@

rHE UNlnD

NATIONS ONIVERSI"TY

I)t'f}ll~e; e f i;ij.e l:m-it-e{lbJ.at'~. Un~;).j!Iity, ·So.UU1ewt> Aflj.fU'l P~.sp~'Iri\~~P..t'C)li:eet

NEW A~l~N VISIONS

Mon-u~'a:plI &!.ries. 1984

FbI' blmih~rCiJ!t:ulaiioll Only

TRANSNAT:IONALIZ.AT.ION,

HE ST~TE" AND THE p_E6p~E:

THE IVJ.ALA YSIAN eASE

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Po.

Hc;r1/(t"

fl'Yltpha:,-;rf

Y?~6t''r.61,. ~.[ 7!JJ.

Ditimt11t,

QI,t~1Jrr

Ci'l~ fld:tippitr.ef!

Pt~ ..l!d.J~Ii.[l1l ulfllliries Q,(lIldl!milJg till! pilbli~::ttltm to:

·PmCH'.alrd~:M S. Vmoid Gponfma t~:r- f~)f SG\l'th.t%L~, ~~

Palma, HaJL, IJnivSIl'8iL)( !,')i lh~ 'PNil,-S-. rJu.et:(1n tHy, 11' H J L r P 'P'r N e-:;;

IJN'll 4Siar1 r~r$:pJ:!Qt1r~~ -Pl'O'~ c/o J1Llrt:i Wqrb:lStuJJm;~c~

IDe M,alaYll,an Case

Work~n9 Papers of the United Nations University Asian Persgecttves Project (Southeast ASIa)

TABlE OF CONlENTS.

I. PREFACE II. TRANSNATIONALIZATION

f\. Part

OF THE MALAYSIAN ECONOMY ••.•

•. • •• • • • • •• l<hClI' Kck Pelig
0f

DnL!l;· The Dp.veioplTIent

'rr·snsnatio·nal hation

1 1

I! Z! 3,.

I nbod'udiQf'I Tr ansnat.Ional I zat i on in the CO'lonia1 P'er i.od . on in the Post-Colonial TransnatioFializat

P~riod

B.

Economic Problems

Part Two: 1.

Imp8ct of Recession a~d Curretlt

In~rDduction
Maj or Problema in the MalaysHm
,

7
Economy 7

2.

1. 4.

Some Implications Df the,Economic PTobl~ms SlJgge8tior1~ to Improve .the ~CO!lornic Situation

12 16
26 27

E,

Bibliography
Muzaffar 30

n 1.

HIE STATE A~D TRANSN.A.nONAUZATIDN., •., .Chandra

A.. The EmeI'lgence B.. Characteristics

of a Conservative []f the

COil313fV

State

at r ve State

32

c.
D.

fowards

EI

Malay Capit~list State

59

The capitalist

state:

An Evaluation

•.

41

F. Bibliography
IV.

4B

.~ND ETHNIC RELATIONS: PRELIMINARY OBSERVATIONS ON THE MALAYSIAN CASE •.•.••...••• S. Husin Ali
DEVELOPMENT ~ SOCIAL STRAHrIrATIDN

V.

PLANTATION WORKERS AND SQUATTERS IN MALAySIA .•••

••••..•. Rajeswari
A.

Cor·l~1U, IllES IN DEVELOPt~ENT! CASE snores

Of

Kanniah & Meenakshi

Raman

Par t; One

1. B.

Preface

Part two:
1. 2.

The Persistent ~~orkers

Housing

Poverty of Plantation

74
7.4c

Introduction
PI'[),V' 9.io1l18 for

77

3.
.4 •

Health Care
8 aai c Amli;lni ties

80 83
B6

5. 6,
C. Part

EduC!ation An Uncertain Future

Three
l

S8 Prnb'l ern in Malaysia

90

ThB Squat tel'

1. 2.
3.

The Extent of squatter Settlements Ethnic Distribution Qf 5quattets

Prablerns Faced by Squa't't er~s

'n. 93

4..

Causes

r;'ot' tile Exi.~tsrH:!e of Squat tel's

94
97 9.9 101 lQ2 103

5,

The. law in Ri51atioll to Squa:tt~r:5

6. Focus on a Squatter Community 7. Fijture Trends O. P~rt Four~

Conclusion

E. Bibliography

liH[ t-IALA YS IAN' CASE

PR'[fAfE

ll'lis
upon

is

the

l"eporl

for

t.he f i rut

year

~f tt,!:! ~h'll1EJ,yEi.hn9tudy

of U'IL\.l
eq.feed
wss

UnH~.n~ Natj IlHS Ui"li ver5d ty

rn'ioje,eL CI:! Ashm

'I

iJerspecU v,es.
for
u

,Aa

WiilS

hy Lhe 5.Q.lJ~: h-ElBst As:i8~ Network iwullhat ion~ Whe stal,e

EH'Id

t he theme

Hu"

p'roJect

"lram:j!!~t

ltle

People.

1M's rspc.r~
l ine with

ll:()mlP:r1'i8e'~ 'three sllb=lhellle~

major

gec'tions,

fd Unq natural.Iy
lac!"! of the s~ctiQns

in
waS

l:heUWl3t'l

of' 'tllL:: ptDjecl.

pr0par~d by an individua.lL researcher.

SECTION ONe d~f.ilS wi'~h ._.",....,....;--....,."'""""'=,.,....,..... _...", Hz::a't .,....=-~~""""''''''''"-=. the Malay...... ....,. Tr~flflne,tiona ion of __ , sian ...,, __
_.".._.."..=_.

[con(Jmv .""!"!--,.,.. ....-L •

H gives

Ell

h isb:llri cal

anal ),sis

[If
f'

hIJ1Ij~hA

'B'I:'OrlClmy

N8.S

II

t ranSrl£l tionaHzedH the .[:!o]oma J ~nd

~HI,d made depel1denl: on t.hB andust

iaJ iz~d ~[]iUl'llrt.l:'ies

in

post-colonial
R1

periods.
0pilllBIl

It
tS
j

~!SD updates

the ~nalysis by focusing on the

D

oat r fil t;: en t de vel

.i, e; ,. the

j[fflpact

f.reoees si on an d

CUTT lllrl

t.

econ om:i.e

problems faced by Malaysia.

seCT ION TWO covers the
ElV DIu

The S'tate
I

and T rfl.nsflational i:Hltion '.' It

,e} Lte

dis:tl.J8SeS

ti all

f the

CDuntl'Y

s pol U.ic.al

fl"oo til e cnl.on i a 1 pe rio d to. !~Merdekae Ii t.ea") to the anal.yzes the
0

~he first: second

phase c r the post-colonial

V~

period

(I' he

(past

- l 96~n generati'f).!1 [If l:::'aders. position and dependence. class I t also

ihlS sect Ions

rr;l!;lporlses andae.comodat.i

of Ute State

towards the process

t.rensnat Iena Hzatio!1 used by the S·tate

looks a t methods

or mecharu sms

in perpetllating

t:r.Hlsna.UonalizaUorl 'St.ruc:tur~s

and the shifts which

have hi!k,en pI ace ; n the intern'a.]

which w@re aubet.ant i all y

initi~ted by the State itself.

SECT ION mRE[ 91131 yzef:l ~~~~!gl2~~~.!:i_~~E!!L~~~at!~~E~~~~~_ ~~~_~~I~~I!,!: ~!!~~!~!:,I~. lakas, the Bmd y.sia furl he r i nle the level of how tt;'i! ptTlcess It

of transnationalization

has altered the s~ructure5 And positions of various

-i-

c.luesee in ~1alay6ian society.

81: n 1ere h 1ali on s whi

en

It also
€I

di scuseea

the crucid of class

aspect of and ethnic

01')

h B ve' h310

dominarn tin

nUe;! nCB

on soc i 81 s t HI ctur ~5

in tvla18YBie.
I"e lations r aaul

This paoer also analyzes the l.nterphy

t;j

n.g fr01ll a type

I]

d!eve.i. pmant based p,rimar .iIy o

trana-

nationalization_
Sedicm hss
901e.ty

One was prepared

sh,unds

by Kho'r Kek P'en9'J 5e ct ion

1

f"'li),

hy th03ncl'ra

Muzaffar, and SectIon Three by S. Husln Ali.

wthlJ
[If ol16]yeis

A!thQugh there ~te similnrifHllC~l

..in l:he throe S'ectians~

IDf

aut,hor Is

reapane ib Ia fOIl." the c:'ontanta.

hls pa,rtieulBr

Sec:Han"

s~ HUBin A1'
Chandra MuzaffaT
~ho.[' I<ok PeJng

October 1984.

- ii -

KHOR KOK P[NG PART ONE:

THE DEVIELOP~ilENT OF TIRAM5W,\ 1 IONALIZAT

..;,.,;....". _ ............. '_"""'" _._. __ -_ '...." ~ -- .... -

_ .... .= ............ -.,;;".. - _ -.""'"

- --

I ON
_,

I. INT~obuCTION
This paper
b\lO

gives an Ilutlihe

of the tt'Bnsnati'onaliiatioilt
arisi.ng

of the into

MslaysHm economy and ths p:roblems

fr,om it.

It is eli v idea

main parts:

~~~LQ~'~rovides p
CI

a hi-storicsl

background,

showing the devef opment and post-colonial and on the world to the eount ry el'Uate

f bh!E transnationsl
It also

Izat "on process

IPI'OV ides

in 'the colonial

per i.nd, various rnark0t.

est imates. of losses on multinal:ipnal

forms. of dependence

companies

~~E~_!~91 bring,s tiona recessj, On in the early problems

vide

th~ anal ys,is, up to dat$. 19808. I r! pa r t.Lcu.Iar def.icits·r

7

] t examines. how t.rensnai;/ake of the \1o:rld the releated

by' the

.i,za't' On has aff~cted

the r.1alaysi,an economy 1n the over-spending

It

it investi.g8b'!s

of bal.ance-of'-pevment.s
QrI

pubLi.c 'Sector

end the rspidly in.creasing foreign. debt problems.

reccmmendat.Lons how tff-ei~~~~·~En:i'e

ala:c attempts

to pr-o-

·se.riau:s p.robleI'lllS.

I] "

lR.ANSNA BONAl I 'lAT """ -- IN ;;;..., - """._ -.- -...... ..... ........... ION "-" ....... COLONIAL PEIUOD THE -- - -._ _._,,,,",,, --,....,--........... - -.--_,_ _ =-_In the ~re-cDloni81 period, the M~lay Peninsular was mad~ up mainly of their three the own simple~of1main

.sltlall self-su'bsistent vHlage

Stlme,I" and cap.i tal

communi t Les producing

~Q[?i8 I

<goods.

The

system compr ised

The aristocrats
s8tvic~s

classes
and

the aristocrats,.

f:tB'emen and ~laves, of 'the slaves,

obtained
ftDITl

a shar-e pf freemen,

the produce (tribute) and soma free labo~r

the cOlllple.b~ serv ituds

• .• 2

Under Btritish GolcnialiRm - a ptbc~~s that bsgan in 1786 with the

"fuundinq" the Malay .cf Psrtanq States and spr ead from J874 onwarrts w:iU" UH3 tekir-g over of - the

~'lalay Perd neu.La was fully

absncbed

ariel .i.rite.grab~d

lnto the world markat system.

In the eo Ioru.ad prnduot.i.on,
mainly
Eu.r0pB8n

export

t;=!COI!QJTIY 1 'the key sect.cr-s

of p:rimary
period acreagJ;l;

ctllllmociity

trsdB and finance

By the early

were o..rned and cnnt.rnl Ied by foreign

1950s ~ as the total rubbercloloni~l Gam~ to

iflter:ests,
an end,

Br i tiah,
CQmpanies

c',..med 8)~0 of

estste

Contr.oUed

.62.~

of total

tin

output ; and handl.ed

and control in

t:;(]%-75~,~' the total of

falling ..into foreign

export-import

.trade ..I

Besi,(jes ownership

hands ~ thl":"l Malayan

econDmy
'for the

was 81so drawn fully into the world market.

Federa;t.e,d Hal ay States 1931 s:<hQwed that
Domprise.d

National rubber and

income estfiltes
Un (the~w'!:l

majo,r expor-t commodit.Iaa) product ion accounted to t otal ptoduc.ti.on

·68~~of the ~Qthl inc~rlle, \./hile 2

rice
s

Foronl y 2% of th~etotal.

The: hig,h r'Eit io of export

colol1li&:s:

made r,r8.leya one: of the rnos·ttr:arj~-dep€Hldf!Jnt

in

th~.world.
66% of total

In reverse, there wa~ also a heavy reliance on import~ CCJt)SUnl6iI'it,ems

and

of food.inst-flilCe,

stu ff's ~ manufactured

cap i ta.I goo:ds.

I

11'1 1932

for-

rice

consumption

in Malaya
pr oceaa

had Eo be imported. .r-eaul.t.ad in high

The tr.aflsnationalization

outflows of profit.

In 1937, foreign
.29~ 'of the include Illlated th<llt otller

profits From tin ~nd rubber amDunte~

of the(;ehlO rd of Indust.r (includ.lrn'9 t:raQeand athi banking,).1
ITIOI'e

to $187 million,
i6!s • J

or a lsn in

$'1 37 mil Li.on ValuB-adde,d

sectors
ftJ!'l!!"i

rf

W~:

it ,GEm s.afely
[If total

be 0;sti~

qn profits

comprised

.income

t·1alaya in the pl'e-~\loI"ld !;Jar II period

of colon'e:1

rule.

The· ~ountry's heavy rBlisnce on trade alsa led to periods of great

ha.de
hal of,

i(1s1&bility.
DCllon..ial

As en ecnnomy with .. n e:xpDrt; a

N~S

output:
al ight

t'tltia
chanqes

of OVBf
in

MalaYr;:l

'very

susceptible

to

€V€ln

wadd

ffllll'ke-c cundi ti ons , BrTip.!0YflIIerit.

to

lrarJe

ins:tab"i H t Y hadl'Fpe rCI..H.5si"l;;)ns on Lncome ~. 1rlage-:rates,

and governmen t. financlE!".6:.

revenue

In

t.he.

grea.t Depressi on ye@I's From 1929

est

1932,

the

val we' of expcet s fell by 75~~; total

ate and min i.nq

dec I ··rH.ed by

\1ClI'k

fa.rei? than

dropped

by 54% and government

~nd expenditure

1110I'(f

half.4

Outing

ttie co lOll' a1 ped.ad

lev~l

t.he t r-ananat i onal i zat i cn p

in Iv1aJ.aya

DCflSS

umJoublBut

edly its

r-ai aed the

(if te'chnology

t.o undreamt
j

heights. livi.ngstandards

economy ltiaS corrt r ul Led by fDreigners. people

Neroe hot

.~s a result

of the m.ajar· tyof produd.i.vHy

did

COr!1rnBnSUI'a'te

i(!/iU~the 'advanced

Leve.l e of
al so

end income achf.eved

se l f-sustain.ing

In t.he whol~ economy.

dave.l.cpment,

The economy abroad,

not attain
for

or tial.anced
W:8S

t·1uch of the aSSlBts

and much of

were foreign
the impBtus

owned, much of the surplus

growth

remitb~d

vl.a.s depsnden t on the 'world msrket ,

HI.

_""""'._--.-=_

TliANSNATHlNALIZAHON ..... ,....;-----_-....._ ...... IN T~E _..."-.,,.,._""" ....-""""- .....-- .....~-;-,..- ..... 1~(J5T -CGUJNIAL PERIOU ....'"""',_---_ ..... ...._"""' _
pel' ',od, t'1aJ aysis
IS

In tIle posb-Tndependence

ext erhal

dependence estat~·

hQB

persisted. (ruober-, ownership oil

In 1973 ~ foreigners.

owned ''"3. per cent, of total

j

acreage roreign
;i.liSlJl'-

palrn and coconut) and 57 per cent of mirling

signiflcsnt n manufactiJI'ing bank' nq (47 p,er· cent
0f

assnt

s, 5

was aIM

(49 per cent- of share assets in 1976)

t

equ.i t_y in 1972·), commercial ancs (76 p.er cent; 1 '·steo

ccnoan.ies

of

.asesbs. dn 1974) and WhGies8' e trade in 1974 showed that,

I

(im per cent

'of

turn-Qver v~lue in 1970).

in Nslaysi.a

A survey by T~n Taf Wai6 of the largest pUbliclyonly 13 0 f the bop 50 of total paid-up capital
In

c(Ji'f1'panies and only 24 of thE! b::;IPB2 C'omp~niEl~,~~',ere~1al.aysif.ln-cof1ltr-oHed. FDr~lgn-conholled

of these

compan.ies owned 78 per cent

and obt airred in the

tDP 82 companie.9
yeal;s
f

84 P0:t cent

[)f total

prof'Lt s ,

recenl;

thB Mal aysf ani.zat.Lon

poi j cy and p:rQCBSS has led t.o qr-eater planhU orlalld fact
f

i:u:'quisi t ion

of QVOinership ehares
by public

mining

sedo[';'37

particularly

.ent.ecpr i.sea.
oWn'eo

But the
0

remains

t.hal; bhe. foreign e st rucbure, In

0 f the Mal.aysian

c.mnpanies ati LI have'substantial

19130~ rQre:igFU:'il'S st ill

control

the corpnrat capital

eorporate

. structure.

to. S~;}of

't.h'e share.

In terMS of sectotal
(1979), 39% of

was 38% of E-state mere ial hank assets In the ar ea serv ices

a.creage (1981)

breakdown, the foreign share mining aasebs (1~n'6), .34~~ of comtrade Lurrrcvar (l97s) ,. 8

arld3.:U~ of wholesale we find that

'0 fbl'sde,

in 198-3J B>Xflort.'5 of goodsa,nd of the that

GNP while import:::

wenl' equfval.ent. locally

dn value

to 60 per cent. TI'1is

amQunted to 62 per cent ~lh9t We produce vulner ahl e to the

of GNP value . 9 is flucb.l8tiarls

In'E!8nS

thI"ee-fifth~ economy.

of
vexy

for ~x.por't! m~.king th'e economy potentially of the world IrQ the resilient to the.se

notorious

19705, the 'Malaysian

enonomy has been s.ut"prisi'ngly

world fluctuations,
conmod 1. t i es. be hit

mainly
ies;

because

of the di.ve r s i fied

0

nature
Dr

of

OUT

expor-t
we will

HONev~r~. in thB eve-h't

f a general

.r~mesdon

depr'errai.nn

i n t~he indus"tr' ialcCluntl'

vary
011

t.her e shcul dI I,e no Ll.Lua.icrrs but that

hard.

This was

,amply shown in the neqal.Ive

i~npacL of world

reces~aon

Hablys ta in 1981-1984 when the country account.

auf'f'er ed frorn ION

commodity pr tcee , Lower g:t.O\-J"lih output. and de f'Lc i.t s in t.he balance-ofof

payments

current.

, 10

Malay s i SiS great bbl,s plies

1:0

dependence
0f

on imparts avant

also

makes the cutback

economy auscepS'LJP-

the' e f'f'ect s

\'lor 1d iriflati in the

on and to problems of ::an ex port factere, inv~stmellt

in obtafninrj
by ot.har

of easen affect

l; i.a.l i t.erns

ccuntr Iee ,
In-

either' due to economic , cl ima tic

C1'88.SeS not

or po.l i tical any depress

IIllJ)ort price

on]y essential cdnsum~r goods! but also capital Quods

and thus pot enti a] as well

and .i.nt ermed.i at.e Input.s,

~s cons LJmp on • ti
A.l'lnth1:lr

ftflcet of hade

dependence

is

ths deterioration

of

MBlaysi1ii! s

terms

(rf t rade-,

Dr the. r~ Iat i v ®. change,s by

in €!"xp.Qrt an'o Irnpcr-t

prices

'.
fur
\\136

laking
half

1959 as l he base year~ we find

the Driginal
wacS . 11'1

that

by 1%6 ~l,ie t,erm~ of trade

I

Peninsul sr Malays'ia Ilad dropped level. getting

l·ne fl 7]:7'.

20' per cenl; and that;· in 1982 it for every grea'~I. 1 ass
unit:

anI y it

Thi.s maana rt.hat Th' - cons ,15 t U Ic;esa .

of expnr t r pp.nin-

aul ar ~lalaysia
C,()UId 0' b t· . aUl

back in 1'982 only half

l;. ,.

a uni t of the imports

~,I. L c... .,tr. '~o '.Jre-u ·u.... 'I'.' • 11

L 1.

Wher~ shipping is cancBrnedt

dependent an for~i.gn ships to carry
fO'T

we ~lSa find that M~l~yBia is extremely

goods exported
goods into or
Q!.Jt

01'

imported

by ~1alay~ia.

In 19.qO ~·talay;sian ships eSl'tyin'g of l<.laf1g and Pemmg"' accounbed

of 'the ,two major

COP!

ports

!;lilly 3~~ of t(lt.1l1ships and are able

and 1. Z% of dead

vu;Jigh tonnage~ 12 t eharqea .•

r he

shipping position

cartel

s such as rar Easb F"rejght

r~ renca

are' at ill in a dominant

to Irnpoae vl3ry hd.qh f:["Bight

Due l.o the v 81' Lous faeets of dependence,

a large

amount.

f funds flows

cut of the econcimy every YBar.l~

a)

In 1978, although

f"oreign

cempan

assets

empldYL3din the corpncabe

ownerionly 37~~ or t.ot.a l • sectors, they ubtained 45% of

"69

••• 5

the

pl'O fi t s and

4 7~:' of lhe' rU:lt pro f'Lt a.,

c"omp~nie5
net fixed is foreign

~IQre'ove r,

t he rate In thE'!

0r

:re-inves seven-year $2,36(1

tmen t. 0 f farE!ig,ll

very small. profits

was

par i od 19157 - 72;

but net

amounted to
hand ~ local

nli11ion~
13

investment

only $804 milliolll2

g. v ing

re-investment: obtained
ratH.

I'ate nf H~~. On the other

companies

$909 million
In the

i.n net [J,rD'fits but net f"ixed givillg

9 200 per cent 1973 - 7B~· thE! re-lnvestm.ent

lrw1'9stmell:t csme Up to $1 ~'824 mil l.Lon,

re-investment period

rate

of 1 Deal 4GeL

ccmpard aa ~1aiE! 38~n whl h- that F

From herB

of for.e .ign c.Qrnpan· 13',8

BC'ormmy.

was only

it

'L;:3n DB seen
j

that a un~' l, of profits

otrt.airied by a, Leaal, company

than

rHOl'!5'

berm f.i.e.i.a.l to the

the

SSIOIB

unit

obt.ained

b>' a

foreign Firm in terms of ru-

Lnveatrnent,

b)

Due to increased
outflow

foreign

invi:~stm,~trIt, there has

aHKI been -(pro fi ts , annual,

an mcceased dividends gross

of fore i 9.1'1 investment income from

end interests)

the

r.=ountry.
ro.':;;;(=)' from - 6~~ to

The averaq~

out fl oW of from

tnvestmen t income a year (1961

$,)80 million nut; flow

a year $625 million

(.l~61 - 65-) to $916' mill ion (1971 - 7~J.

Net inveg.trnamt

rose

$218 million

(1971-

75) ~ $1,505 million

a yea T.' (1976 - 81) and in 1983 it a sUb.stal1tia1

108s, tCl~hl!l

reached $3.6 billion.

Net investment income outflow ~mounted

eC0I1Q,11iY.,

to 3. a~!\ of GNP in 19 76 - Ell, c) Losses due to tsrtnS-of-trade •

deterioration the fac't sect.or and this in the

are l:'Bslly quf.Le

has a major impact

ar;tonishing

Ihi~ is
si:lISO

dUG

to

'tt1rat 'thE!"degree of

debn:ioraliofl because

haa been quite aevere,

f t.he Lrade base as the

or

the
l$) 59

~laley al.sn economy,

PI'" tee, The

If we take

year

foJ:'i import

and export.

we find that the terms of trade for RBninsul~r Malaysia fell

from IOU in 1959 to

only 5? in 19.B2, a cut

by hal f.

106S

to Peninsular
was d')

Malaysifl' in 19.81 in terms

of lmport.s

foregone
SUi'll.

squivslent to 22.%'of the GDPt an I!lxtremely

LOSS€is

s.ub~tanUd

from

shipping

and

insurance

ere

also v@:ry ser i oue,

Ne't payment s fot'

fI'6ign't and insurance

rbs€' from $621 million

in 1975 to $1.9 billiarrin 19RO~ ~nd S2_~ billi~n

Net tn:msport
the patio hms and. insurance

1n

1983.
t

costs\'1§r~

lequj, v~le!lt.

t'G) abcII.Jt
but
In

4-5 per cent of our expor-t value in t he. s-'arly $ixtie§!

FlOW

1"1 sen to- B. per

0 fevery doll. Iar

cent .in 1981 - 8"2.

0

o U:rer· war-ds,

out

expor-ts

NS i:lS:I'"n eight ~

r:e.nL~ go [.0 p<lying the etHar.gEf!;:l for shi.pp·.ing' and :i.njlurililg

the g()QcL:;;.

flm'l!.:il res.uJ. tirqg

~Ogge~:;Hljnsto'

f['I[JUI

H._.. world

] n Par t Two t we will economy OnHl€l

pznbl.ems ,

e~Elmirle

the

Impact;

of recent

deve Iopmenbs in the

t4a1ays-ian ecorwmy., and of'f'er

Dv€!rcoFnetlle-

rel~tions (e)
.9_

(i.®.

the balancg of paymsnts);

i

lillw rate of inflation

cr i Ler i.a,

or no in-nation
be aai d Ehat

rat a l l .
mJtflc·onomy

Judged boy these

it tan

today

is

fae' ng several
nature" L

aer ious problems. in time.

a staL't

These- pnob lems are· of a They care. also

of a fairly

~~!~I~~~!:§!
which will he

e. they are not- caused by mer-ely cyclical nature,

i. e. we canr1Otexpectth~n

f~i:itOl:S

r emcved automat.tcalty
least Dr medi:uII"!-term

Ionq-t.srm

or at
one

La be Bcll ved in

two

year-s ~ although

can of, cour ae be made ·to std V'et.hem now,.

Below i sa economy:

list

of 'the maj Dr prob.l ems and C'on-strl:1irlts

now facirlg the'

account; turned frome surplus of $2. '2 nil I Lon in 1919 tc deficits of $5.4 billion (l~Bl), $1.' billion (1~82),
The. current

$6.7 billion (1983) and an expected $~.8 billion (1984).

fout' years ,. thE) count.ry deficits" Ihi,s deficH
(i. e. it cannot (paym,emt.s· for

In
account

has run up $25 billion

is not due to c.yclical
0f

in cur-rent
rsaSDns

alone
deficit-

be exp.l airied as. a. resul t,

the rapid rise o F tbe
irfcome t.o

:r~c;ession only).
rade

The. mai.n cause is

Inv is iblet

inV8stment

abroad, (1981),

freight
$,6, bil]i

ami Irtsunance ,

travel

am.

education,

foreign

cansul-t6lFlcies and ray-a] ties)

from
i'

$2.1 b.i Lli.on in 19715 to $4. 7 billion $8 ..). b· 11 'on (1983)

this year , we still

on O?B2;)

and an expect.ad surplus

$.9..5

bi l l i.on (J 984 L

Thus' f

even l'lli til a mer-chandi ae trade deficit.

2.

of some $3.5 - $4 !,:lilli'on

b.il l i.on current

end up with a $5.8

account

A hrge externai.:.. debt fha:t _= has __ ......... at Incredrhl e - .ntes in risen ---"'------ ............ ........-- -_ ..... """ ..."""'. """.---"",.._--....".-_ ...... .---,__............ __ - ..... ...,...,......,_ _ .......

At elld-19837
pr i vate eeetct-s)

U1e' total

'external

debt (both public worcls~ the

and In

l·ra·s $3(1,9 bi.llion

in 1901. bl/o YBars",

~ tip from .$24. billion In other

1982 and $15.l~ billion

l.eve I

doubled in just

This debt increase

was part1 y

• .'.9

cauaed
borroa

by the currenb f'r om abroad to

acenunt
coverdeficits

de fiei ts '(s i.nce ~le had to

thern) (due

but it

h(;I.B

a Ino worsened.

the. current
the d~bt). to increase deM levels! Flows.

.account Obviously

La ps:~/rnenb;;; .~·ervidng continue

0

the level of debt cannot

so r~pi,dl y in fut-ure ~ if vie aret there are already massive debt

avai d the

fate of Brazil or tile Philippines.

In 198.l, the eount ry ' 8 debt

Even i;\iith existing

repaynlen't out-

~H::l!'vi.cing (rep.aymcFlt

af lean plus interest) came up to $3.5 billion. This waB equi va l ent to 42%) of' th~ $.8. 3 Dini~n j n n~w Ioane whic.h
t4a1aysi.a
ob tained

during

the year.

In othsr

\"lQrds,

.42

nent.s out of every ringg'it in nsW Leans mare l.y went to pay back QUI' old loans. fhe :;situation is going to get
ITIlJch worse loans
IlENe

in th~ next a
II

several

years..

;t4any of our
'01'

for·eign

grace

pe~I'iod'! 'J 'f fi

ve

six years at Lached fi

V~

to them •
We!!

This means t hat for

have t.o pay cn l If the

the first:. int~:re6t

,

nr six' years, for some

have. ended.

will

but not 'repayment

of Ioan pr inc ipal .

By .198.6·~ th~

Llgrace period';

of the loans, cnnt.r act.ed in 1980 and 11981 wUl

Thus, a significl'nUy

highsr amount \'lillhav~·to

be spent

in delyt sel"Vidng frDIn t hat year onwards.

In 1986, the -

countryls debt.s~rvicing
sec l".IJl'.g)

(for both public and pr'vat~

yeara, the 'debt; servicing
be over

can be expect.e d to be ill tI"Ie ral1ge of $5 billion In subsequent ev~n further. level
.in

$6 billion. will increase

In 1987,. thl!l l'r!Jr.ace peri.od"

i

for debt.s c'Onhacted

in 1981 sfld 1982 Nill

1988, thegpace

period for- lSlS? and l'9B1.debts will b~

over. Thus, in 1988 we will have to pay back part of the Ipan princj,p.al of pre-1980 loans' plus 1980, 1981~ 1982 and 1983 loans in eddiHon to the interest: of all theaa loans and
the intsr,est ter:l3st will of new: loans cont r-act.ed .in 19'84, 19B5; 198,6
0f

and 1987 as well ~ The at ream thus steadily It and pI'ob,abl y beyond,
Carl

debt repayment at least that

and inthe

mcrease

i.m:til 19~O

be ant icipated

•... 10
ccunt

ry

\·.r;Ul be. flxpe:ri~n.c~ debt. repayment

at Leaat part
not,! plaguing to au ffer

of some

thr!l "aqun.i
0

es"

a f ex terna.l-

r-

bhe. Latin If we are

;.\me·dQall ct1l1nt,1'ie.s as ~'Je]J as the

Philippii'ies. but t.he least .

fOI'tlJ1n(3te~,
negat .t[lting

\'l0

may not

have

the humi I iO,tinn of

for debt

re;schedul ing,

we: ~/iH

have the folloi/dng ( a) the;i nter-est

ments current (b) a Larqar

unpa.le tab.le payments wUl

conaequenceer
dl'a.g the

bal ance -o f'-p ay-

accnunk further part

Lnl;o deep deficH;

and larger

o.f gov.epnITlp.Jn't expBndit.ure eunrent; and! deve l opment.

\·/ill have to be put aside to r epay the debts ~ thus

le~w' ng Leas and Leas for

expencli hu'f'i ;

ld

with hLghe.r out

be le::l~ Income

flO'N
BV:!'Jd

of debt aervf.ci.nq,
l.ahl.e for

theH'e wHl
(1.. e.
OUT

the popul.at.Lcn

out put; may incr~ase

but t.he neb Income: obtained 'tdll incr.ease

~ill

by less.);

~'lalaysia.fiIci t.i ZP,rI!') and residents (d) there is e possi.bility more loans ing the In order
prob

that

wiB

have

11:0

borrow

to repay

old

l!,j~:iIlS, thus

pnatpon-

u8bt

l ems into

an even, bigger

cr i s i a at

s.t future date.

;; • llrtcer t B in
\~QI."Ld

ec.onomic

cendl, t i ens In th0 medi LJ'rn t.e I'm

Many economist s be.1Ieve·· the tunal cr.isis,

with low gl'o\i;,t.h

war If! Ls facill.g a abruci'85

in the dL§lvsl oped countr ~atss

and

otagnatian in ~he developing cc~mtries~

are the U.S. budget deficit
possibilily of

Among th~ pioblems

j

and high interes

the
pro-

another round of inflation;

cverhanq

incl'e:asiFlg

tect ionism;
debt,s ,

and the
t

0 f u5$8tm billion

Thi rd Hor Ld the Finance

nscentiy

Ienqku

R·@·zeleigh Hamzah, then

~~: . at.ar ,r.n;'"edieted n recently experienced

there wou d be a recor-r ence of world r~~

';\,IQu! be ~'I(jrS€ t-h~n the neneas.i on d (Elusines.s

cuas i.on in 1985 which

Tim~s~ ·.Iune 1, 1984) '.

These

' .. 1 .
uncertain L"lOrld conditions

will This

affect

tvlalaysial

s commodity

and indus t r ia1

exports.

year , our- expert; in the

earrliliHjS

have

improved. d.B ficit. mainly

cimber

The t.rade

balance

first

three months of

1984 Was $1.1 billiDn in surplus cpmpared with a $311 million

In .t he samE'-per i ad 1ast due to higher and petroleum oil output
year , But" this

has been uveral1 irn-

r'at har than

weakened iil,the

a'r,

prDvemHnt in demand or prices, .have all a r chis year , 4. 1ll1cre~8ing depletion of reSQUrCBS ---."....= ................
,.,., _ ' ....__ = ....... _
;O_' .....

The prices of rubber~

secnnd

tinr
quart.er

II'n

....

--"

".,.,

l'ha re.Iat tve prosperity

t rrbut ad to' we are tion ber and

of

~lalay.~.ia carl be lilTgely

-r.eSOlJrcBS.

at-

tne

abundance

oJ natural
acute our
by the
0f

However,
depleOut' tima1'S

no.w facing
exhauat.i.on
rna]' g

a potentially (if many be depleted

prcb l e:•• of the mid-1990s

key rescurcee,

r®"COl:Jrces ere

~ and we are

expected to be
·reser)jn~~ being depleted

net irr~orter

of oil by 1996t whil~ t~n

Om'· f.i,sh.ery
;

al so dec 1Irn.n I;J.

r eaources

by ()v.~I'-tLawling and po.l.l ut Inn , while' is w8!:lhe-d a'L-~'ay by soil and their

val uabl e tiopsui.l fore.station.

of the

€rm:;iQi1 and de.Jonq- terITI wealth

ser.i.oue

!Resource'" represent

:the real

euuntry

exhauat Ion willhaw~

ecu-

nomic .implications: Lnab.iI i ty t o tap tile resources

f:or IOC.ll
USB

in the~

future;
the cr.es·tiOrl ofa :set'iolls
j

void

.Ln export

earnings

as the {'8-s'o~)rces r'lDn nut title 108s of forei9fi

exehanqe

.l.il h8V ing

to

rnport

wh~t we once exported.

• •• l2 jnvf::Jslments,. tl"sde, finllne'e

t

and t(;'diFmlQ9Y' Lcs.tnq bill

iOlls

As 0 renul t of doll aJ.'$ every country Ther e were ,

or

bhi 9 dependence Due to suffer

~'<Je are iii

yaar-.

t.he fan
"lIg

our terms-of - trade ~the

trading Jnasee

hE!"': been

-from serIous

also Qutf1m'is in the fnrm of profits

Ler es t on Fouign

of foreign

firms,
pay'rnen!:B

inand

Loans ~ frei.ght

And Irraur anee

royalties and fee~ to foreigners.

The main 'lasi.;;. of a I)' Bcrmomy every

well-off
p'l~rhmn S r

.i

s to provide

enoug!l

for

basic needs ,

Although l'1alaysi:e is ne l aU vnI y developing for count r i.es, yet the bas ic needs of' a have shown that_ in
j-at.e

compared

to many other

~·'e have
~lOmE!: oor p

not suute~ded

In prov.idill~ peop l e.

h1:ge' segillfmt of our s as high

of housing" like growth

st udi.ee'

v LLlaqe s and c,orrimun1.ti.es't

bne mal nut.r t.t.ion

as ~O to 60 per cent.
w',th .over ona-quar

n,ere 1_5 a chronic shortage

tlw pnpulat ion

ter

of towns
Th'B

Kual.a lumpur of i!lc(~rn~

j

and ButterWDl' til be.inq

-squet ~ers'.
the Income

n the

country

has
,

not
data,

b€H~f1eq.ui tabl y

di'Soh-ib·IJb!!r1.

Ac(~ordin'g

to'

(tIdal

go tng

to the
than

'top 5 per cent of houaehul ds in Malay'slB tf-le income going to the ar.e- genera.lly
bot.t.om 60 per cent;

is rn'Ul"Ei
of houaeho Ids
te~pBct s

combined.

The :ltnbalaf1ces are al so pnesent

in ather

:,

:the urbvn areas

more dc~velop8·d than rural

areas;

lh~ i~duBtrial and commerriBJ aectors grow much faster than the aqr i e ultur'al asct.cr . Sl..lch imbal ances .i.nevitabl y 1ead t o
g:ocial tensiolls I II •
I

and thus constitute

a major economi.o problem.

SOME H1PLICA TI ONS Of THE ECONOMI C PW):Bl EMS

The economic problems

eut I i.ned

~bOVB

Nill

have some ser-Ious. implications section, I will ,e'<:'!'3mine some

'for our sad€) ty in the decade ahead. of the3B diletnmBs and impl' cat rona,

I n this

· • , 13

1n the 1 ~nD8; the GroM~ Nat lCnal

Prndur-t (jrew ~rt

:iJ

rapid
pet

rate.
yee]·.

In 1976-80 ' he average

[34 j t b)1

growth rate

it,'ElS

El.4~~

the

ear 1 y

] 90lls

Lhe 51 UA t I. m hAd nharirjed ,

GNP graw~I'

FelJ

to 7.:S~ (1 sa I).

'i .4.% '19(2) m'icll

find J .m~ (19fl1).

In

In tho fTIPdlIJ,n-reJ'l.1r
WIJI I d eer1nrJll1Y.
Hevera

therr-

is 5.tiU
1.l~

HnC'f!rl~il'ty

1:11::-

1'~orclt"l!1 , r

tli nunserl the

deb! the~e

ubovo

lla l ilY~,ja f'ncnn dra Fi e it •

Lht·

I C;{l,,~t fBil1t!j
to
0

tn

ogro;<j h:

L'Ui' .. en'l:

BCCOIw,l

[,he need

r-cstr'

C't oxh:::rna]
ri ivcn

fL"om qrowmq"

ami

dar I C1 r on
rfjt'f~S

I'09CHJTCes.

proh 1cnlti
f'Ol' rA~

Uu' ceunt ry

B EOI'

i nus d.i 11f!!fTII11B.

If

've ope

L ~lrt::';,Ilh Lnf"lp i L~ re Fr'!)l1i

fltH'I"H:H'.

of

these

ph'obI eme, \o'1'1l! may have

l'(jI bllr ro""

mrl

1ho rA'~1 rwcL1t h w.i 11 a :~o 1t'!~d 0 EI r iRP. j n impnrt:. ~ thus

slrnifllng we will Lher'e

'the current.
end

acr-oun! trnp.

~eficilt furLher ,
dcht

EIle'nturl1ly and be cnuqht

'I:his ~

up with

e:ven hi gher external

pp inas

in \:h~ !'J;ral_j_l-PhiU
IIIBy BCOIll6fTIY.

In order

t.o avoid

be a. pnl.i cy to r educc 'thR r3te of qrowth of the

The qnvarrmen

t· is al ready doing t~u s: l.FI I:' It':l pub l ~co ssctort whar~ current e~penrliturep have been cul. It is unthat the pr-i"ll'lte sector can take up thE' slack the vacuum
11"'1

1 ikely

rapidly

enough to is ~e['y

fill

the short

t.erm,
fet~ y~rs
~Ie

Thus t l hure
tlir:! economy

pcasdb.i l ity tha:t

in the next
than

\·)i11 expe+Ience

fTluch lowe;r gnMth

have

baen

used

to.

The increase

in labour surplus ,.,il] be due to:

(b)

rapat rial ion of over 1'00.1000 Malaysi en ~.w!'l..:enl

now in Singapore
i n tha

next

few years; 1n l.n

(c)

lha

po11c~ 'tc accept

Irtdnrraa ion labour

Mal Elysia.

• .• l4

3,

