Malaysian Student Leaders Summit (MSLS) UK and EIRE Council for Malaysian Students 2022

KEYNOTE ADDRESS

YANG BERHORMAT SENATOR DATUK SERI UTAMA TENGKU ZAFRUL TENGKU ABDUL AZIZ
MINISTER OF FINANCE MALAYSIA

MALAYSIAN STUDENT LEADERS SUMMIT (MSLS) UK AND EIRE COUNCIL FOR MALAYSIAN STUDENTS 2022

Nicole Siaw, Chairperson of UKEC,

Organizing Committee Members of the 16th edition of the Malaysian Student Leaders Summit,

Distinguished speakers,

Ladies and gentlemen,

Assalamualaikum w.b.t and a very good morning,

INTRODUCTION

1. First and foremost, allow me to thank the organizers, the United Kingdom and Eire (Ireland) Council for Malaysian Students (UKEC) for inviting me to deliver the opening keynote address for the 16th edition of the Malaysian Student Leaders Summit (or MSLS). It is indeed a great honour and privilege to be invited to this prestigious event, hosted by our students in the UK for their peers.
   
   
2. Let me share that the UKEC is very close to my heart, as I was involved in its formation during my time as a student in the UK. So, seeing this conference grow from strength to strength, ever since its inception in 2007 is a source of pride for me, and should be a cause for great joy and hope in Malaysia’s future.
   
   
3. The fact that this event is consistently able to draw top-speaker line- ups with sponsorship from leading corporate entities, and most importantly a strong participation from student leaders — all dressed in their best suits on a Saturday — is a testament to the continued relevance of the Summit itself. I have always been impressed by how it embraces not only the topics of the day, but also the direction and the future of Malaysia as befits the role of the youth as the conscience of our nation.
   
   
4. I had the honour of speaking at this conference before, first as a corporate leader and now as a cabinet minister. Both scenarios were challenging but enjoyable for me. I’d like to think — in fact, I know — that sitting in the audience here today, will be future Ministers, CEOs and leaders in their respective fields.
   
   
5. The theme chosen for this year’s summit — Nusa Anak Muda: Sirens of Change — is also timely given that we as a nation are at a critical juncture of our journey in building back better from the ravages of the pandemic. "Sirens of Change” to me highlight that change is urgently needed and must not be put off. Change cannot be rushed but neither can we drag our feet. The sirens are a warning against complacency as well as a call to action.
   
   
6. So today, in that spirit, I will outline some of the changes that we as a nation must embark on, to emerge stronger, more prosperous and united in purpose. But first we need to begin by understanding where we are now.

THE PANDEMIC MUST BE A CATAYLST FOR CHANGE

Ladies and gentlemen,

7. To date, due to COVID-19, 4.7 million of our fellow citizens had been infected, while more than 36,000 have lost their lives. Our successful response aside, I would argue that the pandemic exposed certain serious fault lines in our country, and also set back much progress achieved in the preceding decades. Not everyone had the same experience. Some came out relatively un- scathed. Others lost their loved ones, jobs and livelihoods. In many cases, the pandemic has shown us how good healthcare, access to food and services, even life expectancy, is sometimes a bit of a postcode lottery.
   
   
8. These vastly different outcomes spurred us to take action to give immediate help to those that needed it. However, it also struck me, that there are other long-term economic, social and even political issues that have to be addressed if Malaysia is to continue to succeed.
   
   
9. It has made us realise that the status quo can change in a heartbeat. As such, it has made us eager, even impatient to protect, widen and improve public services. A return to the world that existed in 2019 may not be possible or desirable. Indeed, it is perhaps our failure to drive meaningful change that led us to the trials we faced during the pandemic.
   
   
10. The pandemic has presented us with the opportunity to change our country’s trajectory for the better. We must not waste that opportunity. The difficult last few years that Malaysia has faced can and must be a catalyst for change.

MALAYSIA ON ROAD TO RECOVERY

Ladies and Gentlemen,

11. To be sure, in terms of the headline economic numbers, Malaysia is now on the road to recovery. The numbers speak for themselves. Malaysia had a strong first quarter this year, with a GDP growth of 5.0%. In fact, we are on track to achieve a GDP growth of 5.3 to 6.3% in 2022. Meanwhile, the unemployment rate dipped to 3.9% in both May and June 2022, showing a declining trend for 14 consecutive months now.
    
