SEAC-KRI Malaysia Futures Forum

Lessons from other national contexts and global patterns must inform our strategy, especially as today’s realities are more complex than those that prevailed in the past.

In the opening speech, Tan Sri Nor (Chairman, Khazanah Research Institute) highlighted the forum’s focus on Malaysia ‘futures’ across the 5 domains: Social, Economic, Urban, Institutional and Digital. He described the forum as timely in light of the growing need to re-evaluate strategies to optimise opportunities in the face of new and unprecedented challenges.

Malaysia's remarkable development journey, from a colonial economy to a diversified one, was acknowledged, along with achievements in poverty reduction and the growth of the middle class. Tan Sri Nor emphasised the importance of inclusive digital systems and good governance of data for a future where everyone can thrive. He highlighted the need for people- oriented design and stress - testing in digital transformation, ensuring a truly inclusive digital future.

The video of this address can be watched here. 

We are living in a time of a new Cold War… [W]e have the real threat of war because war is no longer due to the inability to resolve matters, but it is being deliberately provoked time and time again.

Emeritus Professor Jomo Kwame Sundaram's speech focused on the fact that we are living in dangerous times and highlighted the importance of thinking about the changes faced by the world today. One of the threats currently facing Malaysia stems from its transition from being part of the Trans-Pacific Partnership (TPP) trade agreement to participation in the Indo-Pacific Economic Framework (IPEF) initiative, resulting in a lack of market access for the country. Additionally, Malaysia is threatened by a very biased system, vulnerable to being jammed up. The “one-size-fits-all” rules imposed by the World Trade Organisation (WTO) are not necessarily sensitive to the needs of the country. Malaysia, alongside other developing countries, is powerless when it comes to dispute settlements and in times of public health crises. The latter was depicted through the lack of an appropriate response to address inequity in vaccine distribution.

The video of this address can be watched here. 

“We are no longer Factory Asia but also Factory and Market Asia” Prof. Pavida Pananond

The Economic Futures explored the opportunities and challenges of Foreign Direct Investments (FDI) and Global Value Chains (GVC). The session asked, “Can Malaysia leverage on GVCs to advance its economic dynamism? What are the specific strategies?”. Moderated by KRI Deputy Director of Research, Nithiyananthan Muthusamy, the panellists, Dr Guanie Lim (National Graduate Institute for Policy Studies, Japan), Prof. Pavida Pananond (Thammasat Business School, SEAC Southeast Asia Forum panellist), Emeritus Prof. Tham Siew Yean (Universiti Kebangsaan Malaysia) and Emeritus Prof. Tan Sri Dato’ Seri Noor Azlan Ghazali (UKM Graduate Business School) shared their insights on how the growth of markets in Southeast Asia have produced new challenges and opportunities in the region through reorganisation of trade flows.

The panel acknowledged that ongoing geopolitical tensions have impacted the ASEAN region within GVCs. “We need to build our own narratives as resilient suppliers in order not to be cut away from GVCs” said Prof. Pavida highlighting the need for policymakers to consider multidimensionality of GVCs and different roles of domestic firms within various VCs. Prof. Tham Siew Yean stated that Malaysia needs to have strategic focus in industrial policy, “We cannot ignore FDI, but how do we hasten innovation with comparative advantage.” Dr Guanie Lim also highlighted the need to strategically manage FDIs inflows to improve sustainability, which supported by Dr Noor Azlan’s argument that economic complexity, know-hows and capabilities, can build comparative advantage for Malaysian economy. 

The video of this session can be watched here. 

“There are necessarily multiple urban futures and that these imagined futures are not static”. Dr Sin Yee Koh

 

As more human settlements will reside in urban spaces, this Urban Futures session asked, “How do we reconcile private property rights vs right to the city? Can cities create affordable and sustainable/ecological-friendly futures? What are the specific policy changes needed?”. The diverse nature of cities, the multiplicities of challenges they face, and the need for policy interventions to reflect these complexities (be it from participatory governance to climate adaptation) was the underlying thread that linked the discussion on inclusive and sustainable approaches to city-making between four esteemed panellists for the session on Urban Futures.

