WHAT MALAYSIA SHOULD BE IN THE ERA OF GLOBALISATION? Chapter 2

From Chapter 1.....As we draw closer to the end of a memorable year, it is worthwhile to consider this question of Malaysia's role in the world going forward, that is, the question of what next for Malaysia. For the sake of our future, we should continue to:

• Drive the economy towards higher-value sectors and activities;
• Upgrade our education system;
• Reduce inequalities in income and opportunity;
• Improve the quality of life; and,
• Improve the effectiveness and performance of our public institutions, from the civil service to the judiciary.

If we stay committed to this course, we can only grow stronger in the eyes of the world. We would evolve from our middle-income status, we would have a dynamic, innovation-driven economy, we would have skilled and capable future generations, and we would have public institutions of strength and integrity. However, I think there is something more that we must have, not only to rise in the eyes of the world but also in the eyes of our people. We should not only think of what the country should do, but what the country should be. A country is not only defined by its achievements, it is also defined by what it stands for.Finding what a country stands for is far more difficult and complex. It takes many years, perhaps hundreds of years, before a country's values are crystallised.The United States has a constitution that is over 200 years old, which promised all citizens a voice, but it was only in 1920 when women were granted the vote.

It was in 1964 when the right to vote was effectively enforced for African-Americans. In the case of a country as young as Malaysia, only 50 years old, the question of what we stand for, the values that connect us to each other, is still being formed. The endeavour to find an answer to this question will go on beyond my lifetime. However I believe that our 50-year history provides us the outlines. As someone blessed by God with the opportunity of becoming prime minister, of being in public service for over four decades, of serving some of the finest men and women in Malaysia's history, I see three values that have dominated our 50 years as a nation. These are the values that will to shape our nation as we embark on our next 50 years. Continued......

WHAT MALAYSIA SHOULD BE IN THE ERA OF GLOBALISATION? Chapter 1

After 2 weeks searched for relevant literature review for my thesis, I read a compilation of our Prime Minister's 2006-2007 speech. A few of his speeches are related to my thesis. Below is my conclusion..... 2007 we saw the launching of two new growth corridors -- the Northern Corridor Economic Region and the East Coast Economic Region. Together with the Iskandar Development Region, launched last year, these three growth corridors represent a new effort to extend growth and prosperity to all corners of Peninsular Malaysia. The plans for Sabah and Sarawak are also followed.This year saw the commencement of some major initiatives in high-priority areas.

• The Education Blueprint and the Strategic Plan on Higher Education were rolled out, targeting deficiencies in the system and working towards implementing long-term improvements;
• The task force to facilitate business, or PEMUDAH, was established and is working to reduce the cost of doing business in Malaysia;
• Civil service salaries were reviewed to encourage retention of talent, and a contract scheme for top civil servants was announced to reward more closely to performance;
• The stock market reached record highs with market capitalisation breaking the RM1 trillion mark;
• International trade of goods and services also exceeded RM1 trillion;
• Real property gains tax was done away with, driving activity in the property market;
• The biggest listed plantation company in the world, Sime Darby, was created; and
• The first ever Malaysian went into space.

It was truly a tremendous year, for Malaysia, for Malay-sians.Malaysia was held to be a true example of nation-building success: multi-ethnic and peaceful; a remarkable track record in reducing poverty; extensive social mobility which produced a huge middle class; a thriving open economy. We ourselves are seen as a model with much to offer the world. Repeatedly we are asked and even urged to impart our knowledge and experience, so that more people in the developing world may know sustained peace and prosperity. This is not mere politeness or courtesy, nor boasting or beating one's own chest. Time after time, Malaysia continues to surprise and inspire those who work actively in socioeconomic development and poverty eradication. Following 9/11, this recognition was further reinforced due to Malaysia's Muslim majority. Continued in Chapter 2....

CITY REGION AS THE ENGINE OF THE GLOBAL ECONOMY

It has long been predicted that improvements in transportation and communications technologies, in terms of both cost and quality, will eventually undermine any need for urban concentration. With each round of technological change in this area, scholars and journalists keep telling us that large-scale urbanization is a thing of the past. But with each such round of development cities not only do not disappear, they become larger and more important. This is because although advances in modern transportation and communications technologies enable many forms of economic and social interaction to occur over ever-greater distances, in other cases they actually heighten the need for proximity. The key to understanding why this is true lies in the ways that different economic activities are interconnected in terms of what we might call their transactional or network relationships to each other and to the rest of the world.

In very schematic terms, two different kinds of productive activity are typically to be found in any advanced economic system, each of them corresponding to a fundamentally different type of network structure. On the one hand, certain kinds of production are highly routinized: they rely on forms of knowledge that are relatively well codified and on machines and work processes where repetition is the dominant pattern of action. In economic terms, this means that it is possible to plan this sort of activity with some degree of confidence and to carry it out at very large scales. The necessary materials and inputs used in production can thus often be acquired according to a given schedule, and they can be purchased in large volumes. This means, too, that these materials and inputs can be brought in cheaply over large distances, for the ability to plan and to purchase in large volumes means that their unit costs can be kept low. Under these circumstances, the linkages between functionally related firms are likely to have a rather limited impact on locational decisions, and firms will be relatively free to seek out locations quite distant from one another. In practice, and because production is routinized in this type of system, the chosen locations will often coincide with pools of cheap, unskilled labor, sometimes far from any major urban center.

On the other hand, we find economic sectors where quite different kinds of conditions hold. Vast areas of the contemporary economy involve activities where enormous uncertainty prevails, and where there are strong limits on producers' abilities to routinize or simplify their operations, especially in regard to their mutual interactions. In high-technology industry, for example, producers are frequently faced not only with rapid shifts in basic technologies themselves, but also with demands for their products that vary greatly from one customer to another and from one moment to the next. In high-level business and financial services, the changing project-oriented and client-oriented product means that firms must be organized so as to vary the mix of skills and resources that they bring to each particular job; further, the skills and resources themselves (especially human intellectual assets) are not widely available because they are quite specialized. In industries faced with markets that fluctuate because of constant design changes or fashion effects (more broadly, product differentiation processes), firms must be prepared to change and recombine equipment and labor and to monitor shifts in the market, often on a day-to-day basis.

References
1. J. Friedmann and G. Wolff (1982) "World city formation: an agenda for research and action," International Journal of Urban and Regional Research, 6, 309 - 344.

