Outsourcing and off-shoring

Globalisation has resulted in the world becoming a big family. This is especially so for big businesses that operate all over the world. In the process, we have 2 new business  practices that are often used by multinationals to maximise production at the lowest cost.

These are known as ” off-shoring” and ‘outsourcing”.

Many of the electronic giants set up factories in low wage countries such as India, China, and to a lesser extent Asean countries. These factories produce parts that are more labour intensive and thus, by using the manpower of the low wage countries, the manufacturers save on labour costs and become more competitive. This is offshoring.

Products nowadays have become so sophisticated that no one manufacturer can manufacture all the parts in a final product. Let’s take a computer. There are so many parts involved. So manufacturers have started a process called outsourcing, and let other businesses produce certain parts for them..  Outsourcing has lots of advantages, one being the economy of scale, costs become lower as the outsourced producers often concentrate on doing only a few items and thus become more specialised and have a certain economy of scale since they often produce the same parts for many big manufacturers.. An example being the hard disc manufacturers for computers. Seagate manufactures for many brands and thus become more specialised and has economy of scale to bring down costs. This is outsourcing.

The Big Brother has learned from these business practices and learned well. Prior to 2008, racial rhetorics –including that of a Youth Chief brandishing a Keris– cost them many votes especially among the urban people. So now they have learned their mistakes.

They have outsourced the racist and extremist  part  to a NGO.  So to many people, especially the less politically inclined, the Big Brother has become less racist and the “One”  slogan holds out hope for them, thus making them reconsidering their stand of whether their votes should go back to the Big Brother. On the other hand, the outsourced NGO’s  continued racial rhetoric, complemented by the Old Horse’s distorted logic, makes  sure that the rural Malay votes would go back to them as these rhetoric and twisted logic play onto the insecurity psyche of the rural indigenous  population.

This is typical of double-faced tactic, acting differently to different audience groups. Only this time, they have outsourced one face to NGO and keep the other face to show to the other group of audience. I suspect the top brass of all the component parties knew about this tactic, but chose not to answer them when members asked about this.To the top brass, nothing matters more than their own positions and future prospects..  I personally have raised this many times on deaf ears.

Then they also employ Off-shoring. Some of the politicians aligned to them have set up minor political parties. The purpose of these off-shored parties is to create multi-cornered fights to split the votes of those who would vote for  opposition because  they are fed up of the Big Brother. Many of these people voted the opposition the last time not because they like the opposition, but because of their dislike of the Big Brother.. So these minor parties– there are now too numerous to name ,” Love Party”  “Guitar Party” etc etc  –will play such roles to split the opposition against the Big Brother.

Off shoring is now being employed to the hilt in the Sarawak State Election. By having multi-cornered fights, the advantage is with the Big Brother. This, coupled  with their formidable election machinery and almost unlimited resources,  makes sure that the opposition will face the most difficult fight in their quest to obtain more than one third of seats..

The Big Brother has learned well and employed business tactic well.  So the big question is:  Can the opposition do a 308 in Sarawak?


(this post is also posted under breaking view of Malaysian Insider here)


12 Comments (+add yours?)

  1. Richard Loh
    Apr 08, 2011 @ 12:53:10

    The great truth told in writing. Many of us had known it to be this way but you put it in such a clear cut way.

    Dr. Hsu,Request permission for reprint on my blog.



  2. Dr Hsu
    Apr 08, 2011 @ 13:10:03

    You can repost this..


  3. Jimmy Liew
    Apr 08, 2011 @ 13:36:11

    Explained so well. Easy to understand for everybody. Well done and thanks


  4. CYC
    Apr 08, 2011 @ 14:20:12

    What is the big deal, BN component parties were also act in the capacity as out source company where there were special officers to MBs and Ministers specialised in handing out IC to old folks over 65 years, handing over allocation of development fund to temples, schools etc. By doing so, they inflate the cost of baking the cake but size of the cake remained the same if not smaller.

    PR will not win the Sarawak election for sure, but just hope that DAP can finish off SUPP once and for all. If you want finish off somebody, no need to kill that person directly. U can always chop off his hand or leg first. As long they loss 2/3 majority, they will be in dire street.


  5. anak sarawak
    Apr 08, 2011 @ 15:36:06

    With the Allah and NCR issues, Dayak / Iban has wake-up. Moreover, the children of Dayak and Iban are more educated now. They will able to influence their parent on who to vote. Off shoring may not work in this Sarawak State Election like the Kedah Bukit Selambau by-election where there are more than 10 candidate fight for the seat! Hope the Sarawakian has wake-up and do a 308 in Sarawak on 16 April 2011.


