One argument for free trade is that it encourages each region to do that which it does best. Malaysia has entered into agreements to lower trade barriers, minimising the protective wall it furnishes to those industries that we do well at, and still offering an extension of time for improvement to those we are not so good at (such as automobiles).

It is well therefore to look at the things we do in bulk. Things that make us a factor in world trade, such as rubber, palm oil, timber, and petroleum products. One immediately notices that these are natural resources, and tend to fall into one of two categories, non-renewable and renewable.

Petroleum is non-renewable, and we have stocks that are estimated to last 20 years, at present rates of production. We need therefore to make allowances for the day when this resource is depleted, around the year 2020. This is an interesting year, because it coincides with the expected entry of Malaysia into the ranks of the "developed" countries. It seems we are to enter the new age without the oil which has been so beneficial for the past 50 years.

Petroleum (along with the associated natural gas) is a source of energy, both for internal combustion engines of lorries, buses and automobiles and for the production of electricity, the demand for which is to increase by 12 percent in the next year, and is expected to increase in the years thereafter. Petroleum is required for jet aircraft, and is a primarily cost factor for profitable operation. Competitive fares for airlines depend on successful management of fuel supplies and costs.

Malaysia enters the new millennium with the spectre of having to import petroleum. This has a bearing on present planning, which must take into account the energy needs of the new developed country status.

Timber is something we are good at. We can cut a tree down better than most, having developed the technique in the tropical forests of peninsular Malaysia and most of the forests of our neighbours. We are known for our ability to remove the standing timber and depart without staying for the party on the now barren, erosion-susceptible hillside. Malaysian timber barons are known for environmental ruthlessness, so we don't do the timber industry so well after all.

Luckily, trees grow fast in these equatorial zones, and with a modicum of management a new crop will be ready in 20 years or so, if the ground is not destroyed in taking the first cutting. There is room for improvement.

We are the largest producer of palm oil, so much so that our production gluts the market. We do this one too well. But our producers see no reason to control acreage, and new plantations are constantly being developed. The weakness here is the labour force, which has low wages, is unskilled, and often imported from Indonesia and Bangladesh to receive slave treatment.

There is interest in developing palm oil as a substitute for petroleum, which seems a very good idea. Research efforts supported now may allow progress before the 20-year deadline.

Rubber is still in demand throughout the world, thanks in large part to the AIDS virus, which prompts prudent health practitioners to don fresh rubber gloves routinely. The world market for rubber goods is far from saturated, but distribution of Malaysian products lacks an efficient marketing team.

Synthetic rubber goods compete, but are not so acceptable as genuine rubber for such items as bath mats, mattresses and pillows. One looks long and hard for these items in Malaysia and throughout the world. We do rubber well. But again the wages are low, and the workers are often imported, with shameful treatment.

We do electronics well. But the exploitation of Malaysians for low-skilled assembly jobs shames us in the world's eyes. Why can't we pay our workers more than US$0.75 (RM2.85) per hour to assemble products to be shipped to the US, when the minimum wage in the US is about US$6 per hour (RM23)? Surely this differential is sufficient to reward our workers a minimum of RM6 per hour.

The reluctance of the manufacturers to agree to this minimum wage is tantamount to an admission of greed. This is where unionisation becomes necessary, and when the government opposes unionisation the government must be changed.

The political leadership in Kelantan and Terengganu has shown that the interests of the family have priority over industrialisation-at-any-price. They have given 90 days maternity leave, and have reduced the work week to five days. These leaders are said to be extremists. If so, they are extremists in the right direction. I have yet to hear a complaint from a resident of either state. All are ecstatic at the change in government. This is a challenge for BN.

There is more to be said on the subject of development, allocation of resources and the equitable distribution of wealth. We are fortunate malaysiakini exists where these What we do best

One argument for free trade is that it encourages each region to do that which it does best. Malaysia has entered into agreements to lower trade barriers, minimising the protective wall it furnishes to those industries that we do well at, and still offering an extension of time for improvement to those we are not so good at (such as automobiles).