The session was delivered by Dr Koh Sin Yee (Institute of Asian Studies, SEAC Associate), KRI Senior Research Associate, Yin Shao Loong, Prof. Tim Bunnel (National University of Singapore) and Dr Kristian Saguin (University of the Philippines, former SEAC Speaker), and moderated by Prof. Hyun Bang Shin (SEAC Director). The panel mentioned the need to develop awareness of the major challenges in cities through data and evidence when devising policies in order for it to be supported by the general public.

The video of this session can be watched here. 

“The need to build innovative institutions, and not extractive institutions” Prof. Yeoh Kim Leng

 

In governing growth, this Institutional Futures session asked, “When should Government intervene or retreat from the market; specific examples from housing, agriculture and manufacturing. With trade agreements, can Government act with national self-determination and sovereignty to achieve their developmental aims?”. Moderated by Yin Shao Loong (KRI Malaysia), this session featured Professor Dr Yeah Kim Leng (Jeffrey Cheah Institute Southeast Asia), Dr Kim Dong Soo (Korea Institute for Industrial Economic and Trade), Professor Chua Beng Huat (National University of Singapore, SEAC Advisory Board member), and Dr Sarena Che Omar (KRI Malaysia). 

The panelists delved into the evolving role of government and its relationship with the market and emphasized the need for reforms and adjustments in the government's role in market governance. The session highlighted that these reforms should be based on the respective strengths and capabilities of both sectors.   

The video of this session can be watched here. 

“What changed policy decisions now, what has produced these responses on a big scale, is the national security threat posed by China.” Prof. Robert Wade

The second day began with keynote lecture from Professor Robert Wade (LSE), where he explored the resurgence of industry policy and its underlying dynamics of big power politics. He posed thought-provoking questions to the audience, exploring the lack of income convergence despite progress in non-income measures such as education and life expectancy, questioning the effectiveness of developmental policy.  

Prof. Wade also highlighted the national security threat posed by China as a driving force behind the United States' adoption of protectionist industrial policy. He also pointed out the shift in stance by states in the Global North and multilateral organizations like the World Bank and IMF, who historically discouraged interventionist policies but now embrace them. Additionally, he emphasized the EU's status as a regulatory superpower with limited budgetary influence and discussed the conflicting interests of the US, Europe, and Japan in reducing dependencies on China. Ultimately, the US and European governments agree that relying solely on market allocation and restricting government intervention can lead to economic vulnerability, monopolies, and income inequality. 

The video of this address can be watched here. 

“As much as the digital future is imbued with potential and opportunities, so too it is imbued with threats, some of which we are unaware of, or which are unknowable, right now.” Dr Orlando Woods

The Digital Futures session explored current and emerging trends seen in Malaysia’s digital transformation, and how the public, private and civil sectors can shape the direction of digital adoption to ensure all of society thrives. The session was delivered by Adilah Junid (Microsoft), Farlina Said (Institute of Strategic & International Studies), Dr Orlando Woods (Singapore Management University), Dr Jun-E Tan (KRI) and moderated by Dr Rachel Gong (KRI). 

The video of this session can be watched here. 

“The way the world is going, for all the scary things that are going on, we could potentially move to a much better place for us” Prof Danny Quah

The conversation between Dr Suraya Ismail and Prof. Danny Quah (National University of Singapore, SEAC Associate) centred around the question of what we (Malaysia and other third nations) really want from the international systems, as well as recognising our agency in charting this new relationship. While discussions surrounding geopolitics have become more consequential, Prof. Quah cautioned that these conversations have been missing the point—that beyond questioning the next move of the US or China, we should instead drill down on what is it that Malaysia and other third nations demand.

The video of this conversation can be watched here. 

"Creating a future where we have peace, prosperity and harmony, and at the same time not leaving anyone behind” Hawati Abdul Hamid

 

This last session focused on Socio-Economic Futures, addressing challenges such as low wages, low productivity, and heavy reliance on foreign workers. Moderated by Dr. Suraya Ismail (KRI), the panel included Dr. Ye Junjia (Nanyang Technological University, former SEAC Visiting Fellow), Bryan Lim (Khazanah Nasional Berhad), Hawati Abdul Hamid (KRI), and Datuk Abdul Rasheed Ghaffour (Bank Negara Malaysia).

The session provided valuable insights into the specific challenges faced in the socio-economic landscape and discussed potential strategies to improve wages, productivity, and job opportunities. It emphasized the importance of labor market policies, skills development, and addressing structural issues to achieve a more equitable and sustainable socio-economic future. 

The video of this session can be watched here.