|
a r c h i v e |
Malaysia globomalaise State House UN NGOs
corporations & resources |
ASEAN munitions Chinese censorship
women indigenous Anwar Ibrihim |
| M ALAYSIA | ||
| news archive McKinney cite |
|
1999 Country Reports on Human Rights re Malaysia soc.culture.malaysia egroups AgendaMalaysia Islamic news re Malaysia Malaysiakini New Strait Times Singapore Washington Post NYTimes London Times |
|
Important view map before reading about Malaysia. Gerrymandered border has dozens of potential flashpoints. Ethnic mix to match. It's in center of 6 heavily armed neighbors, all relying on fish, oil & trade of S.China sea. Its ruler is longest reigning in Asia. No communist or other armed rebel since 1950s in 22million population. Is this taipans' peace? PM Mahathir "Tito of Islam" |
||
|
Malaysia govt historical bkgd |
Anwar Ibrahim prosecution is "distraction from Malaysia's economic problems: The ringgit lost roughly a third of its value in the year ending September 1998. This economic strain is an exception in a decade that has seen "strong economic growth [that] has led to significant reductions in poverty, an improved standard of living, and more equal income distribution," according to the State Dept human rights report. … In spite of U.S. criticism, recent economic troubles, & relatively peaceful neighbors like Thailand, Malaysia still found money to buy (or be permitted to buy) a little more than $1.95 billion in arms from the United States. Marquee items included five C-130 Hercules transport aircraft from Lockheed Martin, but that contract is almost overshadowed by Boeing's big score: eight F/A-18D Hornet fighters tricked out with an alphabet soup of ordnance, including dozens of AIM-7M Sparrow, AIM-9S Sidewinder, AGM-65D Maverick, and AGM-84A/C Harpoon air-to-air missiles.
7/27/00 State Dept Military Expenditures annual rpt re Malaysia
Malaysia has been a major contributor of military personnel to U.N. peacekeeping operations since the early 1960's starting with the Congo, more recently in Cambodia, Somalia & Bosnia. Defense Minister announced Jul.98 no longer engage in any peacekeeping missions at own expense because of national austerity measures. … overall budget, including military spending, is debated in parliament. Future budgets may come under greater scrutiny since the opposition coalition gained a number of parliamentary seats in the November 1999 general elections.
1/27/00 Malaysia at
9/28/00 Pending 'Restoration of Faith (Apostasy) Bill' enforcing Muslim intrafaith tyranny . Conflicts with Article 11 Fed.Constitution, guaranteeing freedom of religion. Aimed at curbing 'apostasy' and the dissemination of deviant religious teachings.
9/25/00 "Welcome to the New Malaysia" F.Noor, Frei Univ. Berlin
9/21/00 "Two years after 'reformasi'" A.Netto
Opposition leaders contend the trial highlighted ruling party's influence over media & police, who beat Anwar while he was blindfolded and handcuffed soon after his arrest. "They used to be more discreet about it," Rustam said. "Now the government just openly abuses our institutions of democracy." The government maintains that the country's courts are independent. Mahathir citing cases in which UMNO members have received stiff sentences. Despite growing disenchantment with Mahathir's party, political analysts here question whether the opposition will be able to capitalize on it. Opposition parties have much smaller grass-roots networks than UMNO, which is known for having one party representative for every 10 homes. Pan-Malaysian Islamic Party, which wants to turn Malaysia into a strict Muslim state in which women would be required to wear head scarves and liquor would be prohibited, has not found much support among the country's significant Chinese and Indian populations.
2/28/00 "Illiberal Malaysia" Wash.Post
Aliran Malaysia's oldest human rights group
9/25/00 "Change is inevitable" K.Sugu
2/99 Globoculture infection in Malaysia G.P.Zachary
7/26/00 Powerful East Asian caucus launched M.Abbugao
3/9/00 Malaysian offers support against Indonesian rebels
10/2/00 "KL tightens immigration checks"
1/12/98 SecDef Cohen with former Deputy PM A.Ibrahimin
9/9/99 State Dept. Human Rights annual rpt
Indigenous groups & persons (i.e. descendants of original inhabitants of peninsular Malaysia & Borneo states) generally enjoy same constitutional rights as rest of population. However, in practice federal laws pertaining to indigenous people vest almost total power in the minister responsible for indigenous people (currently the Minister of National Unity and Social Development) to protect, control, & otherwise decide issues so particularly in peninsular Malaysia indigenous have little ability to participate. People in Sarawak state continue to protest alleged encroachment by state &
private logging & plantation companies onto land they consider theirs by customary rights. Laws allowing condemnation & purchase of land do not require more than perfunctory notifications in newspapers to which indigenous people may have no access. After long feud with neighboring villagers, 4 plantation co. workers were killed Sept.99 in Sabah state in response to repeated encroachments on what indigenous residents regarded native land.
busy day from Malaysiakini
Index on Censorship re Malaysia
Malaysia per
Fed. Amer. Sci.
8/16/00 "Baghdad airport to reopen Thursday despite embargo"
9/18/00 BACKGROUND PAPER PDF REPORT ON HUMAN RIGHTS IN MALAYSIA Regression rather than Progression Johan Saravanamuttu
9/99 UNHCR country report
when is it OK to beat the U.N. envoy for shooting off his mouth ?
7/23/99 SecGen K.Annan letter Economic & Social Council will consider this at its current substantive session. Notwithstanding Legal Counsel's efforts and Dato' Param Cumaraswamy's motions to dismiss the four lawsuits pending against him in the Malaysian civil courts, the competent judicial authorities have fixed the first suit for case management on 6 August 1999; fixed the application to strike the second and third suits for hearing on 5 August 1999, and postponed the application to strike the fourth suit.
7/25/97 UN Sustainable Development Review chapter from Edw.G. Robinson's volume on Soylent Green
1999 HR rpt precis:
10/6/99 Intl Religious Freedom annual rpt
Govt generally respects non-Muslims' right of worship; however, state governments carefully control building non-Muslim places of worship & allocation of land for non-Muslim cemeteries. Approvals sometimes granted very slowly. Implementation does not appear vigorous. Proselytizing Muslims by other religions prohibited strictly, proselytizing non-Muslims no obstacles. Govt for long time discouraged, in practical terms forbidden, circulation in peninsular Malaysia of Malay-language bible translations; Malay-language Christian materials can be found. Govt has extensive preferential programs for ethnic Malays & members of few other groups known collectively as "bumiputras," most Muslim to boost economic position of Malay majority, which remains poorer on average than Chinese minority. These limit opportunities for non-Malays in higher education, govt employment, business permits & licenses, & ownership of land. Govt says instrumental in ensuring ethnic harmony & political stability. Ethnic Indian Malaysians continue to lag behind in the country's economic development. Small component party of ruling coalition proposed Aug.99 to abolish ethnic quotas, govt rejected proposal. Country's various believers generally live amicably. Mar.98, Hindus & Muslims violent confrontation in Penang village over the location of Hindu temple near mosque. Police quickly restored order & handled problem evenhandedly. Govt since devoted considerable effort to resolving the underlying dispute.
