Growing out of our human capital deficit

By R.B.Bhattacharjee

Virtually everyone has a favourite anecdote to illustrate how sub-standard many Malaysian workers have become, which strengthens the perception that the human capital base in the country has reached a critically low level.

Some new examples came to the attention of this writer recently. One is that of a science teacher who mistakenly referred to a “crucible” as a “cucumber”, disconcerting her students greatly. A textile manufacturer laments that local engineers in his factory have to be supervised by a foreign peer because their competency is suspect. A senior corporate executive despairs of recruiting lawyers who can perform the basic functions of their job. And the list goes on.

The feedback from business circles is that the supply of skilled workers, especially at the higher end of the scale, is a major constraint for their growth in Malaysia. Not surprisingly, efforts to address the shortage of human capital have become a constant theme in the government’s policy documents for the past two decades or more.

Take the recently tabled Budget 2011 proposal. In it, Intensifying Human Capital Development is listed as the second of four strategies, along with Reinvigorating Private Investment, Enhancing Quality of Life, and Strengthening Public Service Delivery.

To bring Malaysia’s human resource pool up to the standard required for a high income nation, the Budget makes generous provisions — RM29.3 billion is allocated for the Ministry of Education, RM10.2 billion for the Ministry of Higher Education and RM627 million for the Ministry of Human Resources.

These sums are aimed at creating “quality, skilled, knowledgeable, creative and innovative human capital”, to which end, education and training will be restructured and strengthened, as Prime Minister and Finance Minister Datuk Seri Najib Razak told Parliament recently. We are also reassured that the government will not compromise on the quality of education.

As the examples cited above illustrate, a lack of quality education strongly affects performance, and will increasingly erode confidence in the Malaysian enterprise. Therefore, the efforts to rectify the serious gaps in the education system must not be taken lightly.

However, the problem cannot be solved on the basis of a linear progression of inputs and outcomes. The bottom segment of the population needs to be assisted to enhance its socio-economic status with social goods like education, healthcare, utilities and the like. There in no inherent ethnic bias in this situation, although in Malaysia, the discussion inevitably flows in that direction. The time has come to consciously renounce that trait from our national persona.

However, all attempts to take a race-blind approach in discussing issues of national importance have encountered strong resistance to date. Perhaps this is just to be expected from interest groups whose influence is threatened by a change in the political environment. The same goes with groups that are using religion to control Malaysian society.

This issue is highly relevant to the human capital development agenda because skills enhancement must be pursued at multiple levels for Malaysia to join the ranks of the advanced economies.

While the basic quality of life is being improved for the majority, those who are ready to operate in a globalised environment should have the full support of the state to leverage on their abilities and talent. Again, in the Malaysian context, it needs to be said that race and religion are irrelevant to the situation.

The pertinent question about the budgetary allocations for education is whether the mechanisms are in place to ensure that the billions that will be spent will result in the right outcomes.

In other words, to establish a culture where innovation, creativity and excellence are nurtured, will the school curriculum be overhauled to encourage curiosity, analytical ability and problem-solving skills among students? Will teachers be retrained and upskilled to nurture these qualities in their charges?

Najib indicates in his Budget speech that this will be the case. That is just what is to be expected. If however, the intention fails to be well-executed due to constraints during the implementation stage, that would be so much water down the drain, as unfortunately has been the case on many occasions.

It is encouraging that the education ministry has recognised that vast differences in students’ performance can be seen among different schools, and has initiated the thrust school programme to accommodate this diversity. This allows at least some better performing students to achieve their full potential in a supportive environment.

Those who have access to international schools, for example, already enjoy a cosmopolitan, enabling alternative to the stale uniformity of the national school system. Students who learn in a multicultural environment are clearly better equipped to perform in a borderless world where cross-cultural interaction is the norm. The thrust schools open the doors to a wider world for a larger number of our young.

To foster a new culture of excellence and inclusiveness in our school system, more resources should be channelled to such schools and their numbers systematically multiplied. Over time, we can hope to grow out of the straitjacket of race-based and religious-based conditioning that has become the default culture in our schools, and is holding back our children from achieving their true potential.

This is an idea that philanthrocapitalists and other change agents in society can take forward, to give the next generation a second chance to build a modern nation.