BN's Inspiration In Manik Urai

IN my most recent post, I gave Najib two thumbs up for his first 100 days in office. I was convinced (and am even more so after recent events in Manik Urai) that he was the right person to take country forward after Mahathir.

However, despite my confidence in Najib, I have to say I was a little surprised at some of the more daring announcements he made recently. After all, there was yet another by election coming up, this one in an area that is very Malay and traditionally pro the opposition. But Najib is made of sterner stuff than I! Not for him the easy way out! He wasn’t about to shirk his responsibilities and do the popular thing. It would have made sense, and made life a lot easier for him and his team if he had delayed some of the more contentious announcements till after the by election.

But Najib understands the bigger picture. Of course he wanted to win Manik Urai. He’s a politician and politicians don’t fight by elections to lose them. They fight to win. But although he will have dearly wanted to win the by election, the bigger picture is the country, its competitiveness and its position in the world order. Najib understands that no more time can be lost addressing national issues. These issues must be addressed and addressed fast, even if it means losing by elections. This shows an unexpected but welcome political maturity.

But what came next was certainly a shock to many political observers. In the midst of an economic slowdown, with job losses across the board and in all industries, it took a lot of guts and self belief to tell the Malays, especially on the eve of a by election in a constituency with 12,293 predominantly Malay voters that he was scrapping the 30% Bumiputera requirement for companies seeking public listing.

Though he cushioned this politically daring statement by announcing a U turn in the governments approach to teaching Science and Maths in English but the bigger issue is that Najib is acutely aware of the need to make Malaysia a more competitive country.

But what would be the response of the voters? Would they see what was going on as beneficial to the country or would they be more focused on the local issues that affect them? Well, I believe that although BN didn’t win Manik Urai, the fact that they reduced the majority from 1,352 votes to a mere 65 votes, a turnaround of roughly 95% qualifies as a moral victory, especially in a seat that PAS has only ever lost twice and has ruled since 1990. I believe therefore that this was a healthy endorsement of Najib, his style of leadership and approach.

The pessimists thought that BN might be in for a shock in Manik Urai at the end of June when Najib stated that many people were disappointed that the unity talks had not happened. PR reacted by announcing a huge rally for 100,000 people but only 5,000 turned up. This was a clear signal that lines of communication within PR were failing and that the rift in the top leadership at PAS between one faction that wants closer ties with UMNO and the other faction that prefers to go it alone is approaching boiling point. As campaigning continued, the absence of Nasharudin Mat Isa was a clear sign that all was not well. The question would be, can UMNO capitalize on this?

Certainly UMNO seized on the crisis in PAS during the campaign period. UMNO was quick to communicate to voters that they were disappointed that PAS would not sit at the same table as UMNO and that this was blocking the attempts by UMNO to unify the Malays.

And the voters bought it. On polling day, as the results came in, there were times when UMNO was leading the unofficial count. At the end of the day, UMNO actually won 5 out 9 of the polling districts. Interestingly, the four districts won by PAS were in the more remote areas. Furthermore, and this is a crucial sign for the General Election, UMNO youth came out on top in securing the youth vote.

As the results came in there were whispers of an upset. The whispers prompted PAS to announce that it won by an increased majority (2,000) an hour before polling had even ended. Another poorly thought out tactic by the increasingly agitated opposition that is fast earning a reputation for poor decision making.

So as the dust settles, what should we make of the Manik Urai by election result?

Undoubtedly the fractions within PAS are a concern for the PR and more importantly, the voters. The way the party dealt with the Nasharudin Mat Isa issues showed a lack of maturity that was not missed by those voters. UMNO managed the campaign well, beginning with the appointment of Dato Mustapha Mohamed as UMNO chief liason officer for Kelantan. But UMNO also put a great deal of effort and resources into this by Election, made promises that would have significantly improved the lives of many in Kelantan and yet still lost the by Election.

Overall, I see the result as more positive for UMNO than PAS. PAS has got some real internal problems, and is over promising and under performing. Moreover Nik Aziz is losing support.

Meanwhile, Najib’s increased popularity, as reported by the Merdeka Centre was comprehensively endorsed by the voters of Manik Urai. Najib is seen as the future of UMNO and voters have bought into him and his policies.

Challenges of building the Malaysia nation brand

AS Najib Razak looks to gain buy-in for his 1Malaysia concept, the foundations for the development of a Malaysia nation brand, I begin my blogging career with a look at nation branding and the likely challenges we will face as we build the Malaysia brand for the children of our great country.

Every nation is a brand. Think of the associations that France, Great Britain, Kenya, Russia, and even tiny Tahiti have. While it seems obvious now, the concept of nation branding is relatively new, not emerging until the late 1990s. Prior to this period, nation brands were relatively static.

