MAHATHIRMAHATHIRThe Secret of the Malaysian SuccessHAJRUDIN SOMUN

“Malays were so weak in spirit that they believed only the white man can rule their states. If it had not been for the Japanese, an Asian people who are not white, defeating the British imperialists, probably the Malay even today would

not have demanded independence, because they have no confidence in them-selves as a people capable of administering and developing Malay States.”

Malaysian population majorly consisted of three ethnic groups:

Malays (Bumiputeras) Chinese Indians

DemographicsTotal Sq. km Population

Malaysia 330,252 27.17 million (2007)Peninsular Malaysia 131,805Sarawak 124,450 2.34 million (2005)Sabah 73,997 3.13 million (2005)

CHINESE

Foreigners who settled at Malay peninsula for business and trade during Dutch and British colonial era.

Due to their strong hereditary influences they were hard working and acquired wealth and influence due to their sophistication in business.

As a result, Malay shops lost next to multiple Chinese shops helping Chinese develop strong economic and business dominance.

MALAYS (Bumiputeras)

Mostly people of low lands.

Rice Cultivation - Common Occupation

Live in small communities

Have limited social contacts

Mostly poor and illiterate

Born on 10th July 1925, in Alor Setar in North Western Malaya.

Youngest of 10 children

Belonged to the lower middle-class and lived in what would be called a SLUM today.

Father worked as school teacher and brought his family to be very orthodox, very disciplined and oriented towards education.

Religious education was imparted by his mother and later on by a religious teacher who educated him thoroughly in the Islamic faith and its various practices.

According to Mahathir:“This gave ma a very good starting point in life: a strong family, a solid education and a good religious grounding”.

Malay peninsula divided in to numerous little Malay states. Each one had an agreement with British that defined British protection but no

colonization. These states were British protectorates and maintained considerable

independence in local governance especially in religious matters. Kind of semi-colonial rule with local rulers having limited authority and status.

During Japanese Occupation of huge Asian region including Malaya, Japanese forces physically oust the British.

Witnessed fights between British and Japanese troops, chaos, looting, food shortages.

Sold Banana Fritters to supplement family income.

According to Mahathir: “Japanese Occupation, for the Malays, despite their suffering, had a

knock-on effect that was still very significant: The Malays were free from the feeling of inferiority to the White Man”.

Japanese defeated at the end of World War II and the British returned intending to set up full-fledged colonial rule in Malaya.

Resistance spread and laid foundation of today’s UMNO - United Malays National Organization organized by Mahathir.

Japanese defeated at the end of World War II and the British returned intending to set up full-fledged colonial rule in Malaya

Central Union from all little states led by British Governor

Head of state would be religious leaders only

The decision of joint citizenship

Resistance spread and laid foundation of today’s UMNO - United Malays National Organization organized by Mahathir

“ It was of the British mistake who wanted to make real colonies out of the Malay States contrary to their initial protectorate image where they were not too repressive, the Malay become aware of the dire need to unite in one organization - UMNO.

The leaders of UMNO soon started a campaign for total independence.

Malaysia got independence on August 30, 1957.

Tunku Abdul Rahman First President of Malayan Government suggested establishment of wider federation including territories of Malaya, Singapore, Sabah, Sarawak and Brunei.

Brunei ruler decided not to join the Federation.

Indonesia dissatisfied with Sabah and Sarawak becoming part of Malaysia announced confrontation policy against Malaysia with its troops entering in Sarawak and Sabah.

Singapore (populated with Chinese majority) left Malaysia and declared independence on August 9, 1965, creating rifts between Chinese and Malays.

During 2nd election in 1969 ethnic riots broke out that resulted killing o several hundred people.

Mahathir criticized Abdul Rehman for his wrong policies for multiethnic society of Malaysia and wrote a sharp letter demanding him to resign for which he has been expelled from UMNO.

The Malay Dilemma - proposed politico- economic solution in the form of Constructive Protection.

Idea of Constructive Protection was incorporated in NEP (New Economic Policy) by Abdul Razzak successor of Abdul Rahman.

