FUTURE RAIL IN ASIA FOR 2030

Foresight is not just about tomorrow, but yearsto come. We have to look at 20-50 years from today . what trends are going to happen and tomake necessary adjustments today.

The rail industry in Malaysia is currently small in terms of rail track networks and number of related organisations although its operation started way back in 1885. Lack of a clear policy, vision and direction of its development has been one of the major factors contributing to the current state of the industry. The Government of Malaysia has invested more than RM50 billion in rail related equipment since 1990s and the number will continue to grow until 2020 through committed investments under Greater Kuala Lumpur initiative of economic Transformation Programme (ETP). Therefore, local rail support industry must leverage on upcoming investments to strengthen required capabilities for future sustainability. “A journey of a thousand mile begins with a single step” (Lao Tzu); nevertheless, there is a need to pull and consolidate all fragmented hopes and wills of stakeholders to revitalise the rail industry in Malaysia.

·         On competitiveness.

In the context of global competition, Malaysia is at the moment, too dependent on imported orforeign technologies and the people. This includesexperts and their expertise, ownership of patent right, etc. as the basis of our manufacturing andproduction. We need to extract more value fromthe resources that we have today. In palm oil, forinstance, we need more than what we already havenow. By going downstream we can produce higherquality products range across the value chain;from the raw materials to the end products. This

can be done with the aid of our own scientistsin ourown laboratories, by generating new sources ofintellectual property rights on products andprocesses. We can boost our production, locallyor abroad, but hold the IP rights. We should try toreverse the current scenario where laboratoriesabroad use our raw materials for their

productions but hold the IP rights, and sell backthe end products to us at higher prices.

·         sosio economic Versus technoligies.

Basically, there are two types of people in thisworld that generate and create wealth. First, the agriculturists, planters, and farmers – they plantfruits or cereals, and create or generate finechemicals from minerals in soil, air and water.Second, the technicians, be it chemists, engineersand so on. Through the use of S&T, they create a

process that leads to higher value produces.While others – the accountants, lawyers etc. – helpin

managing the wealth created along the pipeline. The political system in Malaysia has evolved,

enabling us to maintain harmony and peace. Inspite of the other ingredients of instability, thebasic ingredients are multi-racial, multi-cultural,multi-religion, and multi-lingual. People arecontented and they are now looking at  the next phase – environment, equal rights, etc. The political statements are correct, but the will to carry through by the system such as fundingfor R&D and emphasis on science educationsystem is vital. In an effort to produce the ‘breed’that we want – a society that is scientificallyliterate – teaching science and mathematicsshould be made compulsory.Beyond any shadow of doubt, we are enjoyingpolitical harmony and stability. This is because ofthe size of our economic cake is big enough andhave continue to expand. However, if we are not able

to keep this cake from expanding continuously,the basis of our harmony and stability may beshaken or even erode.

·         On Innovation Ingredients

Our education system aims to have 60:40 ratio of science to art students. Sadly, today we only have

less than 30% students in the science stream. If this trend continues, future Malaysians will be pure consumers of technology. Only a small percentage of our population will engage in S&T, especially R&D thus, decreasing the chances of Malaysia to be a producer of technology that can

contribute more to wealth.

SHAPING THE FUTURE OF MALAYSIAN RAIL INDUSTRY:

·         Policy and Institutional Framework.

Similar to other industries (such as aerospace and maritime), rail industry involves cross-ministerial/agencies. There is need for a mechanism to effectively coordinate, facilitate and monitor the growth of the industry based on consensusvision, goals and development strategiesat national level.

·         Technology and Human Capital Development.

It relates to current and future workforce that will be supporting the local industry  development. Apart from  manpower, technologyis one of the critical means to ensure sustainability and competitive advantage of the industry in the future.

·         Multimodal and Integrated Transport.

It is about enhancing efficiency of national transportation leveraging on rail be rationalised through an integrated arrangement and system for movement of passengers (multi-mode of public transportation) and cargos (integrating airport – seaport – ground transportation).

·       Market Competition and Value Added

Products /Services.Survival of local players to face intense competition in the same playing field

with other established international competitors from both domestic and global rail market. The need to grow senseof innovativeness and climb up in supplychain to produce high value products.

·       Connectivity and Tourism.

Train as a preferred mode of transport by the public is also affected by the availableconnectivity. In Malaysia, it is just an optionbut not in other developed countries where it has become a necessity.

·       Safety and Security.

Train is a medium used for transportinga mass number of people and goods which involve high risk, either due to external factors e.g. terrorism or internal factors e.g. derailment, collision. Nowadays,train is getting faster than before and able to reach more than 350 km/hr which requires reliable systems in place.

·       Localisation and Globalisation.

The growth of the industry is fuelled bya number of business opportunities secured in domestic and global market. Sizable investment has been made by the Government imposed the element of local content. There is a need to develop local capabilities and reduce heavy dependency on foreign products for future sustainability