"Higher Education Business at the Crossroads"

 by Professor Dato' Dr Ahmad Ibrahim, Tan Sri Omar Centre for STI Policy Studies, UCSI University

Ali scored 8As in his 2021 SPM. That would have easily secured him a place in the university. Under normal times, it would be common practice for students who have scored well in their SPM to apply for a university degree. They look to studying for a degree to land a good career. 2022 is not a normal year though. This is because according to the latest information, more than 70% of SPM holders have not bothered to apply for a university place, a big departure from the normal year. This is quite unexpected and has taken the higher education business in the country by surprise. Ever since the government embarked on the strategy to make Malaysia an international hub in higher education, private investments in higher education have witnessed a jump. The business was doing well for several years until the pandemic. It was badly disrupted during the pandemic especially since overseas students could not come. 

     Admittedly, we are not quite there yet in making the country an attractive international hub for higher education. But we are making credible progress. Many of our universities are now internationally recognised, including a few privately run universities. However, the process of bringing in international students’ needs some fine tuning, especially the part which concerns the visa. Now that international students can travel as covid restrictions are lifted, universities are starting to reach out to the overseas market. Universities with excellent track record like UCSI do not face much problem attracting foreign students. But the biggest headache is the local students. It has become known that many among our recent SPM graduates have given a cold shoulder to university admission. They have opted to instead work first before thinking of a university degree. This may have resulted from the disappointment university graduates faced securing jobs. Many believe this may be the trend. The higher education business must strategize differently now that the game is changing.

     In the higher education business, the courses offered are essentially our products. Making sure that the products would fulfil the demand of the higher education market is key to the success of the business. Therefore understanding the marketplace is a critical prerequisite of the courses succeeding. This is where the market report must be comprehensive, not only looking at potential demand but also the competing suppliers of similar courses in the market. Very often, the market study is not done elaborately. In fact, many higher education institutions have established teams dedicated to deep market research on the courses to be offered. As is true for higher education courses, not much different from manufactured products, they become obsolete with times. The practice of reviewing and revamping courses is common among universities. It is done every few years. Unfortunately such exercise often does not take into account the changing market.

     The market does constantly undergo changes not only because of changing technology but also because of changing expectations from consumers. The expectations from consumers, which include the students and the industries, do change because of changes in business trends. There is no denying the fact that consumer expectations have shifted in recent years. One major driver of change is the world concern over the potential global climate crisis which looks more real by the day. Businesses which must take part of the blame for the looming crisis, mainly because of business practices which contribute to the rise in carbon emissions, are now under pressures to embrace the world sustainability agenda. The agenda encompasses making sure their businesses do not compromise the wellness of the environment, the wellbeing of society and practice of good governance, as embodied in the ESG international standards. The technology to deliver courses has also witnessed change as a result of the pandemic. Like most industries, the higher education business has also to go digital.

    Few would disagree that the higher education business is at a crossroads. The traditional way of doing business is no longer acceptable. The introduction of new courses must now undergo more rigorous market study. The courses must also take into account the changing consumer expectations as well as technological development. Not taking such measures would not augur well for the success of the higher education business.           

"The Changing Trends in Business Education"

 by Professor Datuk Dr. Ahmad Ibrahim, Tan Sri Omar Centre for STI Policy Studies, UCSI University

EARLIER this year, the Statistics Department released a report stating that about 390,000 out of 560,000 SPM candidates, or 72.1%, preferred to join the workforce after sitting for the examination. Only 170,000 were found to be keen to pursue their studies. Over the years, private investments in higher education have been on the rise in line with the government's aim to make Malaysia an international hub in tertiary studies. Though not quite there yet, we are making credible progress.

    However, this recent revelation could potentially throw a spanner in the works. Stakeholders in the higher education business must therefore strategise differently now that the game is changing. Take business education in universities as an example. At one time, getting a Master of Business Administration (MBA) was a popular choice; it could enhance one's marketability as a professional and make them more employable. It was no surprise then that business schools mushroomed everywhere, including online. Although business education remains popular among new enrolments, the focus and delivery have been undergoing changes. 