State Dept 1999 Human Rights, Intl Religious Freedom, Trade & Military Expenditures reports
Jan.99 Malaysia in 1998 Cornered Tiger Bares Its Claws detailed economics & politics
results of Chinese enterprise in Malaysia & SE Asia
World's leading exporter tin & rubber, long Britain's most lucrative colony. Communist-led insurgency, militant labor orgs, & nationalist groups in new postwar intl situation ensured independence from British. Nonetheless, smooth transfer of power to Malayan elite. Constitutional monarchy: 9 of 13 states have hereditary rulers (sultans) dating back to the colonial era, often claiming legitimacy from the precolonial period. Since 1957, these rulers taken turns serving as king, or Yang Di Pertuan Agong, for five-year terms. Remaining states have constitutional governors also appointed for renewable 5 year terms. At federal level, bicameral parliament of Dewan Rakyat (lower house) & Dewan Negara (Senate). D.Rakyat elected members of parliament from constituencies greatly
varying in size, both geographically and demographically, with the
registered voting population in the largest constituencies more than ten
times that in the smaller constituencies. Senate nominated by federal & state govts. States have legislative assemblies, except for the Federal Territory of Kuala Lumbur, natl capitol. Municipal elections, which were largely won by opposition parties, have been discontinued since the mid-1960s.
Public admin dominated by civil service inherited from colonial period, although considerable Americanization since the mid-1960s. Also professional services linked to many ministries & govt depts as well as state civil services. Legally independent of fed & state governments are various statutory bodies. From independence and especially after the declaration of the New Economic Policy NEP in 1971, a number of government-financed enterprises, many of which were ostensibly committed to redistributive goals, set up under Companies act. After independence, diversification was encouraged through import-substitution industrialization and through other primary commodity exports such as palm oil, timber, petroleum, cocoa, and petroleum gas. Export-oriented industrialization became priority from late 1960s, except for brief flirtation with heavy industrialization for domestic market in the early 1980s.
With weakening of communist-led insurgency in mid-1950s &
repression of parliamentary Left in mid-1960s, been virtually no opposition other than ethnic political mobilization. Despite significant poverty reduction, NEP exacerbated rather than reduced interethnic tensions. Uneven regional development heightened regional resentment toward federal govt, especially in Sabah & Sarawak. Meanwhile, rapid economic growth and capitalist development greatly increased proportion of wage earners, mainly at expense of self-employed peasantry. Only 1/6 of wage employees, mainly in the public sector, are unionized. Consequently, class-based & social movements weak, especially in face of overriding ethnic divisions.
Malay-dominated armed forces don't threaten political stability, unlikely to do so. Since 12/89 peace treaty with communist-led insurgents, traditional army & police undergone substantial reorientation. U.S. influence grown since the mid-1960s. Malaysia supported important *Third World initiatives in early & mid-1970s (e.g., Chinese entry into the UN, call for New International Economic Order, and sanctions against Israel & S.Africa). Malaysia also crucial role in Assoc. of Southeast Asian Nations ASEAN declaration of Southeast Asia as a zone of peace, freedom, &
neutrality (ZOPFAN). Since early 1980s, govt under Mahathir favored Japan,
particularly industrialization efforts & to secure external
financing. Since late 1980s, strong interest in attaining higher profile in international forums such us the UN, Commonwealth, Nonaligned Movement, Muslim world, & ASEAN
Weber had extensive lexicon for describing the political order that connived with Confucian & Taoist predilections to deny modernity & rationality to E.Asia and that filled the well of ideas & definitions from which many scholars continue to draw. China had what Weber called
"political capitalism," or sometimes "bureaucratic capitalism," in form of "usury connected with office, emergency loans, wholesale trade & industrial ergasteria," or capital connected with extortionist practices in office. This lexicon has been continuously replayed in discussions of
capitalism in E.Asia to explain why no capitalism existed in the past & what kind of capitalism can be observed now. Weber also used the terms "booty capitalism," which experts still use to describe the worst excesses of govt and Philippines oligarchy, and "pariah capitalism," which remains common description of Chinese entrepreneurship in SE Asia.
Cultural tendencies or "mentalities" cannot be conceived apart from the existing political & market opportunities and incentives. Even Weber, who spoke disparagingly of kinship organization in China as the "sib-fetter" of the economy, understood that the communal, or the sib, economic organization "protected the individual against the dangers of proletarization & capitalist subjection." The patriarchal sib was, for him, an expression of "the abolition of feudal estates" as well as "extensiveness of patrimonial bureaucratic organization." Just as Marx thought religion was both the "sigh" & opium of the oppressed, Weber maintained Chinese sib-based economic organization seemed to work both to protect against incipient capitalism of late imperial China & to prevent culture of universalistic trust. In absence of or amid the rise of contract-based system of business trust, one's own family was still the best bet. Given tenuous political exigencies of Chinese diaspora & prevalence of particularistic trust in E.Asia, it is not surprising that tried & true Chinese enterprise system persists, especially since organization of Chinese business enterprises appears ideally suited for small businesses. But it is also not difficult to imagine large, globally competitive Chinese firms will eventually look & behave more like Western-style enterprises, as they already do in places like Hong Kong & Singapore; for big firms, sib-based "familism" may now be yielding diminishing returns as a form of corporate organization.
Reform of corporate governance first must determine which measures will work. And the essence of making dramatic reform work is to ask, "Cui bono?" Societies differ in their collective goals and priorities, and in the moral valence they assign them, so it is conceivable that improved welfare of stakeholders may not always have priority, for better or worse, over other collective goals. Rise of particular business systems bears some relationship to collective goals of society, whether popularly mandated or unilaterally imposed from above. The chaebol in Korea, like the prewar Japanese zaibatsu, is unthinkable apart from a massive project of nationalist economic mobilization that prevailed over three decades, aiming to create, through all variety of state subsidies & supports, world-class competitive enterprises. Likewise, behavior & organization of Chinese enterprises in SE Asia are influenced by the highly charged political terrain where they operate, leading to catch-as-catch-can outcomes , ethnic divisions of labor & ethnically demarcated redistributive policies, both perhaps most visible in Malaysia.
Westerners are not alone in finding it difficult to fathom worst excesses of SE Asia "crony capitalism". Japanese economist Kunio Yoshihara's influential book argues SE Asia capitalism is "ersatz" because it is developed by foreign & overseas Chinese capital and is not, therefore, wholly dedicated to building a sound, national, manufacturing base. It is also ersatz, he claims, because it is "technology-less" and, consequently, "dependent" on multinationals. Because it is captured by various kinds of rent-seekers and speculators, gamut from "royal capitalists" (presidential families) to "crony capitalists" (private-sector businessmen who benefit from close relations with the head of a state), to "bureaucratic capitalists," "politicians-turned-capitalists," & "capitalists-turned-politicians."
Japanese colonialism bequeathed to Koreans the template of authoritarian interventionist state and the zaibatsu. European colonialism bequeathed the opposite: minimal taxation, strict avoidance of deficits, & an unprotected market. Prof. K.S. Jomo attributes the habits & practices of Chinese businesses in SE Asia to their historical inability to rely on the colonial govt; even when state & legal system became more accessible to Chinese business interests, a "Chinese business idiom" persisted that abjured close association with the govt. Colonial govts also left legacy of ethnic division of labor and cobbled together concept of nation best exemplified by Malaysia. Malaysia origins in explicitly negotiated "bargain" that set the stage for a peaceful 1957 transfer of power from British was bargain reached between ethnic political parties representing the Malay, Chinese, and Indians. This became basis for coalition that ruled Malaysia since independence. Malaysia has practiced most pronounced policy of "apartheid," Ruth McVey argues, because it was also last to be independent from the British rule. Elsewhere, ethnic compacts occurred more haphazardly, but cobbled nations & ethnic labor divisions holds for most SE Asia.