~~~~~~~!~_e!!E~.:?
Acco.tdin-g 'to the

~~~~~el:!!_Ei~~'_~~_P~~!:£!~1_9~~_~8_!~~_SJE~~~!~_~~~_e:~~~ ,
t-1icl-terrn
l1eview
nf

the

fourth

Ha1sysia

Plan, rural poverty rDS~ from 17J in 1980 to 42% in 1983.

for rubber smal lbol der a
r

the poverty

r Lse ~\'a.,O;:; rnm ~1% t o ..f

6H~.
4.
...

The situatiol'1' could flirthl~.t'deteriorate"

,..,. _ _ .......... __ '-.....-= __ '

Imp.l Icat Lone fo~ basj,c needs

..a.J .... """" ....

..,.

and redis·hiblJtion
....; _. __ ....., '-" .."..._

~\IHh reduced growth

prospeot.s ,

~~~_.!~~!:I~~_e.f_~~::~2

~~.~~~~ _§!?£± !1_ in~9~~~!!:~e§1. ~: ~~~ _E~.~I~~!E ~ _~!2~ _~ !~~~ ~~

~~·9!~!J~:!_~~~~l:a~~~~_~!!!_~~S~~~_~~E~_~~P~~~!t~~. rhen:i wiJ 1

be greater eque l i t Iee social
Incr-eaaes , need to reduce ullequal

access
0

to tile fl-LJ~,ts ano f strucbur al

.L11-

bene f.i ts o r developimmt. issues

The pr ob l ems

and imbalanc.t;;ls 'r'~.ul e!T1i·e.rg€l to become in tho. year.sahead,

economy Income

cantz-al
society .gro ..... ,th
U1S'

esp~ci811 y if pover ty
fas,t? can
"%1)1

"Ihen the

Ls. grcMing

t'ol er at e high,

Lnequa l I ti~ S because the

also fact

be trickling
i es) .

down to the bottom layers of! down, and there

pepu-

I@tion (for ~xamp1e, chiJdren of padi farmers ~0t jobs in

0'1'

But.i f gro'wth
then

81 QWS

is i nfOL thcis13

creased

pnver ty and

1ess hCl'f)Cl D f LJp\,xat,j m.obil Uy

at t he bctt om Lsyer s,

demande "for. a more GLJ~labl e

distribution of income and a fair share of the fruits of

development
crrpevs

will

become

great:

8I".

YFe. i l; is at this

PO,l nt

in bime. 'rItien the government rty eradrcat f.ora caB

basi.o reo:r ientat

has less

r®sour,cFoi3 to spend 11·1"8 ai tu~t.i on may thuE

tm'larcis a s tress i B the on

Ion prog.rammes.
pol.ic i.es

ian of de v el opment, st ia~"egy , This

away from gtoVfth-ol'ient.ed

prov iding
the

For peop l e ' s basic. needs"

is able bJ r eal

best way to
ffi

ease the growing soc i 91 t ens tona.

g,overnrne!rlt

The quest ion is whet her

tZ.13r his"

to f'o rrnu l.af

pol it las

in this direcHorJtend

to implement them.

Tile r ecenl, t"1rda~lsian Plan

poor
I::.I:lJ

per 'forrJl<mf~e in the at ta in the

eCHllr~~myht'lB .'Ill'eady

made it impossible

major gl'o\'f~h 'Of

] 90

~he Fmll'lh ThE

(lI'~1P).

rhe ill P assumed 7. 6~~(] rO\,j(-h; nc l mil

ifl

gl'Clwth has been 1. 3%J S./~I)~and .,. B~

E:l(''1SlJItnL'lld l the the ba lance-of
0' " mere

l-3'5. n

4~1I"
t hl.'l

-paymcnl:1i
$1£19 1,~a9 $25

\,HJU

Id havB a cur cenl

j
l"i"!rdi

accuunt
publl
n'Orrl

de h cit
ng

mil 11011;:

1 iy

cumu.l at Jve dar.ieH

C spl"lndj
J

in
Ul

]901-(l{1

billion.
1],

In t.erms or

is

has e 1~(i bean C'urhdl f"J d [,[I"d I r-a I I y d or 1I0r-li:pmlcrl. r he the I~ew Pavel't Is h irular

J 982 onw rds: The f'orced

wi l h many rlro iec ts cane,

C':u'lba~'k .ain governmonl ahoad

VI' J.

spcfulinf] end [rrea t1 y h irrder

l1nrJ

prbapect

of

] ow~r fJrowLh

r.onC)mir.: PC'hcy'lJ qoals

turI ng ethnic: h~.EI sl ready ahar-as Incr-eased

of poverty cI'adi £Ilion

and the' prosp~C't_
uf public

l'e:::'ltI:LJC-

e r mme-rah] p £lind part Ic ips l i.on. o r ~m improvement

runds '~t'ill also

ncr!: very bright. lhe continuation

Um lack

Df government-supp~r-ted

pUJ'rhal"es

of !:il1arl3s

in ccmpanjes by Bu~iputra trust agencies, such as happened

on Sf large turing
existing seale in 198] and 1982.

FInally

I'

thifl r eat rucof

prcceaa

v:as planned so that

areas

to

ake place in the context

!'lals'y'sialls,.

rapid growth

ther-e is no "ennrnaehment " into

held by nOn-BlJif\liputr;"l

business

If the cake stDPS

f 3m~

fast. ehDugh,

then thE' restructuring it harder: to, at tai n the goal

by 199(].,

process ffillY slow d[J~'m making

D

aumiput re part icipai:.illn

Indeed,
-to s.~~ith the c the ethnic tion that of income

in the tonte'""t of the growinl:]

rm:::us of ecnnoma.c

problems of
case can be made

pnver t.y and Income inequBb tres , a strong compositiun of the el1tes

reat:rLJclud rig ai:Jay from

lO¥lards tlc)e distribuThis wDuld Imp l y

betweef'l ancome gro IpS.

the 1cs c.ii!fS c f fithn tC CClI1.rnunH i,es shoul d fighL m::Jt

for ~ bigger and bigger shBr~ of the cnke

In

cr their
i Fit

bu~Lt't:' 'ibl

ssmefl, bul
(;I

t age her f i ghl

f'er 'hp

ri qht s on
thei

of tb!:?' peer

f a.i I commum t i ea, l'iho ever

1" 0\ r ,,"11[;

· .. 16 C"ornpositLen,
soc-Lal tensions

Unless
eauaad elites

tl1is 8w::i.lcb in for-us takes

by. pU\iSr-t>i \-till 'rise: 'toths

p.1 Ace,
fore ~

even as the the caks for I V.

figllt. une ancther

f~r a biggp.f" ahara

of

'themselves. THE: ECONmnC S1 llJA l ION

,
\lJF{

.sUGGEST UlNS TO mPRO\![ In ths, prey i ous

bolQ

s€ctions

have exami ned the nrob.I ems .. In this

section,

f t h.A

M~lavsial1 economy and SDIDe of l:heir imnl jpat.ions

will
:SI:Jq~,e31. 8om!" ·

ways of irnohlv inqi:f"I,e )itUflt Pfobloms

ion.

In dofriq sc , I

i,1i 1.1

be louching

on th~ medium-term
[IS

such as improving the~alance-ofsuch Or1(j U1B r18ed to reduce· pov€rty

payments pnsft Lon as the country

I

~Iel1 as more deep-sef:ltF.ld and long-hn:m Iasues d~pendenoe~and

S 8xteinal

income inequBlitlsa.

I mprov illg

the balance-

0 r---pf,lyment.8

shoul d be 8 top

government: prior it.Y.' In 1983, Ihe Inv isib,l@ Lis fieJ t , totalling $8.3 billlon, had the ~ollowing components. Investment income to abroad ($3.5 billion)~ fr~i.g~t 8~d insurance paymenls ($2.2 billion],' travel and
educEl:tion ($B75 million) and m.isee Ll anenus
t;lhargoe::; and
I

~ayments ($1,6 billion). nierDllowin~

ql'DItJing serv ices· ( 19) New ex bernal al'e8Qme s,ug'gsstion$ to r educe thi~

deHeil:
bur rm..ri ng should

be cut to th? on debt

.i

be res t

minimum ~ airice

int eres t. p ayrnent,

j

s €merg.ing

as t.he sing' e biggest

teru on the sen tC.es de ficit .

lhe public sectorls

reduced

bbrrowing ~equi~ements should be

or' c[mt~;el1ililg' lar'ge-8c:®l~

by po!';t.poning

prajects requiring 'foreign l~an~. At th~ same tims, ths finarw.r:::isl author .itLea shoul d re stri ct t ha
~xtent
'0 f the pI'i vat e ,sector
I

S exter-n~J

b-ot

rowirtq

sinoe its extsr-nel

d~bt also jumped from $4 billion

year.
FOI"Ai

in 1981 to. $8.:3 b ~Ll ion lo'st

qn loans

• , .,1.7 fDr proj~ctG which c~nnQ~

f'o['.eign exc hangs
BElI'n]

gsneTats
8U

a atre~~ of
COVEll'

ngu

fri~hmt to

~If~b t

se rv i"CB rnqui r ernarrts should

in the pub.lIc
·f'.ie·ctOT'

be. 'st

r.j

ctJ y curt aile d

throur]h

8.nddiscouI'agea

f'ore i nn i3xc~anqr~ re:qu;J AtiDns ~b) Sil1ce for'elqr~

cLlIllp.<l.ny pi'Of'l.b.l

in the pri v~t 8s·(!'!et--o.r • t'Of1~titute

a m;~jor

out fIrM ,;t.h~J gOY8.I:nmant should m~w fon.d:.gn

wlwl'I'8 the if1v.estments

t;;;"ke ,C8I"{~~ all cn~ t.Q

save D~~ fOI'0i qn

only

In sele(~·t.ad Efrb.;:;.3
of

~raj il"l

ect a

C.3n earn

exchange
tri,;:itBd

r~)(,l;·eA.~··

of th8 amount

of profits

rcpa-

annual I y •

1'Ilj f; WDUl d lneCln i'e-86se):';.~lALJ the prnv i dirnq tfi;<' jnc~t!t.1 v6~ tp

pL~ej:lBnt cr

ih:ria for

fOl'c;rigrll fiI''l:ris. ~c )

T9 roouc@ freight
stren'Qthien
The peT frrrrnance of

paymell t,e , Hpj ~y sia

.oUI'

has

to
Linea, fo nsd gn

t.he (wp(;1c'Hy of
the. cJl'lnted the

o'tln shipping
bBE'lH

H 15C has

,disappointing nf the in re'iJBnt:

as it has hardly y~8rs. Mo.re6ve.r,

step~ c.©rnpanies (d-)
A.

d.omi ~gnC:8

ahipp inq car t el sand

has incurred

inSSBS

review

of the man ag(1nl~ntand

per rorm:~mce
f@f.

of the nat Lotral shipping

to help inthB uP.grade
-a1'e8:

i.n~LJ8t-TY 16 .~811a(l

thtt r- 11"®rk'E) ~lirlh;try

of trade sending rlith
oVIH"

ehcul d t~ke ~;onrcreh

j

I: lie capao.i ty 0 f 1. Dcal

rrsurance , ab road
OVG['-

im,Utance

The pre.E>Bnt pol icy of shoul d be se~8,~1?18.Y

r®-V i.eNerJ.

so many st.uderrt.s 50, ~OD students

pi 8 1

hhe c ount

rv

wttf ~ the higl:J@iS.t il1lile

NOT'].d.

over

seas

:st udents-to-pojO:u] at t all ratio

sllffici'ent

N{:~have

~duca'tiorWJl talent Lo provide: -schools

to be. no"]e to inor~ase ~[ld terf;,i.r,;u"y ~ducaUor'l

t..he: capaettv
f10W

wi th:tn the C1Junhy

be,il"lg ,sent

foT' :~ substantJ Ell po r t Irm o f those

ab:Toad for

studies.
0

{s ~

P·a:vm n h 8

t ['l f 0 {':e :iU~F18r SO on a c co u~t

:BtC. are

f con treat

c h a r qeRj

t~'yB1t iBS~ c.orn·nliBig i.orss,

81 So

very

~ i 9h 1 hav inq

•••

I II

r i.sen r8pid.ly
Lh.i S i the

to 'H.6

b iLl i cn laBt. year.

Sfl'DU

To

t'ciJll'I'1
~j('

qoverrrnen t

1d not award

Ci:JrI G t.r

t:i on and
eel i n the

turnkey

pr ojec

ts to f[l"r~i. gn con t.r act or s ~~I'l(;!n ocal L

6ame jobs;
f1fl

Fi rms nan do the

this

I'\a~ result

outflow

or

several hundreds of milljons

188

or

dollars.

Fea sibi li ty stud

shoul d fIll So be awa:a:·dfl(lto J ocal

cortsult anbs as f",rstlicence ·agreerl)Ants

choice.

Also ~ tbe Lecrm Lca l firms shuu.l d be I'e.vie\'ted

w,i til foreign

t.r snsf'er

to ensure :a fairer act.ua.l tSbhrmlogy

deal to the country

In 1:8"rm~of

and rnya Lt y pnvment s ,

In

l'edlJc'

nq

c~r:Jl"rssrraf'ld ing domestic

(a)

the n.aU q.r"'i 5 depsnde'ncc on (-ol'si.gn steps ehou) cl be l.aken to Increase thr~
I

bOJ.TOW]ng ~

18\'(31

0f

funds

for .lnvest.msnt . her itiesi

Ghoul d e.xam.itle l:hr;l pr ob 1em
j,1I~·BS

The f'Irranci.a 1 aut

of'

ri

r-api.t.al

n_l ght:" ,

i.. e , t-talflYe.ians

ti uq the! r
hi
~Ifl.

r'Ur]d9abI:Osd. a va i table

AHhougll

jjffir;ial dat.a on ttlis. Ls not

be Vf'lry
bitln

~ the amount
-fl8ymcn

,i.:-.3 be] ifJVed to

The bal ence-rrf

t'-t3 it

Am

~I

shorl-

cap

it al, and e.r

e r-ror s 8nd omd sa i ona'' of fu;nds abroad) cDuntry

(which

inf.:'].tJries

til&.

t r anaf

sho\'nJ thot.

$2.3

b iLl.i crt Le f't tAa,r.(3ys.i.a P, sl)btot an t i al pa r L

in 19B3 alone.
Le ft the

In 1976-19R3, ~ total of Slj'biliion

011 t h i 8 3C!count: 16

of this

could rep'Fesent

funds;

3BFlt

abroad by rndi.v idtJ~ls I t is comeron bJ

\':BIJ known fD r up 1::l11c1 and pf,"oP~I't}'

and companies for ~nv est.men ts abr-oad.

read of Malay.siaM comp.ahies abrnad, bUyinq

and the ~'lalmysj_an el Lt.e aee also

buy 1119 personal

propert y .L [ngland, [1 count rIea,

Given

r\ll$tr8 ],.t·a, r.?enada,

alone

Singepor8
pr cb lem,

and other
steps

let

hav.inq numbered f1 i~lht 0 F

S'Wiss bank account s ,

tile balance-oF-payments regulations.

should be ta!<EHi t.o' check this. !lew axel

H!lFTgEl

C'Bpihl

through

... 19
(b -'

The fi nanc i al authori

PI;)8 it·

Lies sboul d nlso

in i ncent

Uno Lhf'1 r i

oil to Induce
Due to the

l.mpr()Vernf~n'tB

t.he II nnk trig

y ea r s In

indusl:ry so that. beUf-:r S8VHrs.,.

Ives ,!Ira qiven to

recant

1nc J'ea8e

in

U,S gI'O~$ margin

and deposits, made excessive end' borrow8rs . the

be l.ween int enrst

banks
ami' f'Inancc

rates

on 1. cane

ccmpanie s have

profits At ~he expensB of savers

The Onnk \J~,gar8E>hiJtll d ncnt i nue i0

mnmt;o r l.he s.i tuat iun and get t Il~1b31lks tiJ t l"'onnrei'

mere a f the: benef'I t s to MveJ;'S to encouraqe o f sav Inqs to .incr'ease ,

should al se beaske.cl irli::.erest

thE! I evel
l.he

1n this

context!
their

bank

to change

method or

calculating
basis.

on sev.lnqs

account s frorn Lhe

"minimum monthly

baIance"

baui.s to. th~ daUy

Irmont i vea, the

tatp
1 avel uF

\'lit.h such improved

88vinqs'may

lncreasa.

The publ:Lc

sector

expendi.tura.

bas

shot

up very

rapidly'

in

the past government

ten

years! and t~~n has been l@rgely

imb 81
ElnC8S Pll!d .u:! tJm

responsible

for many I'ederul

W8S $2").

of the present
'I

·econmlTy.

In 1

~aJ ~ t.he

s cut tent

direct

dave 101.merrt ex )E,l"mJtu r e i

I

4.

bill Ion whUe

$29.2 b' IIi on,

the st ate government

rmd ~late

oS

expendi t.ur-a was $ r). 8 bU 1 ion. ~pending

wao

The f,;'('Jr:floin.ed f'ader-al

or.,a

g()verr'lrne~~t

theI"(?fol.'e

very

hi gh 46~,~(:I f II te Cni.ss t\lat i ona.l Pr·oduct.

Al though the
cuts WI!H"e in

fedElral

glo.vernmerlt

has Eaken s't-eps t.o cur-ta.i l i ta

i se 8:J enouqh

~p~ndi ng in the P~l.';lt h/o yeers"

the right
.SUggBst

quest ionsar

to

~/htl

tI i(~l~ the

.ar e IS, and l,the:tha.r

has been done.

,·le•

that

the

ful.I nwin'g areas

be eXaiftine~~

(a)

i)l'a.stic· cuts made .in cer+ai n crit ieal areas

the wBl f'are

affecting
shcul d

of the pcor-ar

sect Lone of

saci~ty

be ,['e-BXraminerJ.

For insr.,l'iUl[:;e,

there

have been r-·rel.ln(mt

cp~plaints of shortages of and increHa~d chat 'Be of • cert eirl drugs in qover Irrtent hospd tal sand clinics.

•..

:'20

Al so,

t.her-e

was

the

r<"I{:IS5l

ve 115~~rctluct Ion

i fl Ilu~m

i i ICJ

levc Lnpmerrt expendi

means LhE'l
'V

luru

in the

]9Elt~~
LJ f

1-llidgr)1

~llnr'~lti~\j1
r r)W-~' ['JH~

i eLua I
Bmlll(;..

abrlndonmpn t

'I r1P ~fub 1 Lr'

hnuai nq pru~

r'
1,111'

(,PSI'>

i 'If>
I

51 ash

i nr]

>0

'F f Ill'

I lUd\lJ41

in t hp,'~e areas
~111llLJld
Br-.H~is 11(JL1

shoul

d lin I be rom~.
h£H L ie

H lEi rjnvn mlnen' r erkrr-I

In!!!,! I'll {,.'I1r! n

revIew

udgel

ln

l and econem
m'"cal:l.

11;; ~Jl?G UHj

have
If!

cauaerl
lht>

undue

!'~l'dnhi p
::1' IlIt'l

Ilf

l.he peer and

If

su

In

l·(:R~P

~-lf,Hr,{Hnil

ivr.lj!

HI UmslJ

(b)

011 lht~

uther

hnnd, pro j ie
F.I

mm"

111

ur i (3(Y:

11111 \Il'l'
LlI'\lI.-

shoul d be cur],
]I,)J

i Icu.

I he!~e' j Ilei ud~ I he rn~iflb h}1J~~ iI

rneul: ()
(;LJJ'

high-ri6-'"

bui hHngs

(~~,p"'t'rr-ll [y
i

HI

l lqhl

fir

l he

enl, v n br

gl ut
1

r 0 rr 1!.C~
rt ),UVC r s

space ) , et e •

mul.or

h t rjh... ~I. my

f':!~p~rmj

dges,

(d

1he go'llsrnmcnt shoul d se r i nus 1)'

i"l?\1

le'w I IIF. acl eloCp'f'nd

i hU'fl"

i \I H

I ]<)9

or
kept

the

~I

Dff -Budqel,

Aqcne iss"

... ,tlere

have

.i ncr-eas i n9 rap i d l

even as

federa]

9prom I j no hfi'i

Llec!'!!!asnd. naLl'd scrutiny

The ORA,s..Irou.hl come urule[" g rea If' reno and L wi r pr aaenl, ami

r(li-

ful uee rr'(ljech:i

0

shcul

(I

u:rgenU!f

hI?' eva Iua t r- r:I" espee i.al I y i fl t erms

for~ign e~chanye content

[)f 1~8J, OBAs and does debt. the redel"al the debt

and efficiency.
h·OS

At the pnd
1119 qUEI [,r:tnt:Eri'l

govB.rnmf!nt

gland
year

for $5 billion

in accumulated
ke-eps rising

e:xternal .loans of the

fr,mll

to yaar,
t he

8S

servilL".ing. and

I 0 a I a rge

ex-ten t the. high

til' i ve

borrowing
pf

spendinq
federal (from

or

he OB . Iljs neqatad has

austerity

feels

of the

governrn~nt·s

1113 tween

1981 and 19BJ7

deve Iepmerrt

expend i ur e was cut

by 1;2. 2 bilHon
but (fr'DJl1 the

_11. [ bll Lion to

1 ture

M. 9 h i _u

Hln )

OHA deve Jopment.

Expend

rose

by

'n
Ir1

l, i IJ I un

Ii}. 7 b n 111 on tuM.

(]uVE"rmnenL should r ies

1bI H

ion L 11

l.h i ~ ccr Ibn:: t

p rt h::uhlrly p rng
nJ'nmp.

bill caul i.oua auuul, Ar~ euoncm i.(

011
F' AaE:'

i t s Ilea"")! .i ndus

111(1 fi

not. ypl hper'l [':Irovicied to the fmhlll'

t.he ml"'rllrl

llf

...• 2 J

the proposed
beBn scr i oua the

pro,jecb. doubts
In

Or1 the contr;ary

~!bm!'1
0
i

the
nf

LO

h"n/r

the
iC"e"

eff1cJenc:y
arid, quaU

many or
Th(:'t f'ear

PI'Oj

ects

L.DT:rn~

f pr

ty .

of t.he. public

i ~that

n nr der

to make

l~he.. prG,j r~t:ts

finSJiCia.H'I v iab l.e (..:i.. e , in t~rms 'of G~les· and pr nfit.:;)

t

hGavy imports
the

duties

or even ~n'lpor..t bans wUJ

h8V

be imposed.
'abUV'8
i>{e

T11UBj ~1~.l.;)q/sj_Dns may

e to pay

r·,ll" <:l:=:

fr-ei:l'-rnf"lr[wt p:r :i.G'es fen:' key' cm!lrno"dl t .to.~~.

3 r.~ nOft,'

al r.e8JJy dD_b19 Ln t.he

fj nanc.i.a.l.lv

G~~

I]

c(·~jnEriit

an.d
corn-

8t.:;lGI.

Nh~t may he

viable

foJi' the

parnes
\,!

Rrmcp.lTled cou Ld m::.t.u~l1y be t.he po.in I

Q

.~~~~l~~~'::~!!X •. ;Hlecnnomy and

5_O-

.:i_able ftom

yj

l'tW 0

f' the

c iety

8$ a Nh0] e becauae

CDns.Urner.'sLILt imate l.y

will also i,~

spend

much more

ror 1 tEli!~S; for

which

we do no t have
COrle Btl'"'!

comparaH V8 adv ant aqe ,

fh·f.l· for.eign

0 f irnlJl'f5diate

exch:arig:e .i IHPJ. i eat i.ona

nf Umge

Ij,I'ojec.t s ,

The govet[l1Tl8f"lt
from j ects abrCi~d

will

have to cnrrt Lnue borrow inq hE!:'~v1 y 1

t he p.I'rJjt;'!cts.
,

Lo fi.nance

ThBp-l ~VN1 pron{n~d,y

11)

Went i f'Lad by
~~!8!y).

HI c:m·1 (() F V;111~_~h 'fi VSt'1 rAaJ T he f'ol'eig~· 1003JiS requ ired

under

are est irnal: It1"dLo cost ~~6. b 1] 11 r.m 6 ,

0

c a-

pita 1 Investment
nanc-e rilE! bul H
I5'X

(n fi-

r'

thi~

vii 11 i.ncr'eaee Llre count ry·r s:

al ready
far::lr](J thB

teI'na.J. rJe'bt, and r-esuU. .in very hi'clrn debt ae rv ipaymiBHl:.s. at a -t1me wh~n ~(e are'

o-n I1g. returns

a '$.eV€lr'"(!!! debf
Frorn

rapa:yment

'"SchB'dule .t~lon~oveI';
can

the,s:e
V@rI

hS(;3vy indu~tries

br.

e\r)ed.ffid

to be ~~lo\~ ~ 9i can b@" c.l.earerl

the

pal: u r e:

f t.he iilldust r;ies ~ and

.i.t \11U be 6ever:al ,.

1'8 :;n:s bef'ot-e the ext.e rnal. debt s .1'\cJ:dl'3d to t his, ~-d_1l be the a:ddit inns]

out

nONS·

of funds

on ,,:ren.wn t Qf the fees and dther

in

pro fi t s l rnya lf the

tie:!L,

mari.Sgeme:nt's

chatgesp
the

f'(j81 ,

.r ~iQn pa.rtner

c"Oinp~mt:es 111vo1ved

projed

Fnr tJmse tessQn~, je[;:t 9 GS subj eel la~re

it ifl advisabl e' ths.t the.$e

o~ fOff:!:ign

pI'Ci-

l.o in L~'e!lsfl rev ie'{~ ~vi'~1 ~a r t.Icut I

eXChR,f1gE' ~

f'er-ence to impl ica lions

.;!I+"~'~
',~ 'l

price

and economic

efridf'rlcy.

r"f'rlj~d3 ".llldl
pnuL rorwd

(JI-r.;

no't yd
BiU;l

at arf.ed sh(,ud rl be at HI(' least

(nrIQer

t hose ','Oihich r-an no

be he r rl back

shuu l rI
~I

b~ re-e .... alul'lt:ed anti ] r r,pt'~rlecl 'fe-planned

v leW to

(IIi' ,~,

m1.nitTn sing

rore i'qn

J';

xc! 1~lngL: anrl

f'rr i (' f C'!r1C'y

t

,r ds9rm.
4,• Gl'l':!ale r emuhas i 9 on ba\i,i r. needs
- ....
............

_ ... _---"-_
With

_--_

............

_._"""'----_._

......

ERn I i nccau I'r.;] _ ... - .... ,...;-----~------ I.. tll

I

r 1. hu I I uh 1

---_ ...... _
UI'-

ll1e

f'Bdur-t Lon

ill qr owl.h rc~llfl5, U1I"fC

1:1

WI

rj '11'l ne cI La ['eo]' ti'ot at -. hr· economy

oEl,ndrrruv t a i on of b UP. ne dn (Tund,

, o\'mrcJs I h! l ' 'I'odul'l

hoo'I'Lh
f:JniJ
ftH'

ion

~~erv il.;(~!~,

~tRl -r ,

san+t.at r 1 l; l' . in it
Bel

l en , hOUSJnq"
0

'lraf"l!lpu uri nat

l,

81e.)

ll10 [In·~lf·rvnl.irlfl lIle

J]rnl expan ~1 0" 1 hi

S
j

snUl'ces

ive I .Hmod on ~)'

A

r !lllll'(-'

i'

rnnj I~J

r'1f:t::!'!:BSB]''Y

fI~

a dr:J·, i r nil I (I :;or. in 1nc r'r'B3'B

g I' nwth .'

non l

hut ~ I Btl l 0 pr event,

-Ui

~ub5l ani ir!l

low

111 pO-

..... t.y rnul unEimpllJ~menl ar ob,jectivf' Liv Inn stflnd6lrds of

fI

I he (:unl ex~ of

II

Ie

':OhoulJ he: lO\oler

gr'CM h ~jhill:l sb II uptlradiflrJ

rMJonl:.y
(I

I he

he poorer red
1S

or

peup l e ,
I:rJWI~II·r

1 hlEl imp Li es

t r ibut i DO

f income

k; I hp'

pam:'. aimed

at

achiev Inq Ltie rDJ lort:ill'lt];

l a) a~ reduc t Lcn in demand

propensily
~R

poverty~
the

(b)

the
(c)

gene stioll'l of grealer consumer

groups a shift have a higher marqtnal in market and
SE!'1:'

lowel"-incam'e

to consume':

demand a.~,r9y from sophit.v iCES b:n'.ra:rd::~ mo're basic poor:

(d) prnv

U lJa ted or lLJ:.::ur~ prciducts

goads and ser-vi(::e!s demanded

by the

iding

l.he

marke t basis indus

f'cr a ah.i ft

n produc t ion towards

bas.i.a !'u'led~;

ries and services;

as the [lufii:hi3sing rower and thLJ!'J sections of Bodell)' l'loul d tu bas ic s irn(thlB
f'lltl

I~ffecti ve demand of the: poorer aLaI demand; pler

capital

have increased 1n absolute l~~m5 as well as r~li3li~e (e) a<; consume r dreln3ntlsillfts 'I owa
should

prcduct s , investment
goods LypeuF
investlllt;H'lt

also

be chal'1lelled basic hbow,·-int_e'r1:3Ji.veqovernment

Lntot-he

rcquued
is a.l.ao whJ.Jc

to prnduee
rTIQ1I'C'

qcudu

and thus
can

qBf1~r!3.tJ]H JIIlore Jobs),

the

eecl.or

q iva

more emphal!lll3 on ~n f rast rue lurn J dey 1opmcr1 pr ov [ J I ml ror t

baai C !'leads lnduat r ~CIS lind eery Ieas

ouch as wat £: r " I I gIll. i rig

• •• 23 arh;.1 housing .U.: shpul.d be noted that

wi.rhout

redist:r :i..-

but icn of Income ~ r hers w·l.n ba8i~

nol; bl3 the

in

m~lI'ket (JElmar:rd 0.1'

For a switch
b6Sic.

in

qji~rJhaf5i8

pr.OdUCCl.0Fl

to.warcis, pr o-

vidi~g for

needs.

Malsysl;a. trape1 Forelqn'

Should

reduce

its

pr858nt

dependenne

on external
t~tj~!n{l:l.ogy.
('31.

loans arid j_rn/·estm~nt f.!i!"'fd ~ impottp.:d (lnd exact

These cause 1,1'18t.a.oilit y ouri ng recession,

l1igt)

ccst

in terms oftr>ade
irteome

los8e.6,
::lei>.

forr!l:ignexch8ll'lgel

outflow,
foi'~ap.i
t ell

j.nvestrtr~tlt cut
'8 co

out; flo\<t:s and

high

'[Jayrnents

guods and tlSchnicalr do.'tmaccount countr-Ies rlp.veloped

R,educing

dependence t.he main

w111 thu$. on the fop.

OlII'

defic.ii t and make us less t·ur. providing

re l iant .impetus'

nomic

g r,owt 1, •
8~elf~rp:lla""De~ we require m cempresulbst.i
UJt Ion

To s~d1ieve greater h®rlisi lie st.rat,e.gy

Th.lJs impl
alld thE!
~J3)S

of import

1 n VS.f i O.U:3 ~ ie ..L ds:.

a ['.onLl'achp.n more

of the®xternal
I' .

tr;att~

sect.or ~

deveJopme:!"nt of th~ dnmest.lc

of
,
,

sect8r,so

that

the

economy :prClduces

the' gOOGS ~\lhich ar-e Lnca ..t.ly used,

tihus chanelHnq resourC'8S cuttlri9 praaentI

from the export sect or The

whi18'

down on demand r or .irnporba,

'e.;.;; t~ rnal,

sect.or

y OCCUplSS8 very
irrvp.:ol'b3, of goods and

large

part;

or

tile

[3CDnOI)lY; .in
'I,.;!

