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Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : THE SUNWAY LAGOON RESORT HOTEL
Tarikh/Date : 29/04/97
Tajuk/Title : THE NATIONAL CONGRESS VISION 2020 :
THE WAY FORWARD
1. Firstly, I would like to thank the organisers of
this Congress -- ISIS, ASLI, EPU and ICU -- for inviting
me here today to officiate the opening of this congress.
Malaysia's Vision 2020 is six years old. It is now a
reality, studied by many countries, copied by many who
also wish to move their nations, to unite their peoples
behind a common destiny and to solidify their efforts
behind a shared purpose.
2. Countries from Botswana to El Salvador, from
Colombia to Nigeria, from Mauritius to Venezuela have
decided on a Vision 2020 of their own. The Club of Rome
wants a 2020 Vision for Europe. The countries of
Southeast Asia want a 2020 Vision for ASEAN. APEC has
adopted a 2020 Vision for the Pacific. 2020, which as a
measure of perfect vision seems to have caught on and is
now the definitive time for everyone to achieve a
development objective. As for us in Malaysia Wawasan
2020 has definitely galvanised the effort of the whole
nation and helped it to achieve unprecedented and
continuous growth. In the first 6 years we have grown at
8.6 percent, higher than the targeted growth of 7 percent
per annum which would result in doubling our GDP every
decade.
3. Our growth run has not been without flaws. But
certainly it has achieved much of what we set out to
achieve. We have more than full employment. Wealth has
not just trickled down but has spread and permeated every
strata of our society so that poverty has been almost
completely eradicated and incomes increased for all.
Without having to resort to industrial action wages have
risen, doubled or more in many cases. Even more
remarkable is the low rate of inflation which has meant
better purchasing power without increases in cost and
lowering of our competitiveness. Economically we have
done well indeed, better even than our vision.
4. From the very beginning, from the time when Vision
2020 was announced it seemed to have caught the
imagination of Malaysians in every walk of life. It is
not that it is just a catchy phrase, it seems that the
vision is an objective that is easy to visualise. We all
know what a developed country is like. When we were
colonised we had dreamed of being like them - independent
and rich. But having achieved independence, we had
remained poor and continued to suffer certain
indignities. Vision 2020 promised not just equality of
wealth but also dignity and honour as a nation and as a
people. And so we readily embraced the Vision and we
have put our hearts and soul into its realisation.
5. Wawasan 2020 was what our people, deep in their
hearts, had always wanted. It articulated the best
aspirations of our citizens. It is in harmony with the
best traditions of our very Malaysian way of life. It
said what needed to be said. It laid to rest the
gremlins that lurked within the darkest corridors of our
history. It settled many of the unresolved issues of the
past. It took from our backs some very heavy baggage of
history which had greatly hindered us in the past. It
shifted the mind-set of our nation from less productive
pastures to the making of a more promising future. It
pointed to where we needed to go as a nation. It made
perfectly clear what we needed to do in our second
generation as an independent country so that this present
generation of Malaysians will be the last generation of
Malaysians to live in a society that is called
`developing'. By 2020, we must be `a fully developed
country'.
6. Vision 2020 makes it perfectly clear B and we must
have it perfectly clear in our minds -- that we must be a
"developed country in our own mould". Modernisation is
not Westernisation or Japanisation or Easternisation or
Asianisation. The land that must be fully developed by
2020 must be uniquely modern, i.e. in keeping with the
progress that the world has made in every field by then
and yet remain uniquely Malaysian.
7. From the very beginning, Vision 2020 also makes it
abundantly and explicitly clear that "Malaysia should not
be developed only in the economic sense. It must be a
nation that is fully developed along all the dimensions:
"economically, politically, socially, spiritually,
psychologically and culturally."
8. Vision 2020 stresses, development "in terms of
national unity and social cohesion, in terms of our
economy, in terms of social justice, political stability,
system of government, quality of life, social and
spiritual values, national pride and confidence."
