Name: Malaysia is betting on economic transformation. China and A.I. are key to making it happen
Uploaded: 2023-08-28
Duration: 10 min 54 s
Description: Fortune's Derek Zhang and Malaysian Prime Minister Anwar Ibrahim talk digital transformation, economic inequality, and...Shakespeare.

Fortune's Derek Zhang and Malaysian Prime Minister Anwar Ibrahim talk digital transformation, economic inequality, and...Shakespeare.

Malaysia is betting on economic transformation. China and A.I. are key to making it happen

Politics

Malaysia is betting on economic transformation, China and A.I. are key factors to making it happen.

Fortune's Derek Zhang and Malaysian Prime Minister Anwar Ibrahim talk digital transformation, economic inequality and ... Shakespeare.

Malaysia is betting on economic transformation

Thank you Prime Minister for your time. And so how was the trip to Beijing and Thailand when you returned to China for the first time that the Prime Minister was the visit? And I'm extremely pleased with the way. Um both President Xi Ping and um Premier Li Qiang give so much important, caught us with the proper. No, I'm not talking about the protocol. I'm talking about the engagement and the issues discussed. So you mentioned at least three times that the policies are clear, you know that China has been a very significant source of FD I in in areas like tech and the uh infrastructure. So any special message to Chinese investors to regain their trust. Well, so far, they have been very forthcoming as you know, um what was committed when we went was about uh $40 billion. And since then, some have come in very fast. I mentioned of automotive city in the south of this state, in the province they have come in. Uh and the of course in the petrochemical um and, and there are so called medium scale, medium scale. The Chinese standard is actually is very upper scale as far as we are concerned, uh we have a proposal in terms of digital transformation of food technology uh and some areas of, of uh services, industry and, and low on infrastructure. Uh but we have place this set of priorities and um but of course, we are flexible because we should politicians shouldn't decide what to or not to invest. We give some policy parameters and uh then we negotiate with the potential investors since you mentioned, uh you know, um you may may have known that although China's economy uh focus at this moment, but there are certain sectors like auto industry and hard tech actually expanding swiftly overseas. Uh And Malaysia used to be one of the most attractive industrial hub. So is there any way to, to capture this momentum of your biggest neighbor? But thus far as I said, um we are managing to do that, I would say that I would do again, whatever is necessary to then uh accelerate that process. Uh But thus far in the last four or five months, um the Chinese have been quite aggressive in terms of their investment portfolio into Malaysia. Yeah. Um of course, initially they were but mainly in the infrastructure. I said, no, you go beyond that. Uh So that's why automobile petrochemical and data centers uh and they have been quite uh were active in that, in those fields. That's right. So talking about, let's say A I, so uh is it going to be a challenge or advantage to Malaysia. If we're talking about the the, you know, the upgrade of the economic structure. Well, to me, it is essential, it's an imperative, we have no choice. That is why the key uh strategy has been to focus on digital transformation. And that is why the issue of Starlink, you know, it's interesting, I was just at the one of the indigenous villages in the in the in the hills, you know, to them connectivity means starlink is it? And and um so a I in a real sense both in the social media battle and in terms of general digital transformation is very critical to alleviate those status from um middle income economy to more sophisticated high tech. OK. So on top of all these topics, Malaysia is still very young country. Remember that the median age of Malaysia is somewhere around 30 whereas in China is it 40 10 years old than you know, Malaysia? So how is Malaysia going to use this to its advantage as a contrast to the Asian population of, let's say China and Japan? I think we look to our advantage, which means the learning curve, the young has a better capacity to absorb this new technology and digital technology. People like me took ages to learn and master this. I I still remember how, how, how difficult, how challenging it was it was to start an email while lecturing George Town. Uh but for the young, my grandchildren can teach me some of the new apps. So I think what is required form the authorities from the government, from the policymakers is to make sure that the the younger students are given that opportunity and exposure, which means it has to be internationalized. So this protectionist view to me will be to our dis disadvantage. The more we open both to the east and the west, the more beneficial would become that is why there is a controversial issue by the five G, for example, although the the uh system adopted is of course the Western uh system and precisely Erickson. But we made it very clear as a country, we are we remain open, we are not going to discriminate or prejudice the possible participation of any other country which may include therefore the Huawei of China. So I understand this controversy, many of my colleagues from both corners of the world kept on asking me this question may say, look as a country um with the younger population, with the capacity to absorb this new technology, more challenging, more sophisticated. Uh the only option is to be really open and get our young um students to be exposed to as many um technology system as possible. So besides the generation gap, the gap between the rich and the poor in Asia has been widening alarmingly, you used to study the uh ideas from Harvard, uh philosopher John Rose. So at this moment you're talking about equal opportunities. How, how do you, how do you prevent us from going to, let's say the other extreme of the equality of outcome? Well, the issue of inequality is a major issue is not only for John Ross of because I'm a student of John Ross. Uh but from even Adam Smith, when he talked about theory of moral sentiment, not only uh wealth of nations or you study Confucius or for them at the Islam, I mean, the relevance of these um is when you, you actually have uh affect the meaning of justice or compassion of humanity. Um I don't believe that you can do with some form of disparity. OK. But uh the unbridled capitalism that condone that um sort of insane disparity is not acceptable, I mean, um uh so there is therefore a role of those in authority and government to try and deal with this gap. Um not so much of poverty but abject poverty. And that's why when you mention roles, it's interesting because what is justice if it's not fairness, you know, so we have to deal with it. That's in my Madani economic concept, I made it clear that we have to attack foreign investments. We have to be uh to understand that capital is at the core and the fundamental for growing economy. But you must also infuse with that set of values uh that, that mark us to be really different from just an economic animal um to become um part of humanity with compassion, with care. And it's not too difficult. I mean, I work with some very rich people here. I say, look, we are not going to tax you, but you, you must show a little bit more compassion and, and bring them to the remote villages where the poor are striving to live and people do care. And I think is, is uh if the system is not corrupt, if the leaders do not take the money uh pocket for themselves, then they would appreciate the fact that OK, probably give what is you can be small to those who have been deprived very just before we wrap up. Uh We know that you carried a copy of the complete works of Shakespeare and even in your darkest days. So, so which Shakespeare character do you think you resemble the most? And why you see six people do ask me this question because when I was young, it was Romeo and Juliet. Of course, uh when I was in jail, of course, it is in his conversation with Cordelia towards the end. Uh or when I'm a bit annoyed, it becomes Hamlet. Uh So because Shakespeare is unique is a genius who is the core of the Western Canon. All right. So that is how I explain Shakespeare. Uh II, I, well, I, I'm a student, I'm not a professor of English literature. Uh but I think um it has given immense contribution to humankind, to understand the feelings, aspirations. And, um, well, there's about, they're so unique and, and they're genius to Shakespeare.