Why Malaysia has to be innovative to compete globally?

Before we going to discuss more details about this topic, let we define what is actually mean by “innovative”. Innovative refers to renewing, changing or creating more effective processes, products or ways of doing things.

For businesses, this could mean implementing new ideas, creating dynamic products or improving our existing services. Innovation can be a catalyst for the growth and success of our business, and help us adapt and grow in the marketplace.

So, why Malaysia need to be innovative?

As we know, Malaysia has long been a top producer and exporter of a long list of products. But we still cannot compete with other top countries like Japan, Germany and other countries. The current global slowdown and the rise of new economies may have impeded our progress but it must be seen as an opportunity to re-visit our strategies and re-design the way we have been operating for the past few decades. Malaysia must become a country that stands alongside the very best in the world. We must succeed in creating more products the world wants to use and more brands the world wants to buy.

In order to make Malaysia same level as other countries, we must have many innovators in our country. Innovators will always searching for opportunities to be more productive with the new ideas of creation something new that can give many benefits to all people.

There are some advantages of being innovative for workers in Malaysia.

1. Market Expansion

Innovative technology can help even smaller businesses in Malaysia to compete on a global stage. Innovations such as the Internet, for example, allow a sole proprietor to offer her products or services to prospects around the world through the use of a website. She can provide detailed product descriptions and photos of her products to provide prospects with all the information they need to make an informed buying decision. Social media vehicles like Facebook and Twitter also allow her to network with others who may have an interest in her business, without the need for face-to-face interaction.

2. Cutting Costs

Innovation can also help business owners in Malaysia keep costs to a minimum. With the use of automation, a small manufacturer can reduce his dependence on human beings to perform some of the necessary production processes. As a result, the business can reduce employee expenses such as salary, benefits and turnover. Technology can also help to streamline the production process, eliminating costly waste. Implementing a "lean" manufacturing process like Six Sigma, for instance, offers the opportunity to meet customer demand more quickly and efficiently.

3. Employee Concerns

While innovative technology may reduce the dependence on a workforce, the flip side is that employees lose jobs in the process. In the case of a small business owner, this may mean she needs to make a difficult choice between increasing profits or letting go long-time employees. Even if the implementation does not result in job loss, some employees may have difficulty adapting to the change. There may also be a learning curve when instituting the change, resulting in reduced productivity in the short term.

4. Upfront Costs

While new technology can result in savings in the long run, it sometimes results in a significant upfront expense. A small business owner may not have the resources to purchase a state-of-the art computer system or new machinery, or may need to borrow the money to do so. If the new purchase doesn't increase production or reduce expenses over the long haul, it could have a crippling effect on the long-term viability of the operation.

References:

i. http://www.mpkotamarudu.my/news/2009/thestar050809.html

ii. http://www.business.gov.au/BusinessTopics/Innovation/Pages/Whatisinnovation.aspx