9. Vision 2020 therefore sets out not only an economic
agenda, not only a social agenda, not only a political
agenda, not only a psychological agenda, not only a
science and technology agenda. It sets out a
comprehensive, and rounded agenda for the nation. Let me
remind you once more of the nine strategic objectives or
challenges set out by Vision 2020:
* The first of these is the challenge of establishing a
united Malaysian nation with a sense of common and shared
destiny. This must be a nation at peace with itself,
territorially and ethnically integrated, living in
harmony and full and fair partnership, made up of one
`Bangsa Malaysia' with political loyalty and dedication
to the nation.
* The second is the challenge of creating a
psychologically liberated, secure, and developed
Malaysian Society with faith and confidence in itself,
justifiably proud of what it is, of what it has
accomplished, robust enough to face all manner of
adversity. This Malaysian Society must be distinguished
by the pursuit of excellence, fully aware of all its
potentials, psychologically subservient to none, and
respected by the peoples of other nations.
* The third challenge we have always faced is that of
fostering and developing a mature democratic society,
practising a form of mature, consensual, community-
oriented Malaysian democracy that can be a model for many
developing countries.
* The fourth is the challenge of establishing a fully
moral and ethical society, whose citizens are strong in
religious and spiritual values and imbued with the
highest of ethical standards.
* The fifth challenge that we have always faced is the
challenge of establishing a matured, liberal and tolerant
society in which Malaysians of all colours and creeds are
free to practise and profess their customs, cultures and
religious beliefs and yet feeling that they belong to one
nation.
* The sixth is the challenge of establishing a
scientific and progressive society, a society that is
innovative and forward-looking, one that is not only a
consumer of technology but also a contributor to the
scientific and technological civilisation of the future.
* The seventh challenge is the challenge of
establishing a fully caring society and a caring culture,
a social system in which society will come before self,
in which the welfare of the people will revolve not
around the state or the individual but around a strong
and resilient family system.
* The eighth is the challenge of ensuring an
economically just society in which there is a fair and
equitable distribution of the wealth of the nation, in
which there is a full partnership in economic progress.
Such a society cannot be in place so long as there is the
identification of race with economic function, and the
identification of economic backwardness with race.
* The ninth challenge is the challenge of establishing a
prosperous society, with an economy that is fully
competitive, dynamic, robust and resilient.
10. Six years ago, when Vision 2020 was launched, we
gave the primary emphasis to the economic agenda, to the
eighth and ninth strategic objectives: to the challenge
of establishing an economically just society, and to the
challenge of ensuring Aa prosperous society, with an
economy that is fully competitive, dynamic, robust and
resilient.
11. "Most obviously," Vision 2020 says, "the priorities
of any moment in time must meet the specific
circumstances of that moment in time." In the early
Nineties, we had the unique opportunity to make giant
strides with regard to our economic agenda. We put our
heart and soul into our economic agenda. Having
succeeded so well, so fast and so resoundingly, this is
not the time to falter, to call a halt. Now is not the
time to stop our massive economic momentum.
12. Let me be perfectly clear: the massive commitment to
the pursuit of our economic agenda of the past must be
sustained into the future. Indeed, we must proceed with
even greater tenacity, even greater creativity, and even
greater effectiveness.
13. We must proceed with even greater tenacity, with
even greater creativity, with even greater
effectiveness:
* to eradicate absolute poverty absolutely;
* to ensure a fair and equitable distribution of
the wealth of the nation;
* to ensure full partnership in economic progress;
* to ensure a society where there no longer will be
identification of race with economic function; and
* the identification of economic backwardness
with race.
14. The New Economic Policy is no more. But we must not
neglect the challenge of economic social justice today.
And we must not neglect the demands of economic social
justice in the days to come. Those who are backward must
be helped. No-one must be left behind. We must all
advance together. We must all reap the benefits of rapid
growth and advancing modernity. If we ever forget the
eighth objective of Vision 2020, our struggle for
economic social justice, we do so at our own peril. Let
me repeat: if we ever forget our struggle for economic
social justice, we do so at our own peril.