2. P. G. Hall (1966) The World Cities, London: Weidenfeld and Nicolson. D. Held (1991) "Democracy, the nation-state, and the global system," in D. Held (ed.) Political Theory Today, Stanford: Stanford University Press.

3. S. Sassen (1991) The Global City: New York, London, Tokyo, Princeton: Princeton University Press.

RESEARCH QUESTIONS ON URBAN GOVERNANCE AND CITY REGION

There are now more than 300 city-regions around the world with populations greater than one million. At least twenty city-regions have populations in excess of ten million. They range from familiar metropolitan agglomerations dominated by a strongly-developed core such as the London region or Mexico City. Everywhere, these city-regions are expanding vigorously, and they present many deep challenges to researchers and policy makers as we enter the 21st century. The processes of world-wide economic integration and accelerated urban growth make traditional planning and policy strategies in these regions increasingly problematical while more fitting approaches remain in a largely experimental stage. New ways of thinking about these processes and new ways of acting to harness their benefits and to control their negative effects are urgently needed.

The concept of global city-regions can be traced back to the "world cities" idea of Hall (1966) and Friedmann and Wolff (1982), and to the "global cities" idea of Sassen (1991). We build here on these pioneering efforts, but in a way that tries to extend the meaning of the concept in economic, political and territorial terms, and above all by an effort to show how city-regions increasingly function as essential spatial nodes of the global economy and as distinctive political actors on the world stage. In fact, rather than being dissolved away as social and geographic objects by processes of globalization, city-regions are becoming increasingly central to modern life, and all the more so because globalization (in combination with various technological shifts) has reactivated their significance as bases of all forms of productive activity, no matter whether in manufacturing or services, in high-technology or low-technology sectors.

As these changes have begun to run their course, it has become increasingly apparent that that city in the narrow sense is less an appropriate or viable unit of local social organization than city-regions or regional networks of cities. One tangible expression of this idea can be observed in the forms of consolidation that are beginning to occur as adjacent units of local political organization search for region-wide coalitions as a means of dealing with the threats and the opportunities of globalization. In this process, we argue, global city-regions have emerged of late years as a new and critically important kind of geographic and institutional phenomenon on the world stage.

In what follows, I attempt to bring these remarks into closer conceptual focus. My discussion is driven by five main questions, i.e.,

1. Why are global city-regions growing rapidly precisely at a moment in history when some analysts are claiming that the end of geography is in sight, and that the world is turning into a placeless space of flows?

2. How have forms of economic and social organization in city-regions responded to globalization, and what new problems have been created as a consequence?

3. What main governance tasks do global city-regions face as they seek to preserve and enhance their wealth and well-being?

4. Is it possible for the less economically advanced parts of the world to harness the potential benefits of global city-region development to their own advantage, and what are the main drawbacks of such development for them?

5. How can we define the public interest in culturally heterogeneous global city-regions? In particular, how are traditional notions of democracy and citizenship being challenged by the emergence of global city-regions and in what ways can they be made more effective in this new context?

References
1. J. Friedmann and G. Wolff (1982) "World city formation: an agenda for research and action," International Journal of Urban and Regional Research, 6, 309 - 344.

2. P. G. Hall (1966) The World Cities, London: Weidenfeld and Nicolson. D. Held (1991) "Democracy, the nation-state, and the global system," in D. Held (ed.) Political Theory Today, Stanford: Stanford University Press.

3. S. Sassen (1991) The Global City: New York, London, Tokyo, Princeton: Princeton University Press.

NEWSPAPER CUTTING ON KUALA LUMPUR CITY- A Vision for A World Class City

Click the news paper cutting if you wish to read in detail....

THE POTENTIAL DEVELOPMENT OF SEPANG AND KUALA LANGAT DISTRICT

Sepang and Kuala Langat, although are located nearer each other, have differences in its economic focus. The major economic driven in Sepang is the service sector followed by the manufacturing sub sector. In Kuala Langat, the manufacturing sector is the major economic driven followed by the agricultural sector. There is future prospect for the relocation of economic gravity to Sepang District, as the catalyst of Sepang is the Multimedia Super Corridor which is similar to Silicon Vallley, based in Cyberjaya. Location wise, Cyberjaya is placed next to the Federal Government Administration Centre, Putrajaya. It covers an area of 7,000 hectare and functions as Nucleus of National IT Communication and Multimedia. It is also expected to be the Intelligent City of The Future, as well as a model for the nation.

Approximately 400 renowned international IT Companies have showed interest and are expected to commence operation here by the year 2020. The Multimedia University operating in Cyberjaya has commenced its sessions in the year 1999. To facilitate the expansion of Cyberjaya, it is hoped that this university can produce many of the work force required by the operating companies in Cyberjaya and in the MSC generally. The backbone of this Intelligent City is the latest fibre optic network which is able to connect the MSC directly to Japan, the USA, Europe and other South East Asian countries. With that multimedia and information technology facilities and infrastructures, Sepang will continuously be a world focus. Aside from national projects which are rapidly developing, Sepang also has uniqueness as the first international standard Formula One (FI) Race Circuit in Malaysia that is located here, close to the KLIA. For the Kuala Langat District, this district is increasingly growing with the effective transportation infrastructure and economic activities.

There are various economic potential and prospect for this district. The agricultural sector is an important source of growth having the potential for modernisation. A significant increase in food output, industrial agricultural, and contribution of the fisheries sector and the farming sector is expected to expand and become the basis to the economic growth in the region. The existence of mega projects such as industrial growth in Kuala Langat District is also able to attract investors to invest and subsequently to generate income for Selangor. The growth of export and domestic oriented industries are also expected in this district. The District of Kuala Langat possesses strength and potential from the aspect of tourism as it has a variety of products. Among the tourism products which it can offer are tourism activities based on history and the heritage, coastal areas, recreational and sport activities, local cuisine, homestay, visits to fruit orchards and tea plantation as well as local crafts.

