LETTER | It is said Malaysia has been shortchanged by RM 25 billion in the Goldman Sachs deal because of incompetence. The country loses, the taxpayer loses. But why?

The answer is deeply rooted when our policymakers decided against meritocracy in favour of affirmative action. There is nothing wrong with affirmative action. What is wrong is the way we apply it. The moment merit and performance are shelved to second or third place, we invite trouble.

Nobody owes us a living. We live in a highly competitive world. As a small country with an open economy, we have to be better and smarter than others. There is no affirmative action that can protect us when we negotiate globally and take decisions. We just have to be smart and not get outwitted. In short, we need smart, competent people to hold positions of leadership. There is no other way. Every wrong or poor decision taken locally or globally has a cost to the country. In the case of Goldman Sachs, the cost is high.

So where do we begin to put matters right? We have to begin with our schools and universities because they are the breeding ground for competence and leadership. First-rate schools and universities that emphasise merit and competition will produce competent people. If they have agendas other than producing the best minds, we cannot expect the outputs to be able to compete with very smart people from very smart institutions in the world. 

We will always be second class, or even lower. Yet there has been no real reform in our schools and universities. If we continue to do the same things in our schools and universities, we cannot expect different outcomes. The outputs will remain mediocre and not competitive, both inside and outside the country.

Also, it is not enough to make our schools and universities better and stronger. Perhaps even more important is to use the clever people we have, especially for positions where important decisions are made. It is not enough to develop smart people. We need to deploy them in positions where they can contribute to the country and make a difference. Clever people are an asset, but the asset has to be used. Otherwise, it is a wasted asset.

Many young, competent Malaysians are opting to leave the country or not return after their studies overseas because they see no potential for growth and development in the country. Interestingly, this cuts across race. It is not just non-Malays who hold this perception. Many well-trained Malays feel the same and prefer to work outside the country. This is a waste of scarce national resources that the country needs badly. We need changes in policies on human capital management in the country. 

Human capital is a scarce resource in any country. It has to be prudently managed for high returns to the country. This is not happening. In any country, government decision making is political, but to completely disregard competence in making appointments to important positions is to court disaster in the long run. We will end up with deals like Goldman Sachs'.

There is talent in Malaysia. Our ethnic diversity adds to the pool. The challenge for the country is to increase the talent pool, utilise the talent, and stop the brain drain. This calls for a new thinking on the direction of the country for the future. Major policy changes are needed. The country cannot be managed on the basis of ethnic fears and priorities. 

We must accept diversity and merit as strengths and incorporate them in both the public and private sectors. Ascriptive criteria like race, religion, and language should be set aside in favour of meritocracy and performance. Otherwise, we will continue to be short-changed and outwitted, like in the Goldman Sachs deal.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.