According to Mahathir

• “ the principal purpose was to draw the Malays into the mainstream of the country’s economic life. The idea is not to expropriate or redistribute the wealth of other ethnic groups, but to enrich the Malays through expanding economic cake.”

• “is not to put the Malays in a superior position but to bring them up to the level of Non-Malays”.

Quotas were set and Malays receive a higher number of scholarships than what is by percentage rightfully theirs.

Also in Malaysian Civil Service (MCS) Malays received four out of five civil service places, although they represented less than half of the total population.

Reforms in Malay Land Reserve laws aim to give the Malays with ownership of land at urban areas.

Special privileges in business by issuing more business contracts and licenses to Malays.

Credits, office space and many other benefits and economic advantages were at the Malay’s disposal.

“ We want to rule our country ourselves and for that we should discriminate in favor of

ourselves”

Employment rate: 4 million in 1970 4.8 million in 1980

Unemployment decreased from 7.8% to 5.7%.

Average Annual Growth Rate: 7.3% for 2nd Plan Period 8.6% for 3rd Plan Period.

Mahathir briefly looked back at the spread of Islam to the Malay peninsula and emphasized the beneficial influence that religious beliefs were more advanced than animistic and Hindu beliefs had on the world

He was more concerned about radical, retrograde occurrences that he cannot relate to the progress of the Malays. Powerless to the prevent the expansion of Islam into the social and political life of the Malays, Mahathir takes up these happenings in what he knows best - dialogue

Tun Hussein Onn resigns & Mahathir becomes the Prime Minister in July 1981

A National Hero

Experience as Minister and Deputy Prime Minister

Anchor of life

Initial days

Inheritance from his predecessors

He inherited a great deal from his predecessors

I inherited the strength of will and pragmatism from previous prime ministers. From the first I learned how to handle race relations. From the second I learnt pragmatism. I am less diplomatic. If I feel something is right, and should be done, I will do it and will say it. That’s really the difference. All these idea’s were put in place by my predecessors, so I owe it to them.”

Mahathir entered the office of the PM of Malaysia “with a rude slamming of doors” as someone noted

Introduced the recipe of Dr. Mahathir predict o Challengeso Identify problemso Acquire ideaso Develop solutions

Started cleaning and waking up the dormant bureaucracy

Control of working hours, badges for civil servants like the one he wears almost always

Launched the slogans for a “Clean, Efficient & Trust Worthy Government”

Moved the clock forward by one hour to have an equal time zone with Borneo

Made public apology to Tunku Abdul Rehman

Requested the ban to be lifted from the ‘Malay Dilemma’

Mahathir ordered 21 detainees to be released

Mahathir moved one step inside one step outside

The first who were criticized by the new government were the British

‘Buy British Last’

Mahathir’s effort “We have not severed trade relations with Britain and we also have not launched a boycott of British goods. What we have simply said is that the government will not buy something from Britain if we have an alternative choice, but we will buy if we do not have a choice”

British response

Deteriorating effect on the relationship between Malaysia and Great Britain

“ Mahathir’s every move was a gamble. He faced objections not only from the outside but also from his own people who didn’t realize they were still mentally bearing the yoke of colonial thinking. This included people involved in radical politics who could only express their anti imperialistic and anti colonialist feelings through slogans”

For Mahathir the “spokesman of the developing world” Japan is something more than the whole developing world including its Muslim part

It was the working ethic which is different from the West. Mahathir once said “the virtues of hard work was not enough. The Japanese work ethic we aimed to emulate also included a dedication to quality and to keeping deadlines for the delivery of products”

In most Japanese organizations difference in statuses between executives and workers were rarely emphasized

Japan’s miraculous economic accomplishments are attributed to its unique culture

Recessionary years of 1985 1986

Privatization was followed by “Malaysia Incorporated” policy

“the concept of cooperation between the government and the private sector for the latter to succeed”

1982 to 1987

1988 showed marked improvement

Elections of 1986

“number two”

