THE COMPASS MARCH 2018 ISSUE #4 IN THIS ISSUE A Spectre to Exorcise Will 2018 Still Be A Better Year? Services and Global Production Value-Chain: The Next Stage of Growth in ASEAN Behaviour of Malaysian Ringgit (MYR) Relative to Comparable Currencies, 1990-2016 What We Can Learn From the Global Trade Slowdown Sunway University Takes on Challenges Ahead Is Malaysia Stuck on the Cyber Highway’s Slow Lane? Historical Amnesia of the Scientific Mind in Southeast Asia Leveraging Measurable SDG Indicators for Prioritisation and Problem Solving in the ASEAN Context IN THIS ISSUE INTERNATIONAL ACADEMIC ADVISORY COUNCIL (IAAC) ESSAYS Page 4 HRH Sultan Dr Nazrin Shah Ibni Dr Mari Elka Pangestu Will 2018 Still Be A Better Year? Sultan Azlan Muhibbuddin Shah Professor, Universitas Indonesia; Page 6 The Sultan of Perak Darul Ridzuan Former Minister of Tourism and Services and Global Production Value-Chain: The Royal Patron, Jeffrey Cheah Institute Creative Economy, Indonesia; Former Next Stage of Growth in ASEAN on Southeast Asia; Royal Research Minister of Trade, Indonesia; Former Page 7 Professor, Sunway University Executive Director of the Center for TABLE OF CONTENTS TABLE Strategic and International Studies, Behaviour of Malaysian Ringgit (MYR) Relative to Comparable Currencies, 1990-2016 Prof Dwight Perkins Jakarta PRESIDENT’S MESSAGE Page 7 Chairman, IAAC; Harold Hitchings Prof Tony Saich What We Can Learn From the Global Trade Burbank Professor Emeritus Slowdown Kennedy School of Government, of Political Economy, Harvard Page 8 Harvard University WOO WING THYE University; Research Professor, President, Jeffrey Cheah Institute Sunway University Takes on Challenges Ahead Sunway University on Southeast Asia Prof Mark Smith A SPECTRE TO EXORCISE Page 9 Is Malaysia Stuck on the Cyber Highway’s Slow Prof Karen Thornber Vice-Chancellor, Lancaster University Lane? Victor and William Fung Director, Dr Chalongphob Sussangkarn Page 10 Harvard University Asia Center; Former Minister of Finance, Thailand; A new spectre is haunting Southeast Asia – the spectre of religious by teaching their followers acceptance of other belief systems. Historical Amnesia of the Scientific Mind in Chair, Harvard University Asia Southeast Asia Former President, Thailand extremism. However, unlike the past when all the powers They should also speak out against political leaders who Center Council; Professor of East Development Research Institute entered into a holy alliance to successfully exorcise the old demonize other religions. Equally importantly, the religious Asian Languages and Civilizations Page 10 spectre of hardline socialism, the same is not happening today. moderates, who form the majority, must prevent the minority and of Comparative Literature, Leveraging Measurable SDG Indicators for Prof Dato’ Dr Tan Tat Wai The phalanx of strong security agencies that won the Cold War religious extremists from hijacking their religious organization to Prioritisation and Problem Solving in the Harvard University Research Professor, Sunway University with relentless suppression of – and frequent over-reaction to – advocate discrimination against other religions. ASEAN Context political challenges has remained in place, but many of today’s Tan Sri Dato’ Seri Dr Jeffrey Cheah AO EVENT HIGHLIGHTS Prof Emeritus Wang Gungwu, CBE ASEAN governments have been unusually pusillanimous in the Religious extremism makes life on earth hell in many ways, Founder and Chairman, Sunway use of their security apparatus to extinguish this new spectre. apart from blowing up people. For example, the Taliban’s ban Page 12 Chairman, East Asian Institute, Group; Trustee, Jeffrey Cheah The result is that this new spectre now operates openly and no on education for woman ensures that Afghanistan will remain JCI-MEA Economic Seminar Series National University of Singapore; Foundation; Founder and Chancellor, Chairman, ISEAS-Yusof Ishak longer hides in the tawdry shadows of disreputable whispered backward economically and socially because Afghanistan will be Page 14 Sunway University Institute; Former Vice-Chancellor, discussions. using only half of its national brainpower to compete against the ASEAN Ministers Workshop University of Hong Kong rest of the world in technological acquisition, understanding new Page 15 Prof Fan Gang The oppression of the Rohingyas by Buddhist extremists in social trends, and entrepreneurial innovation. TN50: The Road Ahead Director, National Economic Research Prof Graeme Wilkinson Myanmar is not an acceptable solution to the difficult problem of Page 16 Institute, China; Professor, Peking Vice-Chancellor, Sunway University defining national identity. The jailing of former Jakarta governor, Even Malaysia, which had been often held up as a model of