    
12. Malaysia’s trade performance has also remained resilient and maintained its growth momentum. We can see from the data that trade has enjoyed double digit growth for 16 consecutive months since February 2021. Following the systematic reopening of the economy, continued expansion of the internal and external demand, and reduction in unemployment, foreign investors appear to be more confident in Malaysia’s prospects.
    
    
13. All these encouraging developments have contributed to the upward revision by rating agencies. S&P Global Ratings, for example, has recently revised Malaysia’s outlook from negative to stable. All these data, not to mention the return of traffic jams and packed eateries, suggest that our second quarter GDP numbers may be strong, which will further validate our policies that have placed Malaysia on the right track towards recovery.

RISKS AND CHALLENGES TO RECOVERY

Ladies and Gentlemen,

14. I am however conscious that macroeconomic numbers, while important, are not the sole barometer of a nation’s health. I would also add that there is also a danger of becoming too complacent, of missing the woods from the trees and failing to realise the challenges facing our country. These include:
    
    
15. First, the increase in global inflation as commodity prices continue to rise and supply chains disrupted due to the ongoing Russia-Ukraine conflict. As an export-oriented country with a significant presence in the global supply chain, these external shocks risk derailing our post-pandemic recovery. Our inflation rate climbed to a one-year high of 3.4% in June 2022, with food inflation in June being at 6.1%. The Government however, has managed to cushion the impact through subsidies and price-caps on certain key goods. Without these subsidies, the inflation rate domestically will hit roughly 11%.
    
    
16. Second, as we have seen, there is a slowdown in growth globally. The IMF has cut its global growth projections for 2022 from 3.6% to a projected 3.2% GDP growth and 2.9% in 2023, dubbing the world’s economic outlook gloomy and more uncertain. As mentioned, several shocks have hit the world economy already weakened by the pandemic:
    
    
    1. From higher-than-expected inflation worldwide — especially in the US and major European economies — triggering tighter monetary policies,
       
       
    2. To the slowdown of China’ economy due, in part to its zero-Covid policies, which will see its growth fall to 3.3% from 4.4% previously as per the IMF’s projections. This is worrisome as China helped power the recovery from the 2008/9 Global Financial Crisis with its average growth of 7.43% from 2009-2021. The question now is whether it can still play this role amid its weakened economic outlook and;
       
       
    3. The spillover from the Russian-Ukraine war; with no certainty over when and how it will end.
       
       
17. The weaker global outlook will certainly impact us. The IMF has already lowered its growth projections for Malaysia to 5.1% from 5.6%, below our official projections of 5.3% to 6.3%. At this point, we remain optimistic that we will be able to stick to our official projections. However, the Federal Reserve’s cumulative rate hike of 225 basis points in total thus far have resulted in the weakening of numerous currencies, including the Ringgit. The risk of the US entering a recession, technical or not, makes the global outlook even bleaker.
    
    
18. Third, the risk of new Covid-19 variants and sub-variants remain present. Malaysia, together with the rest of the world, must be ready for the next global pandemic, and may need to focus more on preventive rather than curative measures.

THE 3RS: RESPONDING TO THE SIRENS OF CHANGE

Ladies and Gentlemen,

19. So how do we mitigate these risks and challenges? I would like to stress that at the MOF, our policy response in 2022 is guided by the 3R approach: Responsive, Responsible and Reformist. Of course, all good governments must be “Responsive” to their people’s needs, given the inequalities and dislocations made worse by the pandemic. This however must be tempered by the imperative to be “Responsible”, to remember that doing the right thing to fulfil the dreams, aspirations and potential of the rakyat rarely equates to populism.
    
    
20. However, we have noted, the final R, “Reform” is becoming more and more crucial, if not dire for Malaysia. This ties in with your theme today of responding to the “sirens of change”. Reforms require changes, and changes are often met with resistance, simply because they take people out of their comfort zones. Yes, we are still better off than many other countries. Indeed, we could probably still meander along with the status quo and still not be the worst in Southeast Asia in our lifetimes. Simply put though, reforms are also a matter of national pride. We certainly don’t want Malaysia to be left behind just because of inertia.
    
    
21. Amid these multi-faceted and compounding crises, we are proactively managing our economy, businesses and communities. We also recognize that all these efforts MUST be carried out sustainably to create a lasting change to the benefit of future generations. There are an infinite number of things we could work on or change, but here I would like to highlight three things I think would be of most interest to the youth.
    