15. We must also proceed with even greater tenacity,
with even greater creativity, with even greater
effectiveness:
* to ensure very rapid and sustainable growth;
and
* to guarantee an economy that is fully
competitive, dynamic, robust and resilient B fast
on its feet and able to outperform our rivals.
16. Starting from the early eighties, we re-invented the
Malaysian economy. Let us not forget that not so long
ago we depended on rubber and tin, and then on rubber and
palm oil. Where would we be today if we still relied for
our livelihood on rubber and tin or on rubber and palm
oil or on natural resources alone including petroleum
which together make up only 16.9 percent of total export
earnings.
17. We had no choice. Over the last fifteen years, we
have had to reform and re-make our economy in the most
fundamental of ways.
18. We introduced `Look East', privatisation, productive
deregulation. We made the private sector, not the public
sector, the primary engine of growth. We accelerated our
industrialisation drive. We worked hard to expand our
medium and small scale industries. We turned forcefully
to export-led growth, thus relying on the whole world as
our marketplace. We opened and liberalised our economy.
We pushed hard for foreign investment, whilst pushing
even harder for domestic investment. We emphasised human
resource development. Let me remind everyone once and for
all that Vision 2020 states unequivocally: "nothing is
more important than the development of human resources
... Our people is our ultimate resource."
19. We understood that infrastructure had to be
developed and fortified, that entrepreneurship had to be
enriched and strengthened. We held firmly to the
tightest control on inflation. We even talked seriously
of zero inflation and we are still pursuing it. If
inflation can be reduced, surely it can be prevented from
growing altogether. We need to believe in zero inflation
and that we can work towards it. We cannot work towards
something that we don't believe is achievable. We
ensured a proper and stable exchange rate. We worked
hard on industrial technology development. We understood
the necessity for modernisation of the agricultural and
services sector. We stressed the need to develop the
rural areas, to ensure sustainable development. We knew,
or we should know, that we must become an information-
rich society. We realised that we had to have an active
diplomatic agenda to back our vigorous economic drive.
And so we travelled far and wide in search of friends and
markets. And we pressed the need for Malaysia
Incorporated, of cooperation between the Government and
the private sector, and now the unions as well, in the
task of developing the nation for the people.
20. These were key elements of the `Winning Formula'
which B despite all the difficulties, faults and failures
-- has helped to bring us to where we are today. These
reforms have basically proven their worth. They must be
sustained. And they have to be augmented. Many have not
gone far enough. Many have yet to bear fruit. And many
new strategies and ideas have yet to be discovered,
developed and pursued.
21. Let us also be clear that a nation that does not
constantly reform itself and be willing to try new ideas
and strategies; an economy that is unable to quickly re-
invent itself and then to quickly re-invent itself again,
will soon be left behind in today's fast-moving world, a
world buffeted by new ideas and concepts such as
globalisation, borderless economies, disregard for
sovereignty of nations and unlimited as well as confusing
information.
22. Our national market is not continental in size. It
certainly is not big enough to enable us to grow at a
pace to catch up with the developed world. We need the
world market but we have to pay a price to gain access to
it. We have to stop protecting our market. We have to
open it up in order to gain reciprocal access. If we are
not going to be overwhelmed by the economic giants from
outside, we have to learn to be very competitive. Our
corporations will also have to grow big and to think big.
23. I would like to elaborate here our strategy to
remain competitive. It is really quite simple. We want
to keep our cost low without sacrificing the standard of
living of our people, which must rise as we grow. That
way we will remain competitive.
24. The first essential is to contain inflation. A lot
of things have to be done to contain inflation. We have
to continue controlling the prices of essential goods.
We oversee pricing generally in order that the so-called
unavoidable increases are truly unavoidable and kept to
the minimum.
25. But the next important thing is to increase wages
only on the basis of an increase in productivity.
