The power of diversity and inclusiveness
HAVE you ever pondered how embracing diversity and inclusiveness can become a powerful catalyst for economic growth and progress; lead to a strong economy and inclusive growth; build vibrant, cohesive and resilient communities; and create an agile and productive workforce?

The transformative power of embracing and integrating our diverse cultures, languages, perspectives and experiences into the planning and formulation of public and social- economic development policies as well as decision-making processes at every level is the core of creating a more sustainable and equitable society.

A lot of research on the economic impact of population diversity, focusing on a multitude of transmission channels ranging from skill variety, social interaction, innovative networks, institutions and the provision of public goods to trust, social participation, and conflict.

In a complex business environment, diversity and inclusiveness have been increasingly recognised as pillars of economic success.

Diverse and inclusive teams through open deliberations bring different perspectives and new ideas, which can lead to more creative problem-solving and innovation as well as boosting employee’s morale and productivity.

Embracing diversity and ensuring that everyone’s voice is heard and valued in the decision-making process can lead to a more sustainable, equitable, and prosperous future.

The Malaysia Madani concept or “civil society” as espoused by Prime Minister Datuk Seri Anwar Ibrahim envisions a country that believes in humanity and values like fair, just and effective governance based on six core principles – sustainability, prosperity, innovation, respect, trust and compassion.

The Prime Minister recently said that the economy will be the main focus in 2024, while also putting more emphasis on ensuring Malaysia’s security, rich culture, and language proficiency among the public.

Malaysia’s diverse heritage and cohesive multi-cultural society offers a unique perspective and diversity strength to hold our nation and people together in the discourse of social and political development.

There are several provisions in the Federal Constitution that in its implementation reflect diversity and importance of the races in this country. Article 8 states that all individuals are entitled to the equal protection of the law and it is intended to promote racial diversity.

I will explore the importance of embracing diversity and inclusiveness in maintaining sustainability and the positive transformations it can catalyse growth and generate economic benefits.

First, diversity is integral to sustaining a strong economy; ensuring an inclusive growth; and sharing of economic prosperity.

While the natural resources endowment, capital formation, technological innovation and human capital are important ingredients to synthesise economic growth and development, cultural and gender diversity and openness to different cultures, religions and languages also played key roles in economic development.

High levels of diversity are better able to adapt new technologies and ideas.

Studies have argued that political instability and cultural conflict may undermine economic institutions and policies as well as may result in corruption and poor economic performance.

High levels of population polarisation undermine economic development.

Second, maintain a diverse and inclusive economy, which treats all groups on an equal footing and free from any form of discrimination.

Everyone will have equal opportunities and treatment to contribute fully to development and share equitably the economic benefits and dividends of development.

Nevertheless, targeted intervention and an adequate social safety net to protect the vulnerable and needy groups, regardless of race and geographical. Better inclusion and diversity also benefit the economy through better optimisation of public resources and income distribution.

Third, cohesive cultural diversity provides a competitive advantage and enhances Malaysia’s appeal as an education hub for international students.

It helps to enhance our teaching and learning methods as well as research and innovation that can rival developed countries.

It also contributes to the nation’s revenue and foreign-exchange earnings.

The internationalisation of Malaysia’s education sector would generate benefits and experiences for both resident students and international students.

These include promoting racial and culture awareness, better understanding and respecting various ethnic and cultural backgrounds, greater openness to diversity and challenges, as well as enhanced critical thinking.

Fourth, companies embracing diversity with inclusive cultures are better positioned to attract and retain a wider pool of talent.

A high value-added, artificial intelligence and digital transformation process requires multi-dimensional perspectives, creativity, critical and analytical thinking, technical knowledge and strategic planning.

Hence, domestic companies and multi-national corporations can attract and draw on the largest pool of talent from a diverse workforce of different races, culture and gender without eliminating any person based on his or her skillset, qualification and performance.

In a competitive environment, diversity strengthens our economy and enables us, including companies to out-compete our rivals.

Malaysians’ multi-lingual abilities and proficiencies foster better understanding, and give employees new opportunities to grow and learn.

It is a selling point that attracts a diversified base of foreign investors to invest in our country.

For example, Malaysia’s cultural similarity with China with most Malaysian Chinese being trilingual (conversant in Mandarin and a vast array of Chinese dialects) is one of the compelling pull factors attracting China investment.

Fifth, increased mobility and multiculturalism as well as cross-cultural interactions of workforce in the workplace or an organisation can increase the performance of a business by bringing creativity, innovation and other enhancements.

Individuals or teams with different perspectives and experiences interact in constructive deliberations could come out with better ideas, and decision making as well as encourage more innovation and creativity.

In ensuring inclusivity, businesses should devise proper strategies to create a sense of belonging, promote tolerance, acceptance and respect for cultural diversity.

The trade globalisation, increased workforce adaptability, global market expansion and recognition of the contribution of diverse employees are the factors that lead to how managing diversity can benefit from emerging cross-culturalism or ethnicism.

Companies that embrace diversity and inclusiveness are often better positioned to adapt to changing markets and customer needs.

Sixth, Malaysia must leverage on its rich cultural diversity to boost the niche and cultural ethnic tourism industry, the more popularly known as nature or eco-tourism, which offers tourists varied ethnic cultural heritage and festival experiences.

Cultural events and ethnic festive celebrations as well as cultural precincts/villages (such as the traditional kampung, China town, Portuguese settlement and Orang Asli settlement) displaying multi-ethnic heritage can drive tourism and increase tourists.

These unique experiences of ethnic cultural diversity provide an advantage over competing tourist destinations.

In conclusion, Malaysia needs to manage its diversity and cultural tolerance for improving its economic performance.

The mismanagement of diversity may create social conflict and disrupt stability, end up becoming a liability rather than an asset to economic development.

Openness and diversity operating alongside technological innovation and human capital are the key engines of economic prosperity.

Diversity and social tolerance are essential elements for sustaining the economy and making the country more open to the global economy.

The government and public institutions should adopt pragmatic policy approaches to achieve fairness, inclusiveness and recognition.

This, in turn, will enhance the level of tolerance, innovation and productivity in the economy.

Lee Heng Guie is Socio-Economic Research Centre executive director. The views expressed here are the writer’s own.
Economy
HAVE you ever pondered how embracing diversity and inclusiveness can become a powerful catalyst for economic growth and progress; lead to a strong economy and inclusive growth; build vibrant, cohesive and resilient communities; and create an agile and productive workforce?