The potential of value added economic development in Klang Valley 2 Region can help reduce the economic gap between the rural and town areas for the present and for the future.The initiatives taken by the Selangor State Government in planning, implementing and coordinating the development of the Klang Valley 2 Region is expected to contribute towards reinforcing the achievement of the Selangor the Developed State Vision as well as to enhance the position of Kuala Lumpur Metropolitan Region-Klang Valley as one of the most important metropolitan cities in the world. Various potential and benefits from the aspects of economic and social relations in both districts can be utilised. In relation thereto, incentive and support initiatives towards the expansion of global and local businesses requires various actions and standardisation to be done by the local district administration, including the incentives for global and local investment, SMI development, and sectors of the local economy. Among the programmes and projects given emphasis are:

• Networking and linkages between the private and public sector
• Development of tourism sector
• Development of agriculture and fisheries sectors
• Encouragement of global business development
• Development of SMI
• KLIA
• Cyberjaya
• Mega projects

INTERNATIONAL CONFERENCE.... that I missed to attend!!!

SHSD 2008

"International Conference on Sustainable Human and Social Development"
Paris, France

July 04-06, 2008

(detail programme in www.waset.org/paris08.pdf)

The International Conference on Sustainable Human and Social Development (SHSD 2008) aims to bring together researchers, scientists, engineers, and scholar students to exchange and share their experiences, new ideas, and research results about all aspects of Sustainable Human and Social Development, and discuss the practical challenges encountered and the solutions adopted.

However, my supervisor Assoc Prof Dr Hamzah Jusoh had attended the above conference and present our research on EFFICIENCY IN URBAN GOVERNANCE TOWARDS SUSTAINABILITY AND COMPETITIVENESS OF CITY: A CASE STUDY OF KUALA LUMPUR .

ABSTRACT

Malaysia has successfully applied economic planning to guide the development of the country from an economy of agriculture and mining to a largely industrialised one. Now, with its sights set on attaining the economic level of a fully developed nation by 2020, the planning system must be made even more efficient and focused. It must ensure that every investment made in the country, whether public or private, yields not only a maximum returns but must directly contribute towards creating the desirable objective of a strong, modern, internationally competitive, technologically advanced, post-industrial economy. The country must focus on securing a credible share of the lead sectors of the globalised economy. It must make itself fit and conducive to these sectors. The country must also be fully aware of the enormous competition it faces in a region with rapidly expanding and modernising economies, all contending for the same pool of potential international investments.

The vision for ‘Kuala Lumpur - A World Class City’, encapsulates the ambition of Kuala Lumpur Structure Plan 2020 (KLSP2020) to make Kuala Lumpur a city that will assume a major global and sub-global role for the benefits of all its communities, workers, visitors and investors. The KLSP emphasizes that the vision and goals of Kuala Lumpur has been formulated with the aims of creating a sustainable city with City Hall ensuring that the planning for Kuala Lumpur will strike a balance between physical, economic, social and environmental development. It may appear logical to expect that only one large centre would have emerged in a small country like Peninsular Malaysia while other centres would have declined. However, Malaysia is fortunate in that a strong urban hierarchy had already been developed over many years in the colonial and post-colonial eras and this hierarchy, with strong local groups of entrepreneurs, continues to provide a sustainable geographical base for further industrialisation and economic modernisation.

A pattern of polycentric interdependent urban centres has emerged with the Kuala Lumpur conurbation being the ‘advanced’ city supported by the George Town and Johor Bahru conurbations. Rapid globalisation, progression in science and technology and the need to capitalise on knowledge-based economy requires the country to have a strong foundation in order to be competitive with other nations. In this context, the direction of development has to be planned and managed systematically and comprehensively to induce the country’s capacity to compete globally. The urban sector is an important catalyst towards national economic growth and a vital investment centre for the nation. Good urban governance is characterized by sustainability, subsidiarity, equity, efficiency, transparency and accountability, civic engagement and citizenship, and security.

Many challenges faces the city of Kuala Lumpur in this new millennium, transformation of Kuala Lumpur into a world class city and sustainability city will certainly involve concerted efforts by all parties involved. In line with this, the importance of governance and good governance is eminent in administration of developing city like Kuala Lumpur. The task to turn Kuala Lumpur to be amongst the world cities is certainly a difficult one and there are series of programmes and initiatives that has to be carried out by City Hall Kuala Lumpur, being the city manager. As described above, city competitiveness is harnessed through ‘city marketing and city management’. Both strategies are achievable through the process of good governance which integrates all sectors including public, private and other social organisations. In city marketing, a city promotes its buildings, physical infrastructure and development to enhance its image. Good urban governance is also fundamental issue in development. High technology and high skilled industries, together with finance, transportation, tourism, business, information and professional services shopping and other commercial activities, are the principal components of the nation’s economy, which must be developed to a level well beyond where it is now. In this respect, Kuala Lumpur being the premier city must play the leading role.

p/s. The paper can download at http://www.waset.org/pwaset/v30/v30-79.pdf. Actually I so excited because in the early stage of my research, its has been published in the international conference. Thank you Dr Hamzah for your encouragement and support.

HAPPY BIRTHDAY TO NURIS ZULAZLIN 26TH JUNE 2008

TODAY MY DAUGHTER'S BIRTHDAY, ALIN 6 YEARS OLD... AYAH LOVE U

URBAN PLANNER

Planning as a Career
Ø Are you interested in shaping the way our cities, towns and villages are developed and built?
Ø Do you want to play a role in preserving biodiversity and safeguarding our architectural heritage?
Ø Would you like to help shape policies to combat global warming, contribute to the creation of self-sufficient communities and shrink our ecological footprint?
Ø Do you believe in social justice and strengthening communities to be able to influence policies that affect their lives?
Ø Do you agree with taking a long-term view on economic development to ensure that future generations can benefit from the earth’s resources as much as we are doing now?
Ø If you can say yes to even one of these questions then consider a career in planning.

Some of the things that planners do include:
Ø managing development and helping to create affordable housing
Ø playing a role in regenerating socially-deprived areas and creating new jobs
Ø designing our towns and cities to include attractive buildings, vibrant public spaces and bustling shopping centres
Ø working to protect our countryside, trees, hedgerows, forests, grasslands, waterways, rivers and shorelines
Ø helping to bring back historic buildings into sympathetic use
Ø creating policies for managing traffic and providing sustainable solutions to our transport needs
Ø improving energy efficiency and cutting carbon emissions in our homes, factories and businesses
Ø engaging communities to have a say in how their living space is developed and protected to improve their quality of life.