Whether the productivity is due to the effort of the
employees or to the improvement in the method of
production or increases in capital, the workers are
entitled to an increase in wages commensurate with the
true cost of the increase in productivity. Of course
others too are entitled to any increase in returns due to
higher productivity whether due to workers efforts or
management or capital injection.
26. If costs are allowed to go up without commensurate
productivity, then we will lose competitiveness and there
will be inflation. When there is inflation any increase
in income, whether of employees or investors, becomes
meaningless, as the purchasing power of the new income
would not increase. Indeed it may even buy less than the
old income. This has happened in many countries where
people earn more but could afford less.
27. This simple fact must be understood by everyone if
we are to remain competitive, to ensure higher living
standards for everyone, and to develop and grow
economically. In many developed countries incomes have
been allowed to increase without an increase in
productivity, resulting in widespread unemployment and
regression of the economy. Fortunately for them, they
have assets such as a rich domestic market, technology
and access to huge capital and skilled manpower. We do
not have any of these. If we adopt their profligate
ways, we will regress economically. In other words our
workers, executives and investors will all become poorer
and poorer. I am sorry to be belabouring this but far
too many people are fond of having more money without
thinking of what the money can buy.
28. If the Government seems to be unduly strict and
unwilling to accede to various demands made by various
quarters, it is because we want to serve the best
interest of the people and the nation. We do not want to
have a fling only to pay for it with prolonged poverty.
In order to progress towards Vision 2020 we have to
manage the economy for steady and continuous growth.
29. We must grow at 7 percent per annum for 30 years
1990 - 2020. To achieve this average we must go for high
growth in the early years. As the economy matures growth
will slow down. But even if the growth slows down in the
last ten years, the average of 7 percent would still be
attained.
30. This is our strategy and the whole nation, from
workers to top executives and the so-called tycoons, must
understand the national strategy. The Government can
only plan and guide. It is the people who make the
economy perform. And we must perform and perform well if
we want Vision 2020 to become a reality.
31. Twenty years ago, we were still highly reliant on
agriculture and on mining. We set our hearts on becoming
an industrialised country. Today, we are high on the
rungs of the world's industrialised economies. Industry
accounts for 44 percent of our total GDP. Manufactured
products account for more than 80 percent of our total
exports. More than 34 percent of our workforce is
employed in the industrial sector.
32. For several years now we have been achieving the
highest growth rate for exports. Since 80 percent of our
exports is made up of manufactured goods and each year
the manufactured goods portion of the export had
increased, it follows that it is the manufacturing sector
which contributes most to our export earnings. We have
indeed become an industrialised nation. While we should
be happy with this performance, we should look seriously
at other sectors. For example why is our services sector
not contributing enough to our GDP growth?
33. We should of course continue to expand our
manufacturing capability by improving productivity per
capita. This we can do through automation, use of robots
etc. But we must maximise our export earnings through
maximising the use of our ports, shipping and insurance.
The Government has readied the infrastructure. It
remains for the importers and exporters to use these
facilities. A few more percentage points can be added to
our economic growth through this.
34. We can congratulate ourselves for the progress that
we have made. But we cannot lie back and let the economy
take its course. To continue growing we must be
constantly vigilant and alert to the changes taking place
around us. We are now moving into the post-industrial
age. We are in fact shifting from the Industrial society
into a borderless Information age, a globalised economy
where borders can no longer protect us from the predatory
economies of the world.
35. We are going to lose some and win some. But we must
try to win more than we lose. It is for this reason that
we decided to make a bold move into the Information Age
by launching the Multimedia Super Corridor. The whole
approach is radical. If we have to take down our
national boundaries anyhow, we might as well get
something from what will be coming in. The MSC will
function under a different set of rules and laws. We
will make mistakes. But by confining the changes to a
specific area we will be able to limit the damage and
select what we can accept for the rest of the country.
