Sunday, May 01, 2011

Najib "In Denial" over Brain Drain

The Talent Corporation is doomed to fail given that Najib is in denial over the World Bank Report on ‘Brain Drain’ in Malaysia

The Prime Minister, Najib was extremely quick and swift to “refute” the conclusions of the World Bank Report on “brain drain” in Malaysia without providing any substantive evidence in doing so. He first denied that the New Economic Policy (NEP) which dictated priority for bumiputeras has led to brain drain. At the same time, he also denied that the NEP and brain drain has resulted in a drop in investment flow into the country.

Najib is obviously in denial because it was his very own “Government Transformation Programme” (GTP) which stated in no uncertain terms that
“An unintended outcome of the National Economic Policy (NEP) was a sense of deprivation, discrimination and even resentment felt by the non-Bumiputeras, which was attributed to the over-zealous attitude and approach in implementation by some officers in certain agencies. There has also been a widening of the income gap within the Bumiputera community, leading to rising discontent amongst certain segments of that community. These factors have pushed many Malaysians, especially professionals, to work and reside overseas, in economically more advanced countries with attractive pull factors such as higher income, wider exposure and opportunities, better quality of life and education for their children. May have chosen to settle permanently, and there are signs that this brain drain has become increasingly serious. It is imperative that these issues […] are addressed, as not only is our economy’s competitiveness, stability and sustainability at stake, but continued widening and rising disparities will jeopardize national unity.”
Is Najib now saying that the GTP got it completely wrong?

Is he also saying that World Bank study which conducted a survey on the three top reasons for brain drain in Malaysia where 60% cited “social injustice” as the key reason for brain drain?

Najib has also dismissed the role of NEP and brain drain on our foreign direct investment (FDI) by citing the statistics that FDI had increased to US$9 billion in 2010 from US$1.4 billion in 2009.

Firstly, the fact that a student improved his Mathematics score from 10/100 to 50/100 isn’t something to be celebrated joyously. 2009 marked the 2nd lowest FDI Malaysia has received over the past 20 years, and making an improvement over the sum doesn’t sudden make Malaysia a super attractive FDI destination.

But more importantly, the World Bank Report conduct studies based on trends in Malaysia’s FDI over the past 20 years, and not just the year where we “improved” the most. For example, by comparing FDI over a 3-year period between 2007-2009 and 1990-1992, the World Bank showed that we were the only country in the region where FDI has declined and significantly so (Figure 1.57)! Malaysia’s FDI dropped by 35.5% over the period while all the other countries increased – Indonesia (+23.3%), Philippines (+51.6%), Singapore (+53.8%) and Thailand (+119.0%).

The World Bank Report also conducted was a hypothetical model where it measured Malaysia’s potential relative to performances of other countries in the region (Table 1.1 of the World Bank Report, pp46). It was determined that had Malaysia retained its talent as well as implemented an open investment policy regime, our FDI should be closer to US$15 billion instead of only US$3.8 billion for the 2007-2009 period, or more than 5 times our actual achievement. This proves the severe under-achievement of our potential under the BN administration.

Despite denying the role of NEP on brain drain, Najib did acknowledge that brain drain is indeed a serious issue which needs to be addressed and hence the setting up of Talent Corporation. However, if Najib and the BN administration is steadfast in its refusal to recognise the impact of “social injustice” on talent leaving the country, then all the efforts by Talent Corporation will all go to nought.

Talent Corporation will suffer the same ignominy as the “Brain Gain Programme” under Najib’s predecessor, Datuk Seri Abdullah Ahmad Badawi which failed miserably in attracting returning and stemming the massive outflow of talent. Najib’s instant denial of such a comprehensive and rigourous study by World Bank, and even forgetting about his own GTP is a harbinger of Talent Corporation’s fate.


Anonymous said...

Najib is not in denial. He is simply failing. He can't handle the truth.

BTW. GTP did get it wrong. They always knew NEP was going to drive away talent. They just thought they would replace with Malays it but not only the talent was few but instead encouraged those with it to leave instead.

wandererAus said...

Who says Malaysia is suffering from brain drain...UMNO is churning out daily "Super brains" from our esteem and highly praised universities created by the Ketuanan UMNO Melayu...specializing in corruption and Sex education, making this Bolehland a SMART SEX COUNTRY.
YB, perhaps, you should do a refreshness course to keep in line with these bloody UMNO goons way of thinking!

najib manaukau said...

Najib has to do something what Umno had been doing for some years even though we all know that his Talent Corp. is just a change in cover but the soup is still the same.
It is a typical action of an Umno moron with the added dollar incentive. Just like a Malaysian trained doctor who treats the symptom of a sickness and unable treat the cause.
And typical of Umno salvation for any problem is to offer more money as incentive and when the whole project is not working just keep offering more money as another added incentives. They refused to acknowledge the true and real reasons as to why the talents immigrated in the first place. Instead of addressing the problems that caused the talents to leave the country, in the first place ,the corrupted morons can only think of is to offer more moneys incentives.Theses corrupted morons has only one thing in their mind money. They don't realized that all those that left this country is not that they are better off in the foreign country. When in fact the top three countries the talents immigrate to have to pay even more tax, I might that much more than what they have to pay back in Malaysia. They all left for one reason because they do not see any future for themselves or their children in this country. To continue living in a country always feeling unsecured for the family, third world education for their children, having to work under quarter cooked bosses. These are only a few problems that they do not see them being addressed urgently and as a matter of fact the problems are getting worse by the days. So Najib wake up and start working for solutions to the problems instead of just keep adding incentives and more incentives. Please don't insult the immigrants' intelligence by comparing that of the morons to theirs. Once again it is not just the money these immigrants left ! They all have one thing in common, they feel marginalized.

Anonymous said...

What brain drain are you all talking about? How sad this and how sad that.
It has been a resounding success ! I know one person is rubbing his hands with glee. The government’s furtive transmigration programme is to remove 1 to 2 million ethnic Malaysian Chinese and replace them with illiterate Indonesians of the same number. Make no mistake. This is deliberate policy to drive out the other races. This is now a FACT. No one in Government is really worried about all the talk about competiveness. The FDI increased last year so what’s the problem guys?
The World Bank’s report has finally put hard numbers to this sinister game.
I once came across a thick volume in the house of a Malay UN ambassador.
It was titled “From Colonial Rule to Bumiputera Rule”. Just seeing that title more than 15 years ago gave me the creeps about what we were contending with.

shankar said...

Got to have brains first before brain drain.

samgoh88 said...


What with all the unfair strains
The brains are bound to drain
Too late to scoop them up with a crane
Even if you try to entice them with sugar cane

(C) Samuel Goh Kim Eng
Tue. 3rd May 2011.