This does not mean state was absent in development effort. On contrary, it played important role in expanding markets, foreign capital inflows, new technologies & growth of urban, educated middle class; everything 1993 World Bank report, The East Asian Miracle, argued that it did. Suharto worked with & protected ethnic Chinese as long as payoffs continued. Occasional serious efforts in SE Asia to break "economic stronghold of overseas Chinese" by excluding them altogether from certain lines of business, especially in Malaysia. In SE Asia, widely discussed lack of transparency & accountability in corporate governance grows out of different state-society interaction, elaborate ethnic give & take of Malaysia or of protection/racketeering that prevails in Indonesia. In Japan & Korea, it meant strong state involvement with, and promotion of, big economic conglomerates (the keiretsu and the chaebol), rather than engaging in "ethnic by-passing" as in Malaysia. (Malays worried about the Chinese; but because Koreans worried about escaping dependency, they permitted much less foreign direct investment.)
Distribution of the "domestic motor of E-miracle" in Malaysia: ethnic Chinese 29% of population, 69% of share capital by market capitalization. In Philippines, ethnic Chinese are said to be only 2% of population but control 50% to 60% of share capital by market capitalization. In Thailand, estimated 10% are ethnic Chinese accounting for 81% of listed firms by market capitalization. In Indonesia, ethnic Chinese are estimated 3.5% of population, controlling 73%. In Chinese-dominated Singapore, they are 77% of population representing some 81% of listed firms by market capitalization. In Malaysia, assimilation has been more limited, with govt committed to race-based economic policy known as New Economic Policy 1970-90 to boost Malay corporate ownership from 1.9% to 30% by 1990. Non-Malay ownership would remain the same, according to this scheme, at about 40% & foreign ownership was to fall from 60.7%in 1970 to about 30% in 1990s.
Alliance with indigenous patrons does not seem to alter the essential character of the Chinese firm, however; this family-oriented closed corporation, based on an individual tycoon and his family, is often thought to limit the Chinese capacity for capital mobilization and organizational expansion but, instead, seems to reinforce it. In Malaysia, for instance, Malay interests participate actively in Chinese companies, but the Chinese entrepreneurs retain centralized control of the businesses by owning large blocks of shares. Lim Mah Hui's study of 100 of the largest corporations in Malaysia reveals Chinese directors outnumber the Malays by two to one, and they tend to possess substantial ownership interests in companies they sit on, whereas this was less so for Malay directors. Hence, Robert Kuok can be closely associated with a vast panoply of Malay partners, including representatives from the aristocracy, the military, and the bureaucracy (but not prominent businessmen), while retaining his legendary tight control of his vast family empire.
The most careful articulation to date of an "ethnic framework" of economic development is the work by James Judason, also for Malaysia. In the context of historic pluralism deriving from ethnically based political mobilization, the goal of the national leadership is to shape development to enhance dominant ethnic party's political base and meet cultural aspirations of "backward" groups. By retaining discretionary control over private sector & business firms, state can facilitate expansion of its enterprises & enforce "affirmative action" in favor of the economically "backward" Malay majority. Result of this "ethnic logic of accumulation" versus NE Asia "national logic of accumulation" per Judason is
K.S. Jomo, Malay economist, concludes "while Chinese may represent Malaysia's best chance for domestic-led industrialization, it is doubtful they will be granted opportunity necessary for expansion." Another consequence of the harassing presence of the state, exemplified by the "New Economic Policy," has been to make the Chinese gravitate toward finance & real estate, investments that offer rapid, attractive returns & quick exit. Consequences, Judason argues, are structural inefficiencies in the economy & growth rates that depend upon both commodity prices and on political priorities that emphasize employment and stable wages for purposes of the political incorporation of Malays. Historical, cultural, & institutional constraints (and opportunities) that Chinese businesses face in SE Asia help to explain the persistence of the family firm. But several sociologists & anthropologists who have long studied business enterprises in E.Asia differ with this, arguing Chinese business practices are same everywhere, whether Chinese are in minority or majority; capitalism is a matter of a particular cultural mentality, and we are back to relatively straightforward reading of Weber on capitalism. Leading expert on Chinese business enterprises S. Gordon Redding titled his book, The Spirit of Chinese Capitalism, a parody of Weber's The Protestant Ethic and the Spirit of Capitalism.
I maintain, however, that Chinese organizational strategy is best understood as the shadow that is attached not to some ubiquitous Chinese culture but to a minatory world where trust is low, contracts are not strictly enforced, laws may be unfair, and politics of ruling parties can lead to riches or ruin. Regardless of which position one takes, however, it must be acknowledged that Chinese corporate governance springs from a milieu entirely different from that of American firms. The same is true of a different form of corporate governance, NE Asian variety.
M.Pei
In countries with weak political parties & fragmented party systems (usually a result of deep social & ideological cleavages), democratic breakdown led to establishment of either personal dictatorships (Indonesia under Sukarno and the Philippines under Marcos) or military regimes (South Korea, Burma, Thailand). In contrast, countries with one strong political party gradually evolved into authoritarian dominant-party regimes (Singapore and Malaysia). Another important factor in democratic breakdown was the original institutional framework of these democracies. Breakdown proved more complete & resulting authoritarian regime more dictatorial in those countries with presidential systems (South Korea, Philippines, Indonesia) than in those with parliamentary systems, as monopoly of political power institutionalized in presidentialism made elite conflict more intense and hampered efforts to build coalitions & reach compromises.
G.Means Other parties in Malaysia's ruling Alliance/National Front coalition represent non-Malay minority communities. Their leaders collaborate with the UMNO elite, receiving patronage benefits in return for keeping followers in line. In Malaysia, this has been accomplished through formation of multi-ethnic ruling coalition, National Front, that governs through a process of elite accommodation. Under this system, UMNO makes concessions to minority demands through a process of secret elite bargaining, which is backed up by the ability of the PM to impose settlement when necessary. In practice, this meant Malays benefit from affirmative-action programs in employment, education, & housing. In contrast, PAP in Singapore solicited support of non-Chinese minorities through "balanced representation" within party and through political links with minority cultural associations. PAP rejected any form of affirmative-action programs for deprived ethnic groups, insisting instead govt operates as meritocracy. Both, too, have used political detention & emergency powers to prevent rise of viable opposition parties. Both countries also have elaborate systems of political control of indigenous & foreign media. Centralization of power in both countries accomplished by reducing autonomy of other
institutions.
In Malaysia. power of states gradually trimmed, monarchy made subservient to PM & his cabinet, and courts' independence crushed. Both countries also propagated official state ideologies to provide basis for govt's legitimacy and to serve as guide for civic behavior & civil order. In Malaysia, the Rukunegara, formulated in 1969, stresses communal values & national loyalty, but also promises to maintain democracy and protect human rights. In contrast, Singapore's national ideology which supposedly upholds Confucian values promotes national loyalty, communal & family values, and the need for consensus but does not promise democracy, human rights, cultural pluralism, or religious freedom. Singapore and Malaysia have both developed a form of statist capitalism marked by direct economic controls, heavy state investments in infrastructure, ownership of parastatal corporations, and intervention in the share market. Marked economic growth since 1980 has enabled ea. govt to develop "performance legitimacy," bolstered by reliance of much of population on govt for employment, housing, and other benefits. Rapid economic growth helped allay ethnic tension, especially in Malaysia; both countries have growing disparity between rich & poor. Both progressed in establishing framework for more civil society & a democratic polity. Given economic success, they're in position to risk making democracy more of a reality. Elites &
general public need to be convinced democratic principles & practices are appropriate for their
societies. External actors can facilitate progress toward democratization and the observance of human rights if they work patiently with opinion leaders, incumbent officeholders, & other elites. Globalization remains biggest force for social & political change, and foreign govts should work to facilitate free flow of information & political analysis across borders.
