"I learned that courage was not the absence of fear, but the triumph over it. The brave man is not he who does not feel afraid, but he who conquers that fear.”

These are not my words, by any means. These came from a man who spent more than a quarter of his life in prison, a man who spent his entire life fighting for what’s right.

This man is Nelson Mandela.

What has he, and in particular this quote of his, got to do with this column, a column ostensibly aimed at asking thought-provoking questions of intelligent Malaysians citizens and residents on improving this country.

Everything.

Because the transformation journey that our country has started on requires one very important ingredient. An ingredient that is still missing from many of us, from all ranks and walks of life: courage.

I should first explain that transformation — of the government, of the economy, of corporations and especially of the self — is different from incremental change. Incremental change is like breaking from a trot into a canter, or even from a canter to a full gallop. Transformation is more like vine swinging. If you pay attention to how Tarzan and his ape friends do it, they need to totally let go of one vine in order to be able to reach out and grab hold of the next vine. The next vine that is tethered to a tree beyond and that will enable them to swing yet further out.

We all know the country badly needs a transformation. Ever since the Asian financial crisis of 1997/98, we have feared short-term “hot” money. They come, then they go easily and we are left with the mess. Well, they have gone and they have not returned. How do we know? Our stock exchange — how liquid it is, how vibrant it is, how large it is — is a leading indicator whether money is pouring into Malaysia. And the answer is clear. Our capital market has gone from being the the second largest in Asia (after Japan) to merely the third largest in Southeast Asia (after Singapore and Thailand), and we may soon be overtaken by the Jakarta Stock Exchange.

Those of us who got badly burned 12 years ago may argue that this in itself may not be a bad thing. But couple that with the fact that long-term money, of the FDI kind, has also shunned Malaysia, and we must sit up and take notice. Foreign direct investment inflows in 2009 dropped 81% from the year before, and is merely a third of the average per annum inflow of the years before. Investors into Asia are preferring China, India, Vietnam and Singapore.

The brave ones would say, let’s depend on domestic investment. Yes, that would work, but only if we have a large enough local market. No, I’m not suggesting one that’s a billion-strong like China or India, or even a quarter of a billion-strong like the US or Indonesia. The magic number is 50 million people. Think the Philippines (92 million), Vietnam (86 million) and Thailand (64 million). Incidentally, Thailand is merely the 50th largest country in the world. If Steve Jobs needs to find inspiration to sell his next billion products and wants to tap into new, exciting, vibrant consumers, where do you think he would go to contemplate his next breakthrough; where do you think he would rather design and produce the next product? 

Earlier this year, Lee Kuan Yew told Singaporean bankers at their annual banks’ association dinner that Singapore’s banks are not big enough to compete regionally and globally. OCBC — the smallest of the three Singaporean banks — is 50% larger (in market capitalisation) than Maybank, Malaysia’s largest. If we are to remain a relevant part of the global economy, we must become more attractive to the world and our companies must become bigger and better. And we need to do it fast.

Hence, transformation. Given our scale disadvantages, merely trying to trot faster will not do. In my previous articles, I’ve recognised that our nation’s leaders are prepared to confront these new realities, and have plans to fix and sustain our sources of competitive advantage. I have asked Malaysians to not lose faith and to believe that we can do it. I’ve also suggested that we need to have the will.

Well, the time has come.

We need to unshackle ourselves from the vines and ropes that have held us fast to the past. And we must have the courage to let go. We must be prepared to suspend ourselves, in mid-air with no safety net, in order to catch the next vine.

At the risk of reminding all Malaysians ad nauseam, we have merely one more decade to show the world what Malaysians are made of. In 2020, we can either stand tall and bask in the glory of having fulfilled our own aspiration of progressing from third world to first, or we can watch more neighbours swing ahead. Most of us will still be around in 2020. Let us not allow Malaysia to falter on our watch.

I started with a quote from a great man who unified a fractured country. I conclude this month’s essay with another famous quote of his.

“It always seems impossible until it’s done.”

With this, Vincent Chin will conclude his 42 column. He will return occasionally next year to comment on the latest developments in management and leadership.His previous columns in Management@Work can be found under the Management section at www.theedgemalaysia.com

This article appeared in Management@work, the monthly management pullout of The Edge Malaysia, Issue 817, Aug 2-8, 2010.