A balancing act
Planning is a balancing act between constructing modern communities and conserving our natural and built heritage to create diverse, vibrant and sustainable places where people want to live, work and play. Balance means poise, stability, fairness, neutrality – all qualities indispensable for planners. If you can be poised, stable, fair and neutral in the face of competing interests, then planning could be the career for you!

NEWSPAPER CUTTING ON KUALA LUMPUR CITY- A Vision for A World Class City

Click the news paper cutting if you wish to read in detail....

21st JUNE 2008 - HAPPY BIRTHDAY TO ZUL'AINI ZULKIFLI

Today is my wife birthday, Zul'aini binti Zulkifli. HAPPY BIRTHDAY IBU FROM US...WE LOVE YOU...

THE BLUE PRINT FOR NATIONAL SUSTAINABILITY

DEVELOPED NATION

INTRODUCTION

National Physical Plan (NPP) is a long term strategic plan for the period until 2020, that contains written statement formulating strategic policies for the purpose of determining the general directions and trends of the physical development and conservation of Peninsular Malaysia, accompanied by indicative plans. NPP has been prepared under the provision of Section 6B of the Town and Country Planning Act 1976 (Act 172). NPP has been approved by the Cabinet on the 20th April 2005 and by the National Physical Planning Council (NPPC), chaired by the Prime Minister, on the 26th April 2005. This approval means that from now on the NPP is to be the national physical planning guideline and to be implemented by all the states in Peninsular Malaysia, and consequently :

a. NPP policies shall be coordinated with other relevant sectoral policies,

b. NPP proposals shall be refined by the Structure and Local Plan to be the basis for physical planning at the state levels, and

c. NPP proposals shall be the basis for the formulation of the Five Year Development Plan programs and projects.

Act 172 (Section 6B) (5) states that : It shall be the general duty of the Federal Government and the Government of every State to assist in ensuring that the objectives of the national physical plan are achieved.

NATIONAL PHYSICAL PLAN

Through its system of Five-Year Plans, Malaysia has successfully applied economic planning to guide the development of the country from an economy of agriculture and mining to a largely industrialised one. Now, with its sights set on attaining the economic level of a fully developed nation by 2020, the planning system must be made even more efficient and focused. It must ensure that every investment made in the country, whether public or private, yields not only a maximum returns but must directly contribute towards creating the desirable objective of a strong, modern, internationally competitive, technologically advanced, post-industrial economy. The country must focus on securing a credible share of the lead sectors of the globalised economy. It must make itself fit and conducive to these sectors. The country must also be fully aware of the enormous competition it faces in a region with rapidly expanding and modernising economies, all contending for the same pool of potential international investments.

The National Physical Plan will complement the Five-Year Economic Development Plans and provide the spatial dimension to the sectoral distribution of national resources. Debate and discussion over where public investments should be directed to will continue but within the forum provided by the National Physical Plan preparation process at its inception and at its quinquennial reviews. In between, the nation should concentrate on carrying out the actions and projects agreed upon. Within the national framework state and local initiative is encouraged. The initiative of State Governments has always been a major contribution to national development and this will always be valued.

The proposals of the National Physical Plan will be constantly monitored and will retain an element of flexibility so that the country can respond quickly to any unexpected changes in the world economic situation. There are, however, certain proposals that should have permanency. This is particularly true of the areas proposed for conservation. The country should not only aim at prosperity but also to maintain the natural beauty of its lands and waters and in ensuring a healthy environment for its people.

URBANISATION

The NPP recommends the adoption of ‘Selective Concentration’ Development Strategy, where urban development will be concentrated in selected cities that have high growth potential and can offer a high quality of living environment.This strategy also aims to avoid random spread of investment to areas with little growth potential, that will result in a net loss in terms of finance and resources.Four conurbations that is Kuala Lumpur, George Town, Johor Bahru and Kuantan are to be the prime centres for international and local investments, to provide the vehicle for Malaysia towards a strong position as a trading nation to compete in the global arena, while encouraging balance regional growth whereby Kuantan is designated to fulfil this function. Besides the four main conurbations, development is to be focused at selected urban growth centres that are state capitals - Ipoh, Melaka, Kota Bharu, Kuala Terengganu, Alor Setar, Kangar and other selected towns such as Temerloh-Mentakab, Lumut-Sitiawan-Manjung, and Muar-Batu Pahat-Kluang.


LEVEL OF URBANISATION

Rapid urbanisation has resulted in an increased level of urbanisation in Peninsular Malaysia from 27.6% (1970) to 65.4% (2000), and it is estimated to rise to 75% in the year 2020. This situation calls for better management of these cities in order for them to be the economic catalyst, liveable and are able to provide a quality living environment.

source : Federal Department Town and Country Planning, Peninsular Malaysia, 2006

EFFICIENT URBAN GOVERNANCE + URBAN MARKETING + URBAN COMPETITIVENESS = WORLD CITY?

Singapore has been ranked 1st, Shanghai 5th, Beijing 8th and Hong Kong 10th in terms of governance according to Jones Lang LaSalle’s inaugural Urban Governance Survey. Other cities noted for their strong governance include Barcelona (2nd), Dubai (3rd), New York (4th), Budapest (6th), Brisbane (7th) and Auckland (9th). The survey, which is part of Jones Lang LaSalle’s World Winning Cities research programme evaluated 33 major cities around the world. Overall, the survey found that there is no single winning model of urban governance, with examples of good governance spread across the globe. Successful governance is not dependant on urban size, geographical spread or economic maturity, but rather on a high quality of urban management and strong marketing capacity.

The best performers in terms of urban marketing are those that are capable of building a shared “urban- vision” and are characterised by a consistent approach across all marketing agencies with a mandate to profile and brand the urban internationally. In this regard, New York came out tops for being active in all aspects of urban marketing from the use of financial incentives to urban regeneration initiatives. The urban is working to retain and enhance its global position through extensive planning efforts, communication campaigns and infrastructure developments. In Asia, the two major Chinese cities of Shanghai and Beijing are recognised for their strong marketing capabilities through international events. Shanghai recently held the successful Formula 1 and will be host to the 2007 Special Olympics and 2010 World Expo. Beijing played host to the 2004 ATP Tennis Tournament and the world will again focus on this capital urban in the rundown to the 2008 Olympics.