“ four leaders & two posts”

“If party members want me I will continue to serve. If party members don't want me, tell me so don’t push me down”

Mahathir beat Razaleigh with 761 votes against 718 that makes it 1.5% difference in votes

Ghafar beat Hitam with 739 votes against 699 thus Team B was defeated

“ I wanted to be liberal because I thought the people would be responsible I would not misuse their rights”

“ Unfortunately after 6 years, I found out people are misusing their rights again and trying aggravate the bad relations between the various races. Because of that I think I need to be less liberal. I am disappointed because I have had to change my mind”

February 4rth, 1988

Close to loosing everything as he suffered a heart attack in 1989

Closest co worker to Mahathir

“grand design”

“ he didn’t want to loose a friend”

surgery was successful

What contributed to heart problems Had to live through economic crisisBitter pills of finding out financial scandals

Like he once said ““The Malays are not safe but we can secure ourselves, we can make progress, we can regain our honor fully, if we are aware of the dangers that we face now and if we make preparations to overcome them”

1990 – The Crucial Year for Mahathir

Economy Growth 2 per cent in 1986 5.2 per cent in 1987 9.1 percent Average Growth Rate

Unemployment decreased from 8.3 to 6 percent

Foreign Investment RM 17.63 billion RM 959 million in 1985

According to MIER In 1990, Malaysian Economic growth reached

the rate of 10 percent Highest in South Asia

• Dr. J. Collin Dodds from Canada’s St. Mary’s University said:

“These growth rates, of which Malaysia’s is probably one of the best, are unparalleled in history. Even the U.S., even the U.K during their so called Industrial Revolution, did not achieve growth rates anywhere near these”

Drag the Malaysian Economy out of the recession Decided to Resign Mahathir wanted him more Daim task was completed

Mahathir said

“He had fulfilled this task and it is time I let him go”

Seri Setia Mahkota Award Title “Tun” similar to the British “Lord”

For Nation to be competitive in Global Economic game Not Live only in Present Long Term Plan Vision Goal Sense of direction Vision 2020

Foresees Malaysia as a fully developed country by the year 2020 in all aspects

Mahathir said

“Although the year ‘two thousand and twenty’ is the target year, the vision is usually referred to as ‘twenty-twenty’, because it suggests associations with perfect vision: 20/20……”

Two Pillars for Vision 2020

1. Modernize and become a developed country in our own mould

2. Develop in all dimensions• Economically• Politically• Socially• Spiritually• Psychologically• Culturally

Nine Strategic Challenges

1. United Malaysian Nation2. Psychologically liberated, secure and

developed society3. Community oriented democracy4. Fully moral and ethnic society5. Mature, liberal and tolerant society6. Establishment of Scientific and Progressive

society7. Fully caring society8. Economically Just society9. Prosperous society

Working Paper, Malaysia: The Way forward

“The great bulk of the work that must be done to ensure a fully developed country called Malaysia a generation from now will obviously be done by the leaders who follow us, by our children and grandchildren. But we should make sure that we have done our duty in guiding them with regard to what we should work to become. And let us lay the secure foundations that they must build upon.”

Economic Policies For The Foreseeable Future

“No nation can afford to abandon a winning formula. And this nation will not. For the foreseeable future, Malaysia will continue to drive the private sector, to rely on it as the primary engine of growth.

• Frequent Complaints on the behavior• Involvement in Business and acquisition of wealth• Tun Daim said that

“He used to receive letters from the rulers, who were asking for government contracts”

• Amendment in the Constitution• Bill with 2/3 majority• Suspension from their Royal Functions• Imprisonment for more than one day• Required to step down unless pardoned

“All three Prime Ministers before me as their capacity as advisors to their rulers, had criticized them time and time again but these advise merely fell on deaf ears.”

“The powers and influence of Malay rulers become symbolic, but Mahathir and his government achieved a great victory.”

“Talk of the past glories of Islam really is an admission that Islam is not glorious now.”

