New Straits Times, 18 January 2000
Rafidah : Seek viable partnerships
Malaysian companies, with the advent of the Asean Free Trade Area, should seek out viable partnerships with corporate entities in the other Asean countries in order to optimise competitive strength, International Trade and Industry Minister Datuk Seri Rafidah Aziz said.
She said such strategic networking and collaboration with corporate entities elsewhere was important where local market rules and regulations prevailed to give an edge to exporters with local linkages.
In order to succeed in making inroads into global market, the Malaysian corporate entities must be of world-class standards and able to compete with the best globally in their field.
She was presenting a keynote address at a conference on the The Vital Corporate Issues in the New Millenium in Kuala Lumpur yesterday. Under the World Trade Organization, this year will see mandated negotiations for further liberalisation in the services sector with the focus on financial, professional, telecommunications and transport services.
As such, the Malaysian corporate sector needs to closely monitor these global developments and pre-empt such developments by making changes and adjustments, Rafidah said.
"Domestic companies must meet global standards in every respect in order to remain in the market while, at the same time, strategising to make inroads into other markets that have also been liberalised."
She added that domestic companies must also be prepared to operate regionally and globally, seeking strategic networking and alliances to complement and strengthen the Malaysian operations.
"Certainly, continued survival in the external and domestic market dictates that Malaysian companies undertake a multi-pronged set of strategies."
She said at the level of the corporate entity itself, there must be operational changes to cater for changes in technology and to continuously benchmark against the best in terms of cost-competitiveness, efficiency and productivity.
As for the industry level, she said there must be greater collaboration among the various firms in order to ensure that they could collectively overcome successfully challenges from external competitors. Rafidah said in the spirit of Malaysia Incorporated, new working relationship should be developed that could best serve the interests of Malaysian companies in the global market.
With electronic business (e-business) providing the opportunity for global market exposure, she said more corporate entities would have the chance to become export-oriented, particularly entities from among the small and medium sized enterprises.
She said Malaysian companies must be well informed about the developments in the market that directly have an impact on their operations and be in a position to react expeditiously.