Nation brands were formed by literature, economic and/or military power, industrial development, geography and sometimes even centuries-old conflict. In the mid 20th Century, with the onset of mass tourism, newer Nation brands were determined by the ability to offer something ‘unique’ such as white sandy beaches, azure skies and tranquil tropical blue waters.

But now globalization, increasing worldwide mobility, interdependence and integration (eg, EU, NAFTA, AFTA), competition, growing wealth and, of course, the Internet have changed the arena for building a nation brand. The “earth is flat” phenomenon – the decreasing importance of distance and markets becoming first regional then global and leveling technologies such as the Internet – now make it possible and necessary, to develop, refine and grow a nation brand.

I believe that a nation brand is comprised of two interrelated elements. The first is image and perception. Communities worldwide have varying impressions of countries based on history and/or current events, personal and/or national experiences, citizen-to-citizen interactions, product experiences, trade, arts, heritage and culture, sports, diplomacy and word-of-mouth. The second is execution. How well does a country and its products perform? Do those products provide value for multiple markets with different requirements for value? What experiences do a nation’s people provide? Through engagement, do people develop trust in an offering, and, more importantly, are they willing to recommend it to their friends?

Like many other countries, Malaysia’s brand has evolved significantly in the 20th century. 75 years ago, Malaysia was known for its Tin, Rubber and to a lesser extent Oil, which was not intensively drilled until the 1970s. But these activities, certainly Tin and Rubber, were located on the West coast of the Peninsular where the immigrant population was dominant.

Far sighted leaders in the early years of independence saw the need to promote industrial activities in less developed states. Manufacturing, primarily for export, was seen as the engine of growth to propel Malaysia forward and this is reflected in the first Malaya plan of the 1950s and the New Economic Policy of the early 1970s. This focus on manufacturing, and to a lesser extent palm oil and tourism, was the core strategy of the government right up to the Second Industrial Master Plan (1996-2005).

However, there is always someone who can manufacture something cheaper and deliver it to customers faster than you and Najib Razak understands this better than most. From 2000 or so onwards, FDI was flowing more into competitors coffers than it was into ours and it’s hardly a surprise therefore, that the Third Industrial Master Plan (2006-2020) lays out policies to focus on services as the next engine of growth. But evolving Malaysia’s brand from that of a manufacturing location to that of a service based economy will be a major challenge as it will require much effort and buy in, not only from politicians and the corporate sector but also citizens of Malaysia.

But Najib has taken on the responsibility of transforming the Malaysia Nation Brand with a passion, enthusiasm and dedication that we haven’t seen in the government for years. From the moment he took office, he has hit the ground running by addressing multiple international issues that range from ‘building bridges’ with important neighbour Singapore to his recent visit to key trading partner China.

Domestic efforts include reviews of the ISA and the NEP and the ongoing and open debate on education reform. He’s also attempted to fast track public transport development in the Klang Valley, is looking into reforming the Royal Malaysian Police, introducing KPI’s for government officers and making the government more transparent. He’s encountering resistance, especially from the warlords in UMNO who have forgotten that they are elected by the people and serve at the pleasure of the people rather than being their God given right to rule.

But on the whole, these are promising signs because, whatever you may think of the PM and his administration, the fact of the matter is that whether we like it or not, the Barisan National has a mandate to run the country for the next three years and ten months at least. But he is under no illusion that he has his work cut out. Which is why his team is moving fast, confidently and knowledgeably to reposition Malaysia in the world order.

But whilst Najib focuses on the internal brand architecture, another critical element in the successful development of a nation brand is the contribution of both the private sector and citizens. There will have to be a long-term behavioural change at home because we will not be able to build a long term, strong and sustainable Nation Brand if these key elements do not buy into the concept.

Other challenges include:

1. How to position Malaysia as a unique, different and attractive country for tourists, investors, strategic partners, businesses and other stakeholders?


2. Malaysia has a reputation for lacking service sector skills in its workforce. This thorny issue will need to be addressed in a similar manner to the way other controversial issues are being addressed


3. The development of a positive & competitive identity that offers economic, experiential and emotional value to each target audience


4. The development of a holistic and comprehensive brand to enhance the new positioning whilst not ignoring export promotion, economic development, tourism, foreign direct investment and other key ongoing national initiatives


5. Clearly communicating relevant messages to the target constituents and stakeholders in multiple countries


6. Strengthening the strategic, communications and visual impact of the evolving Nation Brand


7. Systemically connecting the Nation Brand to Malaysia’s core industries, corporate brands and Small and Medium Enterprise (SME) sector brands


8. Integrating the new positioning across multiple touchpoints.
   In the face of intense regional and global competition, if the government tackles these issues there is a chance that we can build a Malaysia Nation Brand that our children will be proud of.