I would like to add to the comments of The tiger, dragon and Malaysia's future written by Leaves of Economic Grass and Malaysia Inc: Re-engineer or be trampled by Twigs Of Reality.

While both point to the twin threat of India and China as hordes of cheap, hardworking, intelligent resources to compete with, I would like to add that its also about risk-taking, which is the real killer blow that both countries can deal us.

The other side of real entrepreneurship and real business competitiveness - besides scale and resources - is risk taking. This is the secret of the US success story where a flexible capital market, labour force and intellectual protection and transparency wins over its European cousin and the rest of the world.

What will China and India, the juggernauts of the future, is their increasing turn to private enterprise. Imagine if you will, millions of these people being enterprising and innovative. The chances are they will soon lead in technology, innovation maybe not surpassing the US, but certainly much of the rest of the developing world including probably Japan, Korea and possibly even Europe.

The real Achilles heel for Malaysia, and even neighbouring Singapore, is our lack of risk taking which has been stifled by our political and social system. Singapore's insistence on state dominance over social, political and economic matters has killed - and is still killing - its private sector innovation.

The republic's system itself is not damaging but coupled with its relatively small population size, the effect is huge. Hence size is important from this point of view. Even if China adopts Singapore-style authoritarianism (which it cannot because of its size), it will be at least 500 times more competitive than Singapore.

India, which is a democratic institution, will in the long run be even more competitive so long as it does not lose heart in private enterprise.

Malaysia is wrong to take a cue from Singapore with regards to the same policy of state dominance and social engineering. We do not even qualify to be bringing up Singapore's rear in terms of per-capita GDP and chances are we are at least three times worse than Singapore in long -run risk-taking competitiveness.

Put it another way - in terms of risk-taking anyway - if we are to compete head-on with China, then each Malaysian will need to try 1,500 times more harder in order to even begin to compete with the Chinese.

We can always avoid competition by finding niches but again the issue of size becomes relevant. China and India, both huge nations will also seize on whatever niches exist.

I experienced firsthand myself how each time I started a new business in China - whether it was a restaurant, a technology company or a creative design house - a few dozen other similar companies would literally spring up in the vicinity within a few months and hundreds within a year or so.

It is their penchant for risk-taking that scares me more than their hard work and intelligence.