MALAYSIA was once third in manufacturing compared with Asian Tigers South Korea and Taiwan, and in terms of services, a near-peer to neighbouring Singapore.
However, Malaysia is now arguably lagging behind these economic powerhouses of the region.
Addressing this, Second Takeoff: Strategies For Malaysia’s Economic Resurgence is a deeply focused look into the country’s potential for economic revival amid the current unprecedented global shifts.
The book delves into the nation’s history, highlighting its past economic triumphs and challenges during the country’s first “takeoff”, while providing a comprehensive analysis of the current opportunities that could propel Malaysia into a new era of prosperity.
It also draws a parallel between Malaysia’s first economic takeoff (1988-1997) and the current potential for a resurgence.
The author also points out the concept of a “second chance” for Malaysia, emphasising the unique convergence of global events, such as decoupling and de-risking from China, that present a rare opportunity for an economic takeoff.
These ideas and more are highlighted in the latest book written by Deputy Investment, Trade and Industry Minister Liew Chin Tong.
As aptly summarised in its preface, Liew points out that “In the second takeoff, Malaysia needs to be strategic.
“In the simplest terms, it means choosing what to do and what not to do, and at the right time.”
He further outlines that Malaysia should position itself in three “middles”, “an indispensable middle in the global supply chain; a middle power; and a middle ground in geopolitical terms”.
Liew's latest book looks into the country’s potential for economic revival amid the current unprecedented global shifts.
Another major theme of the book is the “middle income trap”, a term coined nearly two decades ago by World Bank economists, and which has been often used to describe Malaysia’s economic situation.
Liew also writes that the second takeoff should envisage Malaysia and the other South-East Asian neighbours becoming middle-class societies in a decade or two. He discusses the importance of regional collaboration within South-East Asia, advocating for a cohesive strategy that benefits all neighbouring countries.
“We should not sell ourselves cheap. As Malaysia aims higher and aspires to be technologically more advanced, we no longer have to see ourselves as being in competition with Indonesia, Vietnam, Thailand, or the Philippines.
“Instead, Malaysia should envisage building stronger vertical integration with these neighbours, thereby not racing to the bottom in terms of wages but lifting all societies in Southeast Asia into some form of a middle-class society,” he explains.
This vision of a united, prosperous South-East Asian middle class society is compelling, Liew said.
He also highlights the establishment of the unity government as a pivotal moment in the country’s history, offering the stability and sense of purpose that Malaysia has long needed.
The Iskandar Puteri MP also does not shy away from discussing the challenges faced by the country, including the 1MDB issue, the goods and services tax, and key parliamentary reforms. Yet the narrative remains hopeful, suggesting that with the right strategies and policies, Malaysia can overcome these challenges.
The book recounts how Malaysia, once a manufacturing hub due to shifts in global economic dynamics, lost momentum after the Asian financial crisis of 1997. The author argues that similar global shifts today can again position Malaysia as an indispensable middle power in the global supply chain.
Iseas-Yusof Ishak Institute Singapore senior fellow and coordinator of the Malaysia studies programmes Dr Francis E. Hutchinson says Liew, who has served both at the federal and state level, has given him a deep appreciation of the benefits and challenges offered by the country’s multilevel governance system.
“This is brought to bear in his treatment of topics such as local government elections, autonomy for state governments, and geographically-based initiatives such as growth corridors
“These collective experiences also underlie Liew’s keen understanding of the country and its political dynamics.
“Second Takeoff: Strategies for Malaysia’s Economic Resurgence successfully blends the craft of policy making, practical methods of implementation, and passion for change,” says Hutchinson in the book’s Foreword.
The book balances an honest view of the country’s challenges with an optimistic outlook for a larger future of shared prosperity for the country, making it a must-read for policymakers and those who are interested in Malaysia’s role in the global economy.
