Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : HOTEL HILTON, KUALA LUMPUR
Tarikh/Date : 07/07/98
Tajuk/Title : SEMPENA PELANCARAN SAMBUTAN
100 TAHUN ROC
Saya mengucapkan terima kasih kepada pihak Pendaftar
Syarikat kerana menjemput saya untuk melancarkan sambutan
100 tahun ROC dan juga merasmikan pembukaan Persidangan
Antarabangsa mengenai 'Corporate Governance'. Sudah
seratus tahun berlalu sejak syarikat saham bersama yang
pertama ditubuhkan di bawah undang-undang syarikat kita
walaupun pada masa itu kebanyakannya dipinjam daripada
undang-undang Inggeris. Kita sudah melihat perubahan ke
atas negara kita yang bertukar daripada sebuah ekonomi
yang berasaskan pertanian dengan sedikit perlombongan
bijih timah kepada ekonomi industri pembuatan yang
berpelbagai yang berkembang pada hari ini. Kita telah
mengambil jalan ke arah perindustrian bermula dengan
industri-industri berintensifkan buruh dan barangan
gantian import kepada industri-industri berintensifkan
teknologi, modal, berasaskan eksport dan nilai ditambah
yang lebih dan seterusnya dalam bidang industri-industri
multimedia dan teknologi maklumat. Kita telah mencapai
kejayaan dalam menarik aliran pelaburan yang besar ke
dalam negara dan sektor korporat kita telah berkembang
pesat sehingga mempunyai lebih daripada 460,000 syarikat.
2. Through all these changes, the roles played by the
ROC have been increasingly significant. In keeping with
changes in patterns and demands for its services and for
corporate information so vital for the continuous progress
of the economic cycle in our country as well as in
promoting and encouraging a high standard of corporate
governance, the roles played by the ROC have been crucial.
However, developments in computer and information
technology have made dramatic changes to the way people
and corporations operate and ROC must continuously improve
and upgrade its operating systems to meet with the
challenges of this new age, especially in meeting with
the needs of an electronic government in the age of
electronic commerce.
3. These are changing times for companies in East Asia.
The impact of currency speculations which started as a
ripple has created a 'tsunami' effect in our economies,
destroying in its wake decades of socio-economic
achievements that was the result of the blood, sweat and
tears of a nation's populace. Our cherished institutions
are being severely tested whilst critics have paraded
their usual generalisations and pronouncements. They say
that we lack credibility. They insist that we have been
lackadaisical in our enforcement of laws and regulations.
They raised concerns about cronyism and say that our
attempts to moderate the impact of bankruptcies are
bailouts. Above all these critics who themselves operate
in absolute secrecy condemn us for our alleged lack of
transparency.
4. It is amazing that the same self-appointed critics
were applauding our east asian miracle not too long ago.
Everything that we did then was right and should be
emulated by everyone. They urged their clients to move
their capital to our capitals. Prudence in lending to
companies was thrown out of the windows. We were persuaded
to lower our barriers and admit their capital and
practices into our countries with promises of rapid wealth
creation. There were talks of a world without borders, a
globalised world in which the wealth of the rich would
flow to poor countries.
5. Then overnight we are told that we are no longer
attractive. Capital flight became the order of the day.
When we try to protect our economic sovereignty we were
severely punished by further impoverishment through
devaluation of our currency and emasculating our stock
markets. We admit that there were weaknesses and
unacceptable practices in the management of our economies.
But they are not any worse than the weaknesses and
malpractices of the developed countries when they were
growing their countries. Their rampant capitalism was so
oppressive that the working classes revolted and gave rise
to the socialist and communist ideologies. As we all know
the conflicts which followed cost millions of lives, a hot
and a cold war which sapped the wealth of the whole world.
6. Unlike many newly-independent countries Malaysia did
not discard the market economy in favour of socialism and
communism. But we made the market an instrument for
social engineering in order to achieve justice and
fairness to all in our multi-racial society. The laws
governing corporate behaviour were such that they serve
not just the maximising of profits but also for the
redistribution of wealth. The ways of Robin Hood were
avoided. The rich were not robbed in order to give to the
poor. Instead the rich, through their capital and their
entrepreneurial skills were made to generate wealth for
everyone. Judicious policies were formulated so that jobs
were created, supporting industries spun off and taxes
were generated to enable the Government to provide for
needed infrastructures. Upward mobility for the
population was made possible through generous provision of
educational facilities and scholarships for those in need.
7. The Communist idea that control of the means of
production by the Government would enable all the wealth
creation to be in the hands of the Government and so
benefit all the people was rejected. Nevertheless the
Government experimented with state ownerships and
monopolies. But the experiment proved the fallacy of the
idea that Governments can do business and benefit the
people.
8. Taking a 180 degree swing the Government adopted
privatisation as a strategy for economic growth. Not only
were the failed Government companies privatised but many
of the traditional Government functions such as the
provision of utilities were also privatised. Monopolies
were abolished in order to stimulate competition for
greater efficiency. Thus Government monopolies such as
telecommunications, power, highways, airlines, ports,
delivery services and others were distributed to companies
which compete with each other. Where before there was
only one telecoms department now there are nine companies
providing telecommunication and broadcasting services. In
Malaysia the necessity for an anti-monopolies law or Anti-
Trust Law as found in some Western countries does not
arise. No monopoly has been given to any company,
certainly not on a nation-wide basis. Where there is a
need to avoid duplication of costly infrastructure, the
country is divided into regions and each region is given
to one company on a competitive bid basis.
9. Privatisation spawned new and comparatively big
corporations. The laws and policies governing these
corporations ensure that they shoulder their
responsibility to the public at all times. They are not
entirely free to determine fees or fares or charges
without inputs by the Government. This ensures that the
political and social agenda of the nation are not
neglected. Sometimes when the laws, rules and regulations
seem inadequate to serve social and political objectives,
moral suasions are applied. The corporation would be
within their rights to appeal to a court of law but in
Malaysia the social commitment of the corporations are
very strong and they do not litigate. There is therefore
a good corporate culture which makes up for legislative
weaknesses.
10. Good governance for the corporation cannot depend on
laws and their enforcement alone. A good corporate
culture is a necessity. In Malaysia we have decided that
the private sector has a big role to play in the
development of the nation. They create wealth, jobs and
they pay taxes. Since what they do is important for the
nation, the Government should actually facilitate the
smooth functioning of private enterprise. This requires
continuous feedback and support by the Government. It was
decided that close cooperation between the Government and
the private sector can actually enhance the economic
growth of the country. And so the concept of Malaysia
Incorporated was adopted, a concept which regards the
whole nation as one large corporation in which the
Government and the private sector together with the
workers should contribute towards its success.
11. There used to be a belief that it is the duty of the
Government to put as many obstacles as possible in the way
of the corporations. They were regarded as some kind of
exploitative enemy, bent only on making money for
themselves. Perhaps they should be frustrated if they
contribute nothing at all to society. Certainly the
capitalists of the past did exploit the workers and felt
no obligation to the society in which they made their
profits. But the socialists and the communists taught the
capitalists a good lesson and they have now become more
conscious of the debt they owe to society. And so
Governments have been able to craft policies and laws
which ensure that the profits made by the capitalists
contribute significantly to the well-being of the
communities in which they live. There is therefore no
reason for frustrating the wealth-creating entrepreneurs.
Indeed they should be helped because a goodly portion of
what they make goes towards the improvement of the lives
of the people as a whole. They are the goose which lays
the golden eggs and their continued capacity to lay these
eggs should be ensured.
12. The Malaysia Incorporated concept encourages
Government/private sector cooperation for the development
of the nation. The result of their cooperation is obvious
from the high (eight percent plus) economic growth of
Malaysia.
13. The danger of abuse and corruption must be present in
such close proximity between the Government personnel and
the private sector. But such dangers also exist when the
Government distances itself from the private sector.
Where the Government is obstructive, such obstruction can
and have been used to extract bribes from the private
sector. At the same time national development is
retarded. Clearly when Government is unapproachable not
only is corruption not eliminated, development is slow and
the economy cannot grow. Between the risk of corruption
due to close proximity between Government and the private
sector and that caused by a confrontational attitude by
Government personnel towards the private sector, there is
more to be gained from the former.
14. Naturally the rules have to be tailored to ensure
maximum gains with minimum abuse from the Malaysia
Incorporated concept. The culture too has to be changed.
Corporate laws must be made suitable for positive
interaction between the Government and the private sector.
15. Through privatisation and the Malaysia Incorporated
strategy the country was set to grow so that by 2020 we
would become a developed country. Unfortunately we are
now seeing the return of rampant capitalism. The old
capitalist were confined to their own countries. Modern
Information Technology and the ease with which huge funds
can be accumulated and managed has given the new-
capitalists tremendous powers. With billions and even
trillions at their disposal, they can now challenge whole
Governments. The sovereignty of nations in terms of
currency and the movements of capital have now been lost.
The free flow which should bring wealth to the poor
countries of the world has now brought about their
impoverishment. Although Government practices and lack of
openness etc. may be blamed, there can be no doubt that
the loss of control over exchange rates and the cross-
border flow of capital are responsible for the financial
turmoil now assailing the countries of East Asia.
16. In the face of this, corporate governance must be
reviewed. Obviously there are weaknesses in corporate
governance which have to be attended to. The ease with
which currency devaluation accompanied by share
depreciation can distress even the most sound of companies
points towards a need for new rules and regulations as
well as laws to improve the resilience of corporations.
Many of the present laws and rules and banking practices
tend to aggravate the problems of corporations during
economic turmoil. These will have to be studied and new
sets of rules, regulations and laws formulated. The idea
is not to help bad companies but to enable good companies
to survive when their failure is not of their own making
and to turn them around. Their survival and profitability
is not just for their own good but for the good of the
nation as a whole. Certainly Governments need profitable
companies if they want to fill their coffers.
17. I hope that in your deliberation you will give some
thought to this problem.
18. I would like to congratulate the ROC and the
organisers for this conference and the choice of subject.
I warmly welcome the speakers and the scholars present as
well as the delegates. I hope you will benefit from your
participation and your visit to Malaysia. I hope you will
contribute towards our search for a solution to our
present problem.
19. Dengan ini saya dengan sukacitanya melancarkan
sambutan 100 Tahun ROC dan merasmikan pembukaan 'ROC
Centennial Conference on Corporate Governance'.
|
|