The current feature icon is the very top section of the Petronas Twin Towers in Kuala Lumpur Malaysia, currently the tallest building in the world. It symbolizes the new Malaysia - a modern competitive 'face' (on 'Western' terms), but the 'substance' has still to catch up... It's like getting a brightly packaged latest-tech gizmo for Christmas - yet it doesn't quite work yet... Or like meeting a Gucci-Rolex-Bole attired salesman, who does not seem to know much about the product, quickly becoming flustered and fiddling with his Italian tie... You quickly learn that the real potential of Malaysia however lies in it's honest, down to earth, more modestly dressed younger business people who have seen the mountain top - and who don't need to climb up all of the floors of the Petronas Towers to see it...

Ignore the face building strategy. That is really for local consumption and works well in that arena. Short term - things are looking bright for this much-misunderstood country boasting high potential human and industrial resources. Malaysia's competitive strengths include an English speaking population, a multi-cultural and synergetic workforce, stable government, relatively low-cost manufacturing bases, and a modern infrastructure. Competitive disadvantages include a relaxed work culture, a moderate level of attention to education and training and development, and continuing concentration of power in a compact and older élite. All these disadvantages are being addressed in the usual slow steady 'Malaysian way' yet foreign relations remain characterised by a fragile ego.

Economic sentiment is positive and upbeat for 2002 after an up-and-down few years following the Asian crisis. The stock market is on a substantive upturn and informally many businesses are reporting increased orders and commissions including those in the advertising and marketing sector, a usually strong sign of recovery. Key threats are from upcoming low cost manufacturing centres in China, Vietnam and Indo-China. Key opportunities are in creating value added and higher value industries, while maintaining a strong cost advantage for foreign companies over the higher business costs in Singapore. Our short to medium-term outlook for Malaysian business and economy - Tigerish. Search for "Malaysia"

Originally published as the APMF Weekly brief March 9th to March 20th