IViews Islamic news … lacklustre response to the trial of the al-Maunah 'deviationist cult' group who are currently accused of wanting to overthrow the government and install an Islamic state by force of arms. One would have thought that something like this would grab the attention of the entire Malaysian public, but all evidence points to the contrary. If anything, the public's response has been one of general indifference and apathy, compounded by the fact that the opposition movements in the country have glibly dismissed the whole event as yet another 'sandiwara' on the part of the State in order to demonise the Islamist opposition.
… old catchwords & rallying slogans of 'Malay rights' and 'Malay dominance' no longer resonate among the Malays in general. … growing popularity of politically loaded signifiers like 'transparency', 'accountability', 'democracy' and 'civil society'. Small but significant (not to forget vocal) section of Malay community articulate these concerns both local & intl level, competing & contesting for once exclusive purview of State managers. … convergence taking place: Young Malay-Muslim students, activists & professionals attack govt record & State on grounds it's both un-Islamic & un-democratic. Calls for Islamisation of Malaysian society accompanied by equally vocal calls for openness, transparency and accountability. Much talk of reform often based on two separate yet interlinked registers: Islam and Democracy.
[ hopefully without same results of Russian revolution's White & Red factions ]
… singlemost important factor behind emergence & rise of new generation of Islamically-conscious Malay-Muslim youth been the UMNO-led state itself. UMNO-led state that really paved the way for the Islamisation of society in its effort to out-Islamise its arch rival, PAS. During 1980s & 1990s, UMNO-led government, not PAS, that tried to blend Islam with essentialist 'Asian work ethic' to make the Malays more productive and that opened Intl Islamic Univ., Islamic think tanks, research centres and dakwah centres that now dot landscape of the country. UMNO also helped to create & reinforce the Malay-Muslim dominated parallel bureaucracy that operated under the auspices of Islamic Centre which was under PM's office. UMNO helped to rationalise & centralise this Islamic bureaucracy to counter growing influence of Islamist movements like PAS, ABIM & Darul Arqam and, by doing so, effectively handed over considerable power and influence.
PENANG, Malaysia Inter Press Service … Roots of erosion of ruling coalition's standing among disenchanted ethnic Malay community stems from 9/20/98 arrest of Anwar Ibrahim. That day, he had been fired by Mahathir, called for the prime minister's resignation and drew a crowd of more than 50,000 in Independence Square in the capital Kuala Lumpur. Later, he was arrested at his home & detained with 16 political associates under Internal Security Act. In police cell, Malaysia's then top police officer assaulted him, triggering widespread outrage. …recent events, especially the premier's hitting out at grouping of Chinese Malaysian associations for asking for too many concessions and likening them to the demands made by the communists in past irked ethnic Chinese.
[
Apeing imperialists: Monicagate & Whitewater on the rubber plantation.
8/9/00 "Apathy Greets Malaysian Sentencing" R.Chandrasekaran
At least Malay PM wasn't running drugs like Clinton in Mena ]
KUALA LUMPUR Wash.Post ForeignSvc pA16 When Deputy PM Anwar Ibrahim was fired 2 years ago by PM Mahathir Mohamad, tens of thousands of Malaysians clogged the streets of Kuala Lumpur in an unprecedented protest. Shouting "reformasi," their rallying cry for democratic reform, they demanded that Mahathir step down and Anwar take his place. But when Anwar was sentenced to nine years in prison today after being convicted of sodomizing his family chauffeur, charges Anwar contends were fabricated by Mahathir to prevent a leadership challenge,it was business as usual. Taxis clogged the rain-drenched streets. People went off to work at the Petronas Towers, the world's tallest buildings. Only about 200 people showed up at the High Court in a quiet expression of disgust with Anwar's prosecution. For all its drama, failed to sustain a broad street protest movement. "The opposition in this country has gained a lot of momentum from the Anwar crisis," said Rustam Sani, sociologist & key official with Malaysian People's Party, one of 4 parties that oppose ruling coalition led by Mahathir's United Malays National Organization UMNO, in power since 1957 independence from Britain.
In parliamentary elections last year, the four-party opposition coalition made significant inroads into UMNO's majority. Fundamentalist Pan-Malaysian Islamic Party tripled seats in legislature & captured control of 2 state governments. Formed shortly after Anwar's arrest, another opposition party is headed by Anwar's wife, Wan Azizah Ismail, an ophthalmologist; now claims 300,000 members, still small force in country of nearly 22 million people. Mahathir recognized changing tides, telling party members at recent UMNO convention that the group exists in a "hostile environment." But he has indicated no desire to step aside before next 2004 national elections. Opposition support derives less from Anwar charges than with way trial conducted. When Anwar presented an alibi for each night that month, the government revised the charges once again, legal under Malaysian law, alleging the offense occurred "one night between the month of January and March 1993 at about 7:45."
[ more on the Indian crime problem : "It's not all of them, mind you. Mainly just those dirty Tamils & they get it from watching ultra-violent exploitation movies." ]
Opposition leaders say pro-Anwar protests have died down in recent months because of police threats to arrest participants under a Malaysian law that requires public assembly of more than five people to be approved in advance by the government. Mahathir, 74, Asia's longest-serving govt head, fired Anwar after falling-out over how country should respond to 1997 financial crisis that enveloped Asian economies. Mahathir's supporters contend Anwar, 52, was trying to topple the prime minister, while Anwar's backers claim Mahathir felt threatened by his deputy's popularity & feared Anwar's call for economic reform would implicate Mahathir in corruption and cronyism. Sodomy conviction max. 20 years, Anwar's 9 viewed as stiff because the judge ruled begin serving only after 6 year sentence he received last year for allegedly interfering in investigation of charges. Earliest released 2009, also five-year ban on political activity after his release. Lawyers said appeal. Charismatic Anwar called his conviction "unjust, disgraceful and revolting. It does not disgrace me," Anwar declared. "It disgraces you, the judiciary and the nation."
Condemned by many in the West, including Vice President Al Gore, Mr. Mahathir's crackdown on Malaysia's "reformasi" movement was nevertheless successful, in the sense that Malaysia's political crisis gradually has faded from the international headlines. …Last month PM arrested 2 more opposition figures on trumped-up charges of violating national security laws. May be response to smaller-than-expected victory of Mr. Mahathir's coalition in December's semi-free parliamentary elections. PM's treatment of Mr. Anwar prompted mass exodus from Mr. Mahathir's party's youth wing; many joined swelling ranks of an Islamist opposition group that publishes what has become the country's best-selling newspaper. There is even talk of challenge to Mr. Mahathir's leadership from within the party. Hardly worst despot on Asian scene, Mr. Mahathir, with his tolerance of financial corruption, his repressive reflexes and alleged remarks about Jewish conspiracies to destroy the value of Malaysia's currency, looks like a man who has clung to power too long.
