UNIVERSITI UTARA MALAYSIA

COLLEGE OF LAW, GOVERNMENT

&
INTERNATIONAL STUDIES

FPA 2233
MALAYSIA’S FOREIGN POLICY
(GROUP B)

INDIVIDUAL ASSIGNMENT

PREPARED BY:
SHAHRIL SALLEH (70441)
SUBMITTED TO:
PROF. MADYA DR ARIFFIN

SUBMISSION DATE:
28TH FEBRUARY 2008

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To what extent was the foreign policy of the Mahathir era (1981 onwards) a departure

from normal course of Malaysian foreign policy alignment?

Who’s who?

Tun Dr. Mahathir was born on December 20 1925 in Alor Setar, Kedah. He begins his

active involvement in political arena in 1945 by joining anti-Malayan Union campaign.

In 1946, he joins UMNO and excels his career as a committed politician since then. Tun

Dr. Mahathir Mohamad became Malaysia’s Prime Minister in 16th July 1981 succeeding

the place of Tun Hussein Onn1. He is Malaysia’s fourth Prime Minister. In his era of

administration, he portrays lot of changes to Malaysia’s foreign policy and projected it

out from previous alignment of the foreign policy.

Under Mahathir’s leadership, Malaysia has experience lots of reform and changes

in domestic constitution. The same thing does occur in Malaysia’s foreign policy which is

dramatically adopting a new approach. This new direction was the result of Mahathir’s

point of view which is differs from the previous Prime Minister. He views the world that

the wealth, developed nations is discriminating against the poor and weak countries. By

this perspective, Mahathir wants Malaysia to be a competitive nation in all terms,

especially in economic progress without total assistance from the west.

1
Ruslan Zainuddin, Sejarah Malaysia 2nd ed., Fajar Bakti, Shah Alam (2003), pg. 848.

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 Mahathir’s made policy - a paradigm leap

Before Mahathir’s era, Malaysia is non-industrial oriented country and depends mostly

on rubber and tin as a source of income. Malaysia’s economic partners at that period of

time are mostly from regional state and the west especially Britain. Malaysia seem to

depends on limited resource and prefer on western assistance since it independency. In

order to be a develop country; Mahathir stated that Malaysia had to have a variety of

economic resource. One way to generate variety of resource, Malaysia had to be

industrialized.

Mahathir put on a priority to enrich Malaysia’s competency in terms of economy

by promoting industrialization and development in manufacturing sectors. This policy

were happily accepted and supported by all Malaysian. In the early period of Mahathir’s

administration, he announced the ‘look to the East’ policy.2 According to Chamil Wariya

(1989), there were three main factors that projected Mahathir’s ideas. First, he sees Japan,

an eastern nation, triumph to become a fully industrialized and developed nation in a

short period. Secondly, he was disappointed with western ways that have decreasingly or

failed to maintain productivity, lack of work ethics and facing lot of managing problem.

Thirdly, Japan, South Korea and Taiwan are potentially competence in assisting

Malaysia’s economic growth, especially in terms of investment, marketing and

technological transfer in long term period.

2
Ahmad Nizar Yaakub, Malaysia Di Persada Antarabangsa, The Sarawak Press, Kuching (2003), pg. 71.

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 Its takes a long time to achieve his ambitious goals and by that reason, as

Mahathir took some progressive approach with his ‘new’ policy, Malaysia receive an

increasing investment from Japan and South Korea. He personally planned a national

automotive project to give momentum to industrial development with assistance of

Japanese technology. In 1984, Proton Saga was launched and become Malaysia’s first

national car. This is the significant transformation of Malaysia into a newly industrialized

country.3

In 1981, Mahathir announced ‘buy British last’ policy.4 ‘Buy British last’ policy

doesn’t meant that Malaysia had dismiss its diplomatic ties with Britain, but, however

does indicates turmoil in trade and economic symbiosis for both country 5. In this policy,

Malaysia put no priority on British product but prefers the same product from other

country as alternatives. This act openly shows that Malaysian was boycotting British

made goods.

