KEY NOTE ADDRESS BY YBHG TAN SRI SIDEK HASSAN CHIEF ... warahmatullahi wabarakaatuh A very good morning and Salam ... good as well as bad times, “This too shall pass”. It was his

KEY NOTE ADDRESS BY YBHG TAN SRI SIDEK HASSAN

CHIEF SECRETARY TO THE GOVERNMENT

PUBLIC SECTOR REFORM – BEST PRACTICE WORKSHOP BY

THE NATIONAL ECONOMIC ADVISORY COUNCIL (NEAC)

THERE IS NO SPOON!

FLAWED IN OUR WORLD VIEW?

27TH

JANUARY 2011 (THURSDAY) 9.00 – 9.30 A.M

KL CONVENTION CENTRE

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Bismillahir rahmaanir rahim

Assalamualaikum warahmatullahi

wabarakaatuh

A very good morning and Salam

1Malaysia

YB Senator Tan Sri Amirsham A. Aziz

Chairman of NEAC

His Excellency Mr. Miles Kupa

Australian High Commissioner to

Malaysia

Mr. Stephen Sedgwick

Public Service Commissioner,

Australian Public Service Commission

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Mr. Ian Buchanan

Chair of the Crawford Advisory,

Crawford School of Economics &

Government,

Australian National University

Secretaries-General

Heads of Departments

Members of the NEAC

Distinguished Speakers

Ladies and Gentlemen.

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NEW YEAR, OLD PROBLEMS

Happy New Year and I am

indeed delighted to be here today.

As we are greeted by a 2011 that is

seeing severe weather conditions

from Australia to Europe and the

USA, 2010 left us with many firsts

both in its problems and the named

solutions. The free market, touted

the most stable form of economy in

the era of capitalism, saw darts of

doubts thrown at it from all corners.

With several shaken economies in

Europe, and a barely recovering US

economy, on the back of a rising

China, heat is placed on what the

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“correct” value of currency at any

particular point in global economy

should be. How can we all price

prosperity fairly for all?

2. It is often said, if war is

God’s way of teaching mankind

geography, recession is His way of

teaching us economy. 2010 also

saw dire performance from teams

with international stars like England

and Brazil in the World Cup. This

said, Australia seems to be doing

well in the 2011 Ashes Series as

this speech was prepared. Well, it

takes cricket to play cricket!

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3. Many of the world’s crisis

tell a story. In the words of Mark

Twain, “The past does not repeat

itself but it rhymes”. The events of

the last two years are not altogether

new. They are just the same old

events drawn IN A NEW

ENVIRONMENT now dressed by

internet, securitisation,

globalisation, and technology. A

servant of King Solomon would

repeatedly say to the King during

good as well as bad times, “This too

shall pass”. It was his way of

keeping the King grounded,

knowing that history always moved

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in spirals. Consequently ignoring

history condemns one to repeating

it again, albeit in a different time

and space.

FLAWED WORLD VIEW

4. The truth that rears at every

crisis which hit the shores of our

lands in whatever form or fashion,

name or rhyme is that when it does

happen, (crisis that is), our realities

can no longer be the same again.

We can no longer return to “The

good old days”. Our normals are

forcibly re-defined. Our constants

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become so nebulous that we are

pressed, voluntarily or otherwise, to

seek new definitions of our new

status and realities.

5. By way of example is the

now well publicised and remarkable

remarks by the former Federal

Reserve Chairman, Alan Greenspan,

before the House Committee on

Oversight and Governance Reform

in 2008, post the Lehman Brothers’

collapse and the foreclosures. In a

long and lauded tenure at the

Federal Reserve -- some nineteen

years -- Greenspan became an

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acclaimed free market card holder.

He staunchly rooted for free market

and has often been quoted saying

that free markets lead to the best

solutions and any constraints

would lead to disastrous effects to

capitalism.

