New Year is the customary season for renewal; the time when if there is any room for hope – an irrepressible need in man, this is it. 2007 is a particularly propitious year for Malaysia when the country celebrates its 50^th Anniversary of nationhood. It attained its Independence – Merdeka in the national language, on 31^st 1957. This year has accordingly been declared Visit Malaysia Year to share the rejoicing. And rejoice they are determined to do and, we would maintain, are justified in doing.

Most of us are glad to see the end of 2006 with the world plunged in a pervasive culture of violence, hatred and fear, a troubled and ugly world. Malaysia too has its Malaise, having experienced our own political Tsunami leaving the Prime Minister the object of a fierce public attack by his predecessor, and it would appear, entering the New Year with more headaches than he has panadol to relieve him. But the writer discerns a turning point may well be in the offing. So much so, we have no hesitation in extending the Visit Malaysia invitation in this case specifically directed at foreign investment, hitherto laggard.

We feel there is a strong case to make of competitive and comparative advantage. In the past we have singularly failed to get our story out. A perception gap currently bedevils us. The answer is for outsiders to come and see for themselves what is on offer and to experience first hand the attractions of this small but not inconsequential country.

Reality usually takes hold, immediately on arrival with a degree of culture shock. KLIA – Kuala Lumpur National Airport the second largest in the world is stunning in both architecture and efficiency. No third world country. (Indeed we have just been elevated to developed status). The discovery continues as the visitor gets his first glimpse of our world class infrastructure – roads, logistics, high-rise. We are 5^th in the world league of tall buildings. But space – ample space, allows us to escape the density of the average urban metropolis – permits individually, designed, elegant structures in inexhaustible variety. This is the face of Kuala Lumpur.

The discovery trail leads on to other unique features. One is of particular relevance to the Merdeka celebration. When in 1957 the nation embarked on the path of self determination, it inherited the solid institutional framework of the British system – Westminster style. Parliamentary democracy, the Rule of Law, the English education system and much more, to which it has been faithful. Bit is also devised a unique political innovation in answer to its dominant characteristic – its multiracial population. In our case we did not insist on assimilating our then 50 per cent migrant community. A policy of integration enabled us to retain the traditions, cultures, and pride of race that to this day constitute our greatest wealth – the unique diversity of our people – a microcosm of the future global world. There is however a corresponding challenges – to manage ethnic diversity. The result was as power sharing formula still evident in today’s National Front Coalition. This government has been in power in unbroken succession since Independence. Malaysia is the longest serving democratically elected Government in the world. It has its own brand of sustainable politics.

What this means for business is predictability – for the country the uninterrupted opportunity for long range strategic planning? The present overarching policy is our Vision 2020 to bring us to fully developed, advanced status by the second decade of the new Millennium. The 9^th Malaysia Plan – the ninth in the series of national blue prints takes effect now. With this we have reached the base camp, in our climb to the top but the 2020 Summit is in sight. We may expect the momentum to build.

Stability in fact is the ace in Malaysia’s pack, in a troubled region. As I write, Bangkok has just suffered another bomb attack – nine simultaneous detonations killing 3 and injuring some 34. There are even rumours of a counter coup and unrest in the Muslim south continues to plague. In the Philippines a coup is waiting to happen.

Indonesia which has also had its share of Terrorist attack seethes beneath the surface and not too long ago executed three, we suspect token Christians along with three suicide bombers. In these countries democracy is comparatively recent and immature with always the tendency to revert to mob rule. The recent coup in Thailand was the 19^th in the series. In contrast Singapore and Malaysia represent an oasis of stability rooted in a mature democracy and more economic development.

Security too is more advanced. Of course one cannot guarantee any place against today’s globalised terrorism. But Malaysia in particular may claim seasoned security forces and an efficient intelligence system. We are the only country to have secured a victory over Communist insurgency in jungle conditions comparable with Vietnam. Our well-trained armed forces (trained by the British and hardened by a 12-year Emergency) are again different from their counterparts in neighbouring countries. Elsewhere in the region the military tends to be politicised and often responsible for the overthrow of Governments. Thailand is the recent example. But in Malaysia the military are loyalist, and pro-Establishment.

It is perhaps interesting to note that Thailand was headed by an ex-Police Commissioner and now by an Army General, Indonesia by an ex-General, Singapore by an ex-General. Malaysia is in the hands of a man of God with all the moral force that this commands.

Our final point of comparative stability in fact rests with the leadership. In these 50 years of Independence we have had five Prime Ministers. Longevity here is prized as betokening wisdom and experience. The last one (Tun Dr Mahathir) served 22 years which allowed him scope to make the most significant contribution to the economic emergence of his country.

There have in fact been two distinct phases in the leadership of this country. The first was transitional, the second transformational. The first three Prime Ministers were transitional as they replicated for the most part the Colonial regime – maintaining the public institutions, and the British system including the British dominated foreign business sector. They were eminently suited to this, being of the aristocratic elite, Anglophile and all educated in Britain, to be more precise in the vicinity of the River Thames i.e. the Inns of Court. Throw a stone in Cabinet and you would be sure to hit a lawyer. They maintained the Malay College based on Eton, the Military College based on Sandhurst.

It is only when we come to the last two Prime Ministers that there is very discernible change as they set out to transform Malaysia in its own identity. Tun Dr Mahathir and Datuk Seri Abdullah Badawi were both home grown products educated in the local university. Both were from a kampong background that broke the aristocratic mound. Theirs was a view from the bottom. There were differences which will be a topic for discussion in a later article as planned. But both were involved in the change process which was accompanied as is normal in any rebirth, with labour pains. But strategic chance is under way – more rapid, profound and fundamental than ever before. Malaysia has truly entered the 21^st Century.

It comes most timely – an affirmation of the hopes and aspirations 50 years ago with the benison of Independence.

Our next article will be devoted to the process of economic transformation of particular relevance to direct foreign investment. The final piece in the series will look at political change and specifically the present leadership.