There were many reasons on why Mahathir adopt this kind of policy. First of all,

Mahathir ponder that British underestimated their former colony in terms of economic

capabilities and did not promote equal and balanced trade with them. Mahathir makes a

controversial action by dawn raiding British’s share in Guthrie corporation. It can open

the British eyes on how fragile their economic well-being if they still carry on their

perspective on down grading the third world market. Other reason for Mahathir’s ‘buy

3
Ahmad Nizar Yaakub, Malaysia Di Persada Antarabangsa, The Sarawak Press, Kuching (2003), pg. 73.
4
Ahmad Nizar Yaakub, Malaysia Di Persada Antarabangsa, The Sarawak Press, Kuching (2003), pg. 69.
5
Ruslan Zainuddin, Sejarah Malaysia 2nd ed., Fajar Bakti, Shah Alam (2003), pg. 848.

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British last’ policy is a counter-reaction to British action which implementing an unfair

educational fee on foreign student from developing countries.6

In 1983, Britain decided to improve upon its relation with Malaysia as their export

to Malaysia was declining rapidly. Margaret Thatcher had made an official visit to

Malaysia to conclude this matters and this issue finally resolved. For an overview,

Mahathir was the first Malaysian prime minister who doesn’t favor the British and

labeled as anti-western leaders by western media. It significantly shows an alter point on

Malaysia’s previous policy and it is proven that Mahathir act unorthodoxly.

Historically, since gaining independence from Britain, Malaysia or at that time

known as Malaya had a tight relation with its former colonial nation. Tunku Abdul

Rahman, the first Malaya’s prime minister had a devotion to be prone with Britain and

indulge a pro-west policy or in political terms known as pragmatic conservatism.7 In the

time Tunku Abdul Rahman was a leader, Malaya faced a lot of political hardness

especially in confronting the rising of communism in South East Asia. Relying on British

assistance especially on military and political aspect, is one way to ensure Malaya did not

fall into the communist hand. As a new formed nation, Tunku Abdul Rahman stands for

its pro-west and anti-communist policy to assure its security and interest. In fact, Tunku

had signed the Anglo-Malayan Defence Agreement (AMDA) in collaboration with the

British in 12th October 1957, few months after Malaya gain its independence and this

agreement had been constructed years before Malaya’s independence declaration was

6
Ahmad Nizar Yaakub, Malaysia Di Persada Antarabangsa, The Sarawak Press, Kuching (2003), pg. 70.
7
Ahmad Nizar Yaakub, Malaysia Di Persada Antarabangsa, The Sarawak Press, Kuching (2003), pg. 33.

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made, to be precise, in 16th April 1956.8 This agreement officially ties Malaya’s security

dependency with foreign force especially the British.

The later prime minister, Tun Abdul Razak and Tun Hussein Onn continues most

of the pro-west policy but, however its not for long as it shifted to non-alignment and

neutrality policy. When the leadership of Malaysia shifted into Mahathir’s hand, he

further changes the foreign policy orientation. At Mahathir time, communism seems not

to be a major threat and he can focus on Malaysia’s capabilities to stand on its own feet. 9

Mahathir also altered the priority list on Malaysia’s foreign policy.

According to Chamil Wariya (1989), Mahathir emphasized the interaction among

Malaysia and outside world in a certain sorties, first; ASEAN; secondly, Muslim nation;

third, non-aligned nations; fourthly, the Commonwealth state and the last on the list, the

nation that had nothing related to what hat been stated in the phrase. Western nation is

not a priority in his policy. The statement show Malaysia is no longer wants to rely on

western help forever. The Commonwealth nations also not putted on the top of the list

such as Tunku Abdul Rahman era. The shift of policy made by Mahathir is a departure

from normal course of Malaysian foreign policy alignment.