19&2 expcrt \'~hHe

s of goods and aerv.tces

servtces

CiQmpi:'lsed 5m~ of accounted

+or .549~ nf' 0 r the door

tolal
f1'I'esb:.c

final

expendi, ture •
~"ould redlJc®;

r;l'~a.tel' deve loprnent

,sector

Hu& 8xtreme

"openness:

trade

dependends.
Among the JLmp.OI:'.t-subs U tut.Ien rn88OS~.Ire:;; that csn b'B

taken a~e the fallowing:

t a)
food pro.duct i.on ahout.d bfil

gre.ati y increased.
wO:l'th

In

i"9Ell ~

f>'1alays i.a import.~cj $.3 bill

ion

of

food,

including

Fru.i.ba and ve-,getablss

sninnal.s for food ($187

(M06; milliard,
m.i H.i o iii }
!•

!l'H~al:. and live

milLk and dai ry prer

ducts

($l~B mi.l.t i on), ...

ri'5.r~ ($166 milliotl)

rice

C~I;l98

m~11icn), whe~t ($240 m~lllonl, other

•.• 2Li.

cereals ($420 million)

Thane is

end sugar ($512 million).

se l f- Buffi
tel

much 3Ctl(JB ftrr. food

ci-eFicy

rind

for aqr i.cul t.ur al, Fm sal F-I'eHanl The demand for

FOQ-d production development

be

in!"!j Of

b~'Sis

of the 'dLlmest t.c sector.

bo
inCI'IBB

food can be expected

grO!Nth. demand

sa in
will

,.

linel'/ith also are be in taken

population

r"loreover_;

food

g.reater
whi ch

if rBdishibuii

VEl rne'.9SlU:8S

incFe'-ase the poor peep.I e ~s Bilow' a

PsninsUUl;l:- HE 1,)J"y sla is

mal.nu t:t LLi.on Tste of up to 30% in

ami 64~~ ill St;ftI'"i;n·Il~k. I f poverty t i ve demand of the poor prav' cl"nq an increased mcreased will also aal.as rise.
Ina'

reduced, food items.

I

U 16 e ffl:JC'-

for food ~\iil1 mcreese b~t. for

; Lhus Hi th

fuod-proouc lnq farmers The qovarrment

to food crop should

incomes
in, the

the refure

g':n.ve bDp> priority

dove.Iopment

National Agricultural Policy.

(b) In ·the industrial be given

$ectDr~ more encouragem~nt

are

~hbuld

to srnall- Be ale industr

res \I/hich ~r~ local! y

on the aveof caDf the
"

owned, make use of Local resources, rj3.ge-11 tirnes mr.):re labour-intensive

per unit

pital than large forBign firms, and which largely produce basic goods needed by the poorer majori.ty
local

population

(in

contrast

to the higher

pcopens Lt.y

of th(:l' bett.er-off
These smal Lsscal.e

for impo.rted ccnsuner prodact s) ,. induptries produce many iternssuch nat.s and be forreul a-

@s "food, household basket work.

on developiFJg ted,
luxuT),

implements and furnitul'e1 wDod a.nd

qouds such as fishing

char coal , and p 'oducer

A cQ~prBhBnsive industrial policy based

such 8maH .indust.r Ies s'hould

,.~it .1 ess str8G's nn ±-.ne 1arqe- aca l e product i on of h

products.
'of an app rcpr-Iat,e b'!chnolooy policy deval opment; ,$tIategy. The present Ls comppneht of the prnposal.s to sHitch to a bash;'

(c)

The Forillulation
S. vital'

needs sslf-f'€llialilt.

d~p€'m:J2Ince on
t

high-cost

foreign

technology ccul d be
dc'VeJopment and

ep l aced with the GPpre~iatian~ of Ml~cted indigeneous eeeu ces ad

up-

gr,eding are

~ec.nnclo~l'i,es Which
l

sma.l.] in acal.e , ecnlngieoi ly-sound

Examples .i01r.:iu Ie
ca J y epprW:af
iO(1

often
to

fesl1-

J.1Jm:~d from 1 neal, peor ,

c essible 1 fishing
trfJW

th

rad:ilhon

t sch-.

nologl~~ (which prowlde more Bmploym nt and aro more

sce,j(ig

ia te .:;c'mpared t o

fishing)

and thE! cenat ruct

and design of the t ['ad! t ion Ie 1

Malay hOUS0. Resaac~ 00 ~t~ vlablll ~ an~ utilily of appro~riGt_ Maloysl n te~hnolog\ R is now n progress.

.•• 26~ V. CONt;UJStON

The analysis 1 izat ab:ov g! shows the ilegst i ve repercuss ions that trt'll"fsnationastudy has
011

ion carl have on. a Third V~I:rr economy. 1d

r:.11alaysian

Pt;tI't One 0 f this

shown hcw~thE! industl'ialize(l

of surplus

economy eame 'to have strllct\..l:r·e::;

dependent

the

count.ries
tram

for Invest.mant s, trade

,

and finance

and the less

these st ructures

P~r.t Two, shows IlCI~~ I:.r.a,r;l8!'1(iltj, na Li.za t ion a .t he problems 'of t hewor' ld

has drewn the nal aysJ.:;;m economy Lnto

economy.

Obe to the earrnnqs

m€'ilt out overaeas

slowdown in deilliahd and t.r ade ln the l'ic,h countries ,export up t he i I' rapid g.rowtl'l.
account.

,in Malay·:ua have not kept

~.Q

r'-~eflm~hile:j'outlfWBstfor rees

Flov:s has eont.inued

nQW~")

buil.iJ up In the services

anCl insurance

(mainlY

YHJ:Lght

payment.s and eclt~'calion 3 depandence led the ceun try

s tucent.s ) Clue PI' ima:dl y to Malaysia' and

JJl S lit ram:e

on f'ol'eign ~both pllbHc. A.s debt has banks.

cap i tal,S'upPlng

TI1:115· has

and pr i v abe aect ora)

SI

to borrow

1108\1 Y tr-om ttletrsrmnational II t:t::ansf1ationa.11zatil:.lIl"'1 of the

and

result,

,t>1a1oy-sia g:r. atiu all y qor stuck art the qlJagmh~G 0 f foreign
repaytiiBnt. Thus tile economy fr om dire.ct
.

end debt

spread

'I1vestment. ~ t.caoe
that

technology

in,to loan fi!'lf-;l;nce.

,

This DapGI' srgues . to ser-Ious

ncr-ease and

fllTther

hansnationallzati1on
!t/ofsEnJ .. l9 1

will

lead
all

problern.$
in poverty

t
J

part J cul ar'Iy the

ir~ social

imbal8lnr:::ei3 ~
positteJrl

a dete.I'ioration in tile exte:rn~l

nenihg of the rlililt.i Mal economy.

ecoflo'!lic

finally be1ng sucked furth~r into fore~gn" indebtedness.

,1$

What is
imp.lies needs

requf.r ed reatruntur

t.he st.rengt the

Of

his

mq

[lElveloplliient lrldl"lStrieJ-s;

at rat eqy towar.ds s'lrtlssir..ig

baai.c

smal Ivsca.le

local

rura.t

deve Iopment and greater

self-reliallce

in f'mHlce and bechoology.

...n
--=,.".,,_;'._

NOTES
Qfthe Halaysn

Ihe best .aceount, of Emopearl e.c:;onorrlJ1is

figures VJhsre dEl.rived,

control

colOifliaJ

fotu:1d in Puthrudheary (196()) , from wher.e these

:}

[(hot

Kok Penq

(1983.a!

p. '57

.-

58).•

l<hOf' K.ok PBng (19tl3"a: Fig ..res r

for

p. 41 - 42.")

.
of th(~
j

:5

1973, ~-rerB taken

pf

fr.(:)fn vr;!ri(JUs publ i.csst Ions

D~p.8rtmant,

St.;;;d::istie·'s

t·1alotiY3ia

l~eJ.Ht.ed to ~stTIteB ~ rnHung

manuf'act ur ing arrd Lrada ..

6
7 B
9'

Tan Tat W~i (1977).

FOLJxth Mahysis Plan 1981 - 87. p , (/2, T-able 3 ~ lil p.• 26'2 - 264.). ,
0984;
p , 2) of
I

lihot· kok Peng (19838:

Bank,. Negar;g Ha18ysia~

10

For an a.C::~Dunt (if the. impact

see

world

fe'c0ssi6n on 1·18ila~/si.a~

KhqI'

K.ok P.e:ng 09.8 3-) • (19B3-a: (19838

=

11 12

Khat'

Kak fleng

p , 17 7 p, 110)

178)

Kh:oI' kink Peng

D.

The: estim·at.es on qut fl9WS: of surp.l.ua

due. to

dependence
and

ane

i5xtracted 14 15

'frOn! Rhor

Kor.;,

Peng 0983~:

Chapten~i.u

11}.

The figt)rE;l.~ in t his sect ion are

fI<'l]rn Ba,ni{ Nega:r.a "(1984J •

r he

figuL:€m

tF1

t his section

are~ from M.id-bsrm Review ~ Fourt.h

(19;6·4) ~

~talaysi8

Plarli

and Bank Negara

- ••. 28

16
17

Calculated from Ministry Gf Fin~nce '1963).

B03r'1kNega:r:a Ma18y~;ia (1984).

• .• 29,

fJIHlIDCnAPHY

Khor,

Kck: Penq ,

~~~!E~!l~~~_~!:,l~I_~!!~_~l.§1!~t~!~D_~~~~~~X Penanq: .

HBl3y~rakat, 19'B.3.

I~~~~!~X~!~~,L~~~~9~'t _:_~~~~::~~!~~__ ~~~-~~~~~~~~~~.

kual a Lumpur:

t·1a:ri.can

61tU:] ~(ms,

19B.b.

Puthud1€!";.;lrY"

J .)'.

Singspol'e; Tao!, Tat ~'raL

--------------------,-----------------------Donsld Moore l~bO.

t

Ownership

~md C6ntrol

in the. M:a] y an a

f;.CQllqnlY.

"Lncome

Dist.rHwtion

and t)fltr,H:min'al~,'on in \'le~L t'_;1C11Rysia.

P~.D. Th~sisl University of Alberta~ Canada. 1977.

• " 30 THE

st PI1 [

At\JO TRA~NA nONA:llZA CHANDRA I~U7AfTAR

1 UJN

In this preliminary

study of sLale and transnallOnBl1lQ~ion

Ln

Ma!ayslo,

one haa to begin by as,king why the ehlc9 who Inl11u'il rl' pow 'I" l rom lI,e nrHish in 1957, were quit~ conlanL to oLJow MBloysia ( hen M lay~) Lo remain on th~
II dphery of an in-eI'IilBl' e I itOf'l

onal

system

~'jhkh ensure of ~'IalcrI? ut Ioek ] h It cent[,Q~

LhFd' Lhe nali on wow'! cond

U.nu~ 'to be e ~hewer of wood ,and drEwlor

~Hll'l_

ro

rna't

i l dj ffea'eITl'.J,'ji
1:1

w'l,y
t'L'§lI.ID-

th

60

consel'val:· ve'n
even

'or ol thaI:

Least

dCiide
I

' h Y dirl

not:

WA'I'~,

~o e\l~h,latIEl

t.he 1110,S IIIl1.nor aspects

met, opolitan

()f the counlry

ceut rol Ied

unequa l

UOr1ship with

he weslel;'n

anrl domjnat~d

I.hs 1:I.ves of ordimu;y 1L was surely eeonomrc and politics] ,snH re

gl'DUp

pea-pl r:?
B

not just ti've.

'question

Cl

certain

a~ U tudes
\I !.dl!

anrl \191ues wl,ic'I"l

"-9

made the e l i'I;es conserv in power.

,or whi Le eU i tu lies and

do conr.l.i Han ef an th~

behav i our , tJi,ey do not explain

the or iE'nt;}ll lion

The 1957 ,eli Les ware ennaerva live

rna.i111 y becauae

50mi!ill si tUElU onal

ot-"Iedthem ~0 be.
iIiiII............

HiE [1>1mGE'NC[ or
__ ...... -_ ......... =-:

A COl SERVAl TV
.---_.

...........

STATE
"""""

To start
of
E!

with, tl,ere

Was

no .strong

geopolitical

base for

he development
system;

PQI'J6ru], t,1alay nationalist f

pre-eminent

IiIlDYl"!mBnl(Malay

hecause

it was - and is: - the

politically loyaHyto

c.ol'mm.Hlity).

There \<(ClIS unified no perind" most o f these of

B

t4alaystate illdi IIidual

ir"idividua1 Sultanates-look Jn the pre-colonial

precedence over loyalty st.ate.

to ths' larger SuI ta-

Hallay commun i ty . nates could hardly The nature 'irrg IJrHish

boaat; of any of thB a,ttributes

rule

of Br 1 t ish co] Ionia] as symbols

of

waS a f;urther

impediment.
IJ 1

By l'Elhfnp

the 'Malay rulera

and by prese.rving
'Ir'fBS

the myth of M{lIl:1!Y rUle nat i.una.lI

Sill).

th~

thwa~·ted the potent.ia]

for the gro:rd:h of radtc

gone"
COItlnUfll'y

For
was
to[)

~h~lJgh the substance

SOV'BTB]Lgnt)'

'thE:1symbol

of s[lvf'reioJf1'I.)1

persua.sive ~I1Dugh to det.er the

the cnrcmal
lessons

['om mOlJnl1g
the c:olorliehst
di ,

a strong ch~llengra
had Learnt

order.

"./;;[5

obvious
of

th9t_

w,ell his
ht"QiJl.Jh

From BUrmA and parts

l.,.clla where
syslel1ls

eel. ru Ie war. ::lHempb'ld

U'C IlInnihU at i on of

irrd 'genous

of qovernsnce

!!

31

By kBeping
nationalism jects lonial tothBir
lost

thA il1

Sultanates, the Britlah gaiMed in yet Another yet ano t her l'lay.
rule.
author The LJnqLJE':S Honing ~oc_LBties i 't Y~ 'there

way and Mal~

the co-

loy al ty c f l\'lB1laj' sub-

ruler

- a tr~1.'it of feudal
royal

eve rywhere
factor was no q IJesti

- helped

powG'I' to J eqi.t.Imi.ze. its chalIenqe

5i!'lce the loyalty I ndi raet,

enaur ed thatl:he
on o r a di I'Bct ,

~1alt;lY!.:L r,IQUld not

popul ar onal auqh t against

wel'~ not

colonial i sm.
Mil:::!

I3rHi sh rule' al so meant t hal;

nshy

thB ··scunomic condit i nns fol' Ule Clm.erg$:n1~e of an Ind.iqenous

proletariat
lriay

present.
a,ntipaH'IY

If

thers

such

a pr o.l.et ar-i.at , r'1aJay nationalism of rule.

.f:j

we l I

have: been di n·er-en~.

g.rBster

Gh'38[J3E

consciousness

depr- f vat i.on may have I::wneral:sd in .lava , whp,rf~ Dutch oT

to\'1I3,I'ds calonfal hand,

This. happened

.economi.c pol itl(~t'J forced ,1"1alaysi.a, used in on the!! at her

the. b i. ["·I:.hof

.lavanese~'(ork.ing-cL'1S9

sor-t s ,

In

it was _ir~l!1'ligrant! not; .irtdi.qenous , 1about'

urnl

t I ·at w,as nnd

the

p l ant at.i ons and Lin rmnea

ror ttm

C(I1llstnJct i-, on!;)

r~ roads

buildings

In the i..J:rb\1n areas.

Equally
vuur the
nlilldl

fmpcrt ant, BrlU.8h

fervout for - L~o the Irrdependence

cohlinJ.d·

(;1m delayed
~ movemant .
the

t ha l,drtl1 111 borh

of a Hp_lay Middle fl~to

class, ~ Malay bour eoisie

- and st f'IIJggle

whi~h would have ~ivel1

:indBpendf:lnce
\'fas. 1e.d by

~uch more nationalist

Incones

ia .and Inriia
be.
Lhe·!.'

mi.ddle-f' laS8~lh i.ch t snded

mnre criticol

of alien

rule

compared to the

tradHional

e.l Lt es \"lith

e Loae r.e.l at.i onsh.lpe

of p:rivilegtl

t o thE! colonialisbs.

El6nide~~~ the. ·middlemobtLi ty impo;9l;ld

claBs as
cAtion, by the colonial

producl of achievement
and colonial There
W&lS

cather than ascription, ~~inced by Lts eduto its This

was understandably traditionraJ percept i M~. there

J::eMnt f'u l of the obsbac l.ea e l lt.ea,

frustr61tio'l
as such. rhis

sharpened its
the was al ao

anli-

no ~~uch frust.{,';!;tionI'IUhirli

~~iale'y ·cufilmuni-

ty since

was no def'Lnab Le iIIidcJle-clsss

'I\'hy the

t.radrt.ional elites
1f anything, of colonial rule -

managed to Laad I:he nat ronal

rs+

movement.
8

the presence
Immigrant

of a liU9s imrniguan t pnpul.a I:i on t.owar de the land apart,

consequence ~nti-ca-

made. it ev~n more dif~i8ult to devflcp

nonchalance

a powmrful

ionia)

struggle..

the Brit ish

cornpa r trnent.a-

deliberately
Li zed throuGh in lbe.ir ni t iss, inq

and e fTecti veJ y kep-tthe

enoriomi c
j

I'fal ~YS·.t. Ch.i.rll:lSB and Indians

and educahi.onal, measures

adm~ni6tratiye cc l oru al

1-Ihich l'Bflected \olithout diYfeTr::lnt commuar'[,f:mgEmll~ilt

e!:ipentt~ the c Laasi.c n t Ional.i

vdoct.r Ine of D·vide

- and - Ilule.

a common anti-cQlord,al
sm

iql1!!,olQ\JY whd ch ~;(Juhl kBep togetheI'~he

was bound to dave 1 01,1 :' Il'CO. an inter-ethnir. neg'oU@ti(~Il~ r·al:Jmr than a strugglE:.

·6~:E,~-

.independence

tt'Il;Qugh

•••

'3.Z

There. \t,'ss of course,

\.Jhicn was CQrnpi1lf at ]_ vel

a subordinate

trend
element.s

in lhe

Independence

movement st.s
r

y mor-e radical
hnic

rn8de

up of": aehne I

te~che!;s ~ journsh for a

0f

minor civil
1~lhHB

servants

and Rome business

who even succeeded

to ftmge an intsr-et and 'Covert colonial

nat.i cnal i S t prog.ram[ns..

Par U y because oub ,

pre s-

suus overt

Elmanating from a. com:munally-dividl!ld -suopreesf.on,

scc tetv

but mairil y because of

the.i r movement 'fizzled

Nationalist for another stralegy.

il!lpl1cat:irm"

radicalism however develop~d a somewhat unfavournble odour

ThB banned
c:olllmlJn.i.st party

reason.

which WaS part vi.nl ance as its

0 f:' t he

an U111£'3by

cnl oni al. struggle

decided on revo lut.icn

sQmetimm,
0f

tht'OlJgh

pnl i t i.caI

The dhH'UptiV8t enhance d the

• tf"'1'e qenera

bLoody , activities a
:3 "'glrli 0r

o f 'the par-t.Iy

g,Uilllized r adi caJ ism in the ~yes

fqr Independence . inallY1

fie,snt. sB9men't

o f soc i et y and,

cr sddb.Ll il y

the so-oa.l Ied moder ate

neqot iat.ors

Conom.lC p rnspe r ity o f the' cquntry

whnse main hene-

ficia,r Ies

wer'~ at. th,s uppar

th~ITlt5Cl.ves by the

eC'h@O].o"'~ SDOJ'e t y Lul hd of bit

I

the

pMple

as a Whole
econenri.c

into a state DF co~placency. na.!;y peopLe

climate er eabed rubber

Thi$ WaS partly betau~B a portion of thB ordifronl

al so qa.i ned a little

boom of the

the

Favouuble

earl'1'

fi Hies.

and bhe Li.ke ,

In

such a s i Luat Lon, nationalist: nal group wHhin the

radicali~m

T@m-ai'oed l'flstdcf:.ed l.u an Inf'Lni.t.es

a-

Irtt.el l i.qentai.e .•

CHARAC.TER.IST1CS Dr rHE" CONSERVATIVE

it is apparent

--~-------------------------------------from what hat; been said

,iVEl st.at.e, Ihe
~\.o

STATE
Ive nati.ona lLsm
('V~] tisfl~

that

eonservat

gave birth
dent '.'Ihien.

to

COnS8I'Vat

v(here was thi s ccnse oper at.ed

mcre evIsystem sy stem

0.

t.han in
\lffi.~

the-

economy. Iy

rlLde~)endencI!:Blites

on Eounomio
H
Vl~H3

f'urxlamertt.a.l

v ~ry sJrl111 air to the co.l on i~.l S8'1:-up.

to its
way
iln

\"~lictl continued

to lin'!.:; a per Ipher al capi tal ~et state from the ht which
the" economy

ntet l"'hpn t an cenli

trs,
Indeed

This wa~, c Laar

1"O\'J r

r e.I i ed upon tht~ export

very much

of bas.ic

nraterials - ~IJDh as rubber {l;ndHr}

alone

even ownership,

control

of

- to the indus!:.d.alj zed North. theee

comtnodl t iBSW-3S

n the hands of Britain

and nth!:;)!'\I~estern cap i.t alLsb economi.ee ,

twelve

Politics in the first

gI'e~rt extent

years
rights

of

Independence

wer~ also

~haped

to ~

by the

count ty ' s colonial

- with certain

backqround .

The 1'8 was a pad I srnent.ary for the pecple1 with

democracy of sort~

and liberties

·.d;
pol

it Ica l part J. A,S t Lr ade urri.ons and vat ibus .soci a 1 groups.
from the for co] on.ta.l
E' 1'8.

/1, t, U H.~ s.-am~

Urue ~
8ssem-

thece w~rA SaMe obvious curbs and cm,trols on th~ freedom of speech and
bly r d~v Ell nped the
USB 0

'i\'hi Le sorn~' of these

,-Ie 1'8: direct

ed agsir1st

f v.i Oilence

ach i.ev.irn] poll tical

ehanqa , yet oLhers cbal.Icnqe ,

s,oLJql"rl: tp, pro-

tect

the existi!lg Certai

cap.it 81 iSf_ order

~fl

f'rorn meaningful
0f

n a:rra!lgemen

at the Leve.l

Int.arnat.Iortal

1"'81 Ions at

provided
a de fence poForet qn po.western Nonet.he-

fur ther pad,

protection L0 Br it.a:in

to the

at atue qua.

t·ialaY;:l i13 \'Ia·s Li.nkad, count.r i.es., Brit.aJ.n States

throunh
5

and at her. COlnFnonviI?,a} th

was no iJpecial

The counbry' and

] icy ~ as .8, whal!'.!, was 8tr'ongJ.y

L'leI'S! though

ol.il.entatfl"dtowads

th~

here

t·

If:

lo the Unites
nat i.on

as such.

len,to , t hea,nU
and
f oe

-c:.ommur1ist

character

of the

W;:j8'

cryat al -cl ear t o fr tend

. vi'!: system the

alike. politics,
very and fOI'8ign POl'iC)'1 by the the a:dministrat of thlB coun-

Like
try
W93

al.so

mI.H:i1 Lnf'Iuencecl

co.Loru.al

'tradition.

Norms and values, st ruct.ure of

.,

procedures cerned

and pr act.tces e I it 'sHe. with

as i de , whiC'h were very

I3rHU"h,

of pOYier conand

was dL5cidedly

It wt4.S a topthe
St.Sb..JB

dm~n admirdsb.:ative quo with a degr,~'€

hf.er archy

lstgBly

preserving

e f'''-idency

compet encs ,
Educat i.nn was directed f'ul fill within the the needs of .a market
[()LoJ<3Irda thB

same, PUr-POS.B.
eCOIIOmy~

T he

rn~in

a rn was to

cr

eat

ed by an system.
was

vi'hicl! 1 cleated

Eociety

Int ernat Lnnal, capitalist

t",S! Sal.' t
j

The I~ype of skills

that were emvery nat uris 0 f the existing or der

phas is·ed.

n f f<nolidedge

that

stressed,

indeed

the

1:he underlying perp~tuAted

denl ogy of the school

svatem 'all

eneured that

itself.

Even when it cami to ethnic rBlatio~8, ths eolQn~al i~print wa~ ullmi~ takable. There Was no .aHempt to f(lJ"'ga a 9snuine. mu]t· -ethnrc bas ts t Q Lhe
naHon.

It wa.s inteJr-ethn"ic

r[!lations

which

i~E!£8

enceuraqed

as ref'Lecl.ed

in

the stru·tur~ of the ruling coalition, lh~ Alliance itself. As in the colonial par i.ed, tf1fH'e was a ccrre l at i on be+ween economic: funct.ion and ethni.c. identity though
giol1

in certain

spheres

t her e were some changes',

some IOf

[ducat

Inn,

'l anquaqe , .r·sl i-

ami culture

al so mirrored

t.he et.hnic

character igticB (If the. lar-

ger Malaysian society.

HoweVBr~ unHkel:he

r.olonialiets!

the Independence elit~8 This i~ 7,ihy they tried

Mtllay t!iI@ ,sole o-ffic.ial~Jnd

rea] hed the im-

portance
growth

of cre~l'l:.ing a I.mited nation.

of a conmon hmgutiitCJs by making

to ericcuraqe the
nat Ional Ian-

quaqe of the country.

At. the S8mE! t nne, they pr-ovided cppor l.uni tiss

for. the

use end study of DthEr local ]anguages. notably [hin~5e and T~mi].
bal.enue
IJ

rhe same
with of

I~thnic

inte~est Devalup.lnq

Ii

wa:s obaarved in t.he gUM t ton 0 r re.Li.g ion,

and freedol'Tl of lrJofsh.Lp for til followel'S

Ial arn aa the QFric:ial nthar' relJ giomL

tlJt'~
1351

religion

a na' Icnal

cuI· ure with

Y0

the

tndi qennue M~lay culCl

the

b211:;i3

end through the sebeH al se seen

89 I:!ssBnbal

incorporation

el ements from I.Init lrlgthB di ff'e-

Qth~r eLJ urea 1

rent

Was

to the process

0r

' Ofl1rtlUn ties.

What \~SS the If'11paCl; of t hrs

IlclIO) id d

stat

o and its

pia 1ic Ies

upcn ths pBOp 1,,1

nee? i.c I'd stab] 1 r t y

t hi.s Eltab~

ri3I."B

in

the

rust

~~Ileilleyears of

Indepf'ntJ 110B

On tI,· peG H 1 lie s j de ~ th· r,

'\~a9 eCDnoml.c

growth,

a~~1ni6tr~tivp ~friolencYr a ~erLaln dsgree of public weLfar~, scm~ ethnic hel:moflY. Tllis L'/f;Hl to two maill facto~·s. first" clue since '~hE ±ntornati.onol
cal=JH.aH~I· system also gained
bel'

had enjoyed

t emendolls growth

and expans icn

from the

aar l y
-

fift LL'::aonwar de , w~l] -manaqed economies

on the' pal'lcphe "I - 1Ike Malayslra

the
\lfH')!

cons i de-reb1)".

Tha1[ Ha.hysia was producing

crl~n('ldHh~.'~
it ehnae to

whi.ch were in qr eal 01ver s i f)' its

demand a.n

tne Inoust,r ialized

capitalist E.quaU)'

wcr Lei - 1 ke l'ulJ-

and lU1 - vraa a f'aet or of sigrd r.i cance , ri ch resource

L".porhnt,
'A/,h ich

base b) gl'md.llg ttIDS-B

I;:lLOpS B

the in rernatiot10

al
1'18.S

cap ital i at market needed most. a case

ill

Ihe large-s,C'al

introduc lion

roil-palm of I~hich

point.

Besides,

thE!' country

had the in rras t.ruc], ure t D respond eap.i ba.l rsf

system

effectively

t.o ne1'l demands from the lnternational

H ~~asa part.
This brings us to the second l-lhich factor. The nat.irma.I political Leader-ship deve.l.npmerrt

had Cell' taina

t.tr .ibutes

also cent r Ibut.ed

tOI,<.~ard5,economic

snd
or

P91itical stability.

First, it undoubtedly
which had no nation

had a sellse of justice

of urU3Gual social

Df sorts.
was a aense poor and
words, Per-a

It was:a sense of justice of justice \o,lhicn expressed

to
I

at.ructuree
the

unequal .i.nterl,at iOflal economic

itself di sadvant aqad, sense of justice t~jn~stE!J~~ the care

relat

iorU;hips!

norrebhe l.ass lio,ok

'j'

there

m a desiL"ebo
for tllni'l,te.

aftp.r·

'I

f'or the less by fe~lings

Tl was; in other

influenced
CI f

of crnu·lt)'. of banevnl ence,

- ~,~aspartly

haps • thE" back ground rap IJE!ing 'traditional

a section
father of

of Lhe fulj ng e l it as -. aspec Lal.l y the the Rtale reapcns.ib.le

l.JhBt

Prime

ftJundint',l

'For tllis.
[JIF

oil t es '.-.lilt, feud 1 backg:ou

ds ,

vor

ideas

IS-

tice

I hi' y possessed

~ vicr,e heav il y

nf Iuenced

by a senae

o r pnl r i Arc-hal

b"t:d-IP~

Vl.:~1 et'1f'12 •

econd,
Us World

!-h4.;o nab

cnal

I nder sh.ip

a l sn lJIanifas
romparD'd

BU a

!3('11W:'

n r real ",~ifll tn

~ll L.1LLJde t Oio'HUds powc-rand o l i Le s III

II

N('oll h.

t 10 Q mJlJib" r

or
.'i[[~

n I '~'r:2 r

I t Ii ~'d

s i mi Lar- phase 1l.s will.if'HJllr.-SS

or

hlsto

y.

l he 1, ader sh rp

11,J;"-l~ WEll!! un ,
IJl11,t,Iot

lrum r~w'il' luuu,

1'1113 o I iii nil p
,1-

ln al low for
P CJ
~f'

open CQn~. "~iL fflr

i~Hhif1

~l)l R I ~:"i 1

~m and

it S flf:'cephllll

soC'l a I

innt:.11 uti nnn 1 j l. 0 t h~ j url ; -

!I-II' y rHld _,nr

IJrt)lJr1"l I i 1<p Um L r-a

','\fn~t'r"· vpn<l

lin i on mn\lemf.~nI" \~h i I"h opp I'" l ,: d \II.; 1.11 n

cert r.d n r.lI":CJrm~o r autnnomv ,

6111"
~0 wr;'lS

['00

rt1 n r ~h.l s ,
Iwrf'!
ta

'1 irn[ l lr 1y.

enowJh ri rr
'[1"1

I hf'lt..!q! 1 I 11('1 I r~ Pldm.'~

~I rml i a

by

rill

InP-S'}ns

l~e

Ii),

L I->vldpflc
Uo 1111('

~ugg(!st

that
role

rh d not !ilnle

lndulgor in

in me~sivn. and

organlBed
did nal.ure

ccrrun!

l cn ,

DLilr:3'1' [tanrl ,

i I e~f' IJc tnqup.d

LhaL l hu

OppOI"unltlEHI

no l avui I l.hemaeIven

:;'Ijnr'e lim

lures

werr;,

or rJ 1 rrPl'
r.1".l'3'~
'j

lile

dE'Ill:1opmBlIl

the

or

acnnnm i n

VS[l-

iii a l 1.1'11.11 lim!'.

s 1n~e ,'esl fO!!! i nt
illtJ

I n an..,.

~'Jafi l,Indeniabl

y an a l: ~ r iuu ~0,
some

l.ht'l SOC J r-11

baclcqrcund ar Lal.cc
~nj cyerl

IJ

l he ru]

elites may have

some power , same dJ.d nat

plo}'ed

fH:t r r .

Gi Vl"'f1 Ui~ i r til t liB p~ a L t

['t:l't 1 C

and adnu rri s t 1'1) t I ve backgrounds,

I"j{"

lhasa
a 1t.h,

e l i l.ee had,

aoma UB fE' renee. and

fIJt"

IUH:lev~r~' bimbo I If' r hOv,'SVB.I' bear i'nqu whr.rI

Sluperfir:h11

LhaL reason,

lose
wea
11

~11

conf'rrmt ed

w1th overwhe lm.inq

aut.hor i t y and abunden

tIn. [he acvnmodatlvG a rendrneas

Third of the

ther~

was alsD a ~enSe

~ 1itps

oleranc~.

ntliLude
eapec.i.al l y' to gi ve- and-

~'a] ay rt Jlillt]

to'"IB [.rh. Hlp- asp i.r'at.ions

n f t he non-Ha Iays

in regal: d t.o c i ' II ensrrip

and cu.l.t.ura I r igh s revealed

take, to c:oncedoe~ not f'.!lways evidE'rll in groups

Ucal HA!ay, dominarrce. IlDii1-l"'.slay
a f act.ur',

thaof:are sscu['e in their pdl.ithat exp l ain the leadership

can ba

Of course.
compromise

t"en'
in

are

many ct.her reasons

I:.he fj

fhe-s.
restraint
"QUI'

Nonetheless.

sf: t it ude

\'l9S also

Al"ld be.Lar-ancc ,1 j ke
all

and JUStiC8

at tr .ibul.ed
by the oth-

to the soc Ial er ethnic

given net juat

l ccat i cn of
Ic

elite

which hdt

less

U,reatened
W,:H~

cDtnmunitles

sJf'lce its own pos it lcn in society

{.arJminis rfllive'
H9S1

aaf'e and secura ,

l'll'iS

Jt s admtru atocret
wet'

&- erisloCT<!ItH') of course

by
I

artl.r-c dent a , U even the as

t
f1

t hs Bdsb::lI:::rah. \.,hnse at at us Hiler

in the

inhe~ilE!'d,

lea!he

di.nq adrnin istretors

caue

appointed

th!;'! hereditary
or: p1:olee'l:oo

r1lJ Iere

0 r Ch.l.a r ~·tln.i8l~ts
B8 ill

M~hy states
of I he
(:1\'11

f rorn cnmnel
WEH'!

i.l r nn by
nnl ea
"01.0-

I'lLhnic qunl.aa ,
!,.II"
I;lCI::Uj)~LJ

LI1~ caae

service.

It raapons

Lhei.r

St~I.IJS

I:mal s it uaLions

then wh'[ch we:re parUy

tb l o rot ':he~ r

ThQugh the

int8r[1;:;U.Q[~al
j, [:i o-aJs

C~)Plt8Li·,~tSy5tern

and klalay~. Lal G posH.trJfl

i.n H

.and thL:l national ve.Inpment and pol

th"e['(:!

.1Bade I'8h.i.p ~ hel

peel to ensure
tty.:!

a cGlL'tain

defJr.:B{l

0f

economic de'!

Lab-iI it y in l.he fir·st

hiel ve yft~tr £

of independBnC6"
CQn

wet's

vel")!

clear

_Lnuic;aU,oh~ Lhat,

J;saJ chal.Lenqea

front i ng

tbA

VAst

IT'lajdJ['.:i.l;.y 0 f the penp Le were ty ~ the bafl~

Q

not recel i ving. l:h<~attention

r !!Ilma5rV'~rlserioqs

they

dfjseif'\! 8d..
EJ

r ever-

ths

Third

I'lodd,

E!CQuq,Je.

~~h l i

e'~lIomltg!.'o'i'Jth

re,suUed
was totally.

in scmf;!.socaa.l

mobilHy r ~~hu18 s~glutml·s of 'socie"t y ~.or!tin~.. ~d.to bn H Host

ilH;)t

t rapperl in p@rpehH:31 stagn8.tion.. depend®"nt upon the

0f

al1.,

-tb<e economy ~s a whole

deter~

[,"O~""in.Ut;an c'er:rl':if'ef~ .of the ~h~st which

minsd the pa~o arid ch~racter of local development.

yEl~rs 0 f pr

It was a shame thaL the

f ic b~~~e Sind to

osper i t i

\.,r(3I"E!

nol,

t.H~HNi :0 create 1

a sU::ong8,cienti

If-11Y

I::h~ f'oundatInn

'For ;autQiIlOITIO!,.mindl!~t-dCll

deve-V=,pm.ent [:]11' .L:!V~t1 to inHhrt0

mt;.<'ln-

ing(ul

~gr~Ti8n tefDrm~
poHU cal
hampet'ed
The

I Ilthf$
Illent.ioned:~ dem!iJer-acy,.

arena,

t ha various

eurbs

qnd cont.r o Ls 'tyh nh have been i

a fullf]

and h:iLndered

th~~ grQ~;!th of
t

edqed pf.lK'hc::ipatQry

I"ternal

5-ecul'ly Ad i,

in particular
d8te:J:'

,. \!,'t'dxh 'allnw:e-dfor detentl:!r~

tion

\-/i

t.h9ut t LL a I was Ei major p',;;;·ydmlogic-al

t La pOPlI.l ar

irl'J

01 v ennent

in the d~mocratic prc6ess.

Lik~wi~®, whi 1 e there
WEi:±;

a degl.'el!l.. p f' ethruo

FqJ\ ethnJ~;c;:oh of this

Inteuctinn
war3

and apparent
1\ nUlTlb'A"[

etl m.iL': h~I'mQny r t he. po teni: :tal inciica sueh

t-IDI'S

fIlet

real ,

b f soc i81
1rl®.i;l,

por t.ended

t.hi

danger.

I-or exampler·
BG~ne

tho

ria bu r~pf

davel opmen t commerce

tt:'lat at. the

tt'le:rA was obvious

paucity
Nfner-€

1\1:51J~ays:Lh the .
W,lS c.e:dairdy
~""'SS
'ffSS

profIBQ~i.o!!s~
WB~

.arid

imJush.y. ly

In a s.i t.uat.ion
rnhJd,le
pf

sooJml mnbi Li ty

t-ald rig p] ace,

especisl-

and upper
political

18v(;~J..~j

unhea.l Lby,

5JrnilDr] y ~

;3rnonga new generat.lcrn

tidfJZI,UClr~ ling order
a.n the
Q

nDn-Mill ays ,~,here

prceess

a d~s i.re for 11101'e equa.l r.8rpos·? ib l e 'iNH:hj 1l~.ITe e;;;;i~-

""'hiC:'h

not

f t hJngs.

Even wi til eoT ruptIcn

were. al r'eady is one of the ;the: rli!lUQn r S c1 eat'
S

r thouqh

nut; as ramp8:r~k

as in s~um(3other
0

places
r
elir.(;lS.

thB!r€t

ignJ3,

in the f i 1'8 t hU3:1 V~ y~'3rs

Jti(jFfle

F" Indepsndence

to sho~'i
This of

tha.t !.he scourqe'

1.-113;8 9}ltting

sper ia.l Ly sl"nong the

i,t.s

po l tt Ical

ress-on's wh;' those

ill powflr sought

to r eduee

(.he effectiveness

A!lti- C-OITupt..iqn Aq(~Flcy I'\Y gmggi ng

[::hit! r 1n the Labe SIX ties.

• .' _ 3.7

ill

this

88881'-

W'Bye

hOWBV('U" ~

not t 11.8 most .imporl.arrt cauees

[I

fo.p

the d ianqes

that hand,

t.ock p l aue j.r'I the

t:(ln~plex.iClnl

'f' LIre statf-~ in

t. he post
~mllc';"

- 1(:)69 period.
Oil

0r

course,

~1ahyand ncn-Hal ay a£"pil"8tiorl~- tn trw economic!. spha 1'8 ~

- had
the re riot
0f

the one

and in the pnl.I t 'ca]! sphe roe ~ on t h.e other

t'la}'

th i.ng to do with e after' especially 1969

the

the ethnic
\'Jhi.ch
\')8

-Ll, 19.69

None! he l ess,'

~'/['re other 't rends at

of thes.i:at
U:~;

\'Jork which were significant.

shall exami.na

ill influencing

Lhe pattern

in a wh.i l B •
q u ast icn.

1n the meant ime ~ 1 et

re f Lecl; upon

character of the statA in the first twelve years or Independence relatiol"'l to orre cr udal To. what ex.tent vias t:he ext.arna as. egain::.-i .i.nt erria L factors ring that period?
Reflections

in
TILJ-

l environment

respcns Ihl - for: the type

of .l3L ate thol: exi st.ed

(1) In the evolution of

which Spawned an Impcr t ant role. tur~l changes it
;'I,t

conservativ~ stata,
f

brand or nationalism
colonialism

a conservative
SOfIH'i
fJ

ployed
sl rue-

l ts polic.it:os, and tllf.i

rqctor~; ,

~frected hB]p~d breed con~erv~Lism.

qecpoLCl';'I~l'rl6

ths tics;

Sf.l'me.

tirne , a number of doriiast.Lc

Hovevar , on

Li

feuds HSIll.! 0t hn.i.ci ty - e I so Ccnt.r i;bute I bal ance , coloniaJ .. sm L impact.

the same end.

appeacs to have had a greater

(2) Ln l:.he ear Iy post- indapendenca backqround of ~he enc 13 upon the
CD~Jf1t. ry
f,

per Lnd ~ the co ll(mi@]

e:xE)l:'ted a dec i $i ve: .in fllJ-

nascent

~:ate.

It

\"1;;18

undoub bedly mora

significant elite

than

Lhe international forc.e~ lnduding and Lhe nature

capitalist

eysi.em. 1eade.esh 'p,

Ent.errial.social
interests

th~ et.hn.i env il"Dr1Im:1f"lt., c of political

were also crucial. ( 3) In as

~0 trl>f!l

'Short run
did

ifibemat ional

cap.i tal

j_

('3

t domiIlo,nC€ l.he qua-

SUCll

not; prnve

to bean
of the

.i.rraurmount.abl e obut ac l.e

BOC iaJl.

j uat i c:e in certain

apher'es ,

I ndeed,

l'ties

and orientation

politic~l

leader hip

app~ar to be able to mitiqate against some of th adver se e ffec.ts of Int.emat ronal., capital Lst, dom tnanca
8.hd

control.

• •• }[l

1hal aHar
I

there
13th'

were

chanqes in

HIF

rof s , funrtion
I

end

ehrH'J]I:h;or
W80

IJ Itha

stnl-e

Hey

i a urulen.iab

I p- "
H!; on of

The e i hn i.e r i nl; lo

Sep9n1J

t Del r-

rmtthB

cau gr;,

or

I::.be e chenqes , B
dance

H ml1~rel~' aarved
l h i atnrv rr"m axpanal
8 r::~T'

te

ee rt a in phase

in pas t -i rHjt'rl~m-

r101 i tica
lha

'.ucC'C'eJfllg

per ind, a] fir middle nrul 11illllf'r II'

til

sigrliricliltll ~Jakp Dr

IflPSC c p Ltnl

l eve la ,i Il th' tH~h 111i1,in!JJ

illlprEe!.iJ ion

a in deg:rt>e of t rans ferE'n~(" uf

COfllfi\CH"CHli

mmfll'llh

III i-

pl'(lr1ttll1oM i.hal

and

rn e. sat s '1:.0 luca l h.-.rulu

f.~Orll bccomullq

cr ca ed I:ho I. ha L'Xpu rc[)p li OH

non-Hal avs as a ~,hole

prmJf,)eJuJu::I at
stu,

ponse
\'IJ:lS

o f '~~h,Bt"1i::dly a , E
uu

1 n en

t:)

t hn i call

~ -orle,nted

sue le t ~.

pol

L: i a] 1
W~i.'lI IJ

uSl~[lm·t:lLJ~.

Tilis IJnrlrrqolng
- rUral

esprwinHy
trannfclI"lnal i n [ltu'U

un si nce Lhe al rur in

lLIrr. 01, MAl y ~m'ir'ly

WiT-I

nlsr:
edLJrf..l~ "Oil

or

so

(q.

\:il

th

unIVf.'rS-Hl~1

iOf1

or

c:LlueBl i 011

eul sr - rtll',)r and more ~lal;jY!:l wen~ beqirmi nn ~0 movn

A. concnmi tent dovtdopnu~nt
[I

intr'1 hi gl'uH-pal'

;'I"H11

urban ncrunat i ons .

L'IIU~ [I

t'J,::;~

i~ 'I'he I
r(j[lIon

CIJI'1SC iOJ.,lSneS5

or
.

Um 1n

imporhmc:e
'8

aCOOOrnJL,C mDI'8

st

ronqth rend
EI

;:)IIIOl1q

rum
I]

genB,.

of young
131:.

t~D 1 ays

sense,

t hp

w Iceap

~pp I i C";c'I'1,OII j

r ethrll~

quct BE:!ami

hn i e pr~

r er-encas on

behal r

or the f.lalsy

t DWrilrd!Ol lhe

1a Le~.i 1 x l::. L cO

re inforeet! th.i. 5 consc lOLJSfU!'SS.

VIlli] e the
Veloping,
8

nue l eus

n f a ~ ala)1 lIliddle-c

lass

see!ldng

econonu

L"

powe L' was deUI'B

second

echa.Inn

Leader ah.i p was a Iso

c:<JIning 1f1 l.n be 1 rig wj Lh.in

IIIlUed Halays I National

Drganin,liOf"l leaders

(U~'I/I.~O). the

mainstay

of tJ1El' ruling

cce'l I-

bon.

These

6E!CO'm:!

echelon

reH - ElY'ld perhaps riqhtly - tnatthey

Some 0 r them

mH'B not mov ing rr8sident.

fast

encuqh up thE par' t}o, laddei" '.. \1ho

pBrce i vedl:.hs

0 F the;: par t.y, Tllnlm Abdul ~hrMIl. Malaysian

\1195

5150 the. Pr ime t4.Lnistermajor impediment.

and foul1dj IIg Father of -the The dec l Ine

D

stale!1 as the

f th~ t hat

ruling
followed

coal i tic 11 (thE' .,\Hiance)

and the state
0f

tnt he 1969 GE?neI'al

nr ed

Election,

Lhe r lot

[rJu:~rgem~y whi ch \'~as dac.l

Lj~

fOI' 2.1 l1II(m ~ pro,,,, l ded the apport l"h~'l

fll

uni Ly fur
Abdul

U u: seconrr-eche-l cn c I iq Rahman.. As in som(!

to
gjm

mouut, i.J ar

auoceae luI

challenge
h l he
Raz ak
w~~

a qa.irrs l 1unku who had

Dr he r

situations ~]8ewhere1
Ilssodfl t, Y1Jtl1 Iun

the new aspir~nts

gthered
J1I \\1

around an estRblished
his
i

leAde~
i•

\-1 i l

r unku
now

] nnq been rlesjgna ted

as the par

he i r- appnren l

Abdul

firml y ensconced
p~lvBd

y Pret:lI rlCr1r
EI
rHo'll!;

and F-'rlrna Mlinll

nbbno

the path

f'er tl ~ r api d rise

of

qener al

of ur'IM1

lfH'HJ~l:'::J •

'••.

39

[f

tl is change in leade,l'sh;~p wss jLis~ a question

folloNln~L
r-i

or on~ m~!l tf,l,kinq 9Ver

f!'o!l1 another
1yais would

veiled

c I iq ue L~_on Hid,

its

e i qn.l fic8nce
Qf

to our ariaas L'm have

be v C' 1')" 1irn.i.ted.

Tun R~u:ak' s p.st1um~tj on

(J,ffice.-

already
and luore

hint.ed - heralded l.he inLeres-Ls

the rise

ol a 5tfLte that ~lJOuldcome to r epre sent Df a t1ftlay micldle-cl ass and d deo.l agy of this

rnors

and aspi I'at ions

whi.c::h V~<JO then

G Late

stiU
'that

Ln an @l1lbryonic stage. we, shall noI" examine.

I t; i.e the char'act.er

.......

TOWARDS .... -- - --- ---._ - A MALAY CAPlrALlST...... '--'_._ --........ STATE - .. _

-."""'
.__

._.,.,....",.".-

-.....:

"""

In a certain deve Iop i.nq Malay

hIe pubI icat:ions

sense.

it

\'138

clear

from the outset that

esJ:.abJ'ishiny

and c1s{;s.

capH:alisrn

\'IflS

going to be t.he cber.i sbed goal of thb

poH- bcs

assoc.i.at ed NHh U'lis rie\'~ phase in tlalay this. The f i r s];

t·hllis,l:er

prov.i ded f.!othnic

indibations the preaent

po li.cy

0f

\~as t he

