Name: Malaysia's Prime Minister tells Fortune about attracting investment from Elon Musk
Uploaded: 2023-08-28
Duration: 17 min 48 s
Description: Fortune's Alyson Shontell sat down with Malaysian Prime Minister Anwar Ibrahim to discuss fallout from the 1MDB scandal, Anwar's long journey to his current role, and more.

Fortune's Alyson Shontell sat down with Malaysian Prime Minister Anwar Ibrahim to discuss fallout from the 1MDB scandal, Anwar's long journey to his current role, and more.

Malaysia's Prime Minister tells Fortune about attracting investment from Elon Musk

Politics

Fortune's Alyson Shontell sat down with Malaysian Prime Minister Anwar Ibrahim 

Malaysia's Prime Minister 

Prime Minister. It is a pleasure to be here with you today. Nine months ago, you won a historic election here in Malaysia to become the 10th Prime Minister of the country. Congratulations. And two weeks ago, there was another set of elections that some said was going to be your first big test with your new administration. How do you feel the results went? No, thank you. We managed to sustain the level of support particularly in the key states, the three economically thriving states as opposed to the more rural hinterland that we lost to the more conservative Islamic party. Um So I thought that is a clear signal that the government is stable and we are here for the next four years in the general elections and that in and of itself is significant as you know, better than anybody. It's been a tumultuous past few years for Malaysia. Stability is very much needed. It's been a tumultuous path for you to be in the seat that you're in today. About 25 years in the making, about a decade of that spent in jail for things that you did not do that would not be crimes frankly in other parts of the world, I mean, you're here in the seat today. What from that experience has prepared you to be prime minister and how did it change you as a person? We have had some experience in the past then, the 25 years in and out of jail, there's a learning curve. I think you become more mature. Um um I should say patient and um in the in this world, you know, full of insanity. And, and I think I've learned immensely about freedom, about patience about economic policies. And I think I would like to therefore focus effectively how to contribute to this country and make it vibrant and great again. And there were moments that you didn't feel like you would survive and friends even told you, why would you go back into government? You might be thrown back in jail. I mean, it could be a disastrous. Why, you know why in that moment did you decide I'm going to, I'm going to give this another shot and I'm going to go be prime minister. Is it just in this? I had the long composition of there was a release, the music of Nelson Mandela. We were talking about how mad or quite insane we are or crazy. So we reach a consensus. We were not insane, but certainly we were quite crazy because we believe we have a sense of conviction. It was best for our people, for our country. And the country deserve better essentially that um I think propel us to work harder and, and be really determined in the face of adversities. And I, no, that's a, a tough period. It's not just for me, but I think my wife, my family, my colleagues uh suffered immensely too. But after all this, I mean, this is probably part of the wanted to accept because we are talking about um affecting change. I'm against a system with endemic corruption with uh uh authoritarian threat, threats. So, uh it's not quite an easy, easy feat and you accept the fact that you are actually trying to change the system, how things should be different naturally. It would be at the expense of those um or elite. And um, but now at least we can see there's real hope for the country. There is stability clear, there's clarity in economic policy and the general acceptance by the Republic that in order to evolve as a successful country, we must affect real change and reform in this country, as you mentioned. And you've said before, corruption has been endemic to this country and a big opening to allow you to be in the Prime Minister's seat. Today was the one MDB scandal that prior administrations had been caught up with and that you're now trying to settle with Goldman. Still. How much of a setback for Malaysia do you feel that that incident was? And how do you plan to get the money back from Goldman. What? Well, in a sense, it was a major step because the perception always have been negative. I was in New York some years back. And the only thing they ask is about Malaysia and one M DB or Malaysia essentially very corrupt country. Uh So we have to really, to them, look, we have a different set of leaders, we have different set of policies and we are quite um determined to change and and rid the country of corruption. And I should say given just about more than eight months, we were quite successful, no negotiated tenders, which has been the practice, no issue of commissions through procurement of military recruitment from foreign countries. But this deal can be done, but you have to be really tough and at times quite unpopular. Uh but um if, if uh there are clear signs or determination and and policies follow through, I think generally the international community can accept, they know they follow it just not occasional um views at the media. I mean, they, they do analyze this to see things and when they come in, they see how we work. That is why in the last say three or four months because it suddenly this much of investments from United States, from Europe and from China, huge numbers coming in and they see there's a change, ease of doing business, uh clarity of policy and transparent in terms of our implementation. So I want to dig into that a bit more. You've outlined a big plan for Malaysia over the next 10 years or Madani economy, it has a number of parts to it. Um, but the overall picture in a recent speech, you said, the fact is we're caught in a vicious cycle of high costs, low wages, low profits and a lack of competitiveness. Where do you start? What steps do you need to make today to reach the ambitious goals you have for Malaysia in the next 10 years. So there must be clarity in the policy. You see. Um for example, we are talking about um the industrial master plan. Uh must it be the old approach of sectoral or mission approach? Uh Do you have, do you have the simulation as one entity or geographically different? I mean, these issues will be addressed if there's clarity and then ease of doing business in the last few months, I don't find difficulty in getting investors to come in and I see no, no agent, no commissions and you get to the, you know, key personnel, particular agency and we will facilitate the approval. So if that can happen, then naturally the issue of the issue we talk about, you know, we low productivity will be resolved. Uh Of course, it will take time and effort. Um You ask most of these companies, American companies from the it companies, you know, from say Dell in the past or Elon Musk the present or the China, all of them, almost without exception will say that we have first class professionals and engineers. What we lack is probably the issue of governance, issue of clarity and issue of issue of doing business. So it is partly the responsibility