  6. monsterball
    Apr 09, 2011 @ 03:55:09

    Corruptions have reached the stage where murders and suicidal cases reported.
    PM’s support to get rid of corruptions have been proven to be votes getting…to fool ordinary Malaysians.
    The recent event showing one died with the truths died with him…is a clear sign…big fishes are safe and will not be exposed.
    Corruptions is so clear and huge.
    One like Tiab Mahmud accused with so much details….MACC is not investigating.
    To know these crooks are united…..Najib supports Tiab Mahmud..ignoring all accusations.
    He dare not even comment on what were exposed.
    Mahathir…Tiab…Najib are the big fishes…with string of cronies..relatives and trusted friends for hundred of billions stolen.
    If these are not true….how can one poor man have more that RM1billion found in his house?
    With such money belonging to him….he can employ all sorts of people to do wonders for him..yet this man commit suicide…to keep all Malaysians keep guessing….whose money that belongs to.
    No need to guess.
    That is a poor soul that need to die and shut up….and that is the way band of robbers and thieves operate.
    Get caught…die or whole family die.
    The signs are very clear.
    Malaysia is managed by a band if robbers and thieves…since Mahathir took over as PM for 22 years with his new UMNO B.
    He is the mastermind.
    He kills more than cure as a doctor.
    I hope he is very proud of his achievements…and ideas how to buy up the whole country with money.
    Why be confused with off shores ..money laundering …and the few huge companies like PKFZ…Berjaya Steel…Bakum Dam…Banks changes hands…Stock exchange looses….all know…stocks gaining…went to private pockets….so many bail outs by the billions..on and on.
    Nothing to be confused about.
    It involves hundreds of billions for personal…party and side kicks.
    UMNO B is corrupted to the core…for past 30 years.
    This is not like any Dictatorship government.
    Mahathir is well known for his dirty politics.
    And UMNO B is the dirtiest political party in Malaysia.. stealing from the poor and bluffing his own race.
    How dirtier can you get?


  7. Li Li Fa
    Apr 09, 2011 @ 10:55:35

    Dr. Hsu, I like the way you link ‘Globalisation’ with the current political situation in Sarawak.

    These splinter groups created by the BB will definitely have an effect on the coming State election. This reflects on the BB’s using all known tactics and ploys to hold on to power in the State. That is a strategic move from the HQ. I believe that , in the local front many other ‘globalization’ tactics employed by the local BB. They must have adopted the slogan to think global but act local. As it is, a political analyst from the Peninsula has recently been barred from entering the State.

    I also believe that the people’s will, might and power should and will prevail ; resulting in moving from darkness into light for the better of the State and the nation as a whole.


  8. wisely
    Apr 09, 2011 @ 21:05:50


    This is a good analogy but i have this to say:

    1. This is what we call political game and political reality.

    2. The fact that Dominuqe Ng and Voon were dropped as candidates due to the switch prove that there are some internal backstapping though both were ADUNs and listen to what Dominque says about how Anwar promised him a week earlier that he will be maintained but totally left out also speaks a lot about fractions in PKR.

    3. PKR is not the strongest in Sarawak. If they are, then they should let SNAP stand in Iban majority areas and they should stand only in melayu melanau majority areas as well as Bidayuh and orang ulu majority areas. They should take on PBB and let Snap take on PRS and SPDP as DAP takes on SUPP. Too ambitious to take on 3 BN component parties and now Snap, PCM and independents. Simply because the votes will split and in 2006 those were Snap seats!

    4. I believe the story or speculation that SNAP were BN trojen horse started by RPK but if it is true why PKR negotiate with SNAP to the very last second? and still they maintain a good relationship or try to maintain a good relationship with SNAP and until today no PKR leaders spoke about it?


  9. beh tahan
    Apr 10, 2011 @ 01:03:14

    Think ‘wisely’ and don’t speculate wildly if we ‘re not actual in the board of directors’s meeting.This world is not so sweet like we wish to think.Change is the only option to break away from the dire state we are stuck into.Dr.Hsu,am i right?Your wind of change inspired me to go all out for the better of bolehland!!


  10. CYC
    Apr 11, 2011 @ 17:56:58

    Wise man,

    When was the last time, Gelakan and MCA’s requests/proposals were honoured by UMNO ? These 2 beggars were disgracing yet you talk about political reality. What reality are you referring to? Ask KTK to stand up first and don’t be an OKU when dealing the taikor.


  11. wisely
    Apr 11, 2011 @ 21:26:24


    I feel like writing something for Prof Dr. Sim here:

    1. I would really like to see him vote into DUN and see him serving people from the heart.

    2. Already he has 10 years of secrifice for Sarawak people by giving up millions dollar practice in Australia for Sarawak people by setting up cardiology department in Sarawak. I believe many sarawak people indebted to him.

    3. This is a good pattern of sacrifice one has to made by coming back to Malaysia – a top brain in his area – a much needed area in Malaysia esp sarawak – coming back to malaysia and today pleaded to be given 5 years to serve the people of sarawak – who is not touch?

    4. After so much service and sacrifice and if voted out – i won’t blame him if he pack his bag and went back to Australia to earn his millions!

    By the way, Tony Pua who also gave up his million dollar public listed company in Singapore to come back and win against the most hard working MP at that time Chew Mei Fun and has proven himself to be an asset to the party and nation. I don’t think Prof Dr. Sim is any less than Tony Pua!

    Sarawakians – Give Dr. Sim a chance!


  12. CYC
    Apr 12, 2011 @ 08:47:57

    My dear friends,

    Never give any chance to any SUPP candidates so as we wiped out Gelakan at 308. Never judge a person by merely listen to manifesto. Look at the motive and what lies behind the veil.


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