    At the same time, because of the disruptions caused by the Covid-19 pandemic, business schools are now attempting to perfect hybrid learning. There is also general agreement that the climate crisis will force business schools to adapt their curriculum in order to translate climate science into action. There has been a shift in how organizations think about value, with many agreeing that genuine ESG (environmental, social, and governance) strategies can lead to growth and profitability. 

    There is no denying that business schools need to pay attention to the intersection between business and the environment. They are, after all, two sides of the same coin, and it is through an integrated approach that the biggest impact in tackling climate change can be made. Green topics like sustainability and green finance are growing in demand. These used to be integrated into the traditional core courses, but now entire programmes could be developed around them. 

    Many see this development as the rebirth of business schools. And fundamental to that rebirth will be a shift to a much greater emphasis on inter-disciplinary programmes. We will also see business schools embracing flexible and multi-mode delivery, offering students a campus experience that integrates the best blend of face-to-face and online learning. When it comes to the future of business schools, the most significant change will be in the curriculum, which will need to conform to such trends as climate change, big data, health and well-being, which have not featured prominently in business education before. Business educators will also need to develop strategies to nurture transformational leaders who will become the new driving force of social impact.

"Rubber Tappers in the Lurch "

 by Professor Datuk Dr. Ahmad Ibrahim, Tan Sri Omar Centre for STI Policy Studies, UCSI University

    HUSIN is a rubber tapper. He lives alone and taps rubber on a small patch of land owned by Hasan. The arrangement is that whatever rubber he taps, it is shared half-half with Hasan who, because of old age, is no longer able, to tap his own holding. There are many like Husin in the country. There are also many like Hasan. They are all rubber smallholders. The plot of land owned by Hasan is less than three hectares. Most of the hundreds of thousands of rubber smallholders in the country own similar plots to earn a living. For decades now, ever since the big plantation boys abandoned rubber cultivation for oil palm, rubber in the country has been supplied by people like Husin and Hasan. 

   There have been periods when world rubber price hit the high of more than RM5 per kg. But more often than not, prices have hovered way below. Recently it dropped below RM2.50 per kg. People like Husin and Hasan would be lucky to earn at the most RM700 per month each. In these days of high food prices, not much can be bought with such meagre sums. Husin is luckier because he lives alone. 

    But it is different for Hasan who has his aging wife to care for. If not for the money he occasionally receives from his son, a teacher, he would be even more worse of. This has been going on for decades now. Is there a chance for  Hasan and Husin to escape poverty? This is most unlikely, looking at the trends in rubber prices these past years. Can the government put in place a policy to at least provide citizens like Husin and Hasan a decent living? While rubber smallholders suffer such misfortune, others involved in the making of products from rubber do not face the same challenges. 

    In fact, most have become richer from the rubber supplied by smallholders. Tyre manufacturers are among those that have gained tremendously from the rubber that these smallholders toil to produce. It is a fact that tapping rubber is not an easy task. Husin has to wake up before sunrise to do his job. This is because science has shown that the early hours of the morning are the best time to tap to get the best yield. This is also the time when mosquitoes are most active in the rubber holdings, not to mention other menaces. But rubber smallholders - have to soldier on. 

    Tyre-manufacturing accounts for around 70% of the volume of rubber supplied worldwide. Tyre producers will also be the biggest loser if rubber smallholders abandon tapping on account of poor returns. A recent move by some to push for sustainability certification may not be in the best interest of smallholders. The narratives that are being bandied around, mostly unsubstantiated, may lead to new import restrictions by rubber buyers who may deny smallholders access to markets. This can be even more damaging for an already deprived group in the world rubber supply chain. Instead of going down that road, it would be more constructive for companies to support rubber smallholders by giving guaranteed pricing. 

    Only after smallholders are assured of a humane income should issues of sustainability be introduced. A new initiative by the government to establish the National SDG Centre under the Economic Planning Unit is a welcome move. Since the number one goal of the 17 SDGs is to reduce world poverty, rubber smallholders are definitely among the relevant groups. Unless the issue of under-compensation is effectively addressed, the job of the SDG Centre can never be complete.

