Dont rely on govt contracts, entrepreneurs told
Sarawak deputy chief minister Dr George Chan said today Malaysians should abandon the notion that the government owes them a living.
"It is this mentality that breeds dependency and promotes rent-seekers," he said when opening a
regional accountants conference in Kuching this morning.
Rent-seekers is an economic term referring to those who use their political connection to obtain lucrative government contracts.
Sarawak deputy chief minister Dr George Chan said today Malaysians should abandon the notion that the government owes them a living.
"It is this mentality that breeds dependency and promotes rent-seekers," he said when opening a
regional accountants conference in Kuching this morning.
Rent-seekers is an economic term referring to those who use their political connection to obtain lucrative government contracts.
"When the government is seen, not as a facilitator of business, but a provider of contracts
and concessions, genuine entrepreneurs will be crowded out by commission agents with 'know-who' abilities and not 'know-how talents'. "
What had prompted Chan - who is also the state finance minister and minister of industrial development - to make the surprisingly honest speech was not immediately known.
But it is open secret that political supporters have often approach government leaders for favours by way of lucrative contracts.
Chan added that a more competitive economy could not afford to continue to absorb what he described as unproductive economic rents.
"Hence, we must now make sure that distribution justice is carried out on the basis of identifying genuine
need and that opportunities are given to those with value-added potentials."
Hidden benefits
The deputy chief minister also said that Malaysians must also understand that being world-class does not begin and end with building world-class facilities.
"We need, above all else, world-class management and working practices. Investors have become more discerning."
Chan added that what distinguishes one country from another is not merely labour cost or physical
infrastructure any longer.
"It is increasingly going to come from other sources," he explained, adding that innovation,
productivity, service and efficiency are all potential hidden benefits of doing business in a state.
Without mentioning any country by name, the deputy chief minister said the human factor must surely make a lot of difference.
"There are countries that have no natural resources to speak of which have successfully positioned themselves as producers of fine finished products and providers of value-added services," he said.
These countries understood their limitations and worked around them.
"On the other hand, there are also many countries with abundant resources - with fertile land and vegetation
- which have not been able to transform this natural advantage into a competitive advantage," said Chan.
"What makes the difference is the human mind and whether it is capable of creating wealth and value, even under great constraints."

