The Global Economy in Turbulent Times

CHAPTER 85 Blue Ocean That’s Also Green¹

For some time now, I have advocated that we need a sufficiently large second stimulus plan to meet two major policy objectives: Create (and retain) jobs for Malaysians by adding value (up the value chain) and launch a new initiative to restructure the economy (especially manufacturing) with a strong tinge of green. These are both short- and long-term goals. They overlap and are mutually reinforcing. Current circumstances call for it. We need to act now, because preparation takes time, and their multiplier effects are known to have a lag over time. But its announcement impact is immediate—and helps to build confidence that firm leadership is there for better prospects.

What does adding value mean in practice? The starting point is, of course, innovation. Empirical evidence has shown that, historically, innovation is needed to drive rapid, and, more importantly, sustainable growth. Simply put, innovation refers to new products or services, new business processes or systems, and organic changes that add value to whatever we do to create wealth and social welfare. We definitely need fresh thinking and approaches to add (i.e., create) value. That’s what we should be doing.

In addition, if we can get to do all this and at the same time reduce waste and the carbon footprint, we can help protect the environment in a very sustainable way (go green). One practical way to go about doing this is to create blue oceans that are also green. W. Chan ...