6. But on 23 October of 2008,

one saw a pale and pained

Greenspan saying, “I found a flaw in

the model that I perceived is the

critical functioning structure that

defines how the world works, so to

speak. I was shocked because I

had been going for 40 years or more

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with very considerable evidence

that it was working exceptionally

well."

7. The “flaw” was not the

result of tardy data, nor can one

argue like Naseem Taleb would in

his book “The Black Swan” -- no

one saw it coming as it were. The

“flaw” was due to a warped world

view of organised market in an

increasingly unorganised world. It

was led by a “GIGO” -- “garbage in

garbage out” argument where the

model was just fine, but the data

and assumption of how the world

worked was not.

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8. NO matter our ascendency

and experience, NO matter the

breadth of our vision and designs,

NO matter the mind-blowing

theories we forge as the new

mantra, none would see its rightful

effect, if our own world view

remained in a bottled time and

space. Poignant in any crisis is that

the thinking that landed us into the

problem cannot be the one that will

get us out of it.

9. The “flaw” as described by

Greenspan reminds us that only

when tragedy strikes our own

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homes and families in the form of

illness, job loss, bankruptcy and

foreclosures do we wonder if we

have been drinking from a poisoned

chalice of warped world view. Are

everything we once believed in or

taught to believe in, are what we

should also believe in now? Or

rather is that today’s reality?

10. As painful and soul

wrenching some of these questions

can be to governments and

businesses, they are questions that

deserve attendance, warrant

attention even if they do not reach

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their concluding answers. Left

unattended would and could

unleash condemnation of history

again.

Ladies and Gentlemen,

GROUNDHOG DAY

11. In 1993, Bill Murray starred

in the well known movie titled the

Groundhog Day. Murray plays Phil

Connors, an egocentric TV

weatherman who grudgingly covers

the annual Groundhog Day event in

Punxsutawney. According to

folklore, it’s the day that would

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signify whether winter would end

depending on the alignment of the

cloud and the sun.

12. The plot of the movie

revolves on how Phil Connors

would wake to the same day, again

and again and again. The town

remains the same, the people

identical to the day before. The

strain would drive him to numerous

suicide attempts until one day he

decides to wake up to re-examine

his life and priorities. The movie

unveils how Phil struggles to find

meaning and purpose in his life as

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he learns what works and what

does not work. He placed all

attention in altering his view of the

world based on his own personal

reality, as his external reality is

fixed. He transforms his thoughts

and values. He transforms what was

the worst day of his life into his best

day. The only thing that changed in

this transformation was his thinking

and his actions.

NOT A SPOON

13. There is a similar analogy

in the science fiction movie “The

Matrix” when Keannu Reeves, a

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computer programmer who

moonlights as the hacker Neo

would have the following

conversation with Spoon Boy, a

child he meets in his journey of self

search.

Spoon Boy would say: Do not try to

bend the spoon. That's impossible.

Instead, only try to realise the truth.

Keanu would say: What truth? And the Spoon Boy responds:

There is no spoon. Then you'll see

that it is not the spoon that bends. It

is only yourself.

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14. The spoon is used as a

metaphor for our fixed views of

'reality'. Rarely do we observe the

world for what it is. It is much

simpler to build a perceived order,

load our preconceptions and

baggage onto them to the point that

they are heavy, rigid and

unbendable. Reality, like the spoon,

is not permanent. It is not

immoveable. When we become

fixated on a certain world view, we

literally fence ourselves from the

million experiences one can get

from the brilliant shades of grey.

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Colleagues,

15. By not bending the spoon, but

by bending oneself instead, we see

the new Immigration, Talent

Corporation, the new Inland

Revenue, 1 day land registration,

OSC and others. Can we see a

comprehensively improved land

administration, further

improvements in services of local

authorities? Can we see Malaysia

top in the World Bank’s Ease of

Doing Business?

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Ladies and Gentleman,

HIGH INCOME FOR WHO?

