KUALA LUMPUR: The Sultan of Perak, Sultan Nazrin Shah’s book Globalisation: Perak's Rise, Relative Decline, and Regeneration offers some suggestions on what Perak can do to continue to regenerate its economy and improve the welfare of its residents.
The 566-page hardcover book followed His Royal Highness’ in-depth research and analysis of globalisation’s changing impacts—both positive and negative—on Perak and its towns and communities over the past two centuries.
"I compare the state to other regions with abundant natural resources, including Cornwall and Sheffield in the United Kingdom, and Pittsburgh and Scranton in the United States.
"All are places that initially prospered but then lost their competitiveness and were subsequently blighted by the same forces of globalisation that had previously blessed them. While Sheffield, Pittsburgh and Cornwall have all found new ways to thrive, Scranton has yet to recover.
"Perak’s early growth was driven by tin, with inflows of capital, technology, and new ideas from Cornwall in the first decades of the colonial period. By the end of the 19th century, Perak’s production had already overtaken Cornwall’s,” Sultan Nazrin said in his Royal Address at the book launch on Saturday (July 6).
Raja Permaisuri of Perak Tuanku Zara Salim was in attendance. Also present were Minister of Communications Fahmi Fadzil, Perak Menteri Besar Datuk Seri Saarani Mohamad and Malaysian National News Agency (Bernama) editor-in-chief Arul Rajoo Durar Raj.
Sultan Nazrin said that by the end of the 19th century, Perak’s prosperity continued, boosted by the spectacular rubber boom sparked by the advent of mass-produced automobiles. Its people enjoyed fast-rising living standards.
His Royal Highness said that new towns and settlements were established, schools and hospitals were built, and Perak’s infrastructure was among the most developed on the peninsula.
"After independence, Perak fared less favourably, however. Still heavily reliant on exports of tin and rubber, it remained exposed to dramatic swings in global demand and competing sources of supply.
"It began to trail behind other Malaysian states, which were better placed to benefit from the globalisation of manufacturing activities that was starting to occur.
"What economists call 'economies of agglomeration' favour locations that move first on industrial development, have greater economic density, and possess better transport links to the outside world, all areas in which Perak was lacking,” he said.
His Royal Highness said the state’s skilled youth began to migrate to neighbouring states, where they could find more opportunities and higher incomes.
He added that the 1985 tin crash, which saw prices halve in just a few years, devasted Perak’s communities. Massive job losses and the closure of mines accelerated the outflow of residents.
"Perak’s tin towns lost the skills and ingenuity of those drawn there by the mines and their associated industries. By the early 1990s, the tin and rubber industries - on whose revenues the modern state had been built - were fading insignificantly.
"Since then, Perak has diversified its economy into manufacturing and services and modernised its agricultural sector to rebuild its economic base. Considerable effort has been devoted to this process, and there are many success stories in all sectors,” he said.
Sultan Nazrin also pointed out that while Perak’s history demonstrates some of the vulnerabilities associated with export-led growth, it highlights the huge potential upside when natural resource endowments coincide with global demand to create comparative advantage.
The ruler said Perak has undoubtedly suffered as global trade patterns have shifted, but it has also greatly prospered.
Sultan Nazrin said he hopes that with a new vision, Perak can look forward to renewed prosperity.
"Some may be asking why I have written a book on globalisation and why now. The idea was sparked in part during research for my previous books, as the unique nature of Perak’s experience became apparent.
"I wanted to explore this further by taking a deeper look at the state’s historical development and how it has been shaped by processes of globalisation," he added.
His Royal Highness said by taking a long-term perspective, he felt that greater insight could be gained into Perak’s current situation and the various challenges ahead, especially in this period of heightened global uncertainty.
Sultan Nazrin also thanked Professor Tim Harper for coming to Malaysia to participate in the book launch and the Oxford University Press team for their excellent work in publishing this book.
This is Sultan Nazrin's third book. The first, Charting the Economy: Early 20th Century Malaya and Contemporary Malaysian, was published in January 2017, while the second, Striving for Inclusive Development: From Pangkor to a Modern Malaysian State, was published in July 2019. – Bernama
