
Likewise, for India, despite the sizeable diaspora, there is still a sizeable stock of local talents in India.
Perhaps the clearest example of why you got it backwards is to compare Malaysia and Singapore.
Both countries were blessed with the infrastructure and administration left intact by the British. Both have similar racial composition. Both were already quite developed economically (compared to the region) before the British left.
However, in the last 50 years, UMNO has been systematically chasing away all the non-Malay brains. OTOH, Singapore has been lucky to receive most of the brain drain from Malaysia. Of the original team of PAP leaders, only Lee Kuan Yew was borned in Singapore. The rest were from Malaysia or Sri Lanka or India.
And you can now see how the economic performance of the two countries have diverged – brain-starved Malaysia having more-or-less remained a third-rate economy, while brain-enhanced Singapore has leapfrogged to first world economy.
They are not wanted, the trained former Malaysians, as MBM declared that true foreigners who had no tie with Malaysia are preferred over former Malaysians. You got it right, MBM is not less dangerous as Mamakthir as racist.