“Many Muslims have adopted a strangely false sense of security: reading The Quran will bring them Sawab even if they don't understand or practice it.”

First Islamic Financial Institution, Bank Islam Malaysia Berhad (BIMB), started at Kuala Lumpur in 1983.• Two Successful Principles

No Interest But Profit sharing @ 7 : 3 Only sanction Halal

• Not only for Muslims“The Islam-ness of Bank Islam is based on the method of self management and not because Muslims are its owner,customers or managers”

• Relation with Foreign World with in his hands

• Ministry got two major tasks• To safeguard good relations with

Malaysian major partners in the security and trade issues

• Allow Malaysia to champion Third World issues

“We are a democracy, giggles and cynical smiles not with standing. Multi ethnic and Multi religious country like ours, with all the challenges and difficulties this will rise to, could not survived and prospered without healthy and sustainable democracy.”

“Malaysia does not wish to be a member of any camp or bloc. We are aligned with no one. We not even aligned with the non aligned ”

“No apologist for the Third World and no admirer of the Second World, I would not be intimidated by the First World.”

Khoo wrote“His performances at International forums were articulate and courageous, intelligent and polished. He has a quick wit and a sharp tongue. He had a ready opinion on anything….”

“In Bosnia and Herzegovina, more than 100,000 Muslims were massacred in full sight of TV viewers and for a long time nothing was done. Elsewhere, Muslim countries are subjected to attacks and economic sanctions resulting in many deaths from deprivation of all kinds. Because of all this there is a great deal of bitterness and anger among Muslims.”

Leaders who helped Bosnia• American President Clinton• Saudi Royal House• Iranian Leaders• Turkish President Demiral• Mahathir Mohammed

Mahathir was the only one without any political interest

Currency Crisis hit South-East Asia in summer 1997

Malaysia helped Thailand by giving them loan

IMF offered rescue package

Spree of Short Selling began as major market players smelt blood

Mahathir criticized west for having double standards

Proposed “Magic Formula”

Vendetta with George Soros

“ My government and I decided to take the bull by the horns and work out the solution of our own”

“The third millennium and 21st century has not brought better human civilization…The age of information technology, the age of knowledge has arrived. But unfortunately man has become arrogant about his capabilities.”

“The greatness of a nation is measured by the invention and possession of weapons that can kill more people and not by the greatness of its civilization ... It is clear that mankind has not advanced beyond the Stone Age when might equals right.”

“Taking advantage of Telecommunication and speed of Jet travel, they devised a concept of borderless world and globalization.”

“The end of the Cold war meant that capitalist were freed from having to contain their greed as they did not fear that poor countries would become communist.”

“It is not that we reject globalization completely but we believe that if only the capital has the freedom to cross borders, it is very dangerous.”

“Often use the name of Islam in order to legitimise their violent actions. The governments that try to develop their countries and improve their defense system are then too busy trying to defend themselves from such groups that have hijacked Islam”

“Whenever a Muslim country tries to develop its defense capability by Technology – some groups come up who appose those endeavors believing that they are secular and non-Islamic and government should be overthrown.”

“Pray to ALLAH for help but they have forgotten that ALLAH has ordained that He will not help to change the fate of any community until they strive to change their fate themselves.”

“Muslim countries are more prone to international conflicts between themselves then with non-Islamic states that, in some cases are their enemies.”

“The most powerful unity among Malays which contributed to their eventual independence. This was the only weapon they had.”

“So weak in spirit that we believe only that white man could rule the states.”

“They are not hardworking i.e. they are lazy and like to find easy way and quick way no matter what the end result.”

“The lack patience and they want to be rich instantly.”

“Farmers with only two acres of land and work only few months cannot earn as much as workers who work for the whole year.”

“Learn from the Chinese, remember when we sell licenses, contracts and other things to them, their cost of doing business increases, they can still make profits.”

“The main influence on our children, the generation that will succeed us is wielded by the teachers”

“Broken family, many Malay parents are not good parent when compare to other communities.”