"Art of Diplomacy Key to Biodiversity Conservation"

 by Professor Datuk Dr. Ahmad Ibrahim, Tan Sri Omar Centre of STI Policy Studies, UCSI University

 M ANY may not be aware that biodiversity is a critical element in the jigsaw puzzle of life. Those who have watched the movie A Bug’s Life would appreciate the fact that insects and other pollinating organisms contribute to the sustenance of agriculture and farming. Without them, pollinating at their speed is extremely challenging. We saw the case of the oil palm where weevils improved the pollination process tremendously. Studies have confirmed that all plants and animals, which form nature’s biodiversity, play an important role in delivering the ecosystem services that we need to produce food, conserve water and even contain the spread of diseases. This explains why the world is concerned about activities that compromise biodiversity. 

    I recently attended a lecture by Tan Sri Zakri Abdul Hamid, who holds the Tun Hussein Onn Chair in International Studies at the Institute of Strategic and International Studies Malaysia. As the fifth holder of the chair, he delivered a thought-provoking talk on The Politics of Biodiversity Loss: International Response and Malaysia. There were more than 200 participants, including many close family members of the late Hussein Onn, the third prime minister. Many participants could be considered as hardcore biodiversity activists. Many were from the science fraternity, academics and some journalists. All came away enlightened with the urgency to address biodiversity. 

    Zakri put his message clear, which was not surprising coming from someone who has spent more than three decades involved in the international diplomacy of biodiversity. As the founding chairman of the International Panel on Biodiversity and Ecosystem Services (IPBES), he shared the latest statistics on the state of biodiversity loss in the world. IPBES is the equivalent to the UN climate change panel, the United Nations Framework Convention on Climate Change. The data he shared showed that the losses through poaching and other incursions by humans were staggering. In some species, close to 70 per cent has been wiped out. The Malaysian tiger population, for example, is now numbered at not more than 200. Zakri shared how India was having a programme to conserve its tiger population. He lamented that we were still far behind. It is not easy to convince people why more resources are needed in tiger conservation since tigers are also seen as a menace to farmers who lose livestock to displaced tigers. Maybe tiger scientists need to show more evidence on the role tigers play in the biodiversity balance. 

    Biodiversity conservation also has implications on business. The story surrounding the threat of an import ban by the European Union (EU) on our palm oil is a case in point. As a result of intensive pressure from consumer groups blaming oil palm cultivation for the decline in the orang utan population, the EU imposed rulings that restrict palm oil import. Though the evidence shows otherwise, we have not been able to communicate the real situation. Zakri did touch on the worrying development that we are not investing enough to communicate our facts internationally. We used to be more active in the past where delegates were sent in good numbers to negotiate and contribute to the development of the international standards on biodiversity. 

    This needs to change. What became clear during the question-and-answer session was that we should take biodiversity concerns seriously. We should participate in more international forums on biodiversity where the negotiations and in his words, horse trading, take place. The art of diplomacy is central to all that. That is why we should train enough people in science diplomacy and communication to participate in such forums. The new InternationalInstitute for Science Diplomacy and Sustainabilty at UCSI university, helmed by Zakri, is a positive step not only for Malaysia but also the region. Many see it as a strategic initiative to build the right talent for the region. It will strengthen the resolve to uphold the global call for biodiversity conservation.

"New Strategy Needed To Help Rubber Smallholders"

 by Professor Datuk Dr. Ahmad Ibrahim, Tan Sri Omar Centre for STI Policy Studies, UCSI University

SEPT 4 proved to be another sad day for the more than 200,000 rubber smallholders in the country, as news of the drastic decline in the world rubber price hit the headlines again. It was reported that in two months, the price of cup lump rubber dropped from RM3.20 per kg to RM2.30 per kg. 

    The price is simply not enough to support smallholders and their families. It is much worse if you are just a rubber tapper and not a small holder, as you will get only half the proceeds. On average, a tapper working 18 days a month brings home a meager RM700. 

    With the rise in living costs, rubber tappers will be pushed further down the poverty ladder. Smallholders are not asking for much, just that the price of cup lump rubber be maintained at above RM3 per kg.