Efficient urban governance has a critical influence on an urban attractiveness to both investors and occupiers of real estate. Governance is however a difficult concept to define and quantify. Efficient urban governance can be defined as the process for making and implementing decisions. The Survey’s Urban Governance model measured seven aspects of governance – integrity, autonomy, stability, efficiency and effectiveness (that are grouped into a score for Urban Management), along with the efficiency and effectiveness of Urban Marketing programmes. For each of these indicators, a mix of quantifiable data and softer, qualitative information was collected. Singapore was most noted for its physical integrity and urban autonomy, together with Barcelona and Dubai. These three cities have a single administrative and political body whose geographical area of responsibility broadly matches the geography or urban economy.

Interestingly, Singapore and Dubai are “urban states” and are characterised by their prominent regional position and cultural diversity. Furthermore, they have strong urban autonomy too given their high cap urban to allocate financial resources according to their spending priorities, as well as raising resources to fulfill the same priorities without depending on central government transfers. In both Singapore and Dubai, over 50% of local public sector expenditure is raised by local public sector revenue sources. The Australasian cities of Sydney, Brisbane and Auckland have shown high financial stability over the past five years and together with London and Paris, have performed well from the financial stability aspect.

A urban is “efficient” when it is capable of providing outputs such as financial management, service delivery or infrastructure investment, in the best way given the resources available. Outputs can be delivered through local and central government structures, Public-Private Partnerships and non-profit organisations. The efficiency of the mixed model (public/private) is very much aligned with the idea that good governance is a result of the concerted action of a network of players. Cities covered in the survey still largely support their budget position through public funds, with the exception of Hong Kong, which displayed a high level of efficiency with its mix of fixed investments strongly biased towards the private sector (about 25% public and 75% private). While the level of private investment is somewhat lower in the Chinese cities (Beijing, Guangzhou and Shanghai), they still score reasonably strongly on this criteria with an average of 50% public and 50% private resources.

Urban marketing programmes are another barometer of good governance. In many instances, cities have used major events to raise their profile in the international arena. In Asia, the two major Chinese cities of Shanghai and Beijing are recognised for their strong marketing capabilities through international events. Shanghai recently held the successful Formula 1 and will be host to the 2007 Special Olympics and 2010 World Expo. Beijing played host to the 2004 ATP Tennis Tournament and the world will again focus on this capital city in the rundown to the 2008 Olympics, Of notable mention is Barcelona which used the 1992 Olympic Games as a catalyst to renovate the urban. After the Games, it has maintained and reinforced its image through a marketing strategy that “sells” the urban as the leisure and cultural center of Europe. Using buildings to market cities is another tactic used in urban marketing programmes. Dubai epitomizes the use of the built environment as a catalyst for investment. It has built a major harbour, Jebel Ali which has become the cargo hub of the Gulf region used increasingly for trading with China by over 2,500 companies located in the tax free zone.

It has also become a leading world tourist destination in part due to the “iconic” value attached to the Burj-Al Arab Hotel. In New York, the physical regeneration of the World Trade Centre area symbolises the re-birth of the urban. Landmark developments like the Opera House in Sydney and the Petronas Twin Towers in Kuala Lumpur also serve to raise the international profile of these cities.

source : BusinessWeek, April 2008 and Jones Lang LaSalle's Annual Report 2007.

WILL NEW GOVERNMENT IN SELANGOR, PERAK, PENANG AND KEDAH MAKE URBAN GOVERNANCE IS MORE EFFICIENT?

In the 1950s and 1960s, councillors were elected through local council elections but this came to what was supposed to be a temporary halt in 1963 due to the Indonesian Confrontation (Konfrantasi) against the formation of Malaysia. Local council elections were eventually abolished in 1965 with an amendment to Section 15 of the Local Government Act. The two main division of local government are rural district councils and urban centres. There are two types of urban council: city councils and municipalities.All types of local government perform the same functions. Municipalities can be upgraded to cities once they satisfy the required criteria. There are nine city councils, 34 municipal councils and 101 district councils. However, cities are led by mayors, while municipalities and districts are led by presidents. The state governments, elected every five years, appoint mayors, presidents and all councillors. The appointments are for three-year terms, but individuals may be reappointed. This is uniform across the country. The council decision-making process is through a committee structure determined by the local authority, including the committees provided for in legislation.

Executive powers lie with the mayor in the city councils, and presidents in the municipal and district councils. They are appointed by their state governments on either a part-time or full-time basis. The state government also sets remuneration. The respective state governments establish executive committees, which are chaired by the mayor or president. Councils can establish other general or specific committees at their discretion. Local government is responsible for public health and sanitation, waste removal and management, town planning, environmental protection and building control, social and economic development and general maintenance functions of urban infrastructure.

Following the outcome of the 12th general election on March 8 this year, when the Barisan Nasional lost control of four states and failed to unseat the PAS state government in Kelantan, there have been calls to amend the Local Government Act to bring back local council elections. In Selangor, the new Pakatan Rakyat state government has declared that elected representatives would not be appointed local councillors in the two city councils (Shah Alam and Petaling Jaya) and 12 municipal councils in the state. The current changed political scenario, especially in Selangor, has brought about a sort of grassroots political awakening involving a new perception and a holistic perspective on the role and scope of the local councils and councillors. The Local Government Act 1976 (Act 171) Section 10 (2) states that “councillors of the local authority shall be appointed from among persons the majority of whom shall be persons ordinarily residents in the local authority area who in the opinion of the state authority have wide experience in local government affairs or who have achieved distinction in any profession, commerce or industry, or are otherwise capable of representing the interests of their communities in the local authority area”.

Section 10 (1) states that “the local authority shall consist of the mayor or president and not less than eight and not more than 24 other councillors to be appointed by the state authority”. Section (3) stipulates that the term of office of each councillor shall not exceed three years while Section (6) states that a councillor shall be eligible for reappointment upon the expiry of his term of office.Under Section 28 of the Local Government Act, each local authority may, from time to time, appoint committees, either of a general or special nature, consisting of a chairman, councillors and such other persons as it may deem fit. The new batch of councillors for the two city councils and 12 local councils in Selangor are also expected to sit in the relevant committees, rendering their expertise in areas like licensing, building, infrastructure and finance. Each of the councillors of the previous administration used to serve in at least two to four committees.Their selection to the committees is based on recommendations made by the state leaders of their respective political parties.