Regarding Malaysia interaction within the Commonwealth nations; in its early

formation, Malaya’s foreign policy gives main priority to the member of Commonwealth
8
Mohd bin Samsudin, Kajian Dasar Luar Malaysia: Penglibatan pertahanan dan Keselamatan Negara-
negara Komanwel di Malaysia (1957-1971), Fakulti Sains Kemasyarakatan dan Kemanusiaan UKM,Bangi,
(1995). Pg. 12
9
Chamil Wariya, Ahmad Faiz, Rosnah Majid & Pathmanathan, Seminar Kefahaman Dasar Luar Malaysia
.Anjuran Sekolah Pengajian Asasi, UUM, (1991), pg.11.

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organization.10 Tunku Abdul Rahman believes Malaya will receive lot of benefit by being

an active member of the organization in terms of economic development and political

well-being. For instance, Malaya’s economic well-being at that time is still controlled by

British based corporation mostly in estate, service, mining and petroleum sectors. In

addition, Britain was the biggest market for Malaya’s export commodities. As a member

of Commonwealth organization, Malaya enjoys low export taxes to Britain. Malaya also

receives benefit in terms of education, technical assistance, and funding from

commonwealth members especially the more developed one such as New Zealand,

Australia, Canada and Britain in creating Malaya’s survival.

In Mahathir era, commonwealth is no longer a priority for idealizing Malaysia’s

foreign policy as it enjoys a rapid and consistent economic growth and political stability.

Malaysia is self-sustainable and to that extent, Mahathir puts commonwealth priority to

be placed on the fourth list of Malaysia’s priority and, also with this justification,

Mahathir dare to challenge the British in his act of dawn raiding British’s share in

Guthrie corporation and deploy the ‘ buy British last’ policy.

Mathathir makes an action to strengthen ASEAN economically so it could emerge

as a strong bargaining entity to counter the west especially the European Union (E.U) and

America. Mahathir pursued a regionalist especially with ASEAN members and pro-South

policy with at times strident anti-Western rhetoric. He promotes South-to-South

cooperation by setting up a South Commission. He long sought to establish an East Asian

10
Ahmad Nizar Yaakub, Malaysia Di Persada Antarabangsa, The Sarawak Press, Kuching (2003), pg. 37.

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Economic Group as an alternative to APEC, excluding Australia, New Zealand and the

Americas, and during his premiership Malaysia signed up to an ASEAN Free Trade Area

(AFTA) and ASEAN+3, a regional forum with China, Japan and South Korea. He also

was involved with a spat with Australian Prime Minister Paul Keating, who called him a

“recalcitrant” after he refused to attend the APEC summit in Seattle.

Malaysia views regional cooperation as the cornerstone of its foreign policy.

Malaysia was a leading advocate of expanding ASEAN’s membership to include Laos,

Vietnam, and Myanmar, arguing that “constructive engagement” with these countries,

especially Burma, will help bring political and economic changes. Malaysia concerns a

stable environment especially on its own neighborhood. It is a fundamental reason for the

establishment of ASEAN in 1967, which it function as a security dialogue. Nowadays

ASEAN is one of the most influenced regional organizations in terms of economy.11

Beside that, Mahathir also emphasize regional cooperation as it was a proper

place for Malaysian product to be market. Malaysia is also a member of G-15 and G-77

economic groupings. In 1990, Kuala Lumpur held the first major meeting of G-15, a

counterpart of the strong developed nation group, the G-7. The G-15 meeting that were

held discuss and focused trade and technical aid to such countries as Mali, Maldives,

Papua New Guinea and Mauritius. Mahathir seem to deploy Malaysia’s interest in the

less developing countries as he sees a huge opportunities to be a pioneer in developing

11
Chamil Wariya, Ahmad Faiz, Rosnah Majid & Pathmanathan,Seminar Kefahaman Dasar Luar Malaysia
.Anjuran Sekolah Pengajian Asasi, UUM, (1991), pg. 14.