9/9/99 State Dept. Human Rights annual rpt
Police committed extrajudicial killings, although fewer than previous years. Police on occasion tortured, beat, or otherwise abused prisoners, detainees & demonstrators. Former chief of police admitted to having beaten handcuffed & blindfolded former Deputy PM Anwar Ibrahim in 1998. Crowded, understaffed courts and the legal safeguards and appeals available to the accused often result in lengthy pretrial detention, sometimes lasting several years. In 1998 the prisons director general said that roughly half of the prison population consisted of prisoners who had not yet been sentenced. Most of these prisoners either have been convicted and are awaiting sentence or are in the midst of their trials. No warrant 60day to 2yr detention allowed by 1960 Internal Security Act (ISA), 1969 Emergency (Public Order & Prevention of Crime) Ordinance, & 1985 Dangerous Drugs Act (Special Preventive Measures) often used against nonpolitical crimes, incl "deviant" Muslim groups Govt states pose danger to national security because of radical beliefs.
9/1/99 Amnesty International Malaysia: Human Rights Undermined - Restrictive Laws in a Parliamentary Democracy
Malaysiakini When things got out of hand, the Internal Security Act had always come in handy. But the problem now is the opposition is taking unfair advantage of the Internet and spreading their own version of events. And horrors. People are beginning to believe them. On top of that the opposition is also hitting below the belt by continuing to campaign even though the general election was over in November last year. That's why it's all very perplexing why the public is striking up a romance with those against the government. Whatever happened to the good old Asian value of gratitude? … the federal government which has the God-given right to govern as proven by the 43 years in the saddle. After all, what has the opposition done all these years, except bellyache about practically everything.
When purported footage of May 13 riots is carried over TV3 why is there no rush to hoard essential foodstuffs? Is it because fear has been driven out by the boredom of constant repetition? It is amazing that BN is not tired of talking to themselves. Or the better reason might be that they truly believe that constant harping on the same subjects, especially over television, will surely brainwash the population into blind obedience. This too when all the signs indicate that the public is inured to the constant propaganda blitz. The public is now noting how well or how badly a video clip is produced and how many ways it can be interpreted. And has a good laugh at what comes up. An answer could be that the powers that be are so deeply anchored in the past that it is near impossible for them to meet existing challenges with fresh ideas.
Mother Jones "Compared to his brother, an itinerant tree-cutter, and to other Malaysians, J. is among favored few. While he misses the U.S., and talks of returning, he has a steady job that pays decently. He just moved into new suburban tract home. His children are in good health, and his wife, also a Bidayuh from the country, is getting comfortable in the city. Yet Jagau is bitter. Working in the U.S. & for an American company abroad has changed him. Wittingly or not, he's embraced the American ethos. He feels no loyalty to the bosses who have trained him. He's consumed with the idea of joining another American company. He wants the higher pay and better training that he believes his employer is denying him."
9/23/00 Sex & the Asian Woman pop culture, modern reason & primal libido render Malaysian press & both leading political parties impotent.
military purdah
Who says a girl can't have a thousand yard stare ?
Navy Diver & USS Safeguard (ARS50) supply officer Lt. j.g. Rebecca Aten before entering ocean in Lumut, Malaysia for Cooperation Afloat Readiness & Training 2000 annual bilateral exercises between U.S. & SE Asian navies. Rescue & salvage ship hosted Malaysian deep-sea divers for familiarization to MK-21 dive helmet.
3/22/00 "Planned dress code for Muslim women in Malaysian state under fire from rights & women's groups"
KUALA LAMPUR AFP English Even Wan Azizah Wan Ismail, political ally of opposition Parti Islam
SeMalaysia (PAS), criticised move announced Monday in PAS-ruled NE state Terengganu. Awang Jusoh, executive councillor in Terengganu, said dress code would be introduced for Muslim women there, starting with government office staff & workers in business premises. Women should wear headscarves & avoid revealing dresses, he said. Wan Azizah, head of National Justice Party and wife of the jailed ex-deputy premier Anwar Ibrahim, told AFP women should not be forced to wear headscarves. Rights group Suaram said women should be allowed to decide what they wear. "It is a woman's right to expression," said spokeswoman Elizabeth Wong. Local authorities in Kelantan recently fined 23 Muslim women workers 30 ringgit (eight dollars) for not wearing headscarves in public places.
9/9/99 State Dept. Human Rights annual rpt
Islamic courts do not give equal weight to the testimony of women. Many NGO's have complained that women do not receive fair treatment from Islamic courts, especially in matters of divorce. Muslim couples must take premarital courses. Women's activists have complained that the
courses, as implemented, perpetuate gender discrimination by misinforming women of their rights
in marriage. … Govt policy supports women's rights & Govt has undertaken initiatives to promote equality for women, specifically full & equal participation of women in education & work force. Women are represented in growing numbers in the professions,
BANGKOK Agence France-Presse (AFP) First formal meeting of East Asian forum under "ASEAN plus three" framework in Thai capital; previous meetings have been held on an informal basis. Ministers' statement commended Indonesia for using dialogue, not force, to deal with separatist movements in the provinces of Aceh and Irian Jaya, saying a united country was key to the whole region's stability.
Although group is still in search of name, it closely parallels East Asian Economic Caucus proposed by Malaysian Prime Minister Mahathir Mohamad in 1997. Proposal was torpedoed by US & other countries on grounds it could form a protectionist trade bloc. ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Malaysia.
3/9/00 AFP Aceh separatists willing for Malaysia to mediate with Jakarta
7/5/00 "No insurgency has taken place in Malaysia since the 1950s." VOA
9/2/00 re Phillipines' Abu Sayyaf: "Foreign Governments Tied Our Hands" Willie Ng
Manilla Bulletin
"From start, govt was weighing the option of staging lightning raid against the Abu Sayyaf to rescue the hostages. That would be right thing to do, not spend months haggling over ransoms while whole world watches govt being humiliated, jerked like a yo-yo by outrageous & irrational demands.... Never has any country in a similar situation been subjected to such powerful foreign pressure to do nothing more than negotiate. Earlier than the rest, Malaysia made its own deal, making secret payments for the release of its nationals & after Malaysians did their thing, Libya footed bill for several Europeans' release.
MALACCA Star/Asia News Network As more cases of human trafficking come to light, Malaysia has tightened checks at all entry points to prevent international syndicates from using the country as a transit point for immigrants from Afghanistan, Iran and Iraq for these immigrants who wanted to enter Australia from Malaysia to Indonesia before Australia. Recent incident in which a 60yr Afghan woman was killed & 39 others rescued when boat capsized off Malacca coast making illegal exit to Indonesia. Syndicate members arrested. Immigrants used genuine travel documents to enter Malaysia but left using forged visas.
Deputy PM: "On the issue of migrant labor, we have 2 million. Our decision is to redeploy them to the sectors that we require. We have immediate need of about 60,000 plantation workers & 20,000 manufacturing to redeploy from excess migrant workers, granted legal ones with permits, to these sectors. Never mind the numerous statements you have seen in last few days. People react to them. "What happens if there is massive retrenchment?" We are still short of workers in Malaysia. Still very short of workers.
Q. So you aren't taking on repatriation?
Anwar: No, this is ongoing program we have taken on for past 2 years, particular with Indonesian govt. They have been very cooperative, so we continue to send back some. But we will have to be mindful of difficulties faced by many govts. We continue to have discussions with ASEAN govts.
Q. Mr. Deputy Prime Minster, Jim Mannion from Agence France Presse. Earlier this morning, Prime Minister Mahathir said that one million workers would be sent home. Why is that necessary? Wouldn't it contribute to the instability of the region?