In the awarding of contracts, Section 34 (1) of the Local Government Act clearly states that any councillor with a pecuniary interest, whether direct or indirect, in any contract or proposed contract should withdraw from the meeting where the matter is under consideration. There have been allegations from the public that the previous elected representatives strongly influenced decisions on the awarding of contracts in that particular states.

MAPS OF GLOBALIZATION

Swiss Institute for Business Cycle Research (KOF) revealed that the United States and Sweden topped the rankings in terms of globalization. The KOF Index of Globalization is designed to measure economic, social and political dimensions of globalization, is available for 123 countries over the period 1970–2008, and is calculated on the basis of 23 variables. The economic dimension of the KOF index measures long distance flows of goods, capital and services as well as information and perceptions that accompany market exchanges. In addition to actual flows of trade and foreign investment, it captures the degree to which a specific country controls capital and trade flows. Meanwhile, the social dimension measures the spread of ideas, information, images, and people, while the political dimension captures diffusion of government policies.

According to the KOF Index of Globalization 2008, Belgium and Austria are the world's most globalized countries – Switzerland ranks 4 (last year: rank 6). The KOF Index of Globalization 2008 shows that globalization is still on the rise, driven by increased economic and political globalization, while social globalization stagnates. The KOF Index of Globalization measures the economic, social and political dimensions of globalization. The index allows comparing degree and changes in globalization over a large number of countries and more than 30 years: The KOF Index of Globalization 2008 is available for 122 countries over the period 1970–2005, and is calculated on the basis of 24 variables.1 The method employed in the calculations allows direct comparison of a specific country's degree of globalization over time.

CONDUCIVE ENVIRONMENT IN MALAYSIA FOR FOREIGN AND LOCAL INVESTORS

Over the last several decades, the Malaysian economy has been able to sustain a rapid rate of growth due to the adoption of specially tailored policies by the government. Economic policies in Malaysia are shaped over the long term and therefore result in tremendous continuity of plans and programmes. We seek to ensure a good balance between achieving economic objectives and pursuing social goals. For example, careful planning and proper use of pro-growth strategies has enabled the Malaysian government to almost eradicate hard-core poverty as well as to correct social imbalances, which have paved the way for social harmony and stability in the country.Through substantial infrastructure development, focus on education, prudent fiscal management as well as political and economic stability.

Malaysia provides a conducive environment for foreign and local investors looking to invest over longer term. This is reflected by the level of foreign direct investments (FDI) in Malaysia. These same socio-economic policies have also made Malaysia among the top trading nations in the world. Currently, the government’s policies are focused on achieving vision 2020 that is transitioning the country to become a developed nation by 2020. Malaysia will continue to push hard to achieve comprehensive national development, including in enhancing our economic fundamentals. In this respect, Malaysia’s progress has been very encouraging. Growth continues to be strong and broad based. Malaysia are at full employment level. Inflation, although rising because of the reduction in fuel subsidies, is being managed effectively. Trade continues to grow, which has resulted in a healthy current account surplus.

Beyond fiscal discipline, Malaysia are also targeting increases in productivity and efficiency of government budgetary spending; such that government spending will have a greater impact on national economic growth as well as on incomes. This will not only deliver benefits from the consolidation of the government’s finances, but also promote the well-being of all Malaysians in areas such as education, housing, transportation, agriculture and rural development. Going forward, Malaysia are also positioning the economy to tap into the manifold opportunities created by growing inter-regional trade and by the strengthening of economic ties in the Asian region. Growth in Asia is broad-based; ranging from the emergence of the giant economies of China and India, the technological strengths of north Asia, the diverse strengths of the ASEAN region, and the oil revenues of west Asia.

Asian economies have much to offer each other. In this respect, the effects of rising Asian prosperity can already be seen in strong export revenues, growth of the services sector and higher job creation in Malaysia. Malaysia intends to further capitalise on these exciting regional developments by diversifying and broadening its economy through the development of new sources of growth, which will complement its traditional strengths in areas such as manufacturing and commodities exports. In moving towards developed nation status, it is encouraging to note that the Malaysian capital market is already a significant component of the larger financial system with an asset size totaling 1.1 trillion ringgit in 2005.

The broadening of Malaysia’s capital market increases the diversity of financing sources, which in turn ensures that there is readily available funding capacity for large long-term projects and corporate transactions. This suggests that there is sufficient critical mass to further accelerate the growth of our capital market. Going forward, the capital market to play an increasingly important role in capitalising on domestic and international growth opportunities during the ninth Malaysia plan. In this regard, there is a need to further expand the role of the capital market to support Malaysia’s transition to developed nation status. For example, a developed economy requires an advanced intermediation platform that can provide seed funding to start-ups representing potential new sources of growth as well as provide bridge financing for large cross-border transactions and infrastructure projects.

source : Economic Planning Unit and Prime Minister Department of Malaysia, 2007

PLACE MAKING AND SUSTAINABLE COMMUNITIES ENHANCED COMPETITIVENESS OF THE CITY

Urban planners and policymakers alike, tackling the issues of urban development has become increasingly important. Almost half the population in developing countries already lives in urban areas. If today’s developed countries are a reliable indicator, we can expect developing countries to follow a similar pattern and have 70 to 80 percent of their populations resided in cities by the year 2020. Of course, much of this would also depend on our success in rural rejuvenation to go hand in hand with urban development. But by and large, we can anticipate an increase in the size of our cities’ populations. And with this swelling in size comes the attendant problems of urban poverty, societal fragmentation, inadequate housing and pollution. Thus, as we venture to make our cities dynamic and vibrant commercial centres, we must also make every effort to ensure that this development is sustainable.

The growth of our cities will prove to be volatile and short-lived if we neglect the cities’ poorest inhabitants or if we ignore the cities’ environmental balance, with only the pursuit pure commercial gains as our focus. Instead of stable and peaceful growth, we will be confronted with rising discontent, crime and environmental disasters. Today’s urban planners are in a unique and exciting position to address some of these difficult issues. Planning has become much more holistic and well-rounded. It has moved from a mainly physical approach to one that is more people-centred, placing equal importance on economic, social and environmental issues. Planning has also become more participatory. From a top-down approach, planning has become more consultative, engaging stakeholders on decisions that affect the way they work and live.