    With climate uncertainties and flooding during the monsoon months, one can understand their growing restlessness. The irony of it all is that while rubber smallholders are suffering, downstream rubber product manufacturers benefit from the resurgence in demand as the global economy recovers from the lull during the pandemic. 

    By right, they should also be worried because if fewer small holders are tapping rubber, the world supply will also decline. We must remember that natural rubber remains a sought-after material in many products. It has been suggested by some that one strategy would involve the government buying rubber from smallholders at a fixed higher price. 

    This may be funded by the entire downstream rubber industry, but keeping the rubber as stock may not be a good idea. This is because in a market with high inventories the world price will continue to be suppressed, which will make things worse. Another strategy is to use excess rubber in roads, as we spend a lot on road repair and maintenance year in and year out. I have observed that refilling potholes accounts for much of the maintenance costs. 

    The government should consider incorporating rubber in the road repair formulations. Studies by the Malaysian Rubber Board have shown that the durability of roads can be improved significantly by using a rubberised bitumen mix. The more important thing is that a high volume of cup lump rubber can be used directly. We should encourage all natural rubber-producing countries to do the same. That would take away a high volume of rubber from the stock and prop up world prices. The Bangkok-based International Rubber Consortium, funded by Malaysia, Indonesia, and Thailand, is supposed to manage stock levels. 

    However, it is dysfunctional and has never worked, so it may be time to close that organisation. Another threat to the production of natural rubber has also emerged. I am referring to the Pestalotiopsis leaf disease, which has been spreading in rubber-producing-countries lately. Rubber agrono-mists have confirmed that this debilitating disease can have serious consequences for rubber yield. Many studies have predicted a yield decline of up to 25 per cent if the disease is left unattended. Unless the right measures are developed to deal with this disease, the world supply of natural rubber will be adversely affected.

    It is in the interest of the world’s rubber industry to take this potential supply disruption seriously. We have not even touched on the supply threats to synthetic rubber, as the world pushes or NetZero. NetZero will lead to a decline in the supply of fossil-based synthetic rubber (SR). The fact that there are many applications that do not have a substitute for SR should cause concern in product manufacturers. Whatever it is, there is a strong message here that everyone must work together to ensure a sustained supply of rubber for the industry.  

"CAPITALISE ON SOARING RARE EARTHS DEMAND"

 by Professor Datuk Dr. Ahmad Ibrahim, Tan Sri Omar Centre for STI Policy Studies, UCSI University

It has been long predicted that the business in rare earths will head for soaring growth as the world pushes towards a“netzero” future. Lynas, the world’s largest producer of rare earths out side of China, has just reported three-fold jump in profits from year earlier, as world rare earths prices were almost 80 per cent higher compared with that of the previous year. the demand for rare earths for the manufacture of magnets, which are used to power electric motors, has seen a massive jump. Their use in iPhones and laptops remains strong as the world continues to digitalise. It has been announced that Lynas will expand production in its Western Australia-based mount Weld mine with a further injection of A$500 million. 

    It is good to hear that Perak has just announced investing in rare earth mining. A few other states with rare earth deposits, including Kedah and Kelantan, have also shown interest. this is an encouraging development. but we should not miss out on the opportunity to capitalise on the rare earths that are already accessible on our doorstep, from Lynas. We should not be perturbed just because of some misguided pressures from pseudo rare earth experts. Instead, get guidance from real experts, who are saying the opposite of doomsayers the radioactive risks associated with rare earth processing have been scientifically proven to be almost negligible. the environmental risks are also manageable with the right treatment regime, not much different from the usual chemical processing industry. there is no reason to be unnecessarily alarmed by the claims bandied around by the anti-rare earths groups. 

    In fact, we should be active not only in rare earth mining, but more so as a committed player in the entire value chain of the rare earth business. Investing in the rare earth industry will help us realise our high-income dreams. However, building the rare earth-based industry calls for careful planning and strategising. As usual, we should start with a roadmap or blueprint to guide us. but it must be action-oriented, not theoretical and academic. building a vibrant rare earth industry must start with the right business model. We need to be clear on our target market and the competition we will be up against technology is at the heart of the rare earth business. And we all know technology changes fast, so we need a kind of technology clearing house, which would advise industry on investments in research and technology development. Having the right talent pool is also critical in building such an industry. The blueprint has, therefore, to be holistic if it is to have any chance of success. since we are starting from scratch, attracting the right foreign investment should be the first step. 