~~~~Lg'~~~~~~ of Dr

H~lhrtthllL ~"lnhammHd ~

Prime

Which in a nul s.heU argued

for a p ctect.tve

bi ased

towal:ds class. of

th(3 ~1alClY, communi t y Indiv Ldua Ls {among

tJlat wQul d ,~nsure tJleemer.gence 0 f .s

t~.al ay cap! tal Lst authored pr esent eriu'cation

The ~;g!con.d "'ml::!t ha

B~,~~!~~!_~::~!~! (t>1~nbiil
to

Revolution) the obBtac-la

by a group

them lDatuk .Abdullah

Ahm,®,d [ladUl1i,

Mini.dar)

wh i ch at tBOQpced
the sort

eltl'umerate, ,t.ht':! a Uitt;din;;ll

in the way of the growth of an acquisitive capitalist sb~rit among the Melays~
It even spa.l t out viswltUy of a r-fluellt , st.yl i sh capital i.st t:he Mfllay

shoul.d asp i.re Lo become .•

VatiolliS

policies

of the st.at.e in the post - 1970 p;eriod emboc!ythis

to start
11ith, the NeN [~onotnic Policy (NEP). has establishe0
t

cap.iIts

LaLtst

idesl.

There is,

implern.erlE'fltiOtl in the Laat 14 yealL:.'.>

beyond ,any doubt commercial and

t.hat its:
isl

main purpose
el itBS.

i 9 t he neat ion of HaIay pro fe:ssional eLit e stratu~1l Is out by all or the

indust:r Ial

1he emeI'Qlence of this

part. of the qene r.al capital

orientation

NEP borne

sorts

of privileges,

and quot aa aimed at

Ly

p.I'(lhurl:.iI'1Q Ma;lay ;,~~alt h .

Non-I~'1al y cap' b~li.sts, a

H. mus t be nddsd ~ especi.al

those who ere linked to Malay otficialdo~ h~ve on the whole, also benefited from the NEpis lop-0trJed emphasis.
The 'ethnic uoderp irm inqs
0

the policy
to~/CIds r out fits

are mo~t apparent to thirs

in the way in

\olhich puh.LIc insti t ut iOlls are geared

cap;i.t.ali!;lt

th.e goal 0 f i ncubat i og a t·1s1ay \'[1~h as mu ,11 chauv.i-.

capj -aimed at

claaa,

Non-Malay elite:s up LheLr

0\1([1

are r.e~cting

ni.sm by setting

ethnic

st renqt.heni.nq their

.••• 41]

taiist tutionand stronQ

i~ta~ests.
endeavour is. this

It is Lhis process of communalizing tha1t has gi ve·r1rise

that H

every economic insticul.ture,

50

Loa

total

ethnic

culture

has' now become the QveI'whceJming l;'f:lslHy

in

M81a~~ian society. 1f any l hing, the etnruc fur-cad by religious ~~ithLn Islam"
1inked to

character

0f

economi c Lifa is fur I: her vein-

di 'I'(:l'tamie$.

Theae di cho tOrflies· have rev i val i 8m that this'

become mor-e prois deve10pirlg

nouncad ",,'Uh the exc Ius.i ve " duct r inaire l al.am is no!: rea LLy f~ssociab:~d with
Lhe i deol,agy

It could of course be ar qued that

sort
party.

of t'Bvivalist
This i si true

the state

- s i.nca it is more closely

0 r the rnaj Dr ~·t8 Lay oppo~.i.iOIl

Bxr.ept I:.hat the state

is al sn responding

to ISlamic revivalism. own accord aouqht; to legit' mi l(!

r'lor.e: Impor t.ant; , tile st a be tum on its

its authority through Islam.

f,lI1l.J

Its Islarnizat"on progrsmme is part of this

to j ust i Fy capit.a.l i at
I

mani Fr6!sts cheracter

in:stitLitiorm.

rat i.cs wh.ich obv iDusl y athmpb

Thus,
1'8

:i.d~as and

Lig.i.on becomes yet

ano+he r h@nd~ilu:lidel!l of

a whole system directed The poli tical The h.ter arcruca.l the apex are;
\'Iay"

to\'nu)ds cap i t al and the maximiz.aliorl

systEm

of profits

•.

and adminisLl'aLive at r uct.ure

~.X
E1T·Cj

.al so serves

thf't sam.e purpose.

011

u her-i ty and tile cent'r al.Lz ati

Q

nf

power

al,

to some

tent , features'
upon

f an unequal
unity

economi c order.

Capt-

tal i Sit -irrt'0rest.s

The eunst.ant,

are prot.ec tot1 and perpetuated

emphasis communal

in y€d:. annj.he r , more b Iat ant

and nt.hru.c il"lt~rsts so.l Ldar- H y has
a

definite divsrqent
lTlunit},. bcundar tes

aim:

it is to pr event; th~ masses fr'um reslizing

group

Uw.l there
wi:thin

are

~ o f'Lan ccnrI i.ct.inq, Such a realizat.ion

can become
B

and class
to

the same comethnic

Adifj ceo

especially

when H: begins to transcend

sar i.uus

thre'at

the ent i.re capitalist

A~ ths class
power becomes

drive
even

t~wards w~alth
qreat er,

8ecwRulation within
corrErDlnvl!'H"

th~ Malay capitalist

the
stsr.B by B pul.Lt i.cs.l

becomes mere Lntensc , the .de s.ir-e to scqui:r'if) mcr e and more political
fol" it is

aLi t.e cemnrt t.ed to tvlalay eapft a l.i sm that total e.lass , the control"
H. is

racili~ab~,s t ha prnceaa , is subordinated

lhe more qcal ,

the easier political

the conso.l Idat ton of the' power of a cap' t.al Lst, onceevt~:rylhiI1g system import ant , to this 1" ke pa-rlisE1IBil,1a.ry electiolls and par-.

~iortI1. noting

that

other' aspect S 0 f the lifJ~~entar).' debat'es

become les~

Indeed ~ snyth.i ng t hat. is capable

41
of (::hecklng the power of t,he elites party or ail aut.onomuus public shoved
a dacl

- whether' it is an ~JPPQs.itiijl"l pOlitical society This

democracy

iiltersst
Lsrnen

OI'''

an indepe:no6'F1It
i II
I

Labour

muve~ent - is
there has been

a side
ine

with con tempt".

par 1

is one 0 f the rea8GnS \1hy

the 1

0f

buy

ast,

Few

year

Severe

curbs

arid corrt rula

are

l"HJ\'!ever, rat iomt1 i7.sd as endeavours

D

to break

a~'fay from the 'tJestmlnj,ster-type

f democracy

and to

BV 01 Vel

e more Indi qenous

political

@ystem. r e Lat ions second ton. a shi ft ~lwa,>,' from Bl'il@in This is,
if'il a senee,

In international nial underar.and ~ultural ai.ncs.

EI

and t he colotOI

pest is only too 'obvious. ·contact policy

"l'ii t.h

not. too difficult eny intell

itll1~nt.al

g'2nel'if!ition

1aader shf.p without Iesaeant elit

ect.ual
~3 .bout
1

or

8'1::"1 t.ain is bound to feel the t raditions.l pr saent

S-S'"

[ t r athe

dHiOHa1 ~ ties
I

- unlike

5..een in thi slight

nl.1Ad

LQOKCast

of the

leader'ship
fi ret.

is a meaaure

of thE: .di st.ance .i.ntn the

the country

has t rave l l ed .s.irice the

08i'l.l'.l1"aU·on leaders

background.
ment; to

SimilarlYt

it must be recognized that ~t wan only when the aLtac~1:.0 MmB"

t hat,

131' ai.n b0gan iL

~lal aye La became

mnre non-e l igned.

,

_._

THE CAPITAlISl STATE:

----l ..... _,...." _ """,..... _....:. ..........

AN EVALUATION
.... _ ~._,.:_"""",,..-, ....
=0;. _

....

I if one 1180 to
the post

~~.(1)'

gil the positive

aa against sense

the Ilegative. of political appr eo.lntion

att rdbutes

rof

- 69 cap.i t aLi s]; [reate, add that

it:::. gre8tar

.independence

and iis perhaps

non-aligned sbrbJs would be among t.ha plus po.i.nt.s, t he state today has
at

One should also

0

much bettel'

it~own

nat iurral.iat Lc aap i ra]; i one , Ilowev er , there state pursues

0f

is a need fal:' some

f.;F1Ut iDri

here?

flw nat ional ism the

and the 6over·eignty

it upholds oopitalist

FIre

defined

within

the f1~I'S-

pect i ve dependent
ties

o<:lpi1:ralist ce.l at i.ons • upon the intsrna.tior1lal

ay s i a
I' 8:

Thi e exp l.a ms why the

dependence

s!: et.e remairis

of

system - in !Jpibe of d'i-tindlin'g upon J8.pr::111 Ls proof ccnsul hmcis8

IF

with 8ri tail1,~ilal

grm~ing
f

this,.

Ind~.Bd1 as far as 10::H'18 inVB~tmant s , technology, 1

QO!

and m~rTkl3t.s anything

j'

the nat Iun .sho\"/s FlO sign

reduc iriq its dependence ,

the

way In which the pr esent tr'les naliona1 capitalism.

le9.d~l"sl1ip .is ~odng about

dl3v.~loping hBav)' indus-0 f inhr-

is bound to Increase further

i t.s depe.lld~~I,ceupon tile centres

Or:pendencl5' fl'orrl the society

j

exact.s

a heavy

tolI

LJp6n

lhA naUWfi pr 0 fits

ami

it s

paop

le,

Apar

t
1.

1112SB iV.e' out floN dependence base. t.icn

techno]

0 f capital tho

and

'(fhich

Impove r l.she9

t he loco arrd is a

etuot.s There for

devel.opment to

cf 'an autenomcus =mphas i.ze

[I

scientific

technologies] vih";I1 pre-cond.t

econnmi c and

Ls rm need

that

.'::;lh.::h a base

the em~ncipGlU nn of
Il:t"f

f)qf~t-~olorli a.l Rt-oLe..

tYPE:::;
0

'Be"': des,

ogi,ca 1 depender Ly devastaU.ng

genera be nhher

dependence

wh i ch have

1'Inaqual

'mpact upon ~ocic:ty.

irrb~llecl.:ual L'8Ln force

There dependence, that instance cent the

tIE! S

Ls Inf'ormat
1\1

Inn
'I

dependence;

dependence;
in the
.0 f

cul tur al
a di ree t ion peep 1e ,
c!ou:rj nant,

1 t,hese

dependences.'
Q

de ve.l oprnent

.is in Im.i.ca l t.o the- inl".p.I'ests.

1

r l he
1ectual

'V

a ..d:. rnajor i ty , dependence system, i.cleas

For

as long

as there

is

int~J

upon the on
E:l1C

f knowl edge

ill t he int.erl1a U erial :thrn.t one 'seeks

1al

ehanqe , well-being

mude l s of

development

to

emulal.e , ~~i1l conk irn.. Lo be W bs dctrim~~tal to the

conditioned

by ~lien e~)erienc~s which may

Finally, dependence in almost

of

nnet

s Clwns.nc.iety.

he Ips

'1:0 p.srpetuaho.

unequal

every sphere or toocisty within the demesHc set.t i.nq, For it continually strengthens (as long as th~ intBtnational capltalist sys'i.em is pr osper inq) local economic, cu l.t.ura.lnd political elites a who
structures
serveM the system th~
0f

conduits,

t.he channe ls , For the. rnaintent!Hlte

~nd perpetuat

i.on of

dE!-pendence.

~'hat thi~
atst.ence

means

js

thai. oep@nd~ncB
the aggravation

1$ p"n~tly l'.e.sPQrlsible

f'or the to

perthe

uf PQVBrty The failure

and

of BCf)~amic di.apar-i t Las w.ilthin

country.
pcrf'ormance and \~ithin a fact policies;

of Buccessive problems ve'steq

post - 69 politicAl is yet another ther.nr:'1] on of these upon has

IBAderships
of their and
II rhi:lll

backl e uoththes8 ,

related Various

exsmp.Le

neqal.i ve sectors It is

inte rest s in beth the resc lutf

R

a.l.l ~ommunHies over UTe years, and of gro~lth

impede

prcb) enrs , ~Jorzte and

t hat

~d t:h

t Ileell'l:ph.a~i
POVSI'ty

cap H al i.s l economl o Incone

productivity,

become

dispar i ties have wi dened consideI'aDl y •

The s.i t.uat Lon is exacerbat

ed I~~~' the. :i.nCTeas:i.ng pervF.ls.iveness observed. The conaequence of this

of et.hnic is the

pnl i c i.aa I'thich

\ole

have already

polarization of the

various communities - especially ths widening chasm between ~ aye an d non-~1al~y6. .. [al As 8oC'i~] interad ion among t.hs communi ties

• •• 4-5 decLi.nes partly because of ethnic policies. HIe pcospecb of cr eab inq :,1

genuInely united society forgBci by shared values and shared interests becomes
d'rnrnel' and d.immer ,

,Just as the communal more ser.ious , the consumer cu.l tU~f5,

Sl.

cuat i on ha's wor-sened, the tol:alsysh1m

p.5]" l"il 0,1ogy;

BQ

has corrupt i on bt~r:'orrl(:j f

Once aqai.n , il:. is

- pl"ofit-max:irn tzatinn,

the acqui ai.ti ve It is perhaps a I sc

the cant [',dLi·ation

power, the abssnce of suf~ci~nt

the. 9cterioration. in a sense, IBss restrained

public scrutiny - that i8 repRonsiblS for

t1.'Uf'

t.hat, cresenb-uay

Leadarshl pis,

in its attitude to we~lth partly because actusl

C"irt:umst_anc~s have cha:n~e(j. An env i l'onment ·frmu·ght with

temp ted a le;.adi;lrship

all

sorts

of grave

cbal lennes " has HI so

il
EH;~ If

whll ch has fie i t!16H' t.!le· l;1.i11 nor the ab i 1.]t Y to overeeme
meaeut e ::;1:o keep

them ~ to resort Incr ea sing social.unrest..

to var-Ious authoritarian
tam, hC)\oJ8ver!

in

pClWBT.

authori t.ar.i.an

f.s n.,ot_ .,1 UP!r:.

reaot ion 1:0 dis·sent

and of

The type of developmel t that i:-he e.l Ltes ,

i~ b@ing pu 'sued also

tends to

concent rat.e power with

ThL procesj;; is as,s.i.ated by a culture

acquiescence,

which in turn is ~ produot ot both state control and various

historic~J F~clor8.

All the ne9@t·v~ characteristics

repre'<:H3"itm ~ a qreat
COLtU!pti

of the pnsl-69 oHpilalist St8t~ t

Orl, ethnic of other hCllist'c

pul ar Lz.at ion

IbP~5i de:d develdpmeni;t.oc,

are

bD

ext ent

typicl3il

Thifd'--~'lDrJ d socil?tie~

Irthe r i.Led from

the past , these chSI'Catel'istict:l

has been 110 thorou9h" r4alaysia,
'ri Hhln

hs\o:e b3nded to persist

~o~ial·tra·n~fol'hlaUon.

ms'j nly because th~re.

In Lhe case of antook pl ace of pm~p--{', it massive that discoul d

;'Ihat nappened in 1969 ~ as

0f

we

Stl\~,

Was

a change in 1eader-srrip Sine!!) the chanqe the same 1"1 ierarchy f;Mr.a
~·H.lS FlO

eompant ed by the r~ se of a Malay m' ddle:-clilSS. t.he same st r uct ure in the socisl and all that

reI allons,
IJI'"O

wHhin

did not J ead to any major location in 1969gsner:ate· meani.nqfu.l to n pabt.arn

E.I'snsform·sti[m. whi en
typt~

Gesides1

st ruct

i'lOLiJ.d

have cal eased o f political

Third
'i S

forct:s

chartqe , 't.rue

file of

of tran~fprence

of power t.hat trans.p'red

succeaai.cn - be Ionqs

the sucsequerrt holds political

instances
SCI

much of the

WOl'J d.

Scmetime!3',

~~'3

,in

t.he case ·cf ~~alaysia!

auccesaton

.ordel.'ly and peacefuf

and achieved

through established procedures.

••• 44
1n .some courrtr iesl:.hete pH have evE!'1'Ibeen alterat.iom.. of Indi of pm~eJ' accom-

shed ,.",1.1:11 Fllinimwn violence

chanqe
I:;]

as in t he caae
a fteI:

a.

0 ftenlimes

hO\'ieVer, Leader-ehtp
moa-e

OCCUI:S

a bloody coup.

Gut itthebever thfl

political
power

f .ch.ange U1e urn"der 1 'ling

patt ern

o'f' economi o and

remains

the aame ,

fHE CAPITALIST STATE: WHY IT HAS ENOURFD

This ev al uatian in spite
endl!l'~d?
(J

F the post- ~9: ccapitalisl i't is responsible

state prompt,s us tu ask: for, has the cap i talist.

\'Jhy

of all

the problems

stabs

Three sets of reasens can be advanced. by continuirng,

at; least.
FIg

F.lrat,
lliid-seventies

to remain
OF
C(lUI'SB"

wi thi n the
0 tl

.int.ernat Lonal whi eh

capi l al i st sy:;::terrl.~
the
L,thAt

tv1 1 y s La b en eo t ed by it s g rowe h an d e)( p ~r1 ai aa fi the to be the beginni

good Maiaysi,'iI

'til aa r ernar kab 1 e LIp t Q

syst.em is lim'! facing

I\fOf"letlleJ 19.$8 ,.

threatens
- as '

of a

!;i,e-vel'€!

cr isi s .

while the qo.inq wss

demanded

whic.h pruducerl

t.hoae cornrnoditiss

that

thf! system

noted ear Ii~r - was ab.l to e

reap some prosper it y • the syste~ in

fur qrarrt.ad,

Al'gnme~t with internat·'cnal capitalism h~lped to maintain

yet another expanding ensuring 5ecuJ;:ing the
vlay.

It. (Isant easy access that of this

enjoyed

to elf, those Iuxur y goods ~\'hich all

took
Oil j

midc:Ue-tlas5

cons i denab Ie mobility

loyalty

c.l.aas was _- el"1.d i8-

mpnr t artt, f'ractm' in

the pG:l'petl..Jat.iarlt

of the stet,e. tile various poverty leaders to

and
di.s-

Second, as in the case. of the .iridependence elites" of the posi:-69 !;>t~h: al.sn posees.sed certain
keep them

att.r ibut es wh·ch have. helped

In pov'%"lr.. Similarly, tolerance,s

In sp i t e of 'vihat has been said there

of

about

psr i.t i es ~ there ji..lstice.

of ethl1ic

is no denying that
what.ever recognilion

is still

some concern
there

about sod al
a sense

the' comrmmal, b:JFIdencies7

is still

the ne,:'d for

O~(

bal ance

and eccomcdat ron,

By providing

Lih~\'!ise post- 69 leaders r limited

SCoPB'

cor:ti.mre loal1

for

sOIl1r5 disSBI")E.

for art.Ieul

at i on and act i.on to con tending. e l.i tes to retain

t he confidp.nc0
t

in l: his \"lay, of the PFHOP Le

I'

they have succeeded,

to some extent. acmi.ni st.rat ttm.

have

as a ~lhole in thetr
filer alItes

At t he sarnA-'time provide
substanUall~/ gi'lleii its

\oil

I: In

n thei

mlF'i rank-and-

the poat-69

leaders

done. we11to

rnobi l it "I 1;0 emorging to the stab- Hl-,y uf UMNO

\'fhicn in turn
s st.ab Ll

has contributed

in particular.
system
I

AI"1d l1MNIJ's si:;8bility-

dominance

vital

to

the

it y ~

•••

t I.;
I'

AI] this should all':M(~ly been observed

notgi
its

ve bhc imptesG .~on thHt

ptiv~mt:

r.he at.abe has not used In fact I'"epre ssionmanipulation

aphara

the

other IIlet110d r o mairttain

tlllB i nstrUtllellts

repression"

as has
of

- is

on t.he' inCrEi3i:.H'-". It is the' shreNd and [:·epnmS:l.Orl s t r enql.h

0 f C(18ccinn

which 1ias. he] f~ed t.he post-69 in aJ most. every

(1

leadel'3

to

rein furce

I:JH~l.r ov~r'l.;tlelm.iillg

society. rinally.~ l-_heeoc i.o-fu at.or.i.ca.l , scc i c-cultucal

t+us setting
vi1th].n

as

J.t ex i sbs at
-

point

in t ime alao

tends

1::0 t avor

th~ ~t·81te.

tria Malay ~omrnl.llnHy, of t.ha powers.-thatto cundi ti on poli t.ip.refened to sod al

f'or i.nst.arrce , tt~e attitude be.

cal Amorlfg. t~he non-rta.lays t.hinkin!J to

of unquestioning
'I: heu"

JlDya.lt.J' to U"!e pr i nc ipal Laadar

an ."JiUitu·dE\ a.l Iuded to earliert

on - wcrks to I.:.headvantage
mrn" qr an I: past; cent :i.nu~s as eU,llir, secIJrity is

some ext ent , .inaof'ar

~hBnge.

This
8 fteE

again

benefits an inter-ethnic
:.;ts
,G!

coaliLion

which promises
111 such

sthni:
fe8~
f.l

~"!E'lc;uri r_y
cul tUI'e of t()~al

g~T'BI·aHn.g et Ilni.c fee r-s ,

has become

[ql.laU y drnporl ant ~ the political

[9

of

M.s:lays .aan sOClelty

1i\11'IOl has dave Ioped P.

w~y that

chanqe

sj,gnj f'i cant tr-ait .

(:JrJS

Thi.s is

to be el>::ped.8d in because of

soc' e t y where ethnic state

deve l opa

apprehenar

have become pE)I"v8si \i,e par'tly

Indoct r i nat i.on. eaad.ly

In such

An over--caut.t (Jus at.t i t.ude

"I
s.i.t.uatd on.

to

chsnqe,

to ~8y t.he Laasf.

Though the cap.lt 81 ist and o:t~e[' t"s:ctors, tinued

state

has nerpat us to d i b,,;el f aa a r esul even

1lrD~'J

t a f t.hE!se
i t s con-

there
the

are rrl.ear signs aaeuted.

o.\,po38

+'0 .md rcat u that

:LJl

~.d,abil..l,ty is
has hac

110 _l OI"lQ'S'r'

llre crisis
l.he

in l.errrat Lonal
weSiknes~es

oapllmism
0f

- a cr i 81.s W1,Jch in
system

;end

w.nl

fUl1dSlmentaJ,

t.he

enr .ir~

e aevare

.irnpact, upon Lhe ~1alayR"J.all economy,

COlllfliodil;ies

Ci ven poor have. Ol'fell plum-

rl!ar~(et conditions met t mq.

"n the idp.st; pr Loea of our export

Industrial
fi seal

inve~t;:net1ls. from i!fidu8t ria l iled

\,/Hh

HlP,

'Nest ace not

fOl.'thcOIIli.1l1j

because

of

cor rain ~1alaysian

policies

in the Urn ted S'tf;"ltes in par t.i Gular. markets.