of the authorities of the government to make the necessary changes uh accelerate the process of approvals at the same time to give the additional niche training to what is being required um in that uh area that we are still deemed to be rather lacking. A big one was Elon Musk committing to doing quite a bit here with Tesla Starlink. Those negotiations were relatively, it seemed fast. I mean, Indonesia had been courting Musk for a long time and yet he chose Malaysia. What did you say to Musk? How did you get that done? And was it just great terms? What I I was then to say please that as much as I know about Tim, he knows a bit about me. So um I said, look, I've suffered mental in the process. Now I'm given the opportunity I'm in business. Um I want to affect the change and I want to do it now and whatever is necessary will be done. Um I love my country and I think it has huge potential and capacity and, and I make it clear and blunt to him to say that he does not need to worry about all the other, you know, nitty gritties, um bureaucratic incumbrance that he may face in dealing with some other countries. So I thought that may be one issue. But the other thing is that he knows the history of this country and in even in space, he has three major companies um um engaging in, in, in the operations of, in terms of the spare parts. So he has, we can gauge our potential what was lacking the initial of a clear policy uh and, and, and the commitment by the leadership and we have complemented that, I mean, of course, I'm exceedingly pleased they could come up with a very fast decision and set up the original office here. And are there other deals like this in the works? I assume you're talking to many Western companies? Yes, in for example, came in with a decision about a month and a half ago uh by the board uh €5 billion to expand in Malaysia and the biggest single investment outside Germany. And then I'm sorry g from China, they comes in and they're starting an automobile city in this state in this province, in the south of this province, which is ongoing. They have brought about 1000 of the Chinese professionals in the operations already and, and they know how it's just not me. I mean, the whole system, the better I with the team to say, look, once we are committed, we cannot give the impression that we are laid back or, I mean, we are not doing anything and uh or whatever is necessary to make sure that this process goes at a fast pace. So there's a bit of a dilemma, I suppose if part of the goal is to get more foreign companies to come into Malaysia, um but then China is also a big partner and of course, China and the US are not quite getting along. How do you plan to position Malaysia when you're sandwiched between the two and you need both this four of you don't have that much of a problem. We may engage and we maintain China as a major uh player uh in terms of investments, in terms of uh neighborly relations. Uh trade is a major player. And I explain to my colleagues in the States, look, it's an important neighbor, it's not a zero sum game as far as we are concerned. Uh And States have a long tradition of uh friendship uh for decades. Uh and, and uh and also they know the track record our, our country. I mean, some of the big major players have been here, what even the traditional ones like Motorola Intel in the past. And um they know um our capacity and I think we should then utilize this to our advantage. Um We are a small country. We are not here to try to broker a deal between the United States and China. We know that but, and then, you know, we make it very clear. I mean, I've uh engagement uh with, with uh Blinken and carry uh recently and of course, with and in China and continue to communicate. But we make it very clear on our privacies and uh what uh is of the impressive in this country in Malaysia? Another tenet of the Madani economy is getting more women in the workforce. There's, you have a goal of getting about 60% participation. How do you plan to do that? Is it overhauling education? Is it systemic? How are you going to improve the numbers? It it is a clear, I wish to say beyond moral suasion is a clear policy against any form of subvert discrimination that happens to be taking place. For example, in universities, at least we have more than 50% women, female students. There's no reason why they cannot be accommodated of because I'm a bit biased. I have six Children, five girls and a very powerful way in a powerful way. So um but but I think to be fair, it will be of immense help to the country. This you know, this group of people has not been fully utilized many brilliant professional qualifications and not given the opportunity. So there must be a clear policy to encourage in politics, in management, in the private sector and more so in the government service. What about within your own administration? There's only a few women do you have clients from? But of course, in the cabinet, uh we started off now um relatively smaller. Although, although in terms of the historic intercident, it's quite prominent and given key positions in the past, women affairs and welfare, education, health, women, which to me is very, very key. One of the two key ministries help the women. But I agree, I can see the fact that we need to then uh expose and give opportunity to more women, not only in the political leadership but in the professional manager positions. So quite a bit to do. Um you know, as we said, at the beginning, you've been 25 years in waiting for this. Um And now is your time to take Malaysia where you want it to go? What, what do you worry about failure? Like what does failure look like to you now that you have the seat, I didn't seem to think a bit too, too, too much about possibility of failures. I think we are here. Uh We have failed in the past and we have learned um and have the humility to acknowledge our limitations in the past. And I think now is the time for us to execute. And if we do the right thing and you mean, well, and you know, it's rotten about the system, you have to correct them. I think there's no, no reason, no cause to be unduly worried about the possibility of failure. And what about your legacy? What do you want your legacy to be when people remember you in this position? And what do you want global leaders to think of Malaysia? Now again, I would read the same point. I mean, I'm not too, too concerned about that, but I think what is important is you do your best and, and this country has this immense capacity um to emerge as a viable, successful, um you know, um uh developing economy or emerging economy. And, and I think we should just focus on that. And um II I, I'm, I'm quite realistic. I'm not, I'm not crazy, although I've said earlier that we with Mandela do acknowledge that both of us quite crazy. But um I'm quite realistic to see that the capacity is huge, enormous, you know, we have been here, say 98 months, but I think effectively just six months and you can see the trend, you know, the, the focus, the interests of the Republic, the general affinity discipline among the public, the interest by foreign investors. And um even, you know, on general issue of governance, I mean, there there is a shift and I think we can continue and sustain this effort. We can strive. Well, thank you so much for your time.