    We should prioritise those with a good understanding of the market, as well as a good command of technology, even talent may need to be sourced internationally initially. but we should in parallel build our own talent capacity. Lynas is a good example of an international business where a high percentage of local talents is deployed. We need to eventually attract domestic investment because being over dependent on foreign investment will not guarantee the sustainability of the industry. As the world races to deliver the netzero future, the demand for rare earths is seen racing upwards. this has come about because rare earth elements have become a critical part in the manufacture of low carbon emission equipment that supports net zero. the key components include power magnets used in electric motors. As a country that has viable rare earth deposits, we should not hesitate to capitalise them for the nation’s socio-economic advantage. We have the capacity to be a viable global player.

"Profiting from Rare Earths"

 by Professor Datuk Dr. Ahmad Ibrahim, Tan Sri Omar Centre for STI Policy Studies, UCSI University

IT has long been forecast that the business in rare earth elements (REEs) will spike as the world pushes towards achieving the net zero target. Last July, Australia's Lynas Rare Earths Ltd, the world's largest producer of REEs outside of China, reported a 58% rise in quarterly revenue from a year earlier as prices of the elements were almost 80% higher than in the previous year. It has been announced that Lynas will further expand production in their Western Australia-based Mount Weld mine with a further injection of A$500mil. It is therefore good to hear that mining of REEs will be starting soon in Perak. Other states with viable deposits of REEs, including Kedah and Kelantan, have also expressed interest in this industry. But we should not be missing out on the opportunity to capitalise on the REEs industry that is already on our doorstep. We should not be perturbed just because of some misguided pressure from pseudo REEs experts. What the real experts are saying is the complete opposite of the doomsayers. The radioactive risks associated with processing REEs have been scientifically proven to be almost negligible. The environmental risks are also manageable with the right treatment regime, which is not much different from the usual chemical processing industry. There is no reason to be alarmed by the claims bandied about by the anti-REEs groups. In fact, investing in the rare earths industry will help us realise our vision of becoming a high-income nation. The fact that the commodity business is now being rattled by labour issues is creating more urgency to invest in the less labour intensive and higher paying industry like the REEs supply chain business. But this calls for careful planning and strategising. We should start with a roadmap or blueprint to guide us. This roadmap must be action-oriented, not theoretical and academic like many of our past blueprints. Building a vibrant rare earths industry must start with the right business model. We need to be clear on our target market and the competition we will be up against. Technology is at the heart of the REEs business. And we all know technology changes fast, so we need a kind of knowledge clearing house that would advise industry on investments in research and technology development. Having the right talent pool is also critical in building this industry. The blueprint must therefore be holistic if it is to have any chance of success. Since we are starting from scratch, attracting the right foreign investors should be the first step. We should prioritise those with a good understanding of the market and strong command of the technology. Even talents may initially need to be sourced internationally, but  we should in parallel build our own capacity. Lynas is a good example of an international business where a high percentage of local talents is deployed. We need to eventually attract domestic investment because being over-dependent on foreign investment will not guarantee the sustainability of the industry. Soaring demand for REEs has come about as investments in clean energy are increasing. REEs are critical in the manufacture of high-tech, low carbon emission equipment, including hybrid and electric vehicles, elect tronics, LED lights and wind turbines. As a country with viable REEs deposits, we should not hesitate to capitalise on this industry for the nation's socio-economic advantage. We have the capacity to be a global player. 

SUMMARIES

IT has long been forecast that the business in rare earth elements (REEs) will spike as the world pushes towards achieving the net zero target. Last July, Australia's Lynas Rare Earths Ltd, the world's largest producer of REEs outside of China, reported a 58% rise in quarterly revenue from a year earlier as prices of the elements were almost 80% higher than in the previous year.