At the same Ume, of a.l I this

known s j, nee is

the prutsc Uonii;lm ef the

an economy ~/htch

economies i.3 rrrtil.king it cU. Field. t for f T11e·outcomfl

cha.l.Lenqe it has

manuf'act.ur es Eo penet.rat e Uleir

.it s now Fac~tj

t. he' gre.a t.est

Independence
fiowever,

in 1957.
me re

signi flCar"lt

'Chen the

an bernational

SYBhenn

tire var .ious chEiflgJ.!j Segments of the

,

that Malay

have been bmdng place

'."Iitl'11n fvlalaysl!JiIl

ru r~l

pcpua

at i cn are becom i fig roore

. soc.i et.y consc.i nus

i t se l f.
0f

ne 1st i V's pov 8l'ty

• • ii46

corrlJptiollClr;,d ting

d.i,scriminaU(jJ1
\.tflt

b 998d tJPOn par val' Lous

Vf21y~~'+

lly a ffiHGti

un,

I hey

are

reac0 r Lhe

h."l t;.h~8e inj

i ce s in are

At

lhp. some t ime , 8ections

nOJl-~·1tllay communities

beginning oasaa ,

to prot 8st ag13:1, !lst:. ~'!hat they

r~Lhn i c

parce j, ve. as
fj

negle~t afl0 un fed l' ,t reatment

economic .i asu es , In both

by e·""pre.8 5_L thE! ir' gr ,1 ng evance s on srec:L sent irnen t~ ale pr ov Ld.iriq
fl

e soc i.n-

sharper

edg~ to social
These

p.robElst.
f,1:r~

pruce-sse:;;:
S:i.~JIlS:.

in turn

suppor-t ad by a so.

ql;o~~ilf1g

~~O"rking-el,

f-IS8

~'{hich is

begin-

ning

to show

of l'EJstlGssne

The middle~.d8ss

i 8 aI GO ex.panding
Co:rnp8 ti

1: ap i ell

Y and is

be conri rrq rrro e amI m0 r 8' d .iv 1d e d i nt.o r

01 Lquaa,

ng pn I i H cal
i t;es NiH

i dBOdi Scovel'

10g1 BS and

economic

~\s t hi

fl

happens ~ I:he rulill'Oe]

that '~hey can no longer

Ihi s will be a crucial

be
of

SLlr@

of V1e tote) til€: cJ~cl ine t hj s ,the

a.ll.eq.i.ance of the middle-elass

of Lhe influfHice

f acbnr all ficClFTt

in

or

the! ruling down cons.i-,

elites.

If in the mi dst
for a si~ni

economi.e s Ltuat ion becomaa worse

slows

and Il10bHity

s'egmen1: of t-h~ rniddls-clas5

derahly, thCi ca!pit~list

HO\'18VB

91ah~ itself

wUI be In per.i l ,
effecr._L vel y d8SiEB
p ~

be fore

"the st ate c~n be chan nnqed

here

will

have

to be Ina5siv8. social

d.i.sl.oea t i on end .oj pOHerful

For chanqe

among all

sectors of society.
acenar] o , Re --~ ......t Ions f'Lec .!....=--:.... .......
(I)

Malaysia does nnt 8e~m to be anywhere neaP Auch a

rhe ascendancy

0 fa

rni ddl 8- class

JL P:El,dAfShip

in

s.i t.uat Lon ItJliere st rucb.:lF.f.I:lrelat:ion,ships·

have nat

changed mere l y he Ips t.o perpetuate

syet em \·jith some modi f'Lcat.ions,

the exi st tnq

(2).

The sh~ngtherdilg accornpani

of the cap.i t al Lst; staLe @gg.rava(ion ~he policy.

has been

ed by fur-ther

of the various

challe~g~s confronting
( 3)

The deve.l.opmerjl; of c@pihl) i srn in a per i pher y sr_flt.e

brings about all sorts of structural chan~es which~ in the long run I threaten to undermine the .system·
i t sa I f.

(4)

The effecL of the international

uP.on t he local mi I Leu
j

capitalist

system

t houqh

signi fi can ~ r i s just

bne

of th~ S!aUsM of the {Jeclineof

the Nalaysian'
in

economy in p~rtici;laf

arrd ~'·18.1~)·~j.3n society

general. ( 5Y 8im,ilar] y,~ if the ~IDpi talist

endurce it is because of
,I)

state

has maMH]ed
IOf UB ElSGlr'3

to

v:·ar. ty ie

if~d ng udi s'lste!ll

~h~ tltrerrgtJ1 of the international

ltlhich
HaG

capitaH.st

eVIdent lint U. r ecenUy..

l'Q)l e

(6)

In

t he J)ast~ 69. c-apital i st "state t.co. th8

1e.ade~snjp in
r:l_nSA,.H: rlg i thIE!3Ul'V.i

o-f p'ol i-

t ieal

val of the system-

i$ C-J,'wcial.

· .• 48

Ali, S. HU@Bin~ Ed.

Persatuan

Ethnicity, _ Development . ... .... ...... .......... ClBss ""'.and ...._'-= .....__ .",_,~-"......".,..:... MaIaysh! .....:.."""' .."._ ..... Sains 50sia1, 1964.

Gull' ck I. J. ~4.

l~~~2~~2~=~~~!!~~!I!_?~~!~~§ __ _!::!_~~~~~E~~~~!~~~ .
_ .... "....._ ...... __ ...... _,..,_. _= .._ ...

London~ Univ~r§ity of londDn, 1969.

Khor , ~(Dk Pertq,
ThI~ Hialaysian [cbrrQrny;
L.......

Strucl:u.r.es·
.".,...,--~ ..................

and Dependence ,
..... _ ..... ..........

Meritans and Institut M~~y8rakBt, 1963.

Huza f far.

r!~~~E!!::!E1~~!J_ ~~~l~~~~ _~[!~~~e:L~~_~!~~!~!:~ _2f_~~~ ~ 2E_ ~~Y~!l1' _!!J_~~~~~E:~!:~_ ~·~!~~.!~~~~!2~_~!!!~1!~~~ ~2!~Y _~~~!~tl··
1

Chandra.

Penailg; Pluv i.er, J. t1.

Vuala Hoff, N. H.