16. In our every quest to great

change, we must not miss the small

but important determinants that

would manifest change in its every

element. As Malaysia prepares

towards becoming a high income

economy, our focus must reach out

to the seemingly peripheral

determinants for sustainability of

that Vision. Whilst the resounding

determinant of high income is gross

national income (GNI), and all of us

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must contribute and be religious to

that in our action, we must not lose

sight of the people who will make

and sustain that GNI. High income

does not relate only to leather office

occupants, nor Ivy League

graduates. It must apply to “every

man and his dog” as is said in the

colloquial English term.

17. What does high income

really mean to the trader at Chow

Kit, or the technology gizmo at Low

Yat Plaza or my brothers, sisters,

nephews and nieces in Cherok

Paloh? What will it mean to the

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waiter at the Marriott or the one at

the stalls? Do we increase the pay

of one league and not the other?

Will the janitor be able to afford a

better education for his children?

Indeed will his own children have a

better future than his own?

REFORM LANDSCAPE

18. Reform agendas of any

kind must address the subliminal

structural issues. Whether in public

or private sectors, media, non-

governmental organisations and

even the public, we all touch lives.

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Governments alone cannot save the

world. Businesses, all kinds in the

real economy, cannot take the view

that their actions do not affect the

world. Or that only government

actions or inactions matter to our

country’s global competitiveness.

And so what are the subliminal

issues?

19. Hans Rosling, a Swedish

medical doctor and the co-founder

of Gapminder Foundation in his

presentation “Hans Rosling's 200

Countries and 200 Years” described

how countries once grouped down

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a low income and low life

expectancy column in 1810 saw a

change when the industrial

revolution kicked in the early 20th

century. The West became

healthier, not least richer even as

the rest of the world in Asia, Africa,

and Americas trailed.

20. But all changed over the

last few decades. The social

structure of the world transformed.

Asia and Latin America caught up

with Europe and the US. Countries

like China, India, Singapore and

some in the Middle East, once

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placed within the low-income low-

expectancy cluster, have risen to

the top end of the chart of high-

expectancy high-income cluster.

21. Whilst this convergence

rallies great news, the change in

global structure took a blow on

human psychology especially in the

once developed countries who

today rank on par with, if not trail

the once impoverished nations. The

human effects of recession and

losing competitiveness are seen in

the USA, Japan and Europe.

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22. The rise of many of the

Asian, Latin American and Middle

East countries is often attributed to

the growth in their middle class. In

2000, the World Bank classified 430

million people as middle class. By

2030, there will be about 1.5 billion.

But the rise in middle class also

echo shift in global and local value

system. Middle-class parents have

fewer kids. They spend more time

and money cultivating each one.

They hold dear to such values like

prudence, ambition, justice, freedom,

order, moderation and continual self-

improvement for instance. And,

these we must address!

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MAP COMPORTING REALITY

23. This evolution in global

landscape is affecting the larger

horizons of how countries are run

to the more localised of how people

behave. In our reform agenda, the

subtle and subliminal effects of

human psychology are often

grossly missed. If the Map of

Reform does not comport ground

realities, we can be straddled by the

perfect storm by way of market

failures and human catastrophes.

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24. The world is remodelling

itself back to pre-industrialised

times where we are seeing closer

correlation between output and size

of population. The USA deemed the

largest consumer market and Asia

the production hub, is experiencing

role reversals. With the rise of

China and India and over 590 million

people now residing in ASEAN

alone, we have more than half the

population of the world residing in

Asia today. It is thus not wrong to

conclude that Asia could now be the

consumer market and USA and

Europe the production houses, with

their high unemployment rates.

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25. In this renewed world

order, countries with larger

population could wield the greater

power simply because they own the

consuming ability. The West's

monopoly of capital and technology

is now shifting to Asia. China, once

known as the imitation country, is

clocking large patents and is fast

becoming the innovation country.