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theirs. It’s a quite good reputation for Malaysia to be a renowned nation in the eyes of the

world.

Mahathir also enforce Malaysia’s involvement with Islamic country as the former

Prime Minister before him would do. However, he added economic dimension to his

policy as it can strengthen the ‘Muslim Ummah’ in term of economic power to pressure

the west. It is an effort to make Muslims country to balance the flow of wealth from

being dominated by the strong west economic entity.

Mahathir’s idiosyncratic.

In domestic level of his politic service, Mahathir is considered as an outspoken, daring,

intelligence, and he lives in the day of full of challenges.12 He had a far vision towards

creating its own Malaysia. He is gifted with an idiosyncratic way of thinking.

Idiosyncratic means a particular way of behaving and thinking especially when it is

unusual.13 Another definition explaining idiosyncratic as unusual habit or way of

behaving and thinking that someone has.14

One proves to show he act such way is portraying on his policy of ‘vision 2020’

that announced in 1991. The content on the policy is to transform Malaysia to be a fully

12
S.H Alattas, Hantu Bukit Cina , Penerbit Al-Nujum Sdn. Bhd., Kuala Lumpur, (1985) pg 150.
13
Oxford Advanced Learner’s Dictionary 7th ed., Oxford University Press, (2005) pg. 740.
14
Longman, Dictionary of Contemporary English 4th ed., Pearson Education Ltd., (2003), pg. 805.

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developed country incoming year of 2020. This may look as a domestic policy but, in

fact, this policy determines Malaysia effort to participate more actively in global arena in

terms of seeking for investor and technological transfer or assistant. This show the policy

had both interest on domestic and foreign interest.

Since then, Malaysia seeks for the world acknowledgement in more aggressive

way. Drastically, Malaysia involve in the international arena by joined economic

improvement parties, the building of national monument that portrays Malaysia’s

capabilities such as the Telecom tower and the world highest building, KLCC. Rapid

growth is visualized to the world as it can convince foreign investor to make business in

Malaysia. In early 1990s, Malaysia’s manufacturing productivity arises as Malaysia have

been recoded to be the biggest air-conditioning producer and after that, has exploited a

new form of industry that is semi-conductor and silicon product.

In 1997, South East Asia region had been struck by economic crisis and Mahathir

took an idiosyncratic approach on facing it. Mahathir broke the IMF approach and

impose capital control, saving the country from the worst effect of the crisis. 15 This might

be Mahathir most genius decision and held the world respect for him and for Malaysia

generally. His policy makes Malaysian notice that their country are totally sustainable

and capable to survive on the worse situation. Most country, which had loan the IMF

fund do recover from the crisis, but they are tied with a large deficit to pay back the loan

in long term period. Indonesia for example, suffers a lot of deficit since they are tied to

repay the loan.

15
Walden Bello, The Crisis of Multilateralism, Emerald Virtual Publishing, C.A (2006), pg 2.

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Conclusion

After entering 1980s, Malaysia is drastically involved in international arena in aggressive

way. It indicates Malaysia is mature enough in making its own way and fully independent

to address its policy. For example, Malaysia openly condemned apartheid policy in

CHOGM meeting in Kuala Lumpur on 1989. Malaysia does oppose apartheid policy

since Tunku Abdul Rahman era, but Tunku Abdul Rahman only lightly criticized it as he

tolerated the British in non-offensive manner. The same goes to the Palestine issue.

Mahathir seriously condemned Israel’s offensive and slaughter that they made upon

Palestinian. He also had being labeled as an Anti-Semitic leader by western media as he

openly criticized the Jewish people for their brutal act. As it does, mahathir remain to do

so.

Mahathir himself receive a lot of critics in implementing his policy. Prof. Jomo K.