It is well therefore to look at the things we do in bulk. Things that make us a factor in world trade, such as rubber, palm oil, timber, and petroleum products. One immediately notices that these are natural resources, and tend to fall into one of two categories, non-renewable and renewable.

Petroleum is non-renewable, and we have stocks that are estimated to last 20 years, at present rates of production. We need therefore to make allowances for the day when this resource is depleted, around the year 2020. This is an interesting year, because it coincides with the expected entry of Malaysia into the ranks of the "developed" countries. It seems we are to enter the new age without the oil which has been so beneficial for the past 50 years.

Petroleum (along with the associated natural gas) is a source of energy, both for internal combustion engines of lorries, buses and automobiles and for the production of electricity, the demand for which is to increase by 12 percent in the next year, and is expected to increase in the years thereafter. Petroleum is required for jet aircraft, and is a primarily cost factor for profitable operation. Competitive fares for airlines depend on successful management of fuel supplies and costs.

Malaysia enters the new millennium with the spectre of having to import petroleum. This has a bearing on present planning, which must take into account the energy needs of the new developed country status.

Timber is something we are good at. We can cut a tree down better than most, having developed the technique in the tropical forests of peninsular Malaysia and most of the forests of our neighbours. We are known for our ability to remove the standing timber and depart without staying for the party on the now barren, erosion-susceptible hillside. Malaysian timber barons are known for environmental ruthlessness, so we don't do the timber industry so well after all.

Luckily, trees grow fast in these equatorial zones, and with a modicum of management a new crop will be ready in 20 years or so, if the ground is not destroyed in taking the first cutting. There is room for improvement.

We are the largest producer of palm oil, so much so that our production gluts the market. We do this one too well. But our producers see no reason to control acreage, and new plantations are constantly being developed. The weakness here is the labour force, which has low wages, is unskilled, and often imported from Indonesia and Bangladesh to receive slave treatment.

There is interest in developing palm oil as a substitute for petroleum, which seems a very good idea. Research efforts supported now may allow progress before the 20-year deadline.

Rubber is still in demand throughout the world, thanks in large part to the AIDS virus, which prompts prudent health practitioners to don fresh rubber gloves routinely. The world market for rubber goods is far from saturated, but distribution of Malaysian products lacks an efficient marketing team.

Synthetic rubber goods compete, but are not so acceptable as genuine rubber for such items as bath mats, mattresses and pillows. One looks long and hard for these items in Malaysia and throughout the world. We do rubber well. But again the wages are low, and the workers are often imported, with shameful treatment.

We do electronics well. But the exploitation of Malaysians for low-skilled assembly jobs shames us in the world's eyes. Why can't we pay our workers more than US$0.75 (RM2.85) per hour to assemble products to be shipped to the US, when the minimum wage in the US is about US$6 per hour (RM23)? Surely this differential is sufficient to reward our workers a minimum of RM6 per hour.

The reluctance of the manufacturers to agree to this minimum wage is tantamount to an admission of greed. This is where unionisation becomes necessary, and when the government opposes unionisation the government must be changed.

The political leadership in Kelantan and Terengganu has shown that the interests of the family have priority over industrialisation-at-any-price. They have given 90 days maternity leave, and have reduced the work week to five days. These leaders are said to be extremists. If so, they are extremists in the right direction. I have yet to hear a complaint from a resident of either state. All are ecstatic at the change in government. This is a challenge for BN.

There is more to be said on the subject of development, allocation of resources and the equitable distribution of wealth. We are fortunate malaysiakini exists where these topics can get a fair hearing.

HARUN RASHID is a scientist avidly interested in the application of Islamic principles in international affairs. The promotion of goodwill through civilisational dialogue motivates his writing. His Worldview column is a personal analysis of Malaysian affairs from a global perspective.