ASIAN BUSINESS COMPETITION AMONG THEMSELVES

ASIAN countries are trapped in the "middle income" constraints because of the greatly intensified business competition among themselves, according to University Malaysia Sabah Vice Chancellor Professor Datuk Dr. Mohd. Harun Abdullah  (picture).

Mohd. Harun said this in a speech read by University Malaysia Sabah's Labuan International Campus Director Associate Professor Dr. Ismail Ali at the Fifth International Borneo Business Conference 2012 in Tawau recently.

Not mentioning the countries by name, Mohd Harun pointed out that these countries were not only unable to compete with low cost producers such as India and Vietnam, they were even less able to compete with developed nations like Japan, South Korea, Australia and Singapore.

"In the face of the growing competition and integration of global markets, Asian economies and businesses can no longer operate in isolation, or rely merely on their domestic or regional markets to sustain growth," he said.

Mohd. Harun pointed out that the1997 Asian financial meltdown and the 2008 US sub-prime crisis have indicated how fragile and vulnerable the global financial markets were.

In the light of these events, Mohd Harun stressed that Asian economies and businesses will need to equip themselves not only with adequate financial, human and technological resources, but also a proactive ability and resourcefulness to anticipate and withstand the global economic and financial challenges ahead.

Mohd. Harun said Malaysia came out of the 1997 Asian financial crisis relatively unscathed because the country was dynamic and resourceful enough to weather the crisis, albeit through rather unconventional means.

"This shows how important it is for governments and businesses to be proactive, innovative and forward-looking and not be constrained by the traditional or orthodox ways of doing things,"he said.  (Insight Sabah)