Because of these developments, its will bring to the fore best practices on urban poverty reduction, provision of quality affordable housing and community participation, among other important issues. Malaysian experience will serve as constructive input for the different countries here and similarly, we hope to learn from the findings and successes of other nations. Tackling urban poverty in a sustainable manner is crucial in order for Malaysia to attain our vision of becoming a developed country by the year 2020. Our aspiration is to have a more equitable, progressive and united society, which thrives on our own cultural identity. Several steps have been taken to realise this aspiration, and we hope to see the benefits in the near future. For instance, the responsibility to plan, implement and monitor urban poverty as well as affordable housing has been streamlined under one entity, namely the ministry of housing and local government.

Our legislation has been modified to enable public participation in the preparation of development plans, as well as to allow public appeals. Legislation changes have also been made to enable better protection of our cultural heritage sites. Of course, we still face many challenges and there always remains more to be done. Planning is a complex endeavour, as there are many conflicting stakeholder interests to consider. Nevertheless, there is now a greater agreement and willingness, from all stakeholders, to work towards common goals and benefits. In this, it must also be the role of the urban planner to provide good mechanisms through which government, the private sector and civil society may work together to strengthen their cities. We have accumulated between us a treasure trove of knowledge and experience on what works and what doesn’t when a plan is implemented.

We have to be focused and pragmatic in our efforts, and concentrate on achieving results. Be it poverty reduction, better housing or better healthcare, we are all guided by a clear sense of what needs to be accomplished, and that this is reflected in our plans and in our actions. In this way, we will be one step closer to improving the lives of millions currently living in poverty and need. Indeed, urban planners today shoulder a tremendous amount of responsibility for the well-being of so many people. Although it is repeatedly said that “if you fail to plan, you plan to fail”, we must not only plan, but we must plan well. Often, the slightest change of detail in a plan will either ease the burden of life for most citizens, or it will make life that much harder for people. We must always bear in mind our responsibility to the people, and discharge our duties to the best of our ability and with the best of intentions.

MALAYSIA STANDING IN THE EYES OF THE WORLD : COMPETITIVE ENOUGH IN DOING BUSINESS?

Malaysia's pragmatic and flexible management approach has enabled the economy to raise its competitivenes and enhance its resilience in facing challenging circumstances. Deliberate measure has been taken to make the economy more diversified and broadbased to ensure sustainable growth. Continuos efforts have been pursuit to enhance the services sector, accelerate value-added of the manufacturing sector as well as boost the agriculture and agrobased sector as the third engine of growth. New sources of growth continue to be promoted and developed such as biotechnology, information and communications technology, halal products and Islamic finance. Indeed Malaysia is developing as a knowledge-based economy, driven by human capital, innovation and ideas.The global environment remains challenging in 2007, as a result of a persistently high crude oil price, inflationary pressures and monetary tightening, which has resulted in higher interest rates.

However, Malaysia remain confident in facing these challenges to achieve a healthy growth rate for 2008, given the nation more diverse economic structure and strengthened domestic fundamentals. Multinational corporations from more than 40 countries have invested in over 5,000 companies in Malaysia 's manufacturing and related services sectors, encouraged by the country's pro-business environment. Malaysia today is one of the world's top locations for offshore manufacturing and service-based operations. Many of the existing foreign companies have also continued to show their confidence in the country's potentials as an investment location through their numerous expansions and diversifications over the years, particularly in high technology projects.

Malaysia's Rankings

• Malaysia targets to be in top 10 in World Bank survey


• Malaysia ranks fourth for investor protection


• Malaysia among 25 top FDI destinations


• KL among lowest cost cities in Asia


• Malaysia 14th preferred destination for FDI


• Malaysia ranks 9th best site for expatriate retirement; up a notch in Corruption Perception Index


• Malaysia at 24th position in World Bank Report


• Deutsche Bank ranks Malaysia as Asia's second


• Frost & Sullivan ranks Malaysia as top five outsourcing locations


• Malaysia ranks 4th in managing energy cost pressures


• Malaysia retains 19th position in global export trade


• Malaysia ranks 19th most globalised country


• Malaysia stays at 25th position in World Bank report


• Malaysia is 6th in Asia in competitiveness ranking, 26 th globally


• Swiss UBS Bank Report : Kuala Lumpur cheapest city to live


• Malaysia among top 10 nations with super growth firms


• KL one of the world's cheapest cities according to Economist Intelligence Unit


• Malaysia keeps 3rd best spot for outsourcing


• Malaysia among top 5 for energy, finance and logistics


• Suria KLCC ranks as Malaysia's most expensive retail location, putting the country in the 26th


• Malaysia seen as 2nd manufacturing hub


• Malaysia Among the Top Five in Cost of Living League


• Malaysia's FDI outlook improves significantly in 2004 according to A.T. Kearney FDI Confidence Index


• Malaysia among world's top 10 business bases according to TNS Global Reputation Survey


• 2005 Malaysia Ranked 36th Out of 111 Countries in the Quality-of-Life Index 2005 by the Economist Intelligence Unit

source : Malaysian Industrial Development Authority (MIDA), 2007

Referred to our current politic scenario after 12th General Election and reading MIDA's report, I have a few questions need to be studied detail in my phd research :

1. Will investors still doing business in Malaysia? Increased or reduced?


2. Will enhance our efficiency in managing government or private mega projects ? More effective and transparent?


3. Will investors still have interest to invest in most developed state in Malaysia which fall under opposition parties eg Selangor, Perak, Kedah, Penang or some areas in Kuala Lumpur ?


4. Will our urban governance in our cities are more efficient towards competitive and sustainable ?


5. What the strategies of Local Authorities in 5 states under opposition parties will undertake to attract more investors?


6. Will the above Malaysia's Ranking will change to good position or worst position?

COMPETITIVENESS OF CITY OR A WORLD-CLASS CITY: WHY IS IT MATTER IN THE ERA OF GLOBALISATION?

Last 3 weeks ago I contributed some ideas and given opportunity to assist Dr Hamzah to write a paper for his presentation at 5th International Conference on Sustainable Human and Social Development in Paris, France on 4 – 6 July 2008. Topic is related to EFFICIENCY IN URBAN GOVERNANCE TOWARDS SUSTAINABILITY AND COMPETITIVENESS OF CITY. On 2 June 2008 I had visited Kuala Lumpur City Plan 2020 exhibition with the theme of A VISION FOR A WORLD CLASS CITY. I keep thinking about what is COMPETITIVENESS OF CITY and A WORLD CLASS CITY. This two topics will help me in my thesis and try to understand in detail how these topics related to each other.