AliI'an~ 1979.

~~~!·tl_~~~!_~~~~..: ~8~!?~i:~!~_§~~~ig_ __ f£9~~ !~~~E~~~~~~~'

Lumpui: Oxfor·d

l)niversit)' Praas , 197[j~

lb~_9E!9!!:I~_2!"_t1~~~l:_~~~~!?~§~t~~.' Lumpur: ~{uali:!

'1 The
Aacendance of !3ureaLlcffit C Bpita] is t s a.n ~1ahy ara ..,.

University of Ma18y~ia Press, 1964~

Suncli':H>arn, J. K.

~!~~!~~~!~~~~ Val. Vfl, No.4

(UecembBr, 1981).

· . ~ 49

'--....;; ...........- - -- - ---= """- - --,_ - - -- .....- _ ....... ..... -.-. _-

DE VELOpr'1ENT , SOCIAL

STHAHnCAnON -- _ ..... ........" -- -.,.. _._.--- - -AN[) . -...,.ETIiNIC RElAHONS: ------ -_

--

Preliminsry ...... -- Observatiof1~ = ...., ......_-. ,..".. ~-.-----............

011

..... _--

The .......... ---Halaysian ---

--- - --_.

CSHe

S.
This paper

H1I51N All
tl~e iinp~cts of t.he on social stratification 0 f' and imp1icElti()n~ de·vcdopment

first

of all

inbmds. to Jook into to "examins·t,hs

011

polilico-economic
!rir;-d ethnic

deve Loprnenf of HfJ1aysia p:articularly . and then, influence

t"elat.:Lons,

the stratification
of

and ethnic strudures

because

the politico-economic development is witt, it will be dealt

the

oount ry UsEil f. in

The nab_n:e; of poll t Ico-eccnomtc it is

hoped that hm ~1Bl~y'Sian change over that

1JIf1f1tioned only "in pass' nq, 'Illore comp:shnUy

the other

p.i!lpers when they

d5 acuas 'transand

nationalization
aspect.s which

arid the

st.ate ,

The ~')I."ime focuS. t.he I.TJlrection

'Of th·;i!_spaper is on b-m

ill Mal ayaaa
of the 'deve l.opment of t.he

a f aoc.i.al, in

strudtlrfjll

may have gl'Bal in

future.

n uence

have t~ken pI ace

country fear.urtis village:ur

For the p resent , the paiJel~' will on t.he national "be dons
,

oilly out.Li.ne the main

w;i bhout place on the taking'
st

of t.hi a deve.Inpment yet to pr:e~ent

m:acT.',O ] avel
t

or macro level, a.gs •

attempL:ing

a der .... d.l4'!d aceount , or chanqes

a.t' a later

iHhicf i 'i'ti 11

in ~lla18ysiij, the dqv ~l{]prnent o r the c1?ntelnpora.ry

b-egsn wi t.h the poJi

strati

ficat.ion in the

syslem
'~!ake
0F

t.tco ..ecenorui.c

tlevel opmerrt

which

too,k pJ ace

11!estern co l ord.a.l

I ul e ,

Tradi t.i ona l. ~181ay soc i.ety \"las baaed al thoLlgh soms PI' imi.t i ve forms
'0 f

illainly

on an

agr icult ural practised.

economy,

tin mi.rii rHJ were also land rat

namel y.

In t~rms df operat.t on and/or

ovltlsrship of agric'uHlirtll

Lsasf t;linecategDries (a)

0 f people couf.d be. Ident.i. fled,

Those Who oonbrnlIed

the Land and thus bhe peaaant s not work thE! land

\~hD y"lorkeo on it; brH:lY ncrmaf l y did

themselvf;is;
(b) Lhuse who ope-r6l'ted Hne land. and
~·(hD

normal! y sur rendered

b,y wOI'ldngl their

'a porti on of t heir (I)")

those "tho directly

,product
served

to (a);
(a) either

land Clr by rSi1dGringothel'

services.

· . ~50

Those in category (a) w@r~ made up ~f rulera and/or

immedl ate klndl'eds. their
&S

chiefs and their

\ c.) to preduce. on
in cal.eqcry

1388io.8'$

h~v.;;r;J~.J! peopl.e f'rorn cat 8gory

g1 Ft.s and
t.aX138

land!

ths y also collected

f'r-om those (c)

(b) of

well as some foreigners involved in tin

were spant
(b

mdning

or barter trade.
18

The

Incomes they. accuJl'Iolated , fighting Inv 01

land
1'10 VBd

on retaining

personal

retinue

men I ~ Sel'V8rrES and slaves,

T110:"'E3 i.n category

and also

for

the purpose

of personal
WOI"J~H1d OJ!

aggrandis·Eime,nt.

J.

wel'~ ffir:ide lIr1 of the peasant ny , \I~h() L~~r~

in

t:

ice agE'i

Cl.ll:tule·

.and fishing.
'1'1~®ds,
0

They

Q, f~:en

opened and

just

.enouqh

~o metat the

their

farn.i.l y eonsnmpt Iun,

TI"lA're· W[JS' In ot.har

Incent.; v.e· to own more because surplus

charme.l R for' exchange l·rert".l. limited

pr-cduce could not be disp(;l6Bd of

or even non-exf.st.ent.,
pB2:Sants

since \'iorcls,

thBirs was s

sutbsisb:~1IC'6

econom}!! in which the As regards

or 31 aves ,
8

did not pro(c)"

duce surplus
WBli"C

'For exchange

or sale.

these

in cat.eqory

they
1

made up alrnQ~1' en ti re1y

n f" thosE'! ~\!hopr ov.Ided serv Ice

1:'0 ca t egoI':Y (m)

especiaLly

as f.igh ting m€n, servants

EHJ:IiI1'~

I n return

for their

services,
,

they 'W:el'e.given protection, I n i:e:rIl1'~ 0 f social

~'1alay

·slIster;18tlct':1s.nd

·Httle(llhrl:..uG.

stroLL'fica

Hen,.

I l: . S common to divide
I

t cadi t i.ona.l

socle.ty into
\',no

h/,o clss~es1 namely, ruled'

thm~f3 who ru l.e,'

I

(Z~!:,S1_~::~~Ei~~~~)
y forming apex
Q

and

those

are

(r~~£1_d.iE~E"~~-t~~). The rul.ers ; nbv Icusl

0

t.he upper ol.ass t const sted thi.s c.I ass Neh~ ..the val'
't61ri'Hori1El~ of the Sultan.
iOLJ3

.thnSs

n cat.cqor.y

'( 8) above.

PIt the

q~j~~~~~, t he i.r arid

BLltl:here The ruling
wealth,
toaltl

§~1~~~§of til fferentstat.~$

rbsp~tUve. subcrdrnate
fS'
j

(Q~g_~~~), 6:ld/oI" chiefs,

~tho
ldat'e

most

of whom

were re.Lat sd to them. had economi c, political

m~ans to accumulate The more weal thy among

\·rer:e 31 so some chie to

Irrdependent; (E~gs~~~~), 'Ol((nrot i.nue ,

c.Laes , ,also re ferred

as the nobility

and mil itary

power .

As sf a ted ear Ll e r , they had the their

and

~",hic.h they

~ould LIse to retain more human s~r~ngth.

individual

ccul d control
E;:

l'e90Ul""CeB

this,
0f

coul.d

snhance at at
LIS

mor.e

of tlheir

econonu

and rJQHtical par t.I y by th~ir

Tha nature

social

or ex tent
Vl~S

Df power they a1 so detebi"li·ned

cnul d acqui re sconomi.cal.Ly , politic

811 y and

milit ar ily achievements. As'

people

6.Dili ti as ami

('01'

the class

lhal: i:J ruled,

embraces

it

18

of'ben referred ~ategnr-ies (0)

to as the comeon
and (c) above.

(E.~~t§~).

Thin class

both

... 51
Econom.ical1.y ~ the there ruled exi st.ed 'them. common people were more
OT.'

less
any

equar
aile!

La one another,
tllP. nob.i.l l Ly uho Ihey depended

Ilut
entirely

a wide' doss

soci.c-eocnomic

gap b!:ltwe'en them have But the. r:>..a ture

Pnl i 1:icall)i,

tliey did not

power ,
10 f

orl tll.e ruling rather cllief fluid.

for pr ot.ect Lon.

t.he.ir subordi nat ion waC

fl

Th:.-y cou'l d alway~ leave f'e l t .insecura

the peasant.a (k81'ah)
L1f

Lhe: pal.rorraqe
the. ruling

of

particular

Sultan

or

'tihorn they

wit II, ~Ir lei l hOIi seek protecticn

iIl~! Ii! I

from a: iother

Mil itar i1y " al thcuqh full-timet the

0f

fight.i.l1g ccul.d
ftClIll

nl ass

ret Inue had fo

thrcuuh
0

SBI'\e

time the-ir

to time be forced
r'ul.er
than
S

tile in!3b-

cut ion

cocvee

to serve
to

1.n t he avant
the rulers,

f'

Ii spu l.es or wars+

t.hat

Sccaa.l Ly r they

wer·e

much Lower status the

nnd t- he languaqe.

they uaed to r e fer for the fi:t'st

t hemse.l vet hey used

rqm~r
word'

was often

HeIf-degrading;
01'

r'or ex~!nple ~

per son

such

ms hamba (slave)

e§~~~ (dog)_.

In short, traditionally, Malay ~ociety may ba laid to be f~udal in nature,

and' its structure of scct al strati structure
fj_

fi-caUoll
0f

i,-,Ias

largely lil ked ~·Jith this, mode of ',.,;es n.o't static ,. I\t one stage
t t

pr educt.Iurs.
as in the power ful, and

The feudal case

of tbe integratec.l,

~1a1.w sac-lety

f'been l h cent.u ry Hela.ka k i.nqdom where

ren' in'S tance, it was

by one big
and a
.

the s"tti..Jt!t une ccul d be represent-.ed tcp, tim cnmme,"ln paop.Ie

I

Plrmnid, series
.

with

the:" S-ultafl
Il1inclI'

at the

at

the

boHom,

o.f maj Of' and

chis f:s in between,

c,entu.ty

S~I'V

ing ·as pul.I UCQ-adminis-rra

of the Brit.ish

ti ve
in

r~ediators.
in' 1511 right

But: at th~ other. qt.age·s,afti8't

up to the
structure

the f~\n cf MBl8~(a to U',8 Portuguese

be F"ell'e HIe coming Here 'there was di spe r6C\I of pO'L'H:I' of small pyr smi ds ,

runebeentn
!MaS (Ji

Hl74 ~ thE: feudal

srolong rulers"

~;jF1tegt abed,
V~r-.iOlJS

e.ac-f, of

thti3'm fOT'rrdnQ

apex, of

a series

L~'11ich have thei r (J~1F1baae

Amoflg

repI'Emcnlir.rg

t heir

respect.I ve foll O>\!ElTS or peop Ie-,

were 'Often

the

var.ious

Sultans

and

ch i.afs . t.her'e

conn ids arising

for thesi~ .' nnf'L; do

From the
l'f:'_

question
SOIJfCes..
'maS

of political

18gitin~acy
Y
Slid

or from cornpeti\I;i-on
dragged them, all 6'xtensive tllJ't they into

econom ic and human

1

line common people

wer e 0 nen

and so

there

much ins tabilit Traditional

unhelpines8

C!if,JOllg

Mala,]! soch''ty cul.e , Prior

underwent
to this

stHI'ctUl'aJ. spans

chanqe 'in ths·

'and

ttakB of I~riti.sh

there w,ere shod ~"el aka,

of Poduguee,B
t'8VB

then Du tch rul e , cent r~d oril y arcuno

did nat

much impect

on the t 'aditioflsl

social

~lructtrre.

The Btitisll cul.oru a.l i'u.lers

iii

ii

it>

52

introJuced changes in sl! spheres of liF~ in the who]a country - polilical,

eccnomi.c
I

J ud i.o i.a 1,

eriut..Y:lL'i cna.l , medical

and so

For til.

Economi.ca.l I y~. U,1l

mining d~velaped

into large scale inrlu tri€~; Briti~h

l'lubber'
WaS

C0mpanies WRre form8dJ

~gain
mDst

end Large amount of capf.t al Invesbecl

niqul2i~ and t.ecbno.l.nqy ,

to Opl!lT·ats big ndnBB uai.nrj modern tlfi"chthen

88

in"trr:ldoced. rural areas

l:he r~r i U ah 1aunched

compani es whicl, At the same t.Ime

opened up Lar qe sst at

In some of the

'fer l . l e
31:':'0

8 r'aas

Lhe common peop l e In the

l'tere

encouraged

to plant on small-holdings. Wihtin h@rdly ~ quarLef of 8 century, this country had become tha world's leading producer of Un and rubber. The quick
pace of acunorni.c d~ve'lopment.
ni,s tz-at i.nn ..in c iv U ~
(488

al.sn matched by the deve ()j:Jinent· of new admitell'S;

!lI

j udf.c i a.l and aecur i t.y mat mEli ntaining pc I iti c al slebHi t.y and pr-nv -eli ng j
econorm.c CjI'owl:h. A flew educat Ion system

~J'nich we:re' necessar y fl!lr

?ti1ro!:'lphe re a

conducive

For
CDI'pS

\-I.as developed

to nroduce

Df local people requir~d to man the various sarv'ces, W'tl, all th8SB chsngesf trwmB end ports
beqan t psp:r

ing up to serve

as centr-es for

econnmke and pe l.i-.

tical activities. A network of roads were built tD link diffsr~nt aress or pl.aces for the purpose of faeili'ti3Hng administra't' on and "trall(Sporting econcni ic

produce.

MOtl'E1Y

economy became: mot'i3 w.i.daspr ead,

seefjin9
I

from the
.

urban

centres

into

t.he rural
all

perIpher i es ,
types
ID

Var_lm.lE

kin-ds ofshQPs
business.

and 6tpr~s mushnf the

became:

roomed to car-ry cut

F arnalI

scale

The economy
and also

coun t ry and paop l a beqan to be lj nked up 'Hi th thE? world

dependent on the 'west.ernj' eapeni all y Br iHsh,

metvopo.us.

All ~heRe led to two importsnt ch~nges in the social btructure. riistly! it formed ~ plural sociBty in M~layai~. Sj6ondly, it stimulated th~ gtowth
of
Fi~W

snc "i.al classes 'within

an a] t ered

soc1.al straLificat
Tlese

ion

systen1,

Let

us elaborate on the first one.

When th~ bin mines and~stat~$ wer~ ~pened~ were not recruited by the
I

labourers were needed to work in them.

BTi t Lsh f rorn among t.ha t1aJ fl.y pnpul ace .
Were brcuqf ~ lrl
an or g:arlised fOfn'ler ma.in l y to

I nat.ead
and the

:groups

COr1t

rae t 1 abourer s
Ch.ina , t-hsI'here

manrH3r From South

t.appera

India

.and South

work- ~E rubber

lar.tE!I'IilB

t In rrli.nel's.

Indians, who w~re absorbed i~to same gpvernm~Nt departmen t/3 t such 9S pub l Le works 1 pnst; and railways. B~es;j,des. these worker.s, t,heI'e I,.mre also other Chrneae and lndian .immigrants . 'r'lho came on
t.h sit

were also somsJ especially

m·m and par Lc ipat.sd .in di f'f'er en t f' eliil.s

0f

t he eccncmy ,

The f1 n·w 0 f

..

Ii

53-

immigration continuad steadily ov~r the years.

Ceni;;lu8.

ow. according to the 19BO

.15

~hl" LoLal

pDpulatiofl

ill

Peninsu.l·a

",talo.),sia

11.4

Wll11

Len,

mads up

Df 55.3% MalaYB~ )).B~ Chino~

111Ulti-a t:hn i c Me iety

And 10.2~ Indians.

This shows the nature of

that 1·1aJyei a has develuped a

B

j 'n La.

lh~re h6S b~en

~ertain pattern in the demographic an~ acrup~tian91 ~ore t an a third of -he populnLion In ~he Meloys are le~aL urbanlzod,
1'.lhile the are in
C'lit1rH-H~ ~ tOIIJtlBj

dis~ributjon of thBSB ~thnic grouna.

'o'Iilll alJCJuL IIH)
B

Lhe re~inoula (37.5~) now live in urban ar~a9;

l-jua1"Ler
iii

(25.

t:i~.n of
have
I

'them m

with

about

(56. f1 ,'fl)
I

~hle

moal urbaru zan.

0

The' Indmns been

betwEen,

with more

than mainly
turs,

EI

! II j rd (£11. 4-~~)

f lhem 1 tv ing in t- owns. ahmys

The t·hdeYB !iII.rs coneenl :r,mt:ed bS!3.ed on agl'lnul-

In the
nHfI1l'!l Y
J

elt;ltas

uhich

pn~dOO1lnant1'Y

Per l i S I' Kednh

in r ubber

Kalant an ~ and T:renggollll.

In te rma 0 F cccupat Ien

thB rurel Malaya are predominantly rural Chinese tapping I nrJj sns are
!TIl!! i.n.l

1n padi snd rubber ogricuJlu~ , the afld vegetable gudsnillg. while t he rural
5imi1 arl Y.I cccupa Uons

y \,~LlI"~(eI'9 i r'I rutrba [' Bst abee,

C-Of[illleree

SHBociBted with the urban areas. such 89 labouring and management Fadm 1ng, ccnst,r uct ion end
But I n the gClvBrnm~"t
Ina,]or J ~ y..

in manu-

are

mainly
I

in the handa a'F the 'Chine::!JEl. the ~'Ielay cnns't i.t ute the 9

ar.d un ifo_rm~d services

The demDg:raphic

and m~eupat.iClnal distr Ibu [liOn among I:I"p'· d i fferent r-eligiofl and cuatnm, stratification ~ E!X trmsi Ve chanqas of the tradi U onal strata 'of society.
8

~thni~ groups ar~ emphasized further by inherent culbural dlffer~nces such

8S

thasB rrdated

to language,

Returnin gto

the question
WB,I

of social upper

havs lake:n p Iace oy em~rgetic:e of a rrew

tl'llnge; that

0f

modi fieation

t ructur e and

ena,

At the

one of the a f leading

first

the Bri Lls-h di d was to [,E!duc~ the posit-.ion ruling ['jass

8

membeI'~

of the tradItional revenues. cusloms.

illEimbAJ;'s

into mere symbals. private

The Sultans

were: stripped
ami

of thei r power of retaililing

They had
B 89>1

army and of enl Iect Inq taxes

BS heads.
Hl

ani y in mat.Ler s of Idamic~e ligion and Malay Theae SuI tans

i.pally

ill wl1ir.:-h the)' WIU'C recognised

and other
Brad

or the nobilit.y aer'vice,

ceased to
t;lleit'

be in\foh,ed

lhe pol itica.l

admin.i:swerE!

trot iva affairs lhe civil

haadad
Ll~O

of thE" state' judldary

1::0101"'11Ell

.roles: became prine

But

cli'll'ernonial. Ial e [' :rElerwl ted

and ill f'ac]; aU qoverrrnent

o HiI:EfS.

departlllents

and

"1i?maS1ed by

some Hi! l<lYs were

the sBrvic~s to Fill subordinate posi ins;

hey were largely From the

~~rlod the

tr~dltJonel ruling ~la6a fBmili~~. During the entJrB cclontgJ

~lfJlay administrahll'S

al.ways played

secnnd

fiddle. to thebe Hr.i.tls 8uperim"s ... grQUp~ Df

After independence
paop.le who expanded the

in 1957, there emerged twa aignificent

r'lalay uppsr; class e.i r-c.l as.,

They were t.he senior

govet~~nt politicians and civil servants.

pul ib.ic lane came mainly
resigned
01'

At the beginning the leading

of the civil
to Laad

from the

ranks

service the

corps,

vlho eithe·r

werE! permittr:::li,

\'Jh' Le in

cf'f ica,

Unite~

~talays Nationel

Drganisation (UMNO) in the

later h~eeme mit"listers
and a fter
03.'

fLsht fDr neticnal independ~nc~. Same of them senior civil servants~taking place of' their British out through the process
eeonorui.c growth took

predBc~ssors, who were slDwly eased

80 th be f'cre independence

df Mal~yani~Btion.
a

pl aC'B. at

rather rapid
c.l ase
torho

pace,
prdses.

I'lith

fe~\' except.Lona,
did not,
LJ&e

most

member-s of thE! t.r adi t i onal

ruling

had some wealth

it for

inv~sbHentill

the ne\,l cap i Lal Isb et,.~el"'H18€e

Some Chine~~ imm' grants

were act i,vein

areas

of bust ness'

endeavDur.
to Bee unul

Many of them CQme to this countty with very little,

acumen an d al sc clever economy has
Thar-s

but thI'Dugh
they
0f

hard work, good business EJut thei r contro1 capi.t.a.l , ChinssEl of the

manipul-ations"
th[)h

were able foreign Chill'BSe.r fields.

at e CBpi t al, an~ then sJLmd y t heir

Some of these Chine-se businessmen
were

own estates;
later
formed

rni.rres and buaf.nesa ,

always -beI!H-.ess l

that

and led tine. ~1alayan

8t1d became

Associ at i on (tv1CA). ~ but a lsrge

a1:'3.0 some Ifldian~1 who, 1 ike' the

tUI'nl'¥ld

were ~ble to tQka advantage successful

SOlllllt

of the
the

il~W .ecollomic ,?pportllnltics

CongrBss

number of thsmalso

to the pruf'e sal.onal

(me).

of them

f orrned ~~nd led

~'1@1 an Indian ay

AmOl1g the f'rom the

Halays" participation

in the ne\~ Economic

ElC'tivi.ties

was slow rig:ht

beginning.
~\ er H DBvelopmeflt. the
COl.lnCll

Irrrlependence AuthoFi of Truat

thlSlre: wa:s a pol icy

to encourage

Malays in bus Ine se

and .industry , f Lr at; on

for

a modest scale t.hr ouqh the

<and then
j

Rur-al .and

Indusf.ri.a.l
~ through

I.:y (RIDA)

on ,9 slilgh:Uy
(NEP)

hrg!3T

scale

the Peonl a (MARA). But par-t icul ar-Iy aft,e:r the

Policy
J

lrltraduction ethnic as wi U
LB.ading of them.
DB

of th·e NBW Eccnomtc di.scuseed later - was

foJLlm·J'j, no thE!- tr aumat re intlHa policy of ~his purpose. the apeedy qrowth

at r i FEi in 1969, cf't.en referred

dBV

to as the Hay lJincident, bed to encourage ent erpr ises were set up for

t"lalay c F;lpibd is ts ;
At

Va.t iOU3 pub lie

pol itO c 0 ana and cd v i1 aervant s aasumed

leading role s in almo-st all

't~askeen to absorb in f1u~nti 81

the sams time the pr;i,vate sector

puliLici.ns ~nd civil servantsfor their own expansion.

poli(~ies a8 F~ri v 8Hz.a L "i.0111 t he door
3.

lately with ~uch new

~1F.ll s Sy

vms open

wider.

fur

t [I par+Lcipat.e

in the pri\latl!l sector- ~

few of UH~m have become .ext reme.l.y lower

successful.
01'

As
bondsmen

fL1Jl:'

r_he Lradi t i.onal

.~8·S ~

the

clI'h'J'

cat.aqnr l..es, of al a·lle~ thei r ~a~ol.:it ion.

8pr~ad b(i')g~11 :to ch('ln9~.

B~O Fighting

men eli sappeai-ed

feUewing ~ the

fhe s:oeia,l

strud,LJrrs

among the ruz-a.l p~Dph

(~!~!:J~_~~~E~~~) also
rubber and educat.Lonal 'r land

the introduction people appeared,

of cash c:ropslike
emonghhern

or

IM'it.1n

market the .salad

econ61f1Y and

the penet rat Ion of new administr~tive

'Sh()pkeepe:r~

sy:si;,ems new groups of ~

O'Nn~'r.sand

at.

Smile

o r them I)~qan to purchase been P~%lflMls wi lling mar rd aqe, pilgrimage,

Land

fl'()'~

the peasants.
lage and

~lhereas th~fT5

have al Nays.·

to dispf)s€!

of

I:heir Lands for var i.ous pucpuses such as:

so fort:ll, t.MI.'B w~j'r.e als9 'DtheL~S
bSC:8US,etlj

.leili!ving the: vii]

who weN
legal the

forced

l c pai-L witl1 their

pcpul

ear thl.y pos~3eB8iDns

and
mO\frtlrfn3:hc p~OP]_B

F tlebt,
have

in~
oaused
D1'

nRss~ and even Inarriage.

·Te~trictiomh
emer qence all. Land
Q

AlthQ~gh there is m~ch land Bvailab16 fef cultiv~ticn,

at Lon increcase
of
.gfO'L!pS

to

new areas very do sa.

In

the \!ill~ges.
being

of

who have

Li tt l.e
Thus!

no

Land at ships J.QI'ds

The few who, could

.accumulale

Land begar.lto
01'

I'el.st ionand landor

,nnw csme into

01'

between

Landl eas tenants Landl er-ds

VIBt·~

sharecroppers
shcpkeepere

owner-s ,
rural

Some of these

also

members forming

tile aal a.l;'lat groups. 8r~a~.

cl ass
Wt\l:S

So, a stnrtHisd suci.a.l

syste:m ~las also

As said

in lhe

But; the hlwer

not ma.d,eup ordy

of t.hgl. psasant.ry.

ear l.rar ~ manyl::.owns and Indust r Jes had grown ~ which opened up new oppcrt unities for

people to become ~>Jopksr-8. B~~i das , tile administrative

serv ices
prcv id~dDpeningBr
~r1rj

and
a Ffic@ boys,

uni·formed

for

19~,,!-pai job d Especially

as work:el's,
B

postmen ~ pol icemen" soldiers

so forth.

ftrit .:l.ndep®nch!':riC0, ~
9I'f3Vf

building Al though rather

BV8flUB·S

and FIiIanlil factul' !5tagnant

for

ing im1usl r Ie s we r e ~nt:!:Iurag~~ and in 'the. t In and rubber

quit.€l fa.Sit. as th,1!!

new thr3l

,t 11E:numb@I' of workers

Lndus tr

i~.s had bBen

increasing duri.ng

for some Hme,th~

and! lJrdform:ed

newl.y
services

established

Lndust r Les as wdl

rHfferBntgov~rnrrl)~f1t

had baen ;steadUy

the growth

of the wD.rld.ng class.

,~\s expl.atnad above,

early part Df British colonial rul~J immigrsnt work~rs were brought f~Dm Incaa and Chin,e. [)ul aft er irdependen,QB the tEl t'la~ more movement from rural
j

to urban

;li

r ees among the Malays. w~s also

\11th the

;§Sf;D!Ilid

Mal 8Y81 an Plan

(SMP! and in Malay

puraur t of the I\J EP, there

a dellbstsh! policy

to enceuraqe

1,.56

urbaoisslion, and more industries began to step up their intakB of Mal~ys

ill the lowsr c stegoI'" iea
(J

f empl oyment .'

The ~lumb8I' and percentage

of t~81ay

workers have bB~n increasing very f~sL since then. although Inc! an workers combined still C:Dn~titLJte tile majority.
Perhaps the most striking
change has

the Chinese and

been in tile.'~m,ergence nf the mi.ddl.e

stra'tificati~n
B;/s'telih

nl.aas, which did not exist nf pecpl e SUch that

pI'Bviously

in the traditions.!

As' m~ntionBd ear l Ier , in th"l rural

BB

areas , ther s have come Into and the aal ar iat., alb~it. in this

being new qt'mips' It can he maid

1end mm~rs,

shopkeepers

they form a part

of the middle class,

only a small and quite

Cfluntry ~

in~d.gni f'Leant part.

, prls es, besides

The gI'o\~th 0 f ~he middledass

and wOI'ke.r~; there

like

in

mallY othe.tPt i~ very much an urban phenomenon.

cap i t£?lists,

In the various ~ervices,

economic enrtermanaqej-s and there haa ,yro~m'

is, 61sa a need for whose ~o'!l;ial pas.ition

clerks. a large

At th~ same time tin corps of

0 ffic

the pub lie

or govl8I"nment

era or adrnifli strahrrs,

laMysrs

lie's

velL'y
p.I.'O-

nuch in behie~n

tha ~ nf the. upper and l.euer cfasses

8.S

Then there. are the

fessiol1als r such The m.iddle class profe~!;tiona18" their

repr8sBnled
80 '/;l er H

doctors,
LJ

j!

fmgJneet's,

acecunt ant.s t te achera, Chinese; whilea~on~J

.ifa. more favourable
1

etc. than

iel

th~' economic

sphe:l'S- is largel~' and Cey Inness

1S

the position

f Iridi.ans

o ... r al L proportion e
in theseJ

.in the country

popul at.Inn,
illg

The ~~alays are underthe nUmber. ice's."a large

categories,
gUVEl1."f"ll'lent

However ~ a fter has been tr}i

j.ndepel1!d~rice ~ and especiaU y

the NEP, the government ~ In the class is maoe

hard t·O' Increase

Sen'

By contrast

adminishaU
1_1(:1

ve and uni formed

segment of this

of ~ta18ys. it is c.lear that a new system of social

ec<onom_i_'G

from the above observations,

stratificatiDn

has em~rged7 development,

as S E€:SUU not only

or

gr.owth but al so
judiciary.
t

of other re18.ted

l:juch a~ those in the civil

service;

educat i.on and so f'crbh.

slIlllma.Tized as follows:

The eont ernper ar-v stratH'ica.t.ion

syst.em can bra.

(a)

The Upper Class: made up of (1) the nobilitYt (ii) leading government politicia~s and administrators, or businessmen~ And (iv) successful proFessionals. Those in category (i) are ~xclusiv81y Halayj in (ii) mostly Malay~ whilB • those il1 cat~gClry (iii) and U.v) are mostly Ilon~
Mah~ J the majority
Df

(iii) suocessful dapitalists

whcl'1Il'!ElI.:1E! Chinese.

••. 57

Some Hal ay and non-Haley cl o5el y 1inked insUt',utians

members of this c l ass

are

wi th Qne anct.he r t.hrouqh

.... iDW;, 'a1'

i

and associ.aUons.
forming Front first

For eXBrrtph

politically some nf them are leading liD~ts in lha

component parties
later the !\Jational the Al Li.enea and then (NF) ,and

the Government ..

E~DnQmical1y, some of th~m entered into

ship

p~rtner-

or

j Clint

venture

and

also many ex-pal it ie-i ans

or ex-t:!ivil servants hav~ bEicome directoI's or .sePl.ior .xecutives in some of thB big non-Malay companies. Socially some members .of the uppercla8s are also
B.

members of cert aln exc l.us.i ve ,eI ubs 1

g. the Royal

Selangor Golf CIlJb~ t.he Lake Club or even some cevert penthouses. (b) The Middle Class: m~de up of (i) middle range gpvernment
fessionals, \\lhereas,
technical

or publio Aerv~ntB~ (Ii) the proand (iij

Y

businessmen, ,mal"lagel"8, BtC.

serv ice in (i)
,

rnembe ip of 'the civil reh

is largely made up of Malays,

that- of thl;lmedical,
~xarnpl~.t (ii)~

and educat Lorral se rv .ices ; for

con8iat~ largely of ncn-Mal~y~. In c~tegoty

the fnBjor ity'
7

are non-Ha Lsya but. the ~·ta]6Y ccmpcnent is incr.ea~ing. As f'or these in category
(i it) they are still most 1y rwn-Hal.Erys,

but

fullowinq phenomenal ,
share
(i)
8.

government policy, the increase in

Host member s of the rniddll!l class
ami those irl ~at~9.orhs·

the number of Malays over the past years has been

common Ii fe style,

~nd (ii) are often w€8t~rni6ed.

A large

number of them~ especially

from categuries (i)

and (iii) are lead ing par+Ir-Ipan t s or shollg

supporters of the governing political partlBSj either t the state nr dj_str.i.c't levels. As for
thOSB

in category

(ii)"

·,dthou9h

qui.t s

900(J

· , .~8 nu[nbel' are

CDS] iI" j nri,

ach v Lst.s or supporters

8.

0f

the governing
in

Slign.i f'icant

number are certain

al So act ive

the oppcsf.t.i.cn,
of

Soc.i al l.y , in

big toWn:B eome

them become members of iFlter-(!ithnic

made up lar.gely of

eIubs , e. g.
(i) the

the Selangor Club in Kuala Lumpur.

(c) The l[)l.'/er Class:

peaeant.ry ~ CU.) 10'.1est r9llkir-.g per sonne 1 ill govern-

ment Qr uniformed ssrvicesJ and (iii) warkers in commer~iBl end industri~l ~nterprises. A big
maj ad t y o f thcl'S~ . n {l} and (ii) are M,alays, there are some Chil'1€se peaaant.s
EH,:

but

in Dertain in
·3.

v· 1] ages
number

and some Indians of government

(iii),

working

Iabourere

departments. qr oup j especially

1\5 for those in rubber

I

in c~t,egol'Y indu.scry. thi8 is

they

are mast! y Chil1r:;ae, but the Ina Lana also

form a lar99 into

Among the peasant eapec iall y so in non-Hs.Lavs At the

t.hosa

s, snms Chinesl!I have been absorbed

of the Malay majority;
then not
hBVB.

the w~y of life

n1CH>~ 0 f'ten
f

:~l't~:!'~es such as Kelantan,'

been
I

where the
!?SEl'·

mil at ed,

same time

among the working

01"

cl

t!3S,

esuee.i al I y al i sed and

in the sante factories

ir~dustr iEts: ~ al t.hnuqh

U ier'a is a tendency et'J'lnicall Yf there

for t hera t o be ccnpartment is· a] 80 some under atandi.nq But overall"

between

cooperstionl

especially when f~cing crisis 8ituatiDns~

the pre-

such as strikes.

dominantly Malay peaBant~ and th~ largely ChinBBe workers~ the~8 is a gr~at social distance, ~nd oftsn
their ignorance 'Of each other: s value's
i

have hd to

stereotyping

and suspicion

amonq them,

From the ahove summary, a nurnber of significant

of thB. Malaysian stratification play of both Btl'1l"1icity
columns" each

features

CRil

he ob~erved
be

system.

Firstly

there

seems to

an

intsr-

and class:
an

n the system.

The ethnic
c:QhJrrln is

factor
in

divid~s

the peopl e in tht.s cOllintry illtcJ, as it \·tere,. comp~rtmentaHsed

vert ieal
tlJrn sub-

rapre:sBflting

Bcl1nic gr'oup.tCach

• " • 59.

dj v ided into 9 t'OU[:). almost ace l' os

wh.ich tend simi!

smaller
~,ElrJi'le

parts

represent

Inq the c.l asaas interrelations

makir Ig lmeaC'ill ethnic

and i.nterac U tins with
Dr16 another

At the

time there background

C 01

ere also

o cu t across
EI['

bhe s,@:para.'te vertical"

column, link illg people with horizontal strata-cutting

•

cl ass

and aoc.i Eft 1 position

::l t-rq ct UI'

interethnically.
S

ThwB it is possible t~ perceive

al umn .~ Bach
'V sr

the

II e r: t tc

811 Y r ep r £31: ~H!:: t i F1g ~ soc i al c La 5S f1

Thera ar e b~d forces

at worK on

Ious members or gn:HJP::!r in soc is ty,

nemal y ,

the forc~ that pulls towards'ethnic interest and ~clarieation and the one that pull s accQl'ding t~ class int srsst. Undsl' t.he present drculI'Is t.anea it appear s -that the e-thni.c pi.Jll is much st ronqer, III Hala}"S' an pnl Lt .i ca novi,
ethnic:all y~based raci.s.l policies
,

political
OI'

part Ies

8.:r'0I

rel at i Yely

f'r ae arid vocal in expresai.nq

thOSB

i de-olog}' ~ ~~her8 the li Fe of as

e ~PQl.lsi ng cl ass

iEleo Logy is made very

difficult;

in l'act , they can and have been easily

restricted or prose ibed.

Second.l.y, ethn' clines gr'oup.
although they
j

because

'the horizontal

class

lines
1s net

cut

SCCl'OSS

the

I/ert.ical

in each strat.uff1t
may be eoncent

membership:

confin.ed

only bJi one ethnic'

MEBlay~"

In othpr ~I}ords, in each cl«ISs thece are Chinese

r.ahed in dHfe["Br1t Tr.aceS! economic

Indians, atc , ,
Thusvthe

fllJnt::tiQn.~.

system iii! not based

g1'I:iUp rnakea upa dEltl!lcted

on ethnic
Golonial

stratification;' class. days,

where only one particular

ef 'ethnic stra't.~i fiCF.lt ion ~'1e:rB always

et,~~mlic to
Df

part Leul.ar

could be

during

the

\'1I,enthe British of the

regarded

beof hi.qhar scc i al 8t:rah~ pL!:!l'haps because

pOI'H~rS

p,oHtlcsl
ex

and scenomfc I.at s no trace

that

thBY held :i.n this

country,

But nov.lsdays, there

such ethnic peop.l L:l that

S!trat i f:H~ation. \leverthrHe~3, there is pI'eValerrr belle f arn'ong9t1ii'1~ the Malays h.el d pnliticsl power , \'/hile the ChinBSBt:.h.e economic one ,
is

But t.hi s belief

fallacious,

simply

becauee

in I'8ality
8

the

Mala,ys and and soeaal I y; ci rc Ie that

ChinBse Who monopoli~e these pow~rs comprise only

among themselves
t hey are int,ertwined
po l it Leal.I Y»

small

elite c1rcle~ and

IEll i t e

economi ca lI y

and so they cooperate

ClBSS€S~

with one another

~tel1.

I t is this

forms the cure of the upper class, and remains far apart from the other especi~lly
thB

lower class.

Now we maya on to the second question in thls paper, whic is: what 1s ths significance or implication of the stratification and ethnic systems for socio-floorlaITIic development? Do the systems hc lp to stimulate ell' constrain

• •• 6U

the

pror-uea

of tleve 1opmant, process?

~rfd do t.rley gus:rantl;n3'

fair

d i atr iblJtion

.0 f

the

f'rui Ls from that

It has been described

that. during

the t.r ad; tiona!

per-Iod,

members of

the ruling c]assr

economic
oflAn

by virtue
of

or

their positiont
could

were able to control

use to further
th~ir

beth
O'l-Jninterssti'

and human reSOlJt'ces

expense

\'4'hic:i1 they

atths

the Lower class.

and promoted

British

co.l.on.i.al.Lsm, when it C~U!'let

t.owards a col.oru.al
f

\'Jsakened the

fEudal

al.ruct.ure

development

st r uc ture
pro

of' depsndsnce , to exploit thei!' coun t I'~'

Through poli tical the ~\'ealth

oT.' igi,n.
0f

and economic con tro l

III
t

the Br I t i sh of
89C10-

ruler s wsre able

the coun try and repat r i a t e enormous

cert.ai.n form
\,/aS

r' r s

to

0f

Undoubtedly, towns

aconomic

deved opment was cieri ved by thj,~, country gaps beb'l'eeli

but this

a t the

ex panse

of wldElmi:ng eccf.n-economi.c

and viUagep

and beb-/eerl the

dch

and the PQ():r'. In the villages

vea mOH) impo,v8rished

themselv8sthera
Landl eea,
or

I'Iere groups
market
at

of peasants
same time

whQ v~e:re unalJ] e t.o adjustthel1lse.l

became

to the p@'necrating But to

economy arid

or were rende.eed
\'lel'S

the

some mernbera high pns i Hans

of

the

nob i lit.y

educated

treined
chanqes

be ~bsorbed Int o

in t.he qcverrment to buttress

L'Iesl th

Thus , wt"lereas t he people

0

in the lower in the upper cls!i,5

Were even

cl aas were unab.Ie to take hEld the oppor.tunity able to accumulat;e they were able
'ollith ne\~ p[]litico-adII'lJni.straUve

advant.aqe their

f the

nel-l

l'

those
,

al.ready

privilegei,d

trae!' ti.ona l positiC!ns

ru.l aa and

funcUon.

Some of them

from differe.nt
\-.ras nothi:rlg

industries
compared

and business.

But ~(Ilat caflitdists in

d!!ll/elapment.

to acquire

to ""that the BrHish

manaqad to get for t hernse l ves , s.trati fiEld soddy

fur t hL'!!F' renqthened at ol.aes , and caused othEll- \.rords; economic the greatf::lI' position

Th~ point
of the

to be stressed, here in.t;o, iSiodo-econornic

strong group lower al.ready

is that
in

~1ahysi~ was developing

~1e@kening of system

thr;: upper In of

the

weak .In the

class",

the strBtifled
r

does not

ensur-e a fair further

di,stribut.i,.on

growth r in feel

it mayor 1ng about

inequality

b~r~l.... . een :regionS\

and between classes.

This f eat.ur s has continued fol1clI'ling

Independence.

AFte.r success fully from leftwing

suppressing
nizations IUli1atlcE!
r

the more at that

t adi.cal

groups

of F:reedom f'ight(j!l's
~lCA and t,llC.

orgacf the

til'fle.

the British

handed power to the Ie adershtp

As point~d

~-[hir.-h \'\'as made up

0 f' U~'iNO;

out earlier,

the leBdBfship in this party was made up of strong elements from the upp®r

· .~61 class, such as the ex-civil 'ssrvw,ts (some of whom has ~oygl connedtions)~
b uainensman l'Ierp. quite Ullllks and
jJ ro

f'B8sionals

Pol i t Lca.l I "land the parties,

econcmf.cal and

Ly these

people

c.l ose l y lilll<ed

Ni th

ex-col oru a.l masters for Example ·to all

al'l

t.hair po l i c hH.l•. Nationalist

the proscribed (HNr)

t

radical

I:he Malayan

Patty British that thuse

not

the Alliance eont rul

was Nilling

For the cont Inuet.Len of of ' the economy. In fact,

economic

in the capd ba.l i.st. sector tO~'ia]['dB put3.IJing B1' tish i by those ear.l i.er-,

they were well-disposed

the read to eapj.Lal i st. development. The capi t.a l.i sl system in the. ~\.lliancB
it
WJ;l,s

was already

chart er-sd by the Obviously

thCil' status

allowa
keen

for exploitetion who work Lhem,

1:0 overhaul

who control the means of production over the. new ,!:'ul:Lng cl ass
quo! this net only· because
Vla~

d i trieuIt
Ol~n

and

pain Ful but

Impor t ant.Ly , because

:systmu could

serve

th~ir

c.l aas

interest, Aner indepennet"lce the government invested large amount s of money both in the public and private ~ectar. It also inviled foreign inv~stm~nt. And
so roads
j

bUildings

and

bridges

1·lere cO(:lshl.lcted,

jUFl~lles cut

nown

for y,
their

loggin~ or devBlcpment
unl imi.t ed field
mnst ofth@m pol
j, t ieal

and factories were op~ned. Th~re

,

was 61mD~t an
Irlitia,ll t.hrough

for ent.erpr ising

with the

cont r actors ,and ent,erp:rslleUI' 51 .

!td th the MCA, and
WEi.I.'e

we.r~'e· Cl1i["lBse whQ ~Hid~e aaoc i a ted ~

gO\!

links

e:rnment

able to 'get very Al.i-Baba

re-warding eont.ract
lv-ill ing to

jobs. cut

Sometil1l1t3'8

they obtained

1 i nensea tf1rough known the

8,S

II1a18Ys ",,'!lowers

cnl Lebcr at.e

I I~, I

in whal
I

is commonly
Chines,€))

rn.ll"tne:rship, w~lere for

that he has. to

some

Ali
of

(t he Mal ElY) provides

i

name and the

licensB the t he can eas ily

obtain a result

while

lJab,ar (tlls iFidustries. and

prov i des the

,,,I'iSte

eEl_pital th,er.e

Later as
directly qrm ..p of l

gl7'\ternmemt, policy ~ more Hal~ys and ~jj'ithin 8 short

encouraged

enter

in bUfJiMSS

time

gr'I3~[ a large

Malt",· entrepreneurs ~onnections

cians:, therefors, ~..rith the Cor rupt Ion of the

capitalists
p8rt:b~8
rampant

1Tl1:lny or high

of 'I\!h.omwere pIaoes
B.S,

Irivo.Ived

or had politigrm<lth, hava

ruli.ng became

some of

[_flE1leCldinrg
,

government

in

T hers \Olas a sudden

new ricJharnong

ChineslS

~ojell 'as Mal_.ays.

~·1C1st them nf

their

stakes
Of

in the ruling
especially tremendous

political

parties· and the caput.al Lsb syst~rn.

to .imply that there w~s nothing after Done to be-

ecurse , it wo,uld be unfair.

r

r'1I3'fit

the poor

the r·1aley pB,asants.

support
fn::IILl~~l€i

Two y~us

IncepenIslamic:

de nc e , UMNOlost

l'1alay peasant ry to the

· •• 62 Party
(PAS),

particularly
presented

in bhe states>

of K191anbarn and Trenggarlu.

al so di.aencherrt ed wHh changes.

Not

only

were the peasants atlracted to the is,ues of religion

were shrev,'dly

and nation~ljty which

the

by PAS1 but, they \"eta

Alliance

because

indepel1dl3f1ce r:lidIlot bring the promised a Rural Development Plan,

facilities amenities ThE' opening
of "ed 'WerS' net

So the.

government

:i.rnfllediateJ.y launched ,
of chis plan
0f

wLth the osbBnslble There were three

for the operdnq espaeLal I y for
such as roads r
of a ne1(t land

ai~ of alleviating
major aspects and
br
91?lttJ

the economic plight

namely ne~~ land.

Df ~he rur51 p~Dple.

(a) providin'g social

ement

(b) g1 V ing aid and subsidies,

replanting

rubber , and (c) canstt'iJcting

i-ieUS, mosques
t

luges,

and C'oRilimmi halls. ty

These

and

housj ng FeLl' new set t.l.er s, and the cunat ruction \'H!!re given
ar[~J3s1

QU,S SQe

is}

'Eirfl(~niti.es

I:: 0 cantrsDtr:!1:s to undertake.

neceasar-Ll y. from Iccal

not

and obviously

U'1ey were rubber,

mcre than

f'r 01 11 among

the

hav~& and

the heve-nots,

Agaj n , for replanting

enjljY ~hes~ grants I:hs')l tended

Bid and grants

were, provi ded, only to those manaqed to

As for

with

rubber hnl.df.nqa and MC to l:he landless;

t.o be giv6n to thEt more act.ive

'in f'act , the es,t ates

the smal1htllder,s themselves.

subsidies, parties bene fit'tsd ~

suppor'b:Jr.s of thB ruling s't tatum

who more often

some oftha the
UpP!3I

than not came from or became the, elite.

:r·ural social atr-ucture

rural crust

AdlfliUed.l YI the di fferent

but they have been cnmmunity.
mOI'·13

.NJl::'sllPI'oj sets ,bsnefic.lal

'.

wi't:hif'l tha
to those wha forln

people,

uf' the rural

The b~nefi

t.s of developmBnt tJ.~idded

~,trElti f.i.catio!l

downt but did so slowly and decrkBsingly.

Perhaps sacio-eoonomic NEP.
cuased hundreds

this

qUBstion

of the signi t'i.eence in 1969,

fallowing

of soc>hl thet-1BY

For

developm~nt of lives lost

can be examined mors closely 'and property

B

on the hasis o f ths 13 Inc Ldent , which

i'h® incident

The NEP "las introduced

Eo be lost

to be deet.rcyed ,

m:cured in the capital, Kuala LumpuI't

~vhich the Allianca
c9lnpaignswere

few days after the GBnE'!I'~lElection, rl'luch groul1d to oppmi.dt.ion prarties, The el.ecttcn
wiLh f'aciral
Net;ional
8S

in

hi'ghlJ"

chel'ged
lSi!,

or ethnic

issuef.i,

arid caused

great

,t ens i nna •
disBal'Vsd

I mrn E! d La t e 1. y aft F' ar li~ment,

tile and

ti, e b 1 00 dy c 1 as he is b 1'0 k e ou tit Operation Council

h e gOIl81' nmen t

the

(NOC) was f[l~iI!!'!ed,

with the then Deputy Prime Minister

armcuneed

its Director.
Parliament
'Par'ty
1-185

It was,he who first

reconstituted
to

NEP in a radio
l

speech. Front

after

about

tNO yeat!:1 of NOe rUle

and the, Allianc.e aUoila1

more parties

lo form the

(NFl.

was enlarged ~

inc lucie a few

The Nf later

~lon convincingly

• .• 63

E!

set

IP.B

of e.l=c U nns
g

1n 19 jl'l.i!
11l

1 q7B.
at taus

und

1992.

and

~D

ronw"dt
L

he
11'H1S.

g~WfJ

rnaen t ,

llrula: [JrMV

U!]

qov~: rruuen l., ~I-P cent i nllad to l he

\I

rnrn:1 the nas ra or l

to deval.cpment ~.() t-ad ic L'lt~

pul re lua ,

progrFlmlU~fI ~ B8 p.mlmdi~d

SW:~~i:l.ss:i ~,t:;illays i,a r VB

h~SB

TIlA 1- ow
['I

OIJj 6C r J vpa

o r i he Nrp fe 11owerJ b,

plens ~re ~
of

( a)

pcvwrty trr~3p~ctivc
rudune and
IiilVElntW611

of rBee! and (b) to re~lructur~ Malay~ian

y allmim!lh:

Ru~l.ety t~
y with
0c!QIJO-

the

rdarrt.], fu:"aU.on

at hn

H::ll

mic funot!On.
PDVOlty

conLll,ue~ to be
l<url:!

seribu9 problem;
ali 11 hi gh. 19UO-83.

Incid~nr~ of pcv~rtyj
the Nr'P
rj()'V rclt'n-

espodu

11~' .i f I Lhe

1 e rOMS is

AH.ho~~gh s 1nee

menL flyure~ show en oyarnll

'1Iilsreal1i,g
sr sas
T.'tlBL-1

doc line

in lh~ poverty Increase

hsa

fiqurea. yet it l~
['I.H'F:ll

Lrl noL~ Lhli\;

from

b~hieel1

the Incf dence {)f pC'lvar~:y 'in

been

37. M~ t ~ ~1. 6~~~ and the

1.. e.

b it:;jl:]relst arncng

J:ubhs r

flIllH~lJ

he 1de re

from

'15.

7~ lito 5-'1 9~o.~ The obj Bet i ve e f e rad.ical .• flus appears

I ng

poverty is a contlnuatlon of preVIOUs polICIes that were ~ctively pursued

under the r-ur a

deve

cpment,

plan,

bL':l

be

~{lurElgtfE![lUiii

pol

i.ey

tJndel"tal·u~n !J~ tha

rei!'

upper

,,19sB

for- the

benefit

of the

lOWBI"

e.Iaaa ,

But

how

hav e these the basic

pol ioias

succeeded

in reducing Sincet~e

and more importantly

erad.i-

cat ing

pl"'ob!em or poyert y?

NEP, the Bmaunbi HxpBndetl

For new 1:lnl'j set\: Iement, have irn::reEllued

!iIlBst thB

drsinage

and irrigatian,
Land,

and other
Iet

r.u:ral projB'cta, sufficient

cope

eriorrnnual y..
I.nCrfl<;lse: of f

Yet these land schemes are not

to
have

annual
eI

those needing

al cne

wit h the

larr;e baek l.nq

irnp!'IDVed ttie

t.hcse wit h 1 it t IE' or nD land.

of
thDse

!.. Iu~h as t.hese schemes to berra Fit

caridi tio,n

\o:)hohave managed

from -them i yet

lh13'Y have net

which cDntitlue

chanqed

tha basf.c relationships

pmr peas.ants 1~l1d~r3.

no~~ e~:isting
by

in the' rur a.l areas,

Inconsd derat.e farner laI'g~

t.o expcaa

to explcHati(Jn

land o~JtlElrs ~ mi ddiemsilland

tnDf1~y USe

As 'Fe[' i.n .iga U an and drainage t hey enable

schemes, thEl'y ane of .cmJ.rS~

fu.1! because

ths

concerned

to incrs8se output through double ~ropp1ng. e f the schemes lesn on.lv be de r i ved 1 f they
exisHnq pe8,€Iants
Q

But here again the full

ElfE!

benefit
iii the Lendl€-BS period

followed
fer

by chanqas
and
Q

sysbJl11s of

land

DWfl~ra.hiPr

tBIli8J1C)I,

marketing

so

rort:h.

ar a nut

aaeured

of land lend lord'll permlii'el3

wh.kh

th!:lY can work

6us.l;.Qined

t,ilnL'l.

The 1ElW ~nebl!H' laf1dlorcls

El] l hough

~o c)!ed
Alal tenan's

double
for

ren Ls Frmn doublE! c.rop~ ray double

tf.l:<C8 for

p lnq

pef:lS!lm~fl',
6C"InI!;

are

requ.i I'f.ld to

Lh(~

~hiHo

vlrtu!!Illy

har-d wm·k.

• ""

6'4·

r;~lost of t.he sa pr ob.Ierue coul d perhaps

larld rer-Qrrri po-I icy.
OCt:Ul'

be ovarccme

by a cornnrehens i.ve
r

l.hat

can

l'8moVs

unequal of socf etv

and exp.lo.it.at.Ive

e-l at Ionstu.ps

which normal.Ly

wl l.hdn a st ral, Hied

upper

social st.ructure,

Eut In the rur-al

areas,

those

in the

stratuITI

(most of \'4hmn -unt!!:..ian

as land-

lnrds , middlemen

and moneylend(:n's)
vested
0f

do not f'avoor

any l"sd.Lesl nilform that part i®1'l, whose lllpf)l:ll'

would dis upt their

class leodershlp
01:"
under

intBrB5ta.
t.he

These pecp16 ~ftBn f'nd 8tre"g~h in

change~ that can threaten 0 ft,en. ared lhdr
dec l

ad i ve member-ship or support. rlline

pr eaen t ru 1ing

thr=i

is BlsD against radical strvctural r Government .l esdere

poait i.on , have

oppositior1

to the idfHat.r uctUl'e

L"u.l' ng

of land

I'Bfortn.

Indeed

Jt is

fit

grsat

pr ob l.em to eraby

dl.eal.e puver ty L'Ihen its

t if .i.Eld ::1 m::bd. thehss,

-L"'cn:rt ause - Elxploitel:ion c - is not

r-emcved , or

perpehated

the st raNever-foJ:'

at Least; cont ro . ll ad, .

pl'og-rarnme,

the survival

class 1.El commi t.Eed to an anti-povl1':!rty on it.

is
8

their
rural

depends medi a as Malays r

In order

t.o get

t.he auppor t of the Mala:),

by some- gOiJ8.tnmlmt Leader-s
.and

masses ~ the

programme

,0f't en pr-esent.ad

its

controlled to favour

pI'o-,Mel El'Y po l Icy, some r-ur a], prf,jects'

In its

lmp.1ementation

too ~ it as

lends

which have been dec.l.ared

billing for

t.hl;! pour penp.ls as such qul.be oft.en end up

CIf

br

being monopolized
gfD1JPS

only by one e thru.c Qro'up~, much to thr:l tlnQui;'Sh equal.Ly deservtnq.

nbhar po:vert. y ten-sian,'

~h~t are

nus

exacerbat.es

i.nler-ethnic

8S will

be discussed

later.
RegarC!in-g 'the. objective of reshuDb.uring socret.y , then!,
81'e

two important

aspects to it. One i9 to c~eBte an ethnic balance in the ~8~ious occupations,

Lha ot.har is t.o rncrease
w'Elsith of

the ~1.81Ay share ill the o\ol;ne.rship earlier

fUDet

an-d control
aTI§),

of the

the count.ry. As Lndi.cat.ad ext.ent , this

demographic

~ tile m.ajority

of the Malays ar'~

urban-baeed, in tn€dt§lscribed. countertheir

cuncant r-at.ed in UU! rural To a great occupational

ar-eas ~ whereas

of the Chinese groups; as

digtriblrHon

is a.lsn refl~cte!J
slrea-c1y

cli at.r.i.but of Lcn

~hD8t":

the var ious ethnic

to

As for Incomes , Mdaysis

I:'~JI'al

of the rural
Accol'dlng

pecp.l.a are legs

of about

than thos'sof

par t s in the urban

ar-eae.

the Mid- Term Revi8Jto; of th~ Fourth

Plan:

in 1982 aut The inci dence

of

lohill

2.4 mLl.lion househnl ds , .30.3.%

QU~

receiv~d incomes below the po~erty linef and

Sl:BiElS.

of these~ 86.4% were in the

Ln sgticu

of p~v'i3,rty

Wag

highe~lt

Lture

(54. 9~~)•

In 1979 t on cur ren t p r-ices,

tile mean and ml!td~an household .iricomes per Innnth

in the rurBl BreSS were Mt550/-~ and M$'69/-,

while fDr the urban areas they

were

t1$9'7~ /-

8FlO

11$600/- respect.tve.l v ,
houaehnl.d
fGT'

By 8thnir::

dist.ributJ an

the mean
Thus

and mad i an lTlo!lithly M$938/and M$62.0/ -

incomes

'f/srE! N$492! - tlnd

~H 1;27I~ ~10lays~
SlEfas·j

Chinese

end ~"1$s~l- and M$5.21!- Fo'I" Indi arts , 7

the ll1aj'ority in

by 'sthnidty

thtl! Nalays~

who furm

Ui® rural

by and

l~r~e have occupations with the lowest incbmes.

To promote the intake. sector
cl'Ftsn being
10 f

occupational
t4A.lay.€

balance ~ c..ertaln to adiher&CO

quotas

have been f'Ixed for

At f1rst , l he pr iI/ate
BU!JI.1 E!n80urag.~mB;nt

into business and Industries.' 'these- quntaa,

pressuras.
by

was onl Yfi!ncoutageCi

followed

strong
into

pal ttica]

AlthGL!gh

this

resulted

in more r1alay Noikers

n!lJllIIbe.r of

being t.sken into

soma cCliTlpallies and ·fadoti,ss,

IBv·~l ~ [) f msnagE'lmsrrt

yet

the'

those
by

recrui.Eed as
\'~Bll

the. higher
fOt'Bigr.l

'0'ss rr;gther nav® been

01;

.Limited. sbaonbed ,Act OeA)

tent

Neve:rkMe.le.s.s,

rnoreex:-PQU as

tic.i Ems. and E'x-c-iv il servants: fi.rms to serve s:tipldatlng as d~rect.uns

IndU:BtrIal

local

senior

execut.Ives , must prevrde with

the irlipusB

To add mer a t·e-eth t.o hh.i s ObJAdive.~8n by P8rH~menl:.7 for morel Malay pai'ticipat.i:r.m cbject i.ve of thE! NEP. I'U'I~~ to make SUl"1!! that
more

COCII'.cjitlat.ion

has been pasced

U1at flew indl.Jstries c~on.s1$... fQ:r

in capit!iJ:l and f[Hllnagement,

t.irnf,:!_~ th0

AtthBs"Srn'E?

·govefnl'ne-ntalso
SlppE'oprh.te

ground
D

MaJ,aY,s are gi V'BOn l acea in in~ti p

tutions of higher l~a.rning

entt'Y int

\1hich C8"f1I·train

tMrn! in vclcations

busi.neas and i nO'ush'y.

It is

rioted

that

bal anoe thel h: bB.i.ngemph:a~ized,

econontio . positions.

especially betw~8n in the are ve

tiS8 ~

the Malay& and non-Nala,ys,

same occL!pations or- similar

is the ho r Izcnt cal ~)n~!, 1n\l01 v il1g people

Thusr, because

t:I'E!f"Illmber of

M®!rny e~ecuti¥es and m.n~gers in bu~~nesi being t aken t 0 Increase .their prnpor t Ien,
ih-el F cannot dons ~ for
whsre

~nd industry i® 1ma11~ ~teps But the rest ructur.i ng objecti or' uni verat
fOT

stop
their

the Chin®8~,

for instarJi:!1!l ~ from l:il3!rnandinq as thlilY have undeerepresent.ec, eccnem ic sph-erM

Demands

1TItJro

places

to be gi ven to them in sdminish'aUon

community

theyfihd

grea1ter
:i n the admibeen givan
~tD8t 'of

opportuJ!iUesby
nist·rat.ive
·s racial

t·1alay in the

·and by Chinese

sphere r.rrov.ide poIitil:::-a:l Lssues th,~t can and have

b11.9t by unCll;]lIf'!prorni.sillg po.lI t ieal groups
or

ahI®'Ys

indi v iduaJ.8 .

thelri .str8rlqt hen th~i r tlf;!msnds by brinqilJCl .UP.cul

tural ).ssueB~ t.h.at I'1r~ uFlder,ves has

standsbl y :;;;ensiti ve in a mun'lti-e:thMc the 5eI!'ious ethnic implications

~ocie}.y I i.ke ~1s1a»I~.La. EFt $pi te of

invol ved, th~ fE!5trwcb.H' .lng objecb

succeeded in increasing long term trend

r'l~lays forming
j

the l1:wmber

0f

t"laI8.y~ in business o f a small but

and :Llldus:hy.

HlP.

s for the conso.l ina Eon

new upper and middle

s tr;olig ncrps

cf
tha

the

clas.ses.

Tillis 't rend

wi 11 be further

atr'enqthened

by the other

aspect. of the

ob jcat.Lve , which is to tnc reasa

share of Malay c~pital. Coll,mialism has resulted in import untsectors

e.specially
by the [] f thEl ceunt.ry
I

s economy,

large while

tin those

and rubber Indust,r Les and ~omm{Jrc€, b-eing controlled years B.ritish Foreign capital has been F1I'oportioriEdl y
such as Japan, the t'1aley

British,

Over the

decreasin'i;l

from other

sources,
j

U. S. and
massea end the

SingapoIe ~ have been inc;reasing.

even the G;ovB.:tlllment 89 the contr-ot Chin6S~ .

Ne\lerthBl6!s~

foreign