    
22. First, we must build the resilience of our economy by investing in digitalisation and technology. The Government has invested in digital infrastructure and connectivity, including 5G, and will continue to do so to secure our opportunities in the digital economy to future-proof Malaysia’s growth.
    
    
23. 5G is expected to generate RM650 billion in cumulative GDP growth, bridge the digital divide and create high-income jobs. Indeed, the digital market in Malaysia grew by 47% to USD21 billion from USD14 billion previously, driven by the growth in e- commerce where sales rose by 68%. The opportunities in this sector are only limited by our imagination.
    
    
24. Next, Malaysia can do more and compete in the realm of ESG. I believe that countries which can excel in this space even while ensuring their growth are those that will get and remain ahead in future.
    
    
    • Both the public and private sectors must embrace sustainability via ESG practices wherever possible, not only because it attracts investors, but also because balancing the environment, society as well as the economy is the right thing to do.
      
      
    • Further, through Budget 2022, the MOF has also begun promoting gender-based budgeting. Similarly, for 2023 through the Pre-Budget statement, we have also outlined our focus to facilitate jobs for unemployed graduates, women who would like to rejoin the workforce, persons with disabilities (PwD) and the long-term unemployed.
      
      
    • Meanwhile, the G in ESG, is an equally, if not the most important aspect. Starting at home, through the GLIC ecosystem, we have launched the Principles for Good Governance for GLICs (called “PGG” for short). Given that the GLICs collectively manage RM1.7 trillion of assets, this implies significant influence on governance and the overall ESG agenda within their respective ecosystems to secure a more sustainable future.
      
      
25. Third, we must invest in human capital development, especially for the young. To support the creation of a competitive work force, this year:
    
    
    • We have allocated RM4.8 billion in the Budget 2022 for job creation through JaminKerja and as well as a continuous commitment to reskilling and upskilling through various initiatives.
      
      
    • At the same time, since May 1, 2022, the government has gazetted an increase in minimum wage to RM1500 to improve the standard of living.
      
      
    • Additionally, innovation will allow us to enhance the utilization of technology. Technology will help us increase productivity. In the long-run, this will support sustainable wage growth.
      
      
    • Your counterparts in Korea, China and Japan are leading the way for their countries. You can seize this mantle. Find innovative solutions to existing problems in your communities. Register patents for your inventions or nurture a unicorn. The opportunities are manifold.
      
      
    • Still, there’s one key to human capital development that rarely gets mentioned: mental health. This is still something that is poorly understood and even stigmatized in our country. This too, must change. Because we understand that mental wellbeing is also an economic imperative that cannot be neglected, in the 2021 Budget, the government allocated RM70 million to address mental health issues including via enhanced support, counselling and psycho-social services. These funds have also been used to empower NGOs to drive mental health programmes in the country. To paraphrase a saying we’ve all become familiar with: we’re not all right unless everyone is all right.
      
      
26. The crux of all the points I just mentioned above is that we must strive for meaningful growth. Recall what Bobby Kennedy once said, namely that such GDP and economic figures cannot measure: “...the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country, it measures everything in short, except that which makes life worthwhile.”
    
    
27. And to that, I would like to stress that no government, on its own, will be able to resolve all of Malaysia’s problems. And there will always be new crises. But I believe the work we have done will be the building blocks, for a better future, for a better nusa, or homeland for all our people, young and old.

Ladies and Gentlemen,

THREE POINTS FOR FUTURE LEADERS

28. I have outlined the challenges facing Malaysia and what the government is doing to meet them. Now however, I would like to suggest some things that you, the future leaders of our country, can do, on your end, to begin your epoch.
    
    
29. First, there must be clarity of purpose. We can reduce it to two simple questions: (1) What do you really want for Malaysia? And (2) Why do you want to lead?
    
    
30. Leaders must have a long-view and resist the temptation of short- termism. True leaders never believe in the YOLO – you only live once – mentality. If you love Malaysia and aspire to lead, you must realise that the country’s needs transcend the fears and preoccupations of your own generation and those before you.
    
    
31. The decisions that organizations and governments make can last for lifetimes and longer. When you wear a mask or not, you are not choosing for yourself, but also for the people around you. The same dynamic applies when it comes to strategic choices and policies, whether in the public or private sector. So, to all of you, the nation’s hope —you must know what you really, really want for the country. Only you can answer this. Answer wisely.
    