COMPETITIVENESS OF CITIES

Competitiveness of cities is the ability of a city region to produce and market products when competing with comparable products from other urban regions. Local Economic Development refers to the “New Competitiveness,” or the belief that cities need to develop their own competitive strategies to prepare for the benefits and potential negative economic impacts of opening/accessing their markets to the world markets. The key reason for increasing urban competitiveness is to raise the standard of living for people who live in the urban areas. By increasing the economic productivity of an area and marketing its most productive goods and services, the community can develop and grow at its greatest potential. Economic investment, well targeted and strategically focused, is a proven method for improving the vitality of a community. Since strong export economies make the city more competitive, it is beneficial for the city to support the export economy of the city. Moreover, if a city increases its competitiveness, the standard of living for the people in the city region will rise.

World Bank Group : Urban Competitiveness Assessment in Developing Country Urban Regions: The Road Forward (2006) defined competitiveness can be measured through various lenses. Each measurement indicates a valuable incentive to invest in the area. If an area rates high in any of these categories, than that category is an asset of that area. These categories are not separate or interchangeable but are mutually necessary for determining urban competitiveness.

The following are measurements of competitiveness:

• Economic structure -- economic composition, productivity, output and value added, and investment-foreign and domestic.
• Territorial endowment -- non tradeables, such as location, infrastructure, natural resources, amenity, cost of living and doing business, and an urban region’s image.
• Human Resources -- extent to which activities in cities can move up value chains.
• Institutional milieu -- business culture

THE GLOBALISATION PROCESS FOR KUALA LUMPUR AS COMPETITIVENESS OF CITY TOWARDS A WORLD- CLASS CITY

The decline in trade barriers, the vast improvements in transportation and communication systems and networks over the last few decades have enhanced the volume of international trade in goods and services. Accompanying these are the enhanced international mobility of human resources, short and long-term capital and the growth in the number, strength and influence of transnational companies. The world economy has consequently become more integrated and global in nature. Major economic activities especially manufacturing have become more dispersed globally as processes within the production chain of increasingly more complex consumer and capital goods move to places that offer the best competitive advantage.

The global dispersion of production and marketing activities of transnational companies requires the global dispersal of management, control and support. This is achieved by the establishment of regional headquarters offices in strategically located cities which can offer suitable infrastructure, supporting services, living environment and other ancillary activities. Many cities that have assumed an important role by providing a base for the efficient conduct of international business have attained the status of ‘world cities. Examples of top ranked global city are London, New York, Paris and Tokyo. Others that play more of a regional or sub global role within the Asia Pacific Region are cities such as Hong Kong, Singapore and Sydney.

In addition to the globalisation trend, another factor that is and will influence the growth of the nation and that of Kuala Lumpur is the increase in the importance of the knowledge-based economic activities especially those relating to the development of information and communication technology (ICT). Industries that generate knowledge such as research and development in biotechnology, computer software multimedia applications, new technology for the computer and other hardware and industries that process distribute and manage information such as educational institutions, telecommunication and Internet systems, advertising and professional services are the key drivers of the Knowledge-Based Economy (K-Economy).

KUALA LUMPUR CITY PLAN 2020 - A Vision for A World Class City

Today I had visited Draft KL City Plan 2020 exhibition at Main Lobby, Kuala Lumpur City Hall, Jalan Raja Laut. The context of the report very interesting and help me for my phd thesis. Kuala Lumpur City Hall's officer had explained to me the future scenario of Kuala Lumpur City. The vision for ‘Kuala Lumpur - A World Class City’, encapsulates the ambition of Kuala Lumpur Structure Plan 2020 (KLSP2020) to make Kuala Lumpur a city that will assume a major global and sub-global role for the benefits of all its communities, workers, visitors and investors. The KLSP emphasizes that the vision and goals of Kuala Lumpur has been formulated with the aims of creating a sustainable city with City Hall ensuring that the planning for Kuala Lumpur will strike a balance between physical, economic, social and environmental development.

Kuala Lumpur City Plan 2020 is City Hall’s primary planning and development strategy. The Plan sets out a thirteen year plan on what must happen to achieve the vision for the City of Kuala Lumpur in 2020. This will guide decision makers, city planners, designers and builders the direction of growth for Kuala Lumpur and lead the city into a World Class City status.Kuala Lumpur’s vision to create a world class living and business environment coincides with the national goal on being competitive and knowledge-intensive. This entails a paradigm shift to the new economy where more knowledgeintensive industries are encouraged to locate and concentrate in Kuala Lumpur. This thrust is expected to permeate throughout the urban economy, creating more wealth for the people and business community, it shall leading to higher living standards, and a more conducive and creative working environment that will encourage active interactions among skilled workers, technopreneurs, innovators, creative artistes and k-businesses.

This new urban economy in Kuala Lumpur shall be characterized by an abundance of skilled human resources. Wealth generated largely from the intense sharing of codified knowledge and information, and new knowledge gained from R&D and intellectual property, increased collaboration between firms and institutions, the extensive use of information and communications technologies (ICT) and the development of more effective learning mechanisms across the entire economy. Spatial growth in Kuala Lumpur over the past decade has been closely associated with the growth of its urban economic activities. The new emerging economies envisioned for Kuala Lumpur shall strengthen it’s central role as the Capital City of Malaysia and the nation’s largest employment centre, where principal concentrations of business, finance, retail, tourist and cultural activities for the entire nation are located. It is thus crucial for the Draft KL City Plan 2020 to develop an urban structure that will meet the demands of this new urban economy. The plan will identify how this economic growth and expansion will be accomodated in Kuala Lumpur’s spatial and development built form. The Plan must also acknowledge the role of Kuala Lumpur not only as the Capital City of Malaysia but also its function as an important national growth node and gateway towards developing a global economy.

Planning for and with the people is a vital component of the KL Local Plan. The public is given the opportunity to participate in planning the development of their city. Their views are important because any change will directly impact their living conditions, income source, and interaction pattern of their community. Besides this, local communities normally know more about problems and development issues in their own backyard, and this knowledge will assist in the preparation of an effective and practical KL Local Plan. Public participation will be invited throughout the preparation stage of the KL Local Plan, and this will be done through public notices; focus group discussions, technical group discussions and workshops; and questionnaires at every stage of study.