owne.l'sJiip and control particularly

0f

lJy the fbrEligners have net caused as much ccncernemenq Sta~i6Hcs

iii companies
0f

and []11.~nl3:rship by non-hal.ave, Malay o\.,rnership

have sho~'m that small valued

at;

and cent ["01 out

0f

country • s wealth capi tal (made up

has been very

indeed. arrd
Out
(J.

In 1970,

t~e total

ahare

M~~S J 329 m.illionJ

enl.y Z. 4.~~WaS o~~ned by Malays' ) r 34.},;,b by

1. 6~~ owned by indi v id~a18

B;D by Malay Interest

ot-her Malaysians

and 63. 3~~ by fcrfei,gners,

(ma.inl y B1' t ish )..'. But ~y 198Q; 'the i of the tqtal share capf.t al valued at
I

pict~llre has chanqad qui.ta r adi.cal Ly , M$)2,420

!

mill Lon,
B

thEl t'1a1ay percentage ownership

rose

to 12. 5~~ (made up of 5. B% pI us to 44.b'$, and the fDfeign share

6 7%) whil

ot her M.s1sy sian

increased

decreased to 4-2:. ~l~~. The governmen.t

t·talays should

has set

up a f arget
for

that ctber

by 1990 the

~hat8

squit.y

o f' ·shQUld

be

3m~,

~~hile those

~11::Ilavsians and Forei.gners doubt that public

be 40% and 30~~ l'espectively. A't the lia'linn.ing

as the (SEne)
J

Al thcuqh

~here is s'trong ~xistiflg

t.ha ~1ela)' such

targBt will bB achieved in time, the- government is tlEltBrmined to do its best,

it t oak steps
FoI' Pecp.l.e Trust up m::w DflB'S 1 ike

,to sh-efl'gtheli
the Nat i[)nal The

ent.erpr i ses

t:Juncil an d set

(HAI1A) and t.he State

iJevelopmen t Coq)()rat.iOl1s and th!:l

Ccrpccat i on (PE~NAS)

Urban De.... epment, Authn:t it y (L~DA .• el { pr laes was prnv.i deo by th,s government;

initial capit al of these fjublic enter;.. some o,r them have fo.rmed their own
:In established referred
cOlnp!lmies.

subsidiary
largely

companies responsible

nr brought desire

up shares

They were cent tol

'for lnol'ea!;ling

the sbare

to as. It·1alay inl:6n~stI.

Iy t tans fer

It is the exprGssed and oWmltrship

LI

of the govammenL t·o evsntual

f t.haae

e,nterprisesttl

pr I va ha M8113~ indiV .idual.a.

'But

_ •• 67

I'~centJy, Dwil1,g ~o 1naaaa ilicurI'ed~ mSI1Y subs i dial' ieS and projects by these bodies have been di recbed
govErmlient

undertaken tims
tzat.Ion

',0

bel on
new

closed down.
policies

/\t tile
SI"'!Cll

same
pr ivat

the

h9S

a.l

ao

been emphas i sing

as

and ~~alays"i a Tncorpnr a ted.

Ther-e aaerns to be a de finl t.e shift

f'rom tile role

of the public to the private Anterpris0 and Malays are encouraged sored to participate in the activitiBs ~lthin this sector.
Obviously inco portion
links

ar

spon-

}m6 of the

CCJUlltI'Y IS

\,JesUh

meant for the r'1uays is not; going

and \'lorkers

Lha hands of the

poor ~~a]lay peasants Those

1;0
\1/1"10

who form s Larqe propolitical

a.l ready

of the pecp l e ,
l.ha L

Hill

ba in the pnai.t i on t.o banaf i.t \'JiU ant aqe

Some

Bv~nb.mJJ.y be those

vfho already
USe

have snme !(!/SaH:.tl~or have strDng

DWn

1:hey can
0

th8'ir

adv

iii

f tht!f11 have Since.

bf.~ome al eep ing par tnera

dev

In many indus b r ip.sEllId and indust.risl

, ... have really . hu

rirrns.
UPPB!'

Lhe ~EP the often

the aa-

Ellnprnant

the

~'als.y bus.ineas of ~lalays

131 e has b~(3!"1 rup.id and it c Iasa ,

It is from

signi ficant.
aer bed that

They f'crm cflly

the number

a handf'ul, in t.he

qBtlef'itted
As fer

ami managed to amaaa wealth do not go bsycnd 20 families

aasue i at erl l-ri th the seni.nr been ticians.
rBe

c Icse.Iy

pnl.Icy , rela"tad 01' and poli-

pr omtnent
arn'Qng

gQvernment

Leadera,
I

the dolreci.crs

execu t i VEla of vsr Lcus pub.l Lc and pr.i vat e ent.erp rices rul ted from Ihere serving
01'

many of thel!! have

reti r,ed I c.i \I i1 aer-vanl.s and leading

is a possiiJility

f'nr capital

owned or cont.r-ol Led by t:.h0se

bodies to be eventually passed ever tp ~om~ 9f thesB individuals since th~re is a policy toward ~uch transfer. The strengthening of he economic b~se of
the ~1alay upper
gap between
BOci

class

may have the

of

effect
rich

of fu:rtller

Ir/idening
Bu ~

t.he economtc

them and Lhe Halays

given

the 1 O!.<iar class.

as the

til is peohLern of
di fferElilt ethnic

o-eocnomi c Imba.lance

b.8b·.Jesli the

end poor \'.rithi n .Blimil ar ethliic imbalance

between

grQup is net

as

much attentiol1

groups.
The NP Gove:rnm'~nt is fu.l Iy commit ted to the capf t.ali at "eve 1opmsnt; for

the Malays and the creation of a viabla group of Malay capitalists who can
stand
shoulder

high

alongside

non-Hal.eya,

especially its

thl!! Chinese.
modernisation

The basis
on vr';)stern

fnr

capitalist economic and social developmsnt

ru l er s to ensure
ElM

in this country w~s firmly So, it is not

to pursue' t lie
Nithin

eat ab l Lshed by the. past; colonial

lioes"

Capitalism is essentially
'that! after
s t path, Nhich

upper class ideology.

6urprisiflg

indepenciencl!'l., the ruling

c.l aaa has continued

th~ Cap.i tali

pI'€s!.lmabJ.'I can bemafi t 'them "lost.

• •• 60

capitalist
nt'll,,!s I inveat.or

eystemJ

the role of the prLvate

at t. raot Inq
::3.~

sector is dominant.
B"G pOSGi

ThB policy b Le •
net 1'4atly onl y For

to continue

much f'ore iqn cap i cal

I

attrEII:~t· ve t arrns 3:r.S offered , l!lith pr i vat.i28.t.ion,

under
on

pioneer'

st8hlS

I to local rare wide

and foreign

l~he oppor tun i t.i es

open

10ce1 capitalists
tha t r.i.ch
t·r:[

to Dp8rabe

their

dwn, but elso in cocperatJon

Ins. Btrati
f ted ·sDde ty
j

with

D~

in Bubcrrdi'rlsbor1 to some of ti,e hug€': mu1t i.rtat.Innal a ,

1J gI'm~ riL~'her f8s't:E;n·. t.r ibut Ion ~1l'i"ay8 results fllrther
~tl"l3ngthsn5

I he indications

are

unequal d.in-

f rom econom.Io

grol'11:h" alid the

aama uneven

proceus

~he position

of the strong

among the classes and also the

str~nge8t withtn

the strong class itself.

A developmsnt process which ie Icp~sidBd, f~vDuring

wealthy FirstlY1
nomic the f'il;':st
J

thcas who ~r~ already

POOl'.

can

g1 vs r tse

1:..0

di sccn t.ent allel restlessness

amonq Ehe
PtJCltp(Jn~d,

Ta some

dL'!:';gree this

may b~ ~I:lmpoI'r1ril ~n act've

the
1:1

y checked

or at least
the this

by two me thcds, undat-Li.ned by

by pursuing
object

prbgramma against
Eii!;p~C'i:ally in Adrni ttedl of
the

poverty
ru;ral , pr.ogramme

and for sacio-ecQ86

uplj_F~nn7.intof

pOOI"t

Hr·C'as,

iV e
for

UiB t\~[P.

has

b rouqht abuut

SOITI~.irnpr-ovement

SOllie members

Imler

class

r per-capita

incomes

have

-shadily real
those
prH't

r i.sen among them

B.H:h-ough rapid

.irtcome :i ncr-ease'
.in thE! upper

ins.:i.gn cant. Hi
el aaa .Ls mcrre and

rates have rendereD the I S i nee at. thE! same time 'mrJ l'QV~ment amon.g
.inflation

faster

th~re

is

mcch ev Ldence

to sup-

the content Indeed

Ion that:

the rich are

t]e~tinq richer cannot syatern that

'",hUe the poor relative1y possibly

be. eradtcated

po,or~:r.

aa pni.nt ed out ear.l i e.t' t POV8-rty is r-ampant and the

when 'eXploitation

a11m-1S 'U[' H becomes

stronger .
. .s regards A the
second

mathnd,

,it seems

to depend

on playing

one ethnic

group 3Qainsl

the other.

As haa been 'BlI1pha8i8~dear l ier , the majDrity peasants.

it is

of the smalr

ppor are Malays most Df th~n ~eing Ier , The p rob Iem
0f

This js not tD deny the exis~

actual Iy one.
in
0

t ence of pnver t y ~mOilg the at her at hnf.c gro,ups~ bul; by cornpar.iaun

pavfJ:rty

in this

count ry is

f a class

II.ati:.H'B
0 ft.he

but very cf't.en it is present: eo as a rae La l or ethnic as in the

in towns.

The p.ligh,t qoverrment CMn .se

majur i ty of poor ~1alays is compared by SD[l'le pn.li ticiF.!!ls cppoatt.Lon

,I:'

as well

to the
this

relative

af f'Luertce

among the

bua ineasmen symual; hy.

Sarna of these

p.olHic:iarl8,
iSSUE!

who a:r,e member

m_8SS

of sither

t he uppel' or
0):"

mitldl

El

c less

arae

in a.rt"ler to gain

support

The g0nui~~ economic

ptoblBms are o f the

often

gIven a racial
r h.ey do this
by

twi~t. The
uppearInq
class.

ruling t o canoy

class they
Ui€l

in the gave rru rIg parties are. b:uGichsmpions prn-Hal ay art'i!ongthe

uppal:'""

0 fter1

t r 1.88 hard to pl'ojectthe

imag~ that

t~alays.
r

out ~ppa~en'tly di:5s~lisfatioF1

po l iciEls

which in 1'15a1i ty bane fi t the ITlember of

11'1 the
l.OW~11'

and middle

·D1 assea mcre Ehan those

This origlin.

Cl"l3iatBs

non-Nal ays, B6pl~ciaUy

those o'f Chines€

par't i.as
01"

In

the' midst of such

disl'5i8:i:.isfacti.on,

some political As often

OF!

qropps

t.ry t D

whip up thesuppol't
language and

of the Chinese mas.ses by tsking up ths cause of Chinese

for
81

cul tur a,

illstanee
\1ays

happens!

the

!,~oes and

sorrows

of one ethnio Alt.hough

hGisic C~U8e are

grolJp .is
ill

blamed

another.
ter'leion saem.lS: to

it.s

outward

mani fEi"S4ation~ ~ Int s r:.._~thnic The wealth

of

be 'c a U se'd by no n- €c on niii 11C: , p act.Le u.l ad y eu 1t iJ fal economic,

h'sue 5, i n r e ali t Y t the

0

the count ty and thE: kay positions

of jJ'qli tical muI"ti-et.11ni~

ptn'~ua are

rmw rn'Clnopo1i~ed by a srnal I cire 1e

f p,e,opl@ v,'hich is
g.toUp~ of

in c-omposJ..tion. into

B~low them ,a~e the the exclusive circle

expanding

Pflople from

who atr Ive hard to break the middl,e c 1388..

from

'. mast of wh,om. re a

can be most

In odsI' to exer t strong

by raisi.ng that

pre.g8U"l·e~ they

whip up 'support
!9

the I!IBjor H, y 0 f people

i SSIJ~$ that

ffHctive'~
The

and it is not surprising

pI"E!ssr!ld among the

thE;:Y expl c.i t ra,c:ial

or. ethnic

Lasues.,

feel ingsD fu,cialan.hgDrlis."f'I's

rni.dd.le clas~.

seem t.ljl be verys'tl"ongC'md

'Gut the n1g@tivero].(3.';1
nOl-.r ~

most venalI y e~~

of th.Et .ra:elal.tst
po\<rer rul

element of the

is

cannot

last

very' long.

A,9 it is

with the res tructur ing pal icy economic

has
gDvstnm®nt in

government!

mor.a und more ~"jalays arB ahlEr' to achieve

pos i t Lons whil e

b!:!!'i'r:JinCfElasin:'g,
C l~ss
t

a.t t.he sa[m~:t imB Ch.ineS8 rRr~ i c.ipat ion i.n

albeit:
B uc

slQ~'il'y., since!
U rb

iF1dep'erlden.c e.
l

Meanwhile,!

ths, lower
nJO I' e

m~.in 9 t:. 0

h Pr"i:Jce ss<ss a B

an i 5·S.1;:i on a rid in du 9 tria]_ Lsa t i o n,

Malays are rapidly becoming work@rs,

with Chinese or Eo
SUppI"B$8

Mal~y c~pitalist~ in collaboration

to exploit
Malay and Chirl8se

c:,aJpitaJ!.i,8t,~ aI€l nml begining

'0'oI:k~rst

indust.rialac:tiClnsj

t skan by

the l;lI:!tter.

As this

kind of devel-

opment inct'Basss. may lilt Illmrhly

it. is possibl

e. that
while the

the 01 ess, elem:enL in their l'rileid. ele,1Tl'lIsnt

con f'l.Ict

baeome dearer

may increas ingl yeub-

side. On the other hand, more interesting although sDmetimes d~ngerDu~ devel.

opment are beginning

to un fold

among the Ha Laye,

8l5pl;!.ciaH y the

peasants

in

.7D

Eorne ~r th~ Jess devalopBd

bU.ll
L1101iel11~nL9

azeas of lh~ country.

thf'lfDCf>e 1ves
WPH' :-.

th~r~ have been a few pro-

by t he peasants

LO express

thf.' 1[,

!,'H,)C'l CI-I."t:orn::III'!ic

dt coon t nn trnenl. by peasants trations in

For c-,:amr1 e I' thorr

and 1\ - OF Star

aer

es of UltHJal sixtfles
1980
l'(;mped

cp~ning
Iva Il' .AI

of I and

Sungei 5i ih 'Bind Te Iuk L:Dng in the

in 1974 and supecr

and paeannt

demonshouqh

in 8il1] i ng-Sik

1-hey received

t r rom s I.Ident orgonis:ahons

prnl.eat movemenLs and that uf)cmploymenl

and poJ it Ica.l

','leI'S We

purt.i.ps ,they I' nult a

MlO'VP.-

were eaaent.i.al Jy peasant

C'l

imn1Bd.iRLe inn.
po I ley

r paver Ly" 1t1ndl asunaaa, "'I~ren{:lt

cJlrer-ted by

,!'unnvwy

in n

Dt

T 11~S8

mellhl

l.a'.~Dt'dB I"he gove·rr':lment Inc Ident s or

, but to

and

ih~

AJ.'1 n whole,
'f"l"'tl"t"

uut [JL'laOJ pj Lal~d

1.I'Y t PQ Lu overLhrow
IJj

rmrLicuhr
the

clemElmfs. set;!K [·edreS5 tip of

lhe the

fum~nnl51
l n l.ht: i r
j 'l;JhBrg

net

QovernrflflOlt

I:;'fHlcm1ic

r·lrtlHias.

In reI J ity.,
e('lr]
QUS

thee

ar

e 00

y 'he

h!dinq
and Qrow ing

he IIow

t ham

accfu-econon

h~ probl ems f sci ng

he pe06~1l try

.res l.Lenaneaa vihs L has pruasuo nomic

1.;

OJllong them. beep,

::J

i qn l fi canl,

is

U'tl'l

then",'

r~~.U

(H:lSHI:!SS

have

110 l;

been

ex-

l hruuqh
LBi:'IIlS.

1Br-ger

mlH',emenb;:

i1\ re I i glo-cuJ tu rEi] ra ther

have been

lhtm ')pd n-ueoqal.he r i ng

Q

Spearheaded

by PAS~ t he se movemeni::s he peaasn ts Jn They ["eject

as un-[glamlC.

I reng l.h ~H;lIJ LaI J y f t(."tn among F.lC nd Tl'ongganu.

he pCl'vt"t'~ v-a t [' icken ar'eaa

Goverumen

l<ediJh, I<ehmhm

the

as t.hal;

bt~lrlg aecu.l.ar institutions

Or'

and 1151 deve.l eprnent pu.l.a.c iea

arid values

'They

he l Ieve

rurrt.ur ed b}' the governmp.r1t

llri,der the nsme: and weakBn

that

or

development in

modernizatiDn Lims in Islam

t+rrnat en to Llndermil1f" l$lam TheI'efore

J

fa:i.th

it among tlusto

thB country.

the}

ennt.ertd

lhetE

is [hev

naed claim

at cenqthen
But

ami ul td mat.e l y establish isba

an

Islamic

government.

that their
there

struggle

aed

011

pr

incipl,es

Lai d doun in the Quran and f [atl i, h.

vary.l.llilg
~Q

ar a many ~plinter

groups

among' t;h~m ,... itlh

degrees: Qf commitment and

militancy.
giou!~
is

Although many are attra~ted

Vet t here are

this movement because of its rBllthe re I i~1tOIlS

SPP'I%J.l S t

shoo
frlist

1 ndi.c

at .Lons that

movement

af.so a man] r estati

OM 0 Fths

rat i ona among [he

reaol'l9f1 t. S COl1cDtning

lhsir plight a~~ the failur~ of go~ernmenl policies lo improve it.

be s1-Ji,dthel Sue!l, nppoaU

~his movement represents

wId"h

an 0Pl1os' Hun is
aesoe i a led

of

Otll:'

sect Len
ruling

or

It c~n
[hEl

t1o:.Lbys age H1st ana Ltlel' section hm Dr confl iet is

Hit 11 th~

e l ass. hi nnt.ut-a ,

tnt Ti'I- t 1nI c arId nol; it1h:lt~F1thnic

that
J

III eoncLue i on,

a ocioLl

J t may be Bald

, in an inter-uLhruc
a.

S3 '.... '011 as
onrd l.he
Ctlp ij

~ st r nt i rled . t::IDI:~iel~

1 JLh Hala)'s

deve l opml!ir1tEll

t t:ll n!3 t

· • .71
path can, i.n the short run ~ ·caLl·S8 great e I" inequality whc;g-re l ass di ff'e rencee c
e.l aas displaying If co·mposiUon. behieun

regions

and

classes and exacerbate racial tensionJ to' tha fore ,a

could ill spite of its
SDC:]

but in the long run it will b£ing

fUid

al~rt.ructur·a

conactousriaaa
class then .solidarit.y H \'iould be

become more marked, muHi-sthnic

\-lith each

greater

'hi$ happens,

eas i.er for the. ma.jor.i t y of people

without. sentiments. being

to act accor d.inq to 'their

by r ae.i.a
I;H.'l· poss.i.b Ie
8J id

owndfl:ss

interest"
and

ea-sily
At the

deceived
earns

or confused .it: may also

or eUmiceppeals Lh~t c lass

time,
will

dhH.:)ati8-

facti ens are marri fer; tlfJd in var.i.ous Whatever- happens

t

ethnie ~ cul tural

re.l i gJ'CILisfor-ms. consequences

allthsse

eer tl!linl y have far-reaching

for 'the ful:uI'1'!lof the

countr.y.

I'

.......... --,.""..-_ ....... -~ ~---

COl;1~1UN ITIES

] N -_DEVELOPMENT; CASE =Slum [5 ........... ........... .."..--,_, _-."",-_.-=--._ ..... .... .....,._ --..,

QL ~!:~~I:~I!Q~L~Q~~~~§_0~g_29~'~ !I~B§ IN MAL,~YSI _ .... - ... -.",...-~...:.._- A

RAJES\IIARI

KANf'.:I AH & MEtNAK3HI

R~\MAN

PART O~[

PREFACE The deve Iopment; process and moderniz at i.on Ln Halaysian

hlo Impcver ished

that is spearheaded
soc.i et; y has left This study

by t ransnat Lcna.lizat.Lon behind look into or

I

!!\'ac: f 1ced t'i

commuru t i.as ,

wn 1

the prob} ems of

pl~ntation workers ahd sq~~tterB as Lwa communities whioh ar~ ~ntrenched in a cvc l e 0 f persisteir"li't pov ar t.y.
The p.l antat.Lon
H br"ought cap.i tal,

eccncmy ~VB:;tan in5,trmnrent

ent.erpr i sa and maneqement

of politicU

colonization;:
CI:BSb:"l

to"g,ether to

economic

structures today. dominant

which have remadnad basicslly In many Sout heest Asian econemres economic}, spc i al, and poli-tical

the.' sams from tile 19.30 r·s till

it is perhaps institution that the ol.dosl't and most
has survaved

the

onslaught of time.
Hie p Iant at Ion 5e.eto!" brought the' count ry and has thus tures and the
naj.ur

di ffere:nt

r.aces

f peop l

f.['()tn

d.i f feI'"ent

parts of the world t~ Jabour in its sBtvice.

It introduced new cropa into det errnined the popul ation~. eXi st ing social at ruc-,

e c f the ecormmy' of the, c'Owntry. the whole enviromuenl whicll the. peuple of

III shor t , it. has fashioned

this country hav~inharited and it ia perhaps the clearest~ most dynamic 8xaMple of the process of tr8n9natio~allzatiDn through a Mistorical
per sp ectl V e,. Quite seen as the apart from the p.lant at ion economy; the squatter problem can tie

resul t of t.hs SlSllhd

deve l cpmsrrt eff'ort

of the

qnvernment ,

· ..n
DElvelopmClrlt P rqjeGts' di sp.Lace 1-_ T,~d.ili anal
cornmun i t Ies, +.e Ell' ing

them away hom

thB

self-reliant,
the labour

~elf-subsiBtffint modes of production,

as \>J9(je earnera , This study

anrl throwing thenl into

squatter

market

~~n highlight 1.
forces

problem aa a product

of acc.i.o-econcmi c and "tnf:ititutione1 thus

that

set

Gut to

modlBl't1ize

the economy,

r ui.rii.nq the traci:i t i.ona.l base ·si".rndulL'0'

of to;lelay~ian ne-eds of this on the part

troupe

s[]ciet y, I'd th emphasis on t he USB 0 f' of 'the pr ope I'.t_i ed c;ommutlHy. to reduce
the

coe

.leg1;llsIJj1p.rs,tructure

!tlhich leigH imizes Lhe rights impoverished of the qovernmerrt

c1El~8 Wlli

Is cut l awing the effort t~ke:n

BV iction

Ttwr~ is no systematio burden of this

ruv i nq, nomadf.c

of peonl e moving

from ph):II;le'l. t o pl ace aa a result

o f constant

and WQrsenin~ poverty.

CIBBrl~!the
ilnpHct

of transnationaliz;;ltion

can be seen

in the squalor;

sickn®es, and suffering frD~ this senseless m~splacijment of re~ources. There is much tcom for a re-exsmination of our policieB~ prioiities and per-spect.Ives l-litln respect to development.

•.. 74

PART

rwo

----------------------------------------~--I. .INTRODUCTION The Malsy@i.atl p 1entation sector

employs

THE PERSISTENT POVERTY

or

PLANTATION WORKERS

al 1l1OS 1:. a quart.er

[)f

mill ian

wQrk~rs, of wttich almost 60% in tubbe~ estates end 37% in pelm oil eS~Btes~ (Labour In~icatQrs 1981 - 1982). Indians constitute th~ majority (09%), fOllowed by Malays (38%) and the Chinese (13~). (Malay~ian 8usiness~ 1984'.
Palm oil expor-t earnings From the
and rubber exports

'together

accounted

f'or 2'0.3% of 'the total 1983}.

there has.

,Of the oount ry in 198) {Economic Report timB' of the exodus chanqe still
They

in the, 19}Os +'0 thE! pr-asent, earn 1TI8ag'fl:r.~ income'3

i

been H bt.Le s ign.i:.fi cant

pLant'at i.on works rs ,

in th~ Jj;,fest yl@ and U vInq conditions

l

of

s.ufrer

from rn'alf1utri~

ticn Ind drink to forget the mis~ry of thef~ hollow existanca. They know little about their labour rights and are ea~ily exploited by plantation
managements.

Rotting educat.i.orta.l

houses , poor

ssnitation, 1,.mwholc::sCJmfl~'iat,el' to drink

,end limited

oppor+uni t.i ea .i.s the story

or

their

daily est stes

ex i st.ance , and 45~~

COpE!

For :the feriu:,!le ~lOrkfnrce in p.l an t a Uons in palm

0'

(,:Vii

til

rubber

as 8 resul with household chorea, child bearing and bhild Iearing.

1 es,tai:es) the burden
is .incre'aeed The
aVBI'<;t£jS

of he.ving to

monbh.l.y earnings

creased

over th~ years-,

plant~tiCln Labour force have d~frolil $32& for .rubber and $ 2'611, f'(JI;' palm oLI in 1980
of the

to' $266 and $258 re:spBd i vel y tn 1983. Rubbe'l:' n.esea:rd, plantation
although

( Clad ~ 1984) shaw that in I.: he paat 20 years

r

Inat i tut.s

figures

the'

work$l"s!

re.al wages (..~e,t aqai.nat;

1984 )

inflation)

has risen

only 3~~

product Lv i 'ty has r isen IJ2~4 dw;'ing the s.ameper i nd,

l

(!~~_~~,~

§t~!i~~_!!~~§ 5. 2D.

•.. 75

It

Is l.her ef'or-e
10\'1

no ~"ondeI' 'that

U It;! Inc i.dence

j n .recBrr~

of r:mvel'ty
Accordill']

in

t.he plan-

tation

sec tor f11:18inc!' eased sharp.l y

of the 4th Mal ay.sj:a

ys

ar-s,
in

l D the
increaSed 19fJfl)

rni 0- i:;.i3tm rev

P'Iarr,

povert.y

p.l ant.a Hails (Clael,

From ,35.1~6 in ]9 BO to mor e than The p.l ant at.inn leaving lUtle
01'

50~~ the end of 1983. by

0

worke r sp-ends three-quarters

all

h'

income

on food; medicine

n{)thing J.e'f't for cIoth.lnq, in' debt.

t ransocrt.,

educat Ion,

or savings. c,il plarrta.tion

t~o.rl9 t.han 68?n of rubber

l'~orkel's are

plant.'a'!:.ion workers

and 44,.6% of palm

(SERU 1980; Per spekt. i f 1983). worker and binding

prevsnt.s h1m from

The colonial the pisfltatio!1

labour in

legacy

of isolating the estate

The cyc l.e ef ihg"

him to on his
having

environment.

has \'i'01'ked to keep- him fOl'ever dependent poverty

'L'/orkillg and leventualJy

the- p.larit.at.Lona,

little

chnrce

but. bJ continlJe·liv

t o lie- in

the

plantation. At the V'Bty eutsl!l't

t

the pI ante tion

society
9.S

bl!'Jgen as a' uni t of aut.hor it y vii th

c,(;mtI'Ql over all

aspects

of the Lives of people in its a "bureauoeet.Ical

Vt"rl"itol'y.

R. 1.

Smith desr::.ri'bes plant.~tion

Iy or qani zed system

in which blocks of people ar~ treated as unitg and are ~~rched through a set of regime,ntatioll under the surveillance of ehe small ellp~rvi(imry staffll. (Beckford~ 1982 1983)
j

Plantation wages they earn,

hGiaH:h hazards,

folk not onI)' put in B hard day's 'they are.al~o

'qntl natural

labour

for tile maaaeIy occupat i.ona.l

frt~quenHy
int.hsi:r

exposed
open

to var.Icus

dangers

v,'orklng :erw I eonrnent , ,

For instance, herbi,ddes ignorantly

in ruober

and pelm ui I plant~Hoil<S~ sar Icus chemicals

weeders

applying
they

and '~»~edicides are courting app.l y -t'hese toxic

haal t.h risks

\l.ih81l

with rID protecb~ VEl c] oth·'·f1g.. t~any

ta.shes!, l/omH.ting because
0

of ~h'enlcomp.lai.ned o f noaa bl eeds , skin

and headaches,

RlIb'ber tapP!9I"'!;l have been knovm to go blind

r "hi,ps

of bark

from rubber tra~s hitting their ey€s while tapping and p~lm oil harV€~t~Ts
have been injlJre~ from tile' 'thorns of f811in~ 'fruit bunches and palm

leave5.

• , ,76

Rubbar and palm oil

and It;1€.cheswhj,cr1 \10rksrs

p.l arrtati one a.l'€ a] confront daily at

80

a haven

for snakes,

sccrpIons

~I,lork.
fOE

Al though
country, his

thB pIant'at ion

worker

pr oducee thp. rF\aj 01' expor t earnecs at.endar d of living

the

weI fare

gets

scant
ignored.

at.Lent i on in t.ha government

p.l ans, ami hf.s

rights

as

human being,

to a decent

is alnlQfJt always

neglected or conveniently
Basically
t.r

the

at ate acts

en behalf

of the cap i t.a l i.at c Lass,

altho-ugh

it

i8s 1:.D pia)' 9 balallcing role. ThB prE'iis!mt trend in Halays is however is increasing state ownership of plantetionB. Permodalan Nasional B8rhad~ a
qovernmerrt; cmnpiiLny has now bought
and is

ovar Kumpulsn Guthrie Harr Iscns plantations

S(~ndirifln

['j,e-rnad

the

largest.

sharehol der' o.f Hj_ghlaf1d~ and Lowlands (Se'e Table 1). among t he top
are ami 6th

Berhao and I-1rrrl'iGons was recent.I y e.l aa1n

compSJ1iss 0 f wh.ich

Mel ay sie,n Plen ta t:. ions Barbad. si fied

three

as ranking
occup.i.ed the

the
3rd,

'third

tlt,"Bnt y compan !t:;'s in ~-1alf.\.'Y a • ::),1

fed ~ among the. ~op t\l~ent Y ccmparues

five

t~t , h

rat {ngs .

(§~~~~!~§_n[!~~ ~ 4.1. 1[:18-5)

Psrmodalan NasiQnal Berhad's subsidiary ~umpulan Guthrie 5endirian

Berhad has ex panded into neighbour in9 Phi Lippmea Ln open up an B, OrlO Irectare \J;;rtional Deve luprn snl;

palm oil estate Corpor atdon. accst

COlnfnlerrJ.La1 palm Corporatiof1

in a joint.-v8nhn·~ with t.he l'lhilippines SHueted

oi 1 plalltaticm

in AguS"sn Del SUI' in ~1indana'o, the estate in (abotJt

tile

is the HEll

first. at

Phil Ipp.ines

and ~"iqJ.'S>s"Eitup ill

of $400 mill Lon pesos

hav.in'Q .a 6m~ stake

M $50 million)

with Nat i.onal Development

!~O~~.

and K'urnpultm

Guthrie. the remainin~

(Q~~~~~~:!_I!~~~~ 2.9,,12.1984)
The govertimsnt t icn ~taterevenue
I

s direct r o.l e
t·1alay:s:la
H

ill the

capitalist 8xpanSJ!.0I1 err tile p lant ainto issue sever-aI

the

economy base
sa to tJwn~d plant

0f

has r~OW brought

can no longer

Ieadinq
in theB~

questions

its ~ole in improving

stior'ls " Sooner
the- limibed

th~ lol of the labour' farce

hide to behind a f f'nrd

V~ i] 0 f Um Hed

and I"Bc,ession ~ wi,er)

01'

it has been able

Ia b~r:
freedom, distr
'SOlTI~

the' acquf.s.i ti on n f
answ'p.l'S

more p.l ant.a t.Lcns,

forlht;orrdng' for

satisfactory
degrading'

have to, be

the i hut i.cn

living

concli t Lons and ths

gros s Inequal i tiBS in income

faced

by the

dispoSSI3SS'E3d c Lasaes

of plantation

workers.

• •• 77'

I I.

---------------------Due to the

PROV 1-5J Or\JS

ron

l-lOllS ING
of their live
thB

nature
to

cccupat.i.on,

plfilrrtsti.Dril

~~otkf'l.l's tiH"e:re~UJi:red HoLJsing

by the,! r ernployers
i.~ there fore

wi thi n til e per i!rr'iBter 0 F tJ"1,e pl,tlritat.iofl.

pl aribat 1011 manaqemsnt. This

prov Ideo by

is al.so a legal

requirement undor the Labour Code 1933.

According 6~~ of r-ubbet and 95% of tor-he 198.1 j'

19&2 Labour

Indicatar:s for

Peninsular MalaysiB,
BJ% of coconut with

p.l ant.at i.ons

7010 of' paJIi"! oil ~ 70% p.lneepp.l.e, wo[,kers

t.ea plantation

r-esps(:tiv,dy

were provided

free

housing.

Thls means that

an average

of ZJ~~· plantation of in direct

labour force

w(JI"ker3\·rer~

not pro-

vided with any houe.lnq facilities,

ccntravent i on of th~ law.

Plantation dwellings for

measuring

the

may consist Df one

and B till)1 kitchen
ft).

room

roughly 10 f't X 8 f t, a sllmlI hall provide lcmij houses :; metl"8f.1 x 4 metres

(J ft x 6 rt).

SomE!plantations houses this

ere -to study

where each lon'g house (oppl',ox:imately eat,

no priv-acy

has 10 one' room NH.hin

measuring small
and play.

130 sq.
arid 'li\/ing
,

space ~ thtl famil y has to Live,

Thet''E! iA Bb(lHJ,lutely as each
I)

Bleep' and the

children have
conditions

cramped

household houses

norma]

ly comprises
houses

an ave-rag@! of is .~ 10 and

pel' sons.

MOIst

f these

are pte-war

ar-e no~ in a l'lm-dawn

and dilapidated
Al thouoh

condition.
tile IaN (Tbe Workers

L-m nimum

standards

of HOLlsing_7

Ad

Hl66 and the ~1'od::er8 r~'1inimum Standexds

of Hgusing~7 RegulEiticans gl'o.S81y

1966)

provides for minimal r~quirem~nts with r~spect to living spsbes ventilation,

bath and kitchen,
while verrt i l

even such limited

pruvi.ai.onenre
exc.Iosur-es is

violated.

Most

plel"'ltaU em dw,ellirl9's

do nnt have covered

for ki tchen
nE!-glected.

Dr bathroom,

at i.on is P-OC.lI'jand rnaint.enanoe

which pl anbat ron

totally'
are

A Qlrowing problem
I[)

'~or'ke1's

no~~!f'ac i.nf is earnings

5l

'the probhtn are f'r aqare me,tlgr8.

f housing

when th~y reach reUrementag-e of f for oElvelopm'ent

or when the p'I ant.at.Lons

mentl9d and sold

purposes.

As thai.r at tcday

and just,

6Ufficient
USe:

to support. to rent
01'

thei:r da· 1 y e.xi9tencB purchaae

hOU5B~

the,'

hays no savings market rates.

which they can

• ., .7B

It would not be sw:prising force b) join the existing

to expect

the l',etirt'ltl plantation

Iabour H.

sCwaHI5I" color1i.~s, and swell t:hei:r ranks.

scheme that

is imperative thereforB that the ~tate ~nd the plantation manag~ment devise
a wo,rkable house cnmership ~hey are still employed. Although
the number is
m;MS r'E!pOl'ts

wQll'kers can cont r Ibube t.o While

reveal

that

such echemes

have been implemlBnted~

negligible compared to 'r.nos,e i;\!ho ari3 hemeless and ',,!,Quld be

de·sti tude in the near future.

TABLE 1
.

N,AN-1'JW

•.. 79

SOMB iQF' !Uk liND CU. IN TI']rn8

l.Al..:m:,;s Rtl UBER r

PA'Ui NJ~N'j'ATl ONS

OF JiEC'l'AHAUE

(I

nc

COMIjAN·:t Of'!~OI'ated: Malaya is_)

Hami:.

In

I
I

TOll

au

Year' Ending

I"OJ'

BEe rJl.ltAGl. llLAN'1'EU (~'i'a. ure) t

HUJJUFJj

OIL PAU1

,!'O'l'AL

L, fJ&rrisons Malaysian plantntlolW BeJ'had (brgel!1it ~harehoJ del' .. ret'1llodda.n Na ... alonal BCl'b.ad as at ~U~1.83. - 5~

Harch 1983

,28,569

2. C(lIwoli d.ated P 1st) ... of ~.ime Daf'h~ llerba,d)

fudlBJ.·Y

tationa uerhad (aub-

.4

3~ Kuala LUmpur Kepung

nerhad

sept 1983

4. Dunlop i.SUI tea llhd

'

...

5~ III gh lant1:F 8: I.owlund6 Uerhad. (largcst sha,r(lhoI d er 11 ermod a 1 an Nasionnl llbd arid Kumpulan Guthrie
55.19')!. aa nt

11

Dec.

1983

8,294

.1319004'

14...85 1
6. GuUll·!,e i\opel
by Kumpnlan

(60% sha res b.eld

(luth1)ee

Ehd

l'i e Stl n Hbd t wholly owned by permod~llJll Nas! 0J12 1 Berhad)

1983

11,574

,I'.l.ua,fati(lns

lu,i at 30.11 ..Hl84~

,5ourcB6;

lnves tor~
:p,f~ge66

Digest

- M:id-Decemb~H' 1lH34 ,
TilDes -

QPd

[Justnesa

<1.1.. 1985.

Hanlcec1

I'll:cord

i ng t.o HBl'ketV 0.1u e •

• •• 80

A natiQnwi de N.ational
1983 reveaLs that there are vmrkers

Unhm '0 f Pl arrt.at ion ~l)orkeTs survey onJ,y ttlree that

house m'<lnel'!ship achernes

conducted ii, for plantat.ic.m

that

have been irnpli!!lflentl3d in the country.

(~~~_§~E~i!~_I!'ill~~'
dwellings
[10

31.8 ....

1983).

Thi.s aurvsy also reveals-d condition.

5m~ of

plantatiOl!

w'sre in a.
years

deplorable

Some of the houses indication that

p,tovidedi wer!:! 30 or

old. end
1'"1"0

There is a clear
BCti

th'e la\'l is beir~g Dpenly coneerned.

violahd

on has been forthcoming

from the author i ties

~/orkers continue

to

put up with mi sernhLe

continue

hous inq conditions, Nhile maneqernent s to boast that they are pruvadi fig w~rkerE with free houai.nq, r n the
by3tWlde:r

, damp and

dark

meantime', the gover.'fili1ll6nt pI ays t~16 role 0 fe existing laws.

in not ~nf;orcing

ths

III,

HEALTH CARE
Various persof'lali:tie's are involved grade$ in administering medioal
int

treatment of whom

eta

sick workers.
Groulp I-Icspital.

Ther~ are' three The other officers,

of hO:sp.itllll aas i.acarrt s (tlas)

in the
':;Ii

U'I(5highest qualified

ist.he gtedes One HA it~ho no.rmall y serves.

hw serve p.lant
I
I

he Est at e

at iOIl1 clin Ics,

The plan-

tation dott6r is refBrred to as ~he Visitin~ ~edical Officer (VMO).

puhl rc health inspect "from the Dppal tmBnt of Heal.t.h are in p.lant at torta.
suppossd to b~
oS

The
.

al so empoVle-I'e.dto

h'Balth conditions the HA

Due to the is

Al though

'p.a:ramedic,

the k; nd plantation and

0f

educat ion

and training fedively.

they havtl'rec~ived
nature

does not enab Le. them to play of theiT occupat.Icn,

skin irritations

their

role

I~fBr'ld

l'lOrke:rs

their childre.n may be 'suffer:ifig from e varied rangl9 of health problem® such
as malru.l'trition~

vitamin mainly mild

def'Ic.ierrcy,

other

al Ierq.ic

reactions due to exposure

HA is
hOWl!lv8l'

to pesticides7 dia:ttho·e.~, malai'ia ~ and So 01'1. The t rained to trecat admp.l El ElilrnentssuDh 8.S headaches f
in flu'enz"B and minor cuts and brui ses •
injections
They

atomach aches"
I'e.poFte.d to

rsvsl'" ~

are

be h8r1ding

out

thes8,11i1§ antibiotics tharerfol'S-

and even

fo.raU

'these·. ai Iment.s ,

Silck worl<~rs are

sceptical

of the medical ,t.r.®st-

men~ thBY recBived and fear hsving to re50rt to thB plantation HA. Unlike th~ HAs in the government
in has.pHals and r eee i ved lectures

hospitals Who undergo formal training

onct er a, Bs.tat-e HAs receive

f'r om qualified

• •• Ell

1n formal, course
by

on- t118-j ob t raining bnd ies

~nd
SlH:::h

from their

sen iors,

Vd"1D ha
PI'

VEl

gone lhrough
01'

;31In i-

Lar training.

Then~ is therefore
j'

a lack of organised

st ruct.ured

training

as the .U1R t.he Public Health

Institute

Local uni -

versitites

hos~itals.
HA spends t.hat
by the

A probationary senior failure H~\. Af'ter l.:.ion8 coriduched

two years

learnif1g

under
"

thE guidance

of a
EX:Jll1'lina~

he sits Estate

for t'he qr.ade 3 Hnsp.i.t.al Assistant Ho::;pital Assistant R,eg.;i,strati.on to· hsvs
A G.rade ·3 HA has

rjoanl.

The of ptacJ.

r at.e is· €i,aid to be high.

two years

tical experience b~fare he can Bit for the Grads 2 &Kaminations.

This daily means that
E!

1 al'g~$ecH,on

0 f tht=l p.l antation

I

are be irlg heeled

III!)

by HAs 'r~ith hw Plantation

to four

years

sxper Ience' are

but

formal

training. prescrib-

HAs7 untrsit1ed Thi s could turn

as 'i:..rrey are!

also
They

d.Lsgr'ioSing and practice or they

ing medicines.

out to be a dangerous more serious. disease

·s.in,c~tf"ey are

not adequat Ell y qu,ali fied

to diagnose illne6se~·.

may gi ve rnedicat.i oil may nnt be

which may mask the sb le Eo recogMse

symptoms ofa the

5i gns ci f irnmi nent

set Lcus illnssses, , to 5SY: tha]; the plantation treatHA

I t waul d not be an §xagge,t'.aU on th~:re fore is actual l y pr act i sing medicine mont. that Thi B is.
8

and not miSI"el rendering y

par·amecJical

con+r-avent ion o f the Hed.ic·E!l Act 1971 Hhich cl~arlystates medical PI'"8Cti t.Ione r e can praGt Ise medicine. person,
[8

only re·gistsrBd The cnl y qualified

msdtcal
,

the W40 is hiI'fH1 by the manaqement

Group lrIo~pi tel once
B.

t.o v i:lioi t . th·a plant at Icn or t.ha

fBN

tal~

\~eek for onll'

hours.

I-lis Jurisdiction withth~.J r

is ,sev®rly
O\\I'f1 C HniC8,

Qircum~r:;:I'ibed by thE! ccnt.eact to spend

which time

he signs with the management.

pr actHi.

Th~ VMDs themB81~~& are also busy gener~l

and would net, bother
mLlch

onere

supervisin-g

medical

C'st'B in plantations. m:::commodation,. proper diet and medicines

Prov Iaron of hospital qu,aHty i.s

CI

or

qood

mandat.ot-y requiremen'~ under the Labour Code 1933. This Dode ~lsoO states that th6 CQmmiBS~on@r of Labour may require that hospi. to reside at snd have charge
ho!Opibal s are manned
O.rIC~ thB

tala employ a registered medical practlticnet

of such hespt tal (Sect.ion with 182). the However, by I-iAs ELl1d attendants VM(] v hrH ing

m·Qst e.s'tate

hospit,al

a \'leek

for only

•.• J:J2

two or tlTrei:i hours.

Rul:86 Which states' tal
pat.Larrt.s

This~gain
thatl:.he

j_ 9

a v.iol(:JtiDn
(I-IA)

of Rulf~ 30 of Lhe Labour

..imffl(!t.diatB c:atB
0 fall

Cod!!!
hO:'3pi~·

dr-ess~.L'

has the

~J:!9J~E~

tn' the supsr\! Laimn of the p~I' ivgte

mElrHCf,lJ practitioner-. Hhlch cont.inl:JEl to pro-

There are nQW 7q such ~stat.~ ,hospi:tah' vide shoddy .and improper
Th!3 scenar i.o is

.i.n the

c,p-unhy

medd.cal sel'V ices

to pI ant-at Ion workers.

th3TBfD[,E:

lill@,rmi nq ~ HAs re

luctan

~D

S irJr-l med.ical

leave

chits

for

fi:::a1' of" being

,ticked

off

by l'I'IanagGril~nt~ _complaints to' v~orl,(and workers

~lnd proper hosp.i tal beeause me·di"dne5.

that

~ven si~·k

W(ffI< D£ G hEP/€l

D0:sn forced

to report
government

hav lr19 to resort

to
not.
Under

priVf.I;te doctors ~[orkers

to get medi~'(31 Ieave

~1.ffiny l.ant.at inn p s

(I'll

also end up in CDdJB~

.eet ate hospital care for

adm.it them Dr do not have the' equ.ipment and exp:erU se to the Labour i:l.he mf3nagement:is.1 i.ah le +'0. pI"(Jvidp.
l'nOSt.

them.

For

J-,I'"ensport.

expenses of

of the p.l.ant atirm

their these cost'S.

w,orksI'.

Howeva r,
C:'ClU

p.Iant.at ion worKA I'Scfijl'f,)

igntn:ant

r i_ghts and rnanagsments of

I?S!:l get aw.ayeesil

y FrolTI hev ing

to bear

FurtheI'·more.t
vat e H08piial3:
eX'empt any Act

a II ptiv~te
1";l7 1..
from

110Spital

must be DB l"s.gi.stBti!,ld lronl'C.(gJlly!

0

UJl'lder t hl;l PripOVl(:H'

ThE! r·.fir-Iister of HI;f.bl til, how'Bver

has the

to

hospital
Or"

regist.H1Uon.

no

estate

hospit'ol '1hi's Ieavee

has,
to

heen reqistere'd
them .rn Lrmbo ,

8·}::empted

from the: pr ov isior'i:ll

in

Lhi s Aot.

~~hih o,th@.r pl'ivatr;! libSp.Hals

ia~

urban

ar aaa ar.e aubjact

sh Let !'eg'lda ti on the ![))!:,'ch·aiR labour

equtpmenl; hypoderml.c not tho
[!,Plf1cii tions

to standards

o f rne.dical cere?
j, S

est!l)tF,! hospi hals caine under

fat
Q

Code 1933. which

<llIl:re"®.dy

cut.dat ed a s to the
i n8,ta[iJc.IEl.~ the on. The labour
C8dt!lcO

U. i tie~
ftequired one a Bind

irB(]uir'Bd For tne-dic@l care reads as folJows

t

o f s.l ok \"IoJ'kers..
i

Fnr

list

'OflC~ pnckst •••.•

I

case of GUl'giicsl .i.nst.rument.s, rand

60

sy tings

two bed pans

0 f'f i cer

heEl th oFficers

ai:i3 empowered under

bh€l Labour

insl':mct health

in p.l sntations ..
L"

A t rrta.i of 2:53" 17.0 \.jorl<ers and th!:li pineapple, care" There quali fied programmes coconut
and ben plant.at Icns

dependent

a in rubbe r: ~ oil on p.lantat.Lon

pal.m

j.

pre' dependant

medical
~

is. no lCH;lic-al reason why they should care. is very obviou£Jin: the neglect

be depr i ved ofadl5qUat~ in rural areas

and up-to- dat e medj,cal

The. one- cadenesa of facilities

0 f qov ~r-rlfllef"!lt hea.Ibh

and'

-the prOVlS.lon

of sophJs1:io9,teCi he,alth

centr.es! inl urban areas.

••• EO

IV. BASIC AMENITIES

The tnai n cause the unhygienic Li cUe living basic amerrities."
as possible

for the

pIElV

al enee

f di SS!!'I8BS ·among p1entation

f'o.l.k Ls spend as

envi ronment l;lainly

managements

as a result

of H"le lack of edequat e

PI antat.ton

~/oL.lld Df course 'I'Jaf1t

to

towards

these

costs.

They have ~her® fore

sllbj ecte,d the

workers at times to i.nhumBn and d~qradilflg living condftions.

a") Toihrta

In moat plant8tions~ 20 - 30 hDusehold will share about 8 toilets4 BeBid~a thElt~ tha toilets ar~ usually in a, filthy condition and not propedy rn~illtairr~"d. What is worse,. are regularly. emptied, which results in the buckets bsing full by 8v0ning, filling ths·air with EI heavy stench. Thus workers are .robbed of their human dignity \>lithhaving
to answer
nature
I:~

calI

an tile open

I,

T Iris is na tur al Ly

very unhYgienic. Once sQElin, the l~w has bBen violated~

legally there.
. '. I

It is
are used and ~/he.re for each

l"I~quil'sd under ,the \~ark~rs (Min,imum Sb?J.~dards of

Nh~l'l;l septic

I-lousing) Regulations 1986 that shall

be one seat

hnks

for

every

two d\'l'ell1ngs be one seat

pithltrill1es dwelling.
b)

a're used ,there' shell

\~a.ter Although statistic~ proudly declare that free

piped water supply is available for most plantatioll wotkersJ the rrequenoy'~nd quality of the wat~r applied is Dpen to question. PI 19$;~ NUP\v survey has indicated that very
ptant.al.i.on reatr·cted 31. s .1983). houses have 24 hour supp.ly, Supply was

r~w

to either 1 to 6 hours per day Dr 15 gallons

per hOL!IBr;l in most estates.

(lb~_~!::~_~.~!,~~~.l!12:I~~' ~

The poor quslLty of water supply has made

the pl;:;!ntatiQrl pupul.at.i.on vulnerable to L'leta!'

related

diseases

and

POOI'Ell'

standard

of

health

care ge.ner.all y .'

In plantations where piped water is available, it is uSlJally provided in a single stand. On~ stand pipe is
shared
queuing
by

as Illa.ny as" 10 - 15 houaeho Ids ,

a dai Ly crceal. 'f'or

In such cases

up for wat er is

the p.l.aht.at'Lon

wom~n and chlldrBn.

\;\'dl 'r'later usage is also Work.s Department 15 - 20 gallons the next visit
~\fhethe['
i

prevalent.

l1hen the lirnitilfd to

wells run dry during th~ drought seBsonJ the Public

lorries would supp ly water to last. for Bach household
thElI.ii until

the

~'jal:el'

C'DF'lIe6

nom

as'candpipe
Smrietimes

or.- Si t_ maybe
Qlf

Nell ~ it doss a yellowish

not al ways come c l aan, colour and

0 f tan

it carries all sorts, but the olanta.tion families have little choice.
In some plantations, the mallagement builds

res i dues,

tankS.

to ~o11ect rain Dr stream water which is supplied through pipes directly to t~B w~rkers1 hQM€& btit ther~ j~ no
g usr .sr!t B e U, a t 't h B
and pUI'i Hed.
~/a t er

ha s be !!I 11 au ffi cfent l y tr Elated

Again
e l act;r iaity

atat i sties are

supply.

indicate

t hat. almost

lOme,

0 f'

pI ant at mn workers of this

recef v ing' the belle fit of free

S!lfPpl y ~ the -regul
8.1'

A.s wI til vist!;!;!;

Hy·

faci lit.)' Ieavee

much t.o be desiI"Bd.

On big pl,ntations~ electricity

mornings beh(EHm

comes on in the
which it is

4 ~3D am
afhr

to 6: 00 alii after

cut aff.
wanting

Supply is resumed in the evening ~t about

which del'~ness
pI'BV

Z.:.QQ

E~_~!].HLlg.:.~Q_E!J:1
tOo continue

ridIs.

St udent.s burn the

studyim;J hava Eo H.t.erelly

'•.• S5

The 199"3' NUPW survBy

revaal

ed that

t.here were

Ktill houses without

elect~ipity.

A r"requE!nt compl ai.nt In mElny pl~r1tatiQns absence of any pub l.i c transpnrl~ faciHbes
Bshlte.
The. majority
j

is the
in

out of thl'l
are sHua.te.d
people
Nho

of the

plantelim'ls
Plant.8rUan

inhrjor

r-Sfflot.e a:rBas~ and cut off from the tnain~tre8m of

towns for Ine~ic:al eare ~ formal
as r ~g i at: r a t ion

act iv ity .i.n the m;l"Bres,t ,t owns.

have to go iflto
~,! h it

buamaas
0f

g ov 18 rn ment de par tm e n t s such

1

b ir 1:.11, s

dee ths forced schools

a f ford

mar r Iaqea

appUe

to th~ Labour Officet

to depend on
I

ati ons 'FraIL'ids.nti't.y cards, co!rnplaints, shoppinq, recreation and SQ on arQ

r

pit abe

taxies Children

~~hich c;h9.rg~ a heny study illg In secondary their p:uents cannot

sum and are ver.y iri'Elgw1a,r.

the high transport

in tJlB t owns drop out beeause

costs

involved.

e)

Creches

The Workers (Minimum Stsndards of Hou5ing) makes it mandatory

cI:erhes babies
irl

Act 1966
the:' r

for plantations to provide nurseries Dr

foJ:' \'iDtking while mothers to leave
't.hey atTa away at

plantations
VD~jng

and

children

work ..

~lowever

en flverage

of on 111 45~6 0 f plantations

actually

do

30" lSi

The management
maintenance accept looked a Her.
l~lthQugh afteI' are

leyally .responsible
the' chi Idren are

for the
nut,

of bhs creche, , and

but most cr echaa are 'far be1d~~ pcnper ly

ab.l s et anoards

'the Act , onl)t the suopcsed

children

under

the

age of thL'ee yet:ln, creche, c:.hHdren of

to be CI'i;lT0d far

in the

8111 s.geEi ;:ll'~ Se!nt there.

Hli.S.i$

'.. , as
becaus~ gad ens women are fur the Qut working

Bnd there arB no kihder-

:young chi Ldnen to att.end. minds!'

One child

h(f) there fcne 'to Lnok va flBI" as a

lr'll

many as 25 bn 30 chl l dnen.

some p.Lant at i.ons.,

it

is

not uncoemon to find The "Bma,h hired

and i~ teo creb!he. is

the amal1 takingl

care

of 50 children '.
t

usually

an a l der Iy L'Ioman frpm the-estat.e

to another about c eanl me ss 0 f the

~{ho has to l' t er al.I y run from one h(l~ding in rant haraased bo bother

The children

can be found eVatywh81's

some

crawling on the umlashelo f1 001", athers stumbling around and

a feN even asleep on the floor.

Some ()f the creches have rot ten pI ank 'Nall a eaten away by termites leaving gaping holes. Some creches
are Lnhated with I"sts; ccckcoeohesand CQuid expose mosqui t.oa, the The

incid~nce of these pests

v i tis"

childr8n to conjuncti'anDther 8 I'!"lsul t of

variou~ illnesses such as gaAtrn.entetrlties,

d€lngu!e and malar La . among

Diarrhoea

is also
as

cOIfi1ilH:Jn illness

pla.l1t~tion

childrel11

inf6ction

and pDor nutrition.

The AC.t also pro\! ides
the.t

the 'manaqement shoul d

the

provide,

for milk. else

~ow'evIBr this

is not always

case. toil~t
in

Nothing

is provided facilities' can bp kept

for such 99 tOYSJ p~oper

and kitchen the creche

and i-Iholesome 'L"tater in Clrder that cJ ean and food ,can be prepared

hyqaru c cund i ti ons ,

II.

EDUCAnDN There is ge--FIiBfally a lack of educational oris .i.n the facilities country plan'ta'tiorJ$

irJ plantations.
prov i ded schooling had schonl s 'for

In 1980, {lilly 199~1:1 F rubber (.rhile only

l6~~ of oil
I

rlantati

palm an0 27'~~,of coconut

t~1eir L'mrk,Elr s

children.
poorly

These schools have been found to be lated cr®mp~d and overcrowded.

construct~dt badly venti-

Most plsntationq have ntimary ~choo16 only.

• •• 87

After

SlX

years

of' prima!'}' educat Ion,

situated
of transport

the at.udent a will tn'lsfer: t o secondNany drop out of

which dr Lves

clary 5ch·0018 Wllich are

schoo l

Ouhl.ide the plant8.lj ons , prnb.l

em and poverty

a1togeth8l' the

because

t.he~1 to jotn There

plantation

'NDrkfotce

to, 8.l.Igment. tht'i rand 1]" Lncome,

ledut.!ab.ion () f

is a. lack; of_ policy

er dil'ec·t ion towards

pI antation

~hildren and this is obvious irt ths neglBct by the education Buthorities.
There are no real ol.assccom Leasona conducted

ill ·an atmosphEln~ that encoul'a·geSl

learning..

The ne is also

a lack

of trainedteacheI:s~
scheol.s
op.t!I"Hte
hliiO

N,ol'ml!!llly the classes

.in plantation

like

this..

The

cl.aesrcom teacher

"'lhich

is qui t.e small 1 here

is ths

partitioned two e l.aases

Lnt.o

sect.Lons , one f'or A there en one.

Bach ~standsrd. are insufficient

is usual l y only one cl.aearoom ThB teacher

for l3Iac:h s..t, ndar d, a

would be supervising teachers.

at the same time because

~·1i1l spend some h,,1Bnty mmutes

standard, then move to the o·there-he! of the room to bsach the oU"Jerc1.ass,.
A 1992 ·Socia that .Qnly 20%
0f

Ecnnemi.c

RE!ssar'eh
'I

Uinit survey children the

of 28 p l ent at Ione
lOMU

revealed ficate of Eduuntver-

p Lant at i on \~ot'k~rs (about

I

reac:heo the, Of these

ee rl:i

of Education

level

15 yest's children oflildr.en

19B4)

of age). r aached ever

11:186

than

hal f paased.

Only ,5. 5~mof hhe v(orkers Dilly

sit
6

~~alaysian·'Certificate let alone completed

cation Level, (about 17 years of age) and of these l~ss than a quarter passed.
minub~
I),

3~~ 0 f these
(C.lad1

started,

Lava.I st!!Jdies.

The p.1sntatiQ!1i manaqemerrt provf.dea

a1 nee ..l~· of the ItWrk®r.8' CI1i1dr.e.n.

lit-tle

suppcct

towards

the

~ducatil('m-

In 19£:lO, onlyn~

of ~llJbber plontati.ot'lsJ

and 33%

0f

pine-appl e plantat ""'hile ceconut

ions

pr ov ided

transport

fad 1it ie:!? fur achonk(Labour

going children

iand tea eat abes did not p·rovide. any,

Indicators 1981 - 1982)

Hence, dupportive ties
.al I

the sodo-economic facilities from the

dElcli.

st at.us of plantation plantation

at.at

worker's of p Iant

and the lack authoriI

of ,

management and gDvernment educat

i on

lead

to

the

rumq

0f

ab i on

eh.i Ldnen

• •• 88

- .........

VI. ...,.,..",----UNCERTAIN --,FUTURE AN ----~-- ..... _- ....... .

..._
..",._,

The plight greater migration

for Indonesian importation,D

0f

Impcver islll~d pl ant.at.Ion

tlO!/i'

Norkers must be

V] ewed ~lit

h
: the

concern especially
F fOl'sig'l

that This

~hey are f~ced ittith a ne\1 threat

i s t h~ goVel'nm~ht
j

1abnur ,

E SJnswer to

tn,Po
the

of Nor~rs
go.v.6rnmenli.: and other

out of t he ag~.icultu)::'8,l anaaa to.' W'e urban

has ,dJ.'eady bee", sigrled 1'·.'1~19,ys with a
0

factories

elilployrm!l.nt.

An agreernlB'rrt

in t~ay 1984 with

to supply
pr-obl ems

workers for
Indone'3ian" \"lill only

her plantations.
Lankan,

The e f'feds Banl',Jladeshi and

0f

Irnport ing workers

l'

Sri

Ind.i.an,
they

Asean migrant

be known once

arrive that
fr't..dts di.sadvent

and jstar t wcrk.

and pluckin9
0f

ror

mst.ance
skill~
e ra

an irnm~diate
L·/hiclh have

observation

is the

fact
p~lill

soms amount of ski U is l'sql..li r~d in t,apping

t.aa leaves, growing Labour

rubber , ~lal"'ve~Ht1g[)il
.'~p,att from this

bSM acqui r-sd from E)(per.it o work ·for lower a 11 v Inq,

ene.€) and year a

aqe , \'ia.gEls and se t tle F"urtherernove,

up and working
work inq

in pJ.antat f ons ,
be \.,rilling

imn1igr~nt
for 't is still

«ou.Ld al.so c nndi tians·

poorer

in ord® t to earn

not; c ear vthich au'thoritiss will be r aspcnsdbke

For the welfare

of the p l
..

of these workers.
are

Th~ pr~sent
I

social and cultural

problemg
with the.

f:intationworkforce
of an alien

definit.el

Y gQ,ill~ to be compounded midst.

'ta,l:Jpers are in the

presence

pepul.at Icn if'! their 150,

In the wBging

meant irne , about

ono

rubber

mi ddl e of a P Jantat Ion The tusal e is

ccnt.rcver

sy b6lt Wl8">sn their union,

the National
0f

Union of f'erce) .
1982

Workers

and their emplcyers~

QUE'5t

the Malaysian Agricultural

th~
Itwl'k

Producers Association

(r epresen ting latge over '~ht;

ion

est ates enqjloy.ing Elmii o f basic

mcnthl Y waqea Inst.ead

of dat l y r~ ted v;ir!g·e~ for' thel'

~lj and the

rubber tappen.

The

agreement expiI"ed
predi.ot.ed

on D€.cernber

past

20

mo~thB negotiations

b~~we~n the two parties have lad to an impasse

I t is t h~';It inev itabl y t.ha matter will

(~~!!!~!
have to