Anwar: These policies are made known from our discussions, our arrangements with our neighbors that we will only keep those workers with permits, illegal ones will have to be sent back & they have already agreed. But I do accept difficulties faced by our neighbors. Now, we will have, not to review this, but to handle this carefully. Right now, our decision is to redeploy them to sectors where required. I do not think there is a decision reached to send them immediately.
Under 1954 Aboriginal People's Act (amended 1974), indigenous people in peninsular
Malaysia known as Orang Asli, roughly 100,000 & poorest group in country, who had been granted land on a group basis had no right to own land on an individual basis or to receive titles to land. Social Development Ministry announced 1996 state governments, which make decisions affecting land rights, had agreed to issue titles to Orang Asli. Amendments drafted to enable O.Asli to hold titles individual ly. Surveying &anp; transfer of title apparently proceeded very slowly; Minister Zaleha Jul.99 said no Orang Asli had yet been given individual land titles on this basis.
9/29/00 police torture official corruption press censorship
9/16/99 editorial "MUZZLING THE PRESS IN MALAYSIA"
VOA In Malaysia, journalist jailed for six weeks for "scandalizing the court." Rooted in British jurisprudence, term refers to showing contempt for the court. Peculiarity of this English law is that same judges claiming they are "scandalized" are the ones who determine whether there really has been a scandal. In other systems, if judge feels he is shown disrespect, is up to a separate panel to hear his complaint, while giving the accused a chance to present his version. Malaysia's judges appear to be making increasing use of the "scandal" charge to muzzle opposition to the government, or even criticism of it. HK based Far Eastern Review bureau chief Murray Hiebert, Canadian, was sentenced for reporting on a lawsuit brought by the wife of a prominent Malaysian judge in 1997 who alleged in suit that school discriminated unlawfully against her son dropping him from school debating team after charges son had acted improperly. Hiebert's article noted, among other things, unusual speed with which courts disposed of lawsuit. Mr. Hiebert's 6wk sentence is relatively light but his passport was revoked when proceedings began, so confined to Malaysia during 2+yr trial.
9/9/99 State Dept. Human Rights annual rpt
Printing Presses and Publications Act of 1984 limits press freedom. Under the act, domestic and foreign publications must apply annually to the Government for a permit. The act was amended in 1987 to make the publication of "malicious news" a punishable offense, expand the
Government's power to ban or restrict publications, and prohibit court challenges to suspension or revocation of publication permits. Government power over license renewal and other policies create an atmosphere that inhibits independent or investigative journalism and results in extensive
self-censorship which is not uniform; English-, Malay-, & Chinese-language press all, at times, provided balanced reporting on sensitive issues. Singaporean newspapers and magazines may not circulate in Malaysia despite Internet availability.
Electronic media restricted more tightly than print media. Radio & tv almost uniformly laudatory of Govt. News on opposition is restricted tightly & reported in slanted fashion. Deputy Information Minister Jul.99 said candidly govt tv & radio channels would not broadcast opposition parties' views but they can use private news stations or apply for broadcasting licenses of their own. Opposition-controlled state of Kelantan Chief minister complained Jan.99 that after several years Govt still not approved license application for state radio station. Every other state has such a station.
Police detained four persons under the ISA in 1998 for "cyber rumor-mongering." Police accused the four of spreading false reports of rioting and potential violence against Chinese Malaysians via the Internet. … Govt also sometimes directly restricts information deemed embarrassing or prejudicial to natl interests. Govt Jun.99 stated it no longer would disclose publicly air pollution readings. Science Tech & Environment Minister Datuk Law Hieng Ding said Aug.99 decision was made so as not to "drive away tourists."
BAGHDAD AFP English Iraqi Airways, grounded since 1990, has been sending pilots and technicians to Malaysia and Jordan to train on planes built by the European consortium Airbus.
Malaysia is not party to 1951 Convention, nor 1967 Protocol, relating to the Status of Refugees. No specific national legislation or administrative regulations governing the reception or stay of refugees exist. The application of general immigration rules leaves refugees as illegal immigrants at risk of detention and/or refoulement. Though Malaysia does not acknowledge international instruments governing refugee rights, Malaysia has generously hosted more than 250,000 Indo-Chinese refugees from 1975 to 1996, and has permitted the local integration of some 45,000 Filipino refugees in Sabah. The legal position of the 5,000 or so Muslims from Myanmar, who do not possess documentation as citizens of Myanmar, has not been addressed by the Government.
UNHCR continues to experience difficulties in obtaining free access to bona fide asylum seekers in detention, particularly the Acehnese, which has resulted in the refoulement of genuine cases. Resettlement to third country remains the general option for durable solutions to urban refugees, over 300 , in Malaysia.
11/98 Special Rapporteur Immunity
In 1997, various plaintiffs filed civil lawsuits against the Special Rapporteur in Malaysian court claiming total damages in excess of US$100 million dollars. Basis for these lawsuits is interview Special Rapporteur gave for article entitled "Malaysian Justice on Trial" by David Samuels, a British reporter with "Euromoney." Article containing the interview was published 11/95 issue of "International Commercial Litigation," a magazine published in the United Kingdom but also circulated in Malaysia. In interview, Special Rapporteur commented on his investigation into complaints that a number of corporations were influencing decisions taken by the Malaysian courts.
Malay Peninsula's reefs as a whole are expected to decline significantly due to increasing water pollution and sediment loads during the next 20 years. In February 1998 Japan and Malaysia announced they would jointly survey marine pollution in the Strait of Malacca, where mangroves and coral reefs are vanishing. The two countries will study the heavily trafficked strait's corals and fisheries, as well as pollution caused by spills of heavy metals, agricultural chemicals, and oil, in order to establish guidelines for preserving its health. Mother Jones
9/9/99 State Dept. Human Rights annual rpt
Govt also sometimes directly restricts information deemed embarrassing or prejudicial to natl interests. Govt Jun.99 stated it no longer would disclose publicly air pollution readings. Science Tech & Environment Minister Datuk Law Hieng Ding said Aug.99 decision was made so as not to "drive away tourists."
House
9/9/98 H Res 505 : Regarding the Importance of Diplomatic Relations with Pacific Island Nations Subcomm Asia & the Pacific
State Dept on Malaysia
Bureau E.Asian & Pac.Affairs AsstSec Stanley Roth links
Having long done wonders with little, he's got to go.
4/27/00 "What Is Going On In Malaysia?" Secretary's Open Forum
According to Hiebert of Far Eastern Review, 3 three reasons why PM Mahathir will not embrace reforms
World Affairs Council president Reckford stated Mahathir deserves credit for much of the economic growth, for the reduction of racial problems and for weakening the sultans in Malaysia. However, Malaysia is still plagued with problems identified in Indonesia, corruption, collusion & nepotism. Also stated Mahathir's international grandstanding serves as an embarrassment for Malaysia and an irritant for the West, describing Mahathir's efforts to transform Kuala Lumpur into a "showcase of superlatives." To this end, Malaysia has the world's tallest building, the largest shopping mall in Asia and the fanciest airport in the region. These projects have made Malaysia into a source of ridicule for its overwhelming self-importance. However, according to Mr. Reckford, one project has a good deal of promise, multi-media super corridor high tech campus with 78 companies there employing 9,000 people. Mr. Reckford concluded by stating that Mahathir has been in power too long and should step down and that his unwillingness to do so has been a major problem for Malaysia.