“Although violence and immorality present on the internet and T.V contribute to Moral collapse, this doesn’t explain why more Malays are involved in social ills.”

“I pray that among the Malays, there will emerge a leader capable of changing certain characteristics of Malays so that they will have the culture more compatible with success.”

“What is wrong is not the teaching of Islam but people who interpret them in favor of political creed.”

“We already know that it is entirely possible for freedom fighters struggling against oppression to be mistaken for or labeled as terrorist by their oppressors.”

“We cannot fight and enemy, we cannot identify.”

“Armed attacks or other forms of attack against civilian must be regarded as terrorist.”

Chairman Mao Tse Tung (China) said “You are the legitimate government, they are illegal. They dare not come into the open. Be patient, give them time and they will fade away.”

• Laid back and prone to take the easy way out

• Lean on the crutches of Malay privileges

• The Malays are deeply religious but they are not knowledgeable enough about Islam to distinguish between what is Islamic and what is not. Religious piety is highly valued by the Malays but they equate piety with outward appearance and not the true Teachings of Quran and the true tradition of Hadith of the Prophet. This simple perception of their religion open opportunities for the unscrupulous to exploit religion for their own purpose.

• Disunited, confused about Islam, fighting each other for power. Lacking in essential knowledge and skills, misapplying their God given wealth, the Muslims of today have reached the lowest point in their development.

• Muslims are getting confused “because they are told that the door of Ijtihad or interpretation of Islam is closed and they must accept anything that had been interpretated long ago.

• Only two of the 10 richest Malaysians are Malays.

• Mahathir put Malaysia on the “world map”, prior to his era, Malaysia, by people from other countries was put in the same basket as other Southeast Asian states such as Laos, Thailand and Myanmar.

• In the Islamic world, Malaysia is the first country, after Turkey, that got away from lethargy and poverty in which countries with Muslim majorities fell into with colonization.

• Economically stable state with over US$ 30 Billion in reserves, from which it could survive six months without producing anything, with foreigh debt reduced from us$ 45 Billion to US$43 Billion, an unemployment rate of four percent and its own petrol and petrochemical industry, that buys refineries in the Persian gulf and South Africa.

Entering the 13th year of realization of Vision 2020, Malaysia can with certainty count that her challenges, at least those related to economics and development will be achieved,

Took advantage of privatization: While telecom was a publically owned company, the government used

to subsidize it with RM200 Million annually, and since it has been privatized, Telecom earns RM200 Billion annually.

If government owned companies has continued constructing the highway from Thailand in the north to Singapore in the South, it would have been completed in 7 years, since it was given to private companies, it has already been used by millions of people for three years.

Abdullah Ahmad Badawi was continuously a member of the government during the Mahathir ‘s tenure as Prime Minister and his deputy since 1998.

Presented his future plan “Competing for Tomorrow” as acting Prime Minister when Mahathir went of 2 month holiday at beginning of March 2003.

Listed three key concerns that need to be addressed. Corruption and the abuse of trust. Respecting property and the need to abandon the notion that the

government owed the people a living. Malaysian mindset, attitude and mentality.

Both Abdullah and Mahathir openly demonstrated their unhappiness in agriculture.

“If you work in a factory, you work according to a timetable. Eight hour shifts daily for six days a week, for the whole year. If you campare this with planting rice, padi, do you work as hard and as long? I don’t think so. You plant according to seasons and on certain days only.”

The solution: use the time between planting and harvesting to develop cottage industries, as the one village-one product program intended.

One side of Mahathir and Abdullah

Views of Abdullah : “We must work hard to achieve united voice, because divisiveness and discord will ultimately destroy the Ummah….a strong and thriving economy is key to efforts to develop a progressive and successful Ummah….its my believe that Ummah must embrace modesty in order to survive…..for those who refuse and reject changes that are happening around them, they do not understand that Islam is a living religion that can not be fossilized in time.”

The second bloc of the ideological PAS leader.

More emphasis on formal side, and the world hereafter.

Want to make things normal 1000 years ago to look