~~~~~f~~' 1984).
up in

end

the This

indus-trial Court for determination.

issue has far reachiriq implications for 2-50, DOll Dither da i Iy rated

wo~kers in the plantation

industry.

(!~~_~~~~§~E~!!!_!!!~!' 25.11~84).
Third t'1el:;!ysia Plan l'ecf)grll.i,_ed
stgpPBd

AHl1our;}h the government

on

its

plantation

~H)rkers as a poverty

qroup , it. has not

effecl:ivBl~!

in to improve

their

• .. 89'

~tBI"l\Ial"d of 11ving I:ially ar~ not forced been left only

or quality

0f
:::!

H fe.

The plantation
havs for the post

workers
0f

have esseni ndust!'y besn - th~y

at thl2' rnL!rc},

r 111'111 capllalis'~ rarc:es

the

mBSnS nf prodlu::til[]iln.they Lhe riak of uncartl'llintii~s

.WEI years
~rith en

t c bear

In the

industry

ullfai:r

wag'e

uy~tem.

Ta top It all~ their d1gn1t, as human beings enlilled to a decent Workers livB9 are socially enqin~ered
needs and 1'!ml"nHJaa , cOI'll:1"ol nf mllrl!l~gemenl:. over basic

living ~nvironmBnt is disregarded.

lj~ the central

Thay

are al~o djQmj5B~d if th~y rei5s any objectiues. lhe g~vernment should take 8 herd look at lhe declining p02iLi~1 of the ~1~nl9tioM w~rkrcrca ~nd work to improve thefr IJvJng ccndilions 1n th9
fol1Qwi ng vl'[ilya; i)

SUPlJof'i: t hei r ~E1H for a rev is LOn of UU.:li r ~.Jag'est ructure

for IfliuiJ1lUI1! rnofllthly \\lagee.

iii)

Ensure that workers health is net neglected And th9t pr~p~r

l!1edical

facilities
irnp·.l"DV]ng

service plantations,.

iv}

Look into

and suppo.ding

educat Ional

opp,qrtunities

far p18ntetion children. v) Conduct reg,ulal" inspections the! r labour. r ig,htaaI'le

Vi) Send.in ,on plant.ations.

to ensu re l hat

not bei ng\l.i'Olat.ed.

lliiforll'lg't 1on ~ Publ Le Heal th and Social Welifa:m intol

depar-tmertt a more regulf!rly

phntsUons

to

edueat.e

and a~si8t plantation

heaHh car
B

rolk in labour

rightB~ proper

ands(]

Oil.

vii)

Devis~ mea3ures to eradicate poverty and the debt cycle of

Lhe l)l;1l!f'lht
i011

wCilr1,force,

for

inst ... ee by pmviiling n small

ElSS~F11

""asy ~ntEi r-

crerJi t fae i li ties pr Laes in the

flor U,em to stat't

t i.al

plantations •.

••• 90

PAR"f THffEE

THE SQUAT[ER PROBLEM IN MALAYSIA

1.

HIE EXTENT Dr SQUATTE,R SETTl[t.t[NTS

In
ah,d urban

t~Ell B)' 6i

a ~ squatters
However,

0l'1;)

very much

81

l'saH ty today both

is

in the rur-al
around

at-eaa,

the inciO'Br1C;®:Q f squat brig

the bul.k
Q

much Mgher

urban aroas 1 ik,s Kuala country.

lumpur,

JohoI' Baru and Geor.getown '.

It Ls the squatt ere

in the cHi'e.s and to.wns v,lha const.itube

the urban poor in the

A sqatter is generally one who is too poor to rent

'tell

or
takes

purchase

a pl~ce
Q

stay

and be'caus€l of thi s he 'i1Jleg~,ll y' occup.Ies

01'

pcsseaetcn

land. In
(iii

S [uat t.er setUement,

the htHJsin:g is genera,lly that can be flo'urtd. ,

of peer qual It.y of housing

and mada uf I</hatever rnatei.r'als

The quality

is poor not beGausethl'l:

people: are unab.l to, build e

better homes but because

or

the Inaeeur it Y
Ha'r'ieV6rJ

0f

land tenut"8.
.i.nst ancaa whel~,e some squat

I;:.here ere

te r houses are 1/'l,Iel1 built

are plagued with hazards ~

ami of good quality. fire

GenE'!.taI1yr hOWeV6'I', mast ,settlement~

j

problems LLke ponr 5Bn~t8itiqn

dr~in~ge

and wflt.e.r-.supply ~ health,

hazar ds and flooding.

SinlJl3 Lndependence , the squat er popul.at rcn has increased tremendClusly

In Lhe country

and the trend

of rapid

trans,nationaliz.ation

and mnderrti.zet.Lon

only fD~ecaets an escalation

In ISl73 T the Fede:ral

of the p~oblem.
hn:itory had ,)6,000 s.qu,attn. fBlJl'liliBS and 200,000

squatters or 25% of the papulation.

Klang Valley squatter has 1:mol1en to 400! 000. Increased

Since thent in 1960 the figure has ari~ln

in Kuala lum.p'l.II' and \'lithin

to 4m~, of thB popul at.Ion and the aquat t er population

sepan

of Dilly seven years,

the

pnpul at i.on had

dramahfcal.Ly.

• •• ,91 I n JollaI.' Baru anothar maj town ~ the sqLJatt.ersettlefnerrls l'sgi a-

()I'

teted a 60 per cent incrB8s9 over the last cr eaainq a t Ell vary f~:U3t rat e.
1 twas onl y early

tWD

years and are still in-

last year
ami piece

that

about

200 ~DOD squat teNl

occupy ihlg

railway
ws>' for only to

reserve

land DVBr the cDuntry

h8V~

were threatened
been forced

by eviction to make Author .i tie-SF to move elseNhere

fut ure expans.ion

squat on anoth~r

dave.Iapnent
@l:ready of land. being

by the MalaySlFl Railway

Sillce tlll~m, many Qommunities

The ~1alayan R,Elih19ys

(KIM)

one o f th.9 ear 1iesjt

statutory

'bodies
0f

6shblishad
is. tuday 'thus one of

11l the country

the 1ar,gest

has over t he years acquired

int

large
and

parnaLs
port
B•

What

consi d!:!t.Bd pr imEl 1 and 9Cat t er ed near 1andnwnera

ur.bani3ri!!!ijEj

It .i.s

he count.ry , ~dt.h about

12 ~0.00 hectares

in t4alaysia and 2JO hi.!tcta1"es in Singapore"

lured Jess migrants to towns' by .johs and thB promise If>lorkpI aee, sprang up. of
8:

bet'cer

11 fe,

the

poor

home-

e stablished

1- eJll'lnel ves on these h Lo their courts

unused h.'9C":lS '0f lands

OVIB tine' years r New families eMtiI:€:

willel,
C'ommUini-

W€'I'e convenf.ent l y near

tie~ appsared.
hells and even remaining

In some areaB~ BchoDl~~ ~osqueSt temples~ ShDP~, community

batimifltO.l1 'squeezed
tOI

into

and rll;)aI.'by areas

0,1' into

ingenious

e))t.enslcfls

existing

hcuees ,

Somerdlway

communities ha.ve:be~n un raUw;:;IY land for sev£!!ral

the extent
0 f the squat. t.ar problem

decades.
we be squatof plantheir

In discu~6ing shOUld also

ill .Malaysia;

conai del' th~ large

number (If peop le I(/hio ar'e dcomsd to

ters.
t.ation job~

~~ith regard to thisJ workers

whose lose

it is .r€llev~mt
have

to COl1sid'er

the plight

employment

been tel"minate-d ~

Once they lose no othe.r

t hey also

't.heil' places to st ay , p.lant.at lons

·.0 f

~,tost of thBm have

alternativB but to b®come squatters.

waI"kers in about 10 large
wi th (jispl acement and loss

Iil Sslengor, ror. example, since 1980

have been displaoed or threatene'd
0f

jobs bv the sale

these

estates

- -----~----~
pr-ivata owners

Straits limea. 9.4.1984).

.

(!~~~~~~ ,
01"

The ·estates
to

were acquired
put to

by tt\e qovernment uses,

mal-nly

For dsve Icpment

by

di ffBrent

houai ng Rnd cQllltnerdal

dEivelopment.

• •• 92.

Difficult as it is to get a job when one is in hie 40$ or 5Dar

hou8i.ng

i!!'. 'the biggest Selangof li fe.

the

prob.Iem

faced by these est~te hrrii.

Dr;l

wotkers. prospects

In housing
0

starved
sq uatt.er t.owards

and Federal quart.era

di sp.l aced WClrk:p.rs ara clinging a.lteranative

fa

desperat.e l y to their

as thf!Y face
the}1

The compensation

rece i ve is har:d~:y e.l1ough to go

dCl\~n payment

nor a house.
pert inent. to ecrts i.der the future Licences
(T. (1. L. ) •
0f

In ·this concext , it is also

U
1/ ing

those

en lands

1'191 under TelllpOl'1liry Olccupatiorl d

nne

T .Il.L, s

are grantBd at the d±~crBtion of the State AuthDrity.

fOr:!: a per Ind not p·)(ceet1ing They are not capable: year and· they
B.r-e subject

T.O.L.s

are issued
annual! y •

to r·ermwal

of bein9

transferred

to' anyone

by the

per-scn Lo whom

they ar.e iSBulEfd. Once the I.D.L. Bxpired·and no F~~~wal is granted} the CCDUp~rits may
be furced much Larqer

r.o

become squatters. 'than theafficial

Added together., e·stimat.es.,

squatter

pop·ul'atiolls are autemat.i eal.Ly

SquattE!T figln~li3~ are

inn at.ed each, time ths state the land for ' development' .
out flow sett.Iera,

refusea Thus,

to renew the T. O. L. because I;hs. at abe uae s this

I'

it needs
to

1BgM mechanism

n,

---~---------------------------A survey Administ ration proportion

1

ETHNIC

DISTRIBUT

ION OF SQUA.TTERS
0f

car r Ied out on some 2 ~000 aquat b=rrs In 1~7.3. (Inst itut€) 19SO) sh~\~~d the ethnic was o'nly dis'tl'ibution
0f

Public

squatter survey,

houssholds where the

as - 25.]9~ r~alaYt

6L19~ fndialn compan1lQ I'lith

1 1%6/68

of~1alay

:2:r1. 6~Q, Chinese 67.8% and Indi.an

u.es.
A more recent survey of squat tees in

1978 ~ho\>(ed that:. ttier!;l Lurnp tl r 38% Chin8sesnd population

't(er-~

ap PI' ox im at e.l y 240 J 000 aq IIJ at

t B r s sea t t 13red al l over Ku813

Malay's,

rc i t Y Ha11,
151;; Indi an,

Kuehl

l.umpur },

About

47% of them were

Over a span of 6 years .,~he. r~a.lay squatter its b size, whil~the 1"1I:::n-I'1el squatter ay

has doubled , This

popul at.i on is al so tncreaatnq

at tr ibuted to tht" implellTl,~.nta.tjon (J f tile Nliw Economic: Policy during thE 1970's to restructure ~ociety by encouraging Malays to participate In urban

• •• 9.3

secbcr s leading 1978 survey

be the

mi qr at i.on of more Halays out n f t he t ct.al

to the d ty .

I nosed the in Kual a Lumpur

sJl0WS

thst

number of squat tel's

77% were migrant

squatters

~ comiFlg from thB si:.ate.s of Ke l arrt an, lrengg'anu,

Kedah~ SEll E;I rig Ol" , Per!?k and Hralecca.

III• paOBLE~lS F liCEP BY SQUAn ERS Squatter.s t~inishy of Public face
numeto'U8

~---------~----~~-=----~~-~
prob l.ema, According to a 19E1OIepoJ;t r
by the t'Led to of' redfl['Sl TerrH:.ory

on r ~!~~~!::lSL~!~b'_H!!L~E~~!:L~.£'~! (InsHtube problems were identi

I,

Administntion,

lS'-SO) the following

e~i~t among squatters:

2.
j.

lack

of professional sect.or

6'ld118 for

the urban

employment

market;

IrtfoI'm~l incenti

activities

ate not prov Lded with formal

houses f.
I

sufficient
j,

vea and support

which t'avcur the low-eost

seccor

4,

.Inadequat.a

hotJ!lling espec.i.aLl.y

5,.

Land

use

Inf'r aet ruct ure

and other

economi c polio-ies
per Ipher-al areaiS and acti v iUes;

•push-c ff' 6. Deve'lopment

the poor t.o unwant.ed

plans for '~he urban poor are made by thB middle

class with a middle cla~s bi~s;

7. lIigh ili~idence nf malnutrition among urban poor chi.Idrsn,

especially among Malays~

8. School chill oren are usad t.n supplement famil y inuomes;

~. Low level of educatjon of children~ youth ahd adults;

10. The urban desigfled poor are rIOt consuUed to bena fit them i on dsvelopment pl~ns

11.

lack of basic commurnity amenities;

• •• '94,

12.

High Ine i.dence of food and watST~,bornB

pOOI:' tlI'sa.St

di.seases

an t.he

IS,

8reakclcwm of farl1il ie's urban poor families.

alYiOf1lg

~sigrd

fic,snt

number

of

IV.

CAUSES =._...",..,...,.""'" THE EX! 51 ENCE -= SQ,UA """,_'_.". fOB OF ..... HERS
....._."""'! _

=.",.,...

=."....._".._.""."""""

...",....,,..,,__"....

~_

•...J

The unconb'oHed
urban areas rent.al.a,
in

drift
Q

0'( p£NJple

from I:he rut ~1 ,to

a sudden
d®InBiIlIQ

in search

J obs

creates
.,

for
iitr)Q

bouaes in the cities.

Due to the ~hiOrta,ge of houses rural

high

r,he irHtrig'T.'(3ting

people havs difficu It Les

thEft'8fn:E:'B

r:i'l!d~in.g a place tc stmY;]lnd are

Th I

h:n.'cl!ldto

aquat..

i t', K1 ne m.g l' (~LlOfl r..... e Irit 0.' , U8"9' 'L umpLllt' '...t _ ,', 8nnUIQ (i ts growth

1"... ",'

19' "'I£" was :lhJOY' .kI. " {~ pe,~ ,ann.um).

41,p,e,I' (::E!nt per (Nija.r

j

~!as 2.5

pel" oent

1979) unbal anced na cure of developurban

Low produGt.i v it y and the ment

CaJ1

be eaJd to be the push f'act'or s in the' tur,al

fdgrat:i.on.

In rural mreas. low productivity

of' 1andl€!$lSneM
by'
B~

refleots the problem

Riz:p 0

weU

a~ t.he inadequat~

f I~nd l"Iel d

U,B

pe·~5)af1kq.

The unbalanced nature of development whereby inV8stIDent into the .sgr Ieult.urul
B['E!"S6

pea.8ant

eeet or is marginal

whilst

that in the uitban 'tion

is relatively

high has B~{a,ct:l'rbat@d

th~ prabl~m of pOvBrty. cultuul

e,n;:S1ll;5.

fhiA r,sults in the indu~triali2aneg'!ect of thE! r-ur-al aqr.i

«

of the u:rbBnar~'8s and the