UN Special Rapporteur reported Govt systematically curtailed freedom of expression. Proliferating slander & libel suits threatened to stifle freedom of speech. Authorities infringed on citizens' privacy rights. The Government placed some restrictions on freedom of assembly & some peaceful gatherings. Govt continues to restrict significantly freedom of association & to prohibit students from participating in some political activities. Religious freedom is subject to some restrictions, in particular the right of Muslims to practice teachings other than Sunni Islam. In addition the right of Muslims to change their religion was hindered by many practical obstacles. Govt continued to impose some restrictions on freedom of movement. Govt restrictions & policies prevent opposition parties from competing effectively with ruling coalition. Election Commission's lack of independence prevents it from properly implementing & monitoring elections. Govt passed legislation to form National Human Rights Commission; however, opposition & NGO leaders skeptical of its potential independence & effectiveness. Govt continued to criticize harshly human rights NGO's. Despite govt efforts, societal violence & discrimination against women remain problems. Malaysia is source, transit, & destination country for trafficking in women & girls for forced prostitution. Sexual abuse of children occurs, although punished severely. Indigenous people face discrimination & often exploited, especially in regard to land issues. Longstanding policies give preferences to ethnic Malays in many areas, & ethnic minorities face discrimination. Some restrictions on worker rights persist. Child labor persists, although the Government has taken vigorous action against it.
Adherence to Islam considered intrinsic to Malay ethnic identity, therefore Islamic religious laws administered by state authorities through Islamic courts bind all ethnic Malays in some matters. For Muslims, particularly ethnic Malays, right to leave the Islamic faith & adhere to another religion is a controversial question. In practice, very difficult for Muslims to change religions with severe obstacles to do so. Muslim "apostasy" became controversial in 1998. Proposals in & out of Govt for various punishments for "apostates." Aug.98 Govt stated apostates would not face government punishment so long as they didn't defame Islam after conversion. The Government opposes what it considers deviant interpretations of Islam, periodically detained members of Islamic "deviant sects" without trial or charge under the Internal Security Act (ISA). After release, such detainees are subject to restrictions on their movement and residence. PM Mahathir said Dec.99 that Govt should find ways to prevent opposition from "spreading lies" at mosques. Deputy PM Abdullah also instructed Religious Affairs Department to conduct background checks on religious speakers.
Pentagon
9/29/00 American ForeignSvc Press In Jakarta, Indonesia, US DefSec Cohen delivered strong msg to country's leaders to disarm & disband militias terrorizing Timor. He also visited the Philippines, Singapore, Thailand and Korea.
[ always Singapore, rarely Malaysia. Look at the difference on the map. Then realize the real disparity is an even more disproportionate difference in GDP ]
At the center of Cohen's trip was the idea he called the "virtuous circle." "Where there is security and stability, then investment flows, " he said to the lawmakers. "If we have investment flowing in, then we have a chance to produce prosperity. Prosperity in turn promotes more security and further democracy. The moment there is an area of insecurity, investment flows out. Then you have all the social problems that are attendant to that."
[ is that a Chauncey Gardener quote? Compare & contrast. ]
U.S. presence in region helps guarantee the virtuous circle will work. Cohen said political, economic & security ties bind US to region. "These will remain steadfast for the foreseeable future," he said. "On political engagement, the simple fact is that the US is a Pacific nation. "
M.J.Hassan Pacific Forum CSIS
1/12/98 SecDef Cohen with former Deputy PM A.Ibrahimin
" … In opening remarks this morning PM Mahathir referred to current economic difficulties region, noting Malaysia is not quite what it was when we last met here. I would like to assure you that the United States' commitment to Asia is exactly what it was last year, and the year before. The United States wants a peaceful, stable, and secure area. United States will remain engaged in Asia in good times and bad times. Our economic & security interests are enduring & fundamental. So we are working with countries in region both bilaterally, and through intl orgs, to resolve economic problems as quickly as possible. Our security commitment remains unchanged. The forward deployment of approximately 100,000 troops in Asia has provided foundation for stability & peaceful development; that commitment endures.
In 1998 17 US troops in Malaysia.
corporations & resources
3/6/00 "Malaysian Firms Eye Peru's Amazon Jungle"
LIMA IPS Malaysian logging companies, which already chopped down the forests in their own country & are currently
exploiting more than 1.5 million hectares of Brazil forest, have now set their sights on Peru's Amazon jungle. ''With the support of several representatives of Peruvian logging co., the Malaysian group is lobbying Congress and maneuvering to delay and gut the bill on forests and fauna, which was to be enacted last year,'' said Roger Rumrrill, intl consultant on matters involving the Amazon jungle.
9/1/98 "In Defense of Capital Controls" interview with PM Mahathir Mohamad
Multinational Monitor v20, n10 9/1/98 Malaysia announced introduction of far-reaching capital controls. That day, Malaysian Prime Minister Mahathir Mohamed spoke in interview on Malaysian tv.
We have to fix the value of the ringgit permanently so that traders and individuals will be aware of their financial position and with that the economy will operate well.
Q. In other words, does it mean that the ringgit no longer has a value outside the country ?
Mahathir: Yes, we have decided that there will be no value attached to the ringgit outside Malaysia and as such any ringgit held outside Malaysia will not be legal tender. However as we know there is money outside Malaysia, we will allow such ringgit to be repatriated to Malaysia within a period of one month from today. If not repatriated by then we will regard such ringgit as invalid and we will not allow for the ringgit to be returned to Malaysia in any form whatsoever. … Actually in terms of cash, there is only 100 million outside the country and that we can repatriate within one month. If they don't of course the money is just waste paper. It's worth nothing at all. If they try to bring it in, we will stop them and we will confiscate such money.
Q: How much is the offshore ringgit account ?
Mahathir: That is much bigger. That is more than 20 billion certainly, maybe even 25 billion. But that money, of course, is outside of Malaysia even now has got no value. In order to give it value they must hold a parallel account in a Malaysian bank. When they do that we will negate the value of that currency by stopping any movement of the account in the Malaysian bank. They cannot move the account, in other words they cannot sell the ringgit, because if they sell the ringgit, the ringgit in Malaysia will not move.
Q.: On manufacturers, don't you think that these new measures will add some transaction cost to them?
Mahathir: Probably it will add some transaction costs to them but it will be much less then the hedging that they have to do when the value of the ringgit fluctuates. As you know sometimes people require as much as 15 percent commission in order to take care of possible fluctuation. But when the rate is fixed you don't have to bother to hedge so that reduces your cost of doing business and also of course, payments and all that when they are made much later it will not be subjected to devaluation or revaluation for that matter. So business would be much more easy to conduct.
background
Peninsular Malaysia, previously known as Malaya, at SE tip of Asian continent, and Sabah & Sarawak at NW flank of island of Borneo E. of Peninsular Malaysia, has 18 million population, 4/5 in P.Malaysia. Indigenous Muslim-Malay community 3/5 of peninsula population with ethnic Chinese 1/3 & ethnic Indians 1/10. In Sabah and Sarawak, Chinese proportion is roughly same, there are few Indians, and Muslim Malays are a minority. Instead, other non-Muslim indigenous minorities predominate. Boundaries of federation of Malaysia today existed since 8/9/65 when the island republic of Singapore seceded. 11 states of earlier Federation of Malaysia gained independence from Britain 8/31/57. Singapore and Bornean states Sabah (prev. N.Borneo) & Sarawak merged with Malaya to form Malaysia 9/16/63.