Transformations of Malaysian University Models University; Former member, Basuki Tjahaja Purnama, on blasphemy charges confirms the religious moderation that kept peace in a multi-ethnic society, is for Sustainability Monetary Policy Committee of the Prof Dato’ Dr Woo Wing Thye extreme ease with which people can be emotionally roused to now showing some harsh differences in doctrinal interpretations Page 16 People’s Bank of China President, Jeffrey Cheah Institute on fight for their faith. Because religion is, and has been, such a e.g. the attempt to establish a Muslim-only launderette in Muar, The Malaysian Federation: Views from East Southeast Asia; Professor, University strong mobilizing force all over the world from time immemorial, and the detention of the renowned Turkish public intellectual, Malaysia Prof Tan Sri Dr Ghauth Jasmon of California, Davis; Director, East unprincipled politicians have constantly resorted to this Mustafa Akyol. Neighbour Sri Lanka is a reminder of what Page 16 Senior Fellow, Jeffrey Cheah Institute Asia Program, Earth Institute, fearmongering method to further their careers. happens when opportunistic politicians use religious zealotry The Many Shades of Islamism and Islamists in on Southeast Asia; Board Member, Columbia University; Board Member, to win elections that lead inevitably to the destruction of the Malaysia Sunway University Sunway University It is essential that we remember that none of the original economy and to horrific carnage. Page 17 proponents of the main world religions – like Lao Tze, Siddharta, New Media and Poitics in Southeast Asia: Social Dr Elizabeth Lee Prof Yoon Young-Kwan Jesus, and Muhammad – ever called for genocides to completely Neighbor Indonesia will hold regional elections in June 2018 and Media, Citizens and the Digital Revolution Senior Executive Director, Sunway Professor, Seoul National University, extinguish competing systems of beliefs. On the contrary, general (parliamentary and presidential) elections in April 2019. Page 17 Education Group and Sunway South Korea; Former Minister of they instruct us to live in peace with the followers of other Given how religion was used successfully to galvanize voters in Materially Poor, Morally Rich: University Foreign Affairs, South Korea faiths, accepting them for what they are and not just tolerating the 2017 Jakarta gubernatorial election to bring about an upset, The Orang Asli, Malaysia’s First Peoples them begrudgingly. Religion is a personal choice undertaken it is widely predicted that the 2018 and 2019 elections will be the Dato’ Sri Idris Jala Prof Tan Sri Dato’ Dr Lin See-Yan voluntarily. struggle for the soul of the country between traditional Indonesia- EVENTS CALENDAR Managing Director of the Big Fast Research Professor, Sunway style Islam and the relatively recent import of strict Arab-style Results (BFR) Institute; Chief Page 18 University; Former Deputy Governor, These great teachers had the humility not to play God. They yield Islam. The former supports the secularism of Indonesia’s founding Bank Negara Malaysia; President, Executive Officer (CEO) of the Performance Management and Delivery to God to decide on Judgement Day who enters into heaven, or principles (Pancasila) and the latter rejects it. JEFFREY CHEAH TRAVEL GRANTS Harvard Club Malaysia Unit (PEMANDU) in the Prime who gets reincarnated to a higher life form, etc. Page 21 Minister’s Department, Malaysia We wish our Indonesian compatriots wisdom in picking their Ms. Lee Siok Ping Prof Kiyohiko Nishimura Religious leaders in Southeast Asia should show similar humility leaders, and we wish the victors humility in leadership. Page 22 Dean, Economics Faculty, University Prof Richard Graeme Larkins, AO Dr Benedict Valentine Arulanandam of Tokyo; Former Deputy Governor, Ms. Priya Sharma Amarjit Singh Former Chair of Universities Australia Bank of Japan OUR TOP TEN MOST POPULAR Prof Sibrandes Poppema ISSUE #4 VIDEOS President and Professor of Pathology, Page 23 University of Groningen, Netherlands 02 03 WILL 2018 STILL BE PROF TAN SRI DATO' DR LIN SEE- YAN A BETTER YEAR? Research Professor, Sunway University ESSAYS ESSAYS Former Deputy Governor, Bank Negara Malaysia President, Harvard Club Malaysia Early in the year is an insane time for the Wall Street community of as the European Central Bank prepares for its own. The IMF has evident in commodity prices? More importantly, how sustainable is GDP growth rates slackening towards 5-5.5% in the coming year, economists, stock analysts and bond strategists, as they go about since upgraded its forecasts for world economic growth for 2017, the rally? The delay in price increases is the easiest part to explain. building on continuing steady growth in Q4 of 2017. However, defining year-ahead