Malaysia's deputy prime minister, Anwar Ibrahim, has stated that economic growth must exceed 4 or 5 per cent to avoid race riots like those that once rocked the country. Associated Press quoted Ibrahim saying that the economic pie must grow rapidly if there is to be no repeat of the racial riots of 1969 that left more than 500 dead. ``Below 5 or 4 per cent, there could be economic problems and it could be easy to exploit racial sentiments once again,'' Anwar said.

Prime Minister Mahathir Mohamad argued in his 1970 book The Malay Dilemma that Malays, who make up about half of the population, were culturally unsuited to competing with the ethnic Chinese entrepreneurs who dominated Malaysia's economy. Huge gaps in wealth helped fuel the race riots in 1969.

The country has changed dramatically since then, influenced by policies that give Malays preference in education, government loans and other programmes in an attempt to narrow the social gap. Economic growth of more than 8 per cent a year for the past nine years has dramatically raised Malay living standards.

``In Malaysia, where there are going to be adjustments, growth is easily going to be 7.5 per cent,'' this year, Anwar said.

Mahathir has named Anwar as his successor as Prime minister. Anwar said he was grateful for the support because that would allow the transition to be smooth.

Nike fires subcontractor for paying low wages

The Asian Wall Street Journal reports that Nike Inc. has severed ties with four Indonesian-based contractors because they failed to comply with the company's requirements for wages and working conditions. Nike has been under intense criticism from workers' rights groups because of allegedly poor working conditions and low wages at factories in Indonesia, China and Vietnam.

Nike identified only one of the subcontractors, Seyon. Nike said it has cut its relationship with Seyon, which manfactures speciality sports gloves, because it did not conform to Nike's policies that all contractors pay the country's full cash minimum wage. Seyon refused to meet a 10.7 per cent increase in the monthly minimum wage to $72.30 that was declared by the Indonesian government in April.

Nike said it was the first time it had fired a contractor following a review of compliance with Nike wage and code-of-conduct requirements.

Strengthening the human element

Your customer expects a price cut, but you have to keep coming up with more for your workers. The Asian Wall Street Journal reports that this vexation is part of the daily life of Dana Corp., the US.

Since 1995 Dana's Stockton (California) plant has been making truck chassis for a single customer: Toyota Motor Corp. To win Toyota's business, Dana promised to shoot for a 2 per cent price cut by 1997 and further decreases thereafter, something that auto makers increasingly expect of their suppliers. Toyota has long favoured the consistency of robotic welding, while Dana strongly favours the intuitive `feel' of human welders. So in this plant, a hybrid system puts each method to its best use.

The plant's founding manager, Mark Schmink, began by employing welders with zero experience, reasoning that unconditioned hands would be freer to explore new ways of welding. Early on he insisted that everyone learn every job in the plant and that no one receive a permanent assignment. Convinced that a diversity of people promotes a diversity of ideas, he wound up with 19 different nationalities in a work force totaling less than 300.

Through this and many other innovative HR policies, Schmink was able to increase the workers' productivity, and also supply truck chassis to Toyota at lower prices.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.