After centuries of Hindu-Malay rule, Muslim maritime empire bases in
Malacca established in early 15th century. Portuguese captured Malacca 1511 before Dutch in 1641. Brit. E.India company colonized Penang 1786 & Singapore 1819, gained control of Malacca with Napoleonic Wars. Division of SE Asia into broad European influence spheres dates back to Anglo-Dutch Treaty of 1824 as origins of contemporary divisions between Indonesia & rest of "Malay" Southeast Asia. 1874 Colonization of peninsular hinterland fueled by British desire to control tin mining. Sarawak came under control
of Brooke family while N.Borneo Chartered Company gained Sabah from 2nd half of 19th century. Colonization completed by World War I.
Varied British admin in P.Malaysia until 1941 Jap invasion. After Jap occupation, British unsuccessfully tried to introduce 1946 Malayan Union after initial British military admin. Fed.Malaya emerged 1948; first fed. legislature elections 1955, independence 1957.
Prime minister leads executive, invariably also been president of United Malays National Organization (UMNO), which dominated the National Front ruling coalition. Except for Sabah, Sarawak, & Penang, and, for a time, Kelantan (1959 to 1978) and Trengganu (briefly
in the early 1960s), state governments also have been led by state UMNO
leaders appointed by the UMNO national president. Except for the Kelantan
and Trengganu governments, which were once led by the Islamic Party (Parti
Islam SeMalaysia, or PAS), all other state governments have belonged to the
ruling coalition dominated by UMNO.
Malaysia fairly rapid economic growth since independence, especially throughout much of the 1970s and late1980s. However, economic
wealth of country unevenly distributed along class, ethnic, & regional lines. Dissatisfaction and ethnic & regional political mobilization, as well as various policies ostensibly designed to ameliorate these inequalities. Post-election race riots in 5/69 opened some political realignment and introduction of NEP aimed to create conditions for national
unity, defined primarily in terms of improved Malay/non-Malay relations,
reducing poverty & enhancing economic position of Malays in order to
reduce interethnic differences.
Both support for & opposition to govt channeled through ethnic mobilizations. Since 1970s, the opposition centered around ethnic Chinese-based Democratic Action Party (DAP) and ethnic Malay-based Islamic Party (PAS), except for a brief period when latter joined the ruling coalition in the mid-1970s.
Division in UMNO since mid-1980s & 2/88 court order declaring UMNO unlawful because of electoral irregularities resulted in formation of rival faction known as the Spirit of 46 that in turn, forged links with all existing opposition parties, resulting in the virtual emergence of a two-coalition situation . Hence, for first time in postcolonial history, opposition has a reasonable chance of posing threat to ruling coalition, which governed without challenge at federal level & most states since independence.
1/1/99 Economic Crisis & Corporate Reform in East Asia Meredith Woo-Cumings
Westerners are remarkably consistent in way they problematized capitalist enterprise in E.Asia during past century. Early as 1904, Max Weber postulated that modern rational enterprise was predicated on "the separation of business from the household" & "rational bookkeeping" that issues from independent firms, presaging this debate about family-controlled firms in E.Asia & their lack of accounting transparency. For Weber, predominance of family-run enterprises and relative absence of rational accounting were prima facie evidence not merely of bad corporate governance, but also that capitalism in E.Asia was not modern, rational, or normal, not, Weber said over & over, Occidental. Weber found it puzzling that Chinese, who generally seemed to exhibit appropriate "acquisitive virtuosity" & "deification of wealth" (in Confucian sense that wealth was the means toward virtuous & dignified life), failed to achieve business depersonalization reflected in Italian city-states' commercial laws . "Unceasing & intensive economic ado" of Chinese did not originate in legal forms & social foundations of capitalist enterprise, Weber argued, because of double bind consisting of premodern political order on one hand and particular type of kinship structure ("acquisitive familial community") on the other. This focus on state & family is of particular interest here.
excerpt Working Group on Development, Trade & Intl Finance, CFR Press
Westerners thought E.Asia capitalism is nothing like what Werner Sombart might call "high capitalism," whether in precapitalist dynasties of a century ago or in the "miracle" economies that seemed to define the meaning of Third World development for a generation.
Main point is Western discourse on E.Asian capitalism tends to miss 2 key points.
Today, that era seems forgotten, and the term "crony capitalism" is often used to refer indiscriminately to economic systems of E.Asia. But no single category can encompass all of E.Asian capitalism. Even in worst periods of authoritarianism in Korea & Japan, "cronyism" of NE Asia never approached that of SE Asia. Relationship between state & big corporations was forged through industrial policy, which was simultaneously disciplinarian & munificent with regard to big business. But in SE Asia, relationship between the state & big business was forged through ethnic division of labor in managing politics & economy, in ethnic apartheid between political & economic powers. Indonesia under Pres.Suharto was always the worst case, classic "cronyism" of sultanlike dictatorship & political monopoly, capitalism in one family, with Suharto & relatives constituting by far the biggest conglomerate. Truly entrepreneurial element in Indonesia, ethnic Chinese business class, was always at risk of being prostrated before rifle butt or ethnic pogrom (or both, as in 1965 bloodletting). A state like this is ultimately interested in economic development to extent that it receives payoffs, but otherwise is not at all interested in development, in part because ethnically alien group is synonymous with entrepreneurial business.
To extent that there is business alliance, it does not unite state & domestic enterprises and pit them against multinationals (as might be the case in more nationalist states); instead, it binds together state & multinationals, often against the Chinese domestic enterprise. This has been called an "ethnic by-pass," meaning that Malays collaborate with foreign partners to avoid dependence on the Chinese (for example, in their national car project). Exceptions of some politically influential Chinese doing well in import-substitution industries such as cement, flour, sugar, and automobile assembly. But state certainly has not favored Chinese entrepreneurs who own most Malaysian manufacturing enterprises and, in fact, it often harasses them for violating laws on intellectual property rights, land use, labor, & environment. Chinese manufacturing entrepreneurs prefer to remain small & family-owned, engaged "guerilla capitalism" that limits growth, economies of scale in production, technological innovation, marketing & international competitiveness; consequences for regulating wages, industrial safety, occupational health, & environmental protection are disastrous.
3/15/96 NED Democracy in East Asia conf.
concerning appropriateness of "liberal" democracy for E.Asia, alternative conceptions of democracy in the region, and prospects & conditions for development of democracy in E.Asian countries.
Progress in the region's "semi-competitive soft authoritarian" regimes (notably Malaysia & Singapore) has been slow, but these countries possess a socioeconomic profile and an institutional foundation that may facilitate democratization in the next wave. At present the prospects for a democratic breakthrough in the region's core authoritarian states (China, Indonesia, Vietnam, and Burma) appear bleak despite efforts to liberalize their economies, establish market mechanisms, and open up to the world market. [ Cambodia is charity case of region. ]
[ arguably Malaysia's democracy in moderation, for all its corruption & injustice most of all arising from abuse of petty privilege, is fetid nurture of an organic & native sense of liberty in a fledgling nation, one more durable than rigid, externally imposed models with innumerable "bugs" of their own. Is it more effective than the freewheeling demogoguery of post-Marcos Phillipines ? What is the litmus test to detect cultural imperialism ? ]
.
reading list
Amazon re Malaysia
Cynthia McKinney
foreign arms sales : Code of Conduct Arms Transfer Act
return to home page
§
email
presented by North Orange County
Greens.org
Santa Ana, Anaheim, Costa Mesa & Garden Grove CA U.S.
Greens
WebRing
EDIT LISTING