Sundram personally critics Mahathir ‘look to the East’ policy as unbalanced treats. Japan

acquires more benefit compared to Malaysia in terms of trade stated on his book, “Suria

Terbenam Jua: Ajaran Pandang Ke Timur”. Meanwhile, at the same time, Dr. John

Saravanamutu argue that the policy only profits Japan as Malaysia’s economy being

capsize by most Japanese major companies. In addition, in two-way trade relation,

Malaysia only manage to export raw material to Japan but Malaysia’s manufactured

product hardly can penetrate Japanese market.16 However, Mahathir manage to solve this
16
Ahmad Nizar Yaakub, Malaysia Di Persada Antarabangsa, The Sarawak Press, Kuching (2003), pg. 72.
.

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problem by helding numbers of forum such as the First Colloquium between Malaysia

and Japan in 1984. In this occasion, Mahathir summon Japan not to adapt colonial way of

economic relation but convince Japan to receive more on Malaysia’s import.

Despite the critics arisen, Mahathir manage to stay in control and under his

leadership, Malaysia is growing fast to be a fully develop country. Although it still

pending, Malaysian are assure that one day, their nation will achieve the dream of ‘vision

2020’. Mahathir will remain as a great leader as Malaysian describes him ‘the father of

modernization’. With his outstanding policy and astonishing leadership, Malaysia had

become a roll model nation for the developing country and some of them want to adopt

‘The Look to Malaysia’ policy. Malaysia’s commitment to makes its own way in global

arena continues their previous leader hardship to take care of the nation. Even though

Mahathir make a lot of drastic decision that alter the way of the ‘old Malaysia’ in

conducting its foreign affairs, it still remain its fundamental basis as Malaysia still

capable to work side-by-side with all nation in the world including the ‘west block’. In

overall, Malaysia’s interest and its objective remain the same since the beginning Tunku

Abdul Rahman era but the approach had been altered a bit by bit with his successors until

drastically transform by Mahathir.

Mahathir held the post of Malaysia’s Prime Minister for 22 years from 1981 to

2003, making him Malaysia's longest-serving Prime Minister, and one of the longest-

serving leaders in Asia. During his term in office, he was credited for engineering

Malaysia's rapid modernization Mahathir is also known for his criticisms of western and

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developed countries; it was his ‘trademark’. Malaysia has yet to fill the list of developed

nation, but one day, Malaysia will cheer-‘mission accomplish’. All thanks rewarded to

their genius leader, Tunku Abdul Rahman, Tunku Abdul Razak, Tun Hussein Onn, Tun

Mahathir Mohamad, Dato’ Abdullah Badawi and so forth to those incoming leader for

their effort to make Malaysia a better place to live and to be proud on.

Bibliography

13
Ahmad Nizar Yaakub, Malaysia Di Persada Antarabangsa, The Sarawak Press,
Kuching, 2003.

Alattas, S.H, Hantu Bukit Cina, Penerbit Al-Nujum Sdn. Bhd., Kuala Lumpur, 1985.

Bello. W.H., The Crisis of Multilateralism, Emerald Virtual Publishing, C.A., 2006

Chamil Wariya, Dasar Luar Era Mahathir, Penerbit Fajar Bakti Sdn. Bhd., Petaling Jaya,
1989.

Chamil Wariya, Ahmad Faiz, Rosnah Majid & Pathmanathan, Seminar Kefahaman
Dasar Luar Malaysia. Sekolah Pengajian Asasi, UUM, 1991.

Mohd Bin Samsudin, Kajian Dasar Luar Malaysia: Penglibatan pertahanan dan
Keselamatan Negara-negara Komanwel di Malaysia (1957-1971), Fakulti Sains
Kemasyarakatan dan Kemanusiaan UKM, Bangi, 1995.

Ruslan Zainuddin, Sejarah Malaysia (2nd ed.), Penerbit Fajar Bakti Sdn. Bhd.,
Shah Alam, 2003.

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