Consumers in the West,

traditionally known for their

spending are saving and we are

seeing the reverse in Asia. Asians

are spending more than they used

to! Yes, even in Japan.

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Colleagues,

ONE HIT WONDERS

26. These are mammoth

changes of trends and lifestyles.

They are changes that will have a

resultant effect on human

psychology and society

development. I raise these points to

put it to you that our every solution

and service can no longer be a one

hit wonder. It must be

comprehensive enough to serve the

times, to serve the complex

demography, and to serve the

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global intricacies of trade and

industry. We often content

ourselves by seeing success in one

segment of our business when

there are numerous areas crying

out for change and simplicity.

27. Artists like Beatles,

Pavarotti, Michael Jackson, P.

Ramlee and Sudirman were able to

transcend generations and

localities even with the rise of new

entrants. Why? Because they

made music that resonated with

people of all times. Why do we still

listen to music made some 30, 40,

30

50 years ago and call them

“Evergreens”? Because, they still

move us even as we may have long

moved on from the ground realities

of the 30 years. Because the lyrics

and the rhythms still hit a chord in

today’s realities. The same goes for

movies. The same for good books.

They were not the one hit wonders

who served a moment in time, or

even a generation. They served

many generations. They filled our

purpose beyond just a moment,

nurtured us through many of life’s

phases.

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28. The service we offer needs

to do the same. We cannot gloat of

victory when we simplify one aspect

of our service or one part of our

organisation. The transformation of

the Malaysian Public Service

requires all Ministries and

Departments, at all levels: Federal,

State, local to move in tandem and

in concert. The global

competitiveness of our country,

Malaysia can only happen when

both the public and private sectors

reorganise correspondingly. In the

final analysis, there cannot be any

modernisation and progress in a

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market if only parts of it embrace

reform. We cannot experience

sustainable competitiveness if only

one constituent is called to be

accountable for that

competitiveness. Every part, every

member, everybody who makes a

society must take responsibility for

reform and must bear pride in the

country’s success. Hence why the

New Economic Model is ours!

29. The success and failures of

our reforms are rooted in our world

views. It is anchored in how open

we are to drastically changing our

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ways for the times. It resides in our

abilities and preparedness in the

public and private sectors to move

pass limiting agendas of “bottom

line” or “for profit only”, to the

larger social and development

order. To move pass confined

realities to understanding the larger

impact of our actions, every action

to generations that will succeed us.

GREAT MEN, GREAT FAILURES

Ladies and Gentlemen,

30. Great men have been

greeted by great failures when they

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allow the “Groundhog Day”

syndrome into their lives. Great

nations have seen staggering

failures when they are stifled by

“The Spoon” mindset. No team can

enjoy continual success, if they

keep playing the same game for a

different time. The 2010 World Cup

gave us some good insights on this.

Greatness of any action, any

society and any country, I am

persuaded, is made by the humility

of seeing the world for what it is

and steering the sails to suit, even if

at times, even if at times, we may be

sailing into the winds.

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31. Niccolo Machiavelli puts it

succinctly in his book “The Prince”,

and I quote:

“For although these men were

singular and extraordinary, after all

they were but men, not one of

whom had so great an opportunity

as now presents itself to you. For

their undertakings were not more

just than this, nor more easy, nor

God more their friend than yours”.

(End quote.)

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Colleagues,

32. The opportunity and the

undertaking are ours. Fortune more

often favours the bold. The one

who has enough courage and

humility to say - - my model and

assumptions no longer works, we

need to simply work with new ones.

I thank you for your patience.

I thank you for embracing and

helping to realise the GTP, the ETP,

the NEM, the 10th

Malaysia Plan.

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I thank you for endeavouring to

continually be ahead of the curve.

Above all, I thank you for working to

realise the dream of making

Malaysia’s Public Service the

Benchmark of the World, Insya

Allah.

Wabillahittaufik walhidayah

Wassalamualaikum warahmatullahi

wabarakaatuh.