    
32. Next, why do you want to lead? For me, it has never been about positions. I accepted my country’s call because I felt I could be of use during its most dire hour of need. I have benefitted from many of Malaysia’s better policies, which have shaped me to be who and what I am today.
    
    
33. I feel therefore, that because of this, I have the responsibility to serve my country when it calls. To pay it forward, so to speak, for the many good things this country has done for me. The call to service rarely comes at opportune times. Often, it happens when we feel unready or too comfortable. But it will come and when it does, I hope you will answer it. My prayer is that the circumstances of your decision-making will be much easier than mine.
    
    
34. Second, planning is essential. Whether it’s a life challenge, a complex problem, a society event, an essay, an IPO or a country’s budget, you need to assess the situation. Then craft a solid plan that is also agile and dynamic. I can never over-emphasize the need to plan, execute and track your progress religiously, and to be agile to changing circumstances.
    
    
35. As the saying goes, failing to plan is planning to fail. But monitoring is also crucial to secure results. Engagement also matters. This is to ensure the benefits of those results are inclusive. Further, a good leader communicates clearly, and in simple language, because it is not what you say, but what your audience hears that really matters.
    
    
36. Third, leadership. I know this is something that has been very much on the mind of young Malaysians. In the days ahead, many people are going to address themselves to you, trying to tell you what sort of leadership Malaysia needs. It’s another decision you will all have to make. Again, choose wisely.
    
    
37. I will say though, that this country will need leadership that is sincere, and which wishes to serve the nation and our fellow Malaysians. The kind of leadership that inspires, that brings out the best in the rakyat, the kind that enables every Malaysian to serve the nation meaningfully in his or her own context.
    
    
38. But it must also be the kind of bold leadership that recognizes what’s best for the country, and why certain situations require decisions that are tough but necessary for the country’s well-being. But leaders who are truly great are those who can do this without losing their compassion, empathy and humanity, who protect the dignity of all who are impacted by their choices.
    
    
39. Bold and genuine leadership is increasingly hard to find. But it is my belief that this blessed land of ours has never, and will never be completely deprived of it. It may be a tall order for you , but this, I believe, is well within your capacity if you wish for it to be your legacy.
    
    
40. My generation will carry the national banner and torch for as long as we are deemed worthy to. One day, this burden will be yours. It is my personal belief that Malaysia’s best days are still ahead of us. We may be going through some headwinds, but I believe we are still the country of the future. Our great future is also in YOUR hands.

CLOSING REMARKS

Ladies and Gentlemen,

41. We live in an age of endless anxiety. We are worried about Malaysia’s future. The threat of climate change looms over all humanity. It is quite easy to give in to despair and believe that we are in a spiral of terminal decline.
    
    
42. But I would like to think that decline is only inevitable if you believe it. History is made by optimists. A country is lost if its people lose faith.
    
    
43. Malaysia has been through a lot, but together we have seen through the last two-and-a-half years without any systemic breakdown, without our economy collapsing, without businesses checking out in droves and with our banking system still steady with solid reserves. Doesn’t that follow that we can achieve so much more when the circumstances are better, as they have begun to be?
    
    
44. If we love Malaysia, the sirens of change must be heeded. We need you, as citizens of this country, many of whom will be voting for the first time in the next General Elections—and I don’t know when it will be, but it will come nevertheless—to hold us accountable by exercising your civic rights. We are also relying on you to take our country further than our forefathers ever dreamed possible.
    
    
45. So, invoke that leader in you and together, let us strive higher for a better Malaysia. To those of you who are studying abroad, my message is simple: come back and let us forge the changes you want for our country. We certainly need your ideas, your energy, and your leadership.
    
    
46. As JFK once said: “Let us not emphasize all on which we differ but all we have in common. Let us consider not what we fear separately but what we share together”. If our best and brightest — wherever they studied — are willing to serve, anything is possible for Malaysia.
    
    
47. And here’s the last key takeaway for today...Ask yourselves...if not me, then who? ...If not now, then when? And on that note, dengan lafaz Bismillahirrahiraahmanirahim, it is my great pleasure to declare the sixteenth MSLS open.
    
    
48. Thank you and have a great Summit ahead. Wabillahitaufik walhidayah. Wassalamualaikum wbt.