36. At no moment in time should we forget the political
agenda set out in Vision 2020: a united Malaysian nation
and a developed and mature democratic society. Massive
and rapid growth is a wonderful buffer. Like a river in
flood, it hides the rocks on the river bed. We must
never be complacent for a united nation is the foundation
on which the Malaysian house is built. If we are
disunited and at odds with each other, all that we have
done will come to nought.
37. We must be mindful of the fact that democracy
flourishes best when it is founded upon healthy economic
growth and social progress. Just as clearly, without a
productive Malaysian democracy we will be greatly
handicapped.
38. For more than 400 years after 1511, we were not
masters of our own fate, believers in our capacity to
excel. We have in recent years shown to others, and more
importantly, to ourselves that `Malaysia Boleh'. We must
always be humble. Humility and reality tells us our
journey is far from completed.
39. At no moment in time should we take for granted the
need to progress with the task of creating a matured
liberal and tolerant society which not only tolerates but
can also appreciate and celebrate the ways of others.
40. As I have stressed, we must proceed and not falter
over our economic agenda. The race to our economic
future has only just begun in earnest. We must act
forcefully to capture that future. We cannot afford not
to seize the moment.
41. But at this particular `moment in time', I believe
that we must resolve to also take giant steps forward on
our social agenda.
42. In particular, I believe that two social strategic
objectives require our urgent, intensive and extensive
attention. It is time to move vigorously forward with
regard to ensuring >a fully moral and ethical society,
whose citizens are strong in religious and spiritual
values and imbued with the highest of ethical standards=.
And I believe that it is time to move forcefully forward
with regard to ensuring a fully caring society and a
caring culture founded on a strong and resilient family
system.
43. Of course we must always be on guard against
corruption. Today, as ever, we should take not an ounce
of comfort from surveys which show that by so-called
`Asian' standards or developing country standards or
`world' standards we are not too badly off; or that we
are said to be no more corrupt than quite a few
`developed' countries. Thank God corruption in Malaysia
is not, as it is in most countries, a way of life.
44. But at this particular `moment in time' what seems
particularly pressing is the need to ensure the correct
balance between material and spiritual development. We
must make sure that we do not fall into the dark hole
that many countries which are called "developed" have
fallen into. We do not want to be a wasteful consumer
society where unbridled materialism runs riot.
45. Urbanisation has brought with it drastic changes in
the way of life of many Malaysians. They are not all bad
but invariably there is a weakening of family ties and
restraints. We see an increase in drug addiction,
crimes, promiscuity and high divorce rates, broken homes
and abandoned babies.
46. Developed nations tend to consider these social
breakdowns as inevitable and to accept them. But we
cannot. We have to try to retain our values and to fight
these social evils. Even if we do not succeed completely
we should try to reduce the incidence. We must emphasise
the need for religion and good spiritual values.
Malaysians must cling to good moral and ethical systems.
Otherwise we will lose our sense of direction and with it
we will not achieve or vision.
47. We must not politicise. We must not ethnicise. We
must not finger point. Generational outrage is not the
answer. Generational prejudice will not point the way.
The old must not denounce the young. The young must not
blame the old.
48. We must find solutions, not scapegoats. We must
ensure progress not the grandeur of dreams. Our
responses must be bold but balanced. We must be resolute
but rational. There is need for a great deal of sympathy
and even more empathy. We must be pragmatic and do what
works. Truth must be deduced from facts. And we must act
on the basis of fact, not fiction.
49. Six years ago, we adopted our Vision. The
destination is well set. Our mission is clear. The
consensus is wide. The unity of the Malaysian people
behind Vision 2020 is profound and historically
unprecedented.
50. Today we meet not to revise this Vision, not to
unravel what is so close to the hearts of our people, but
to discuss how we can progress as quickly and as
productively as possible to the targets set for 2020. To
reach 2020, if possible, before 2020.
51. I hope that you will come up with a long list of
ideas B that can help to shed greater light on the steps
that must be taken.
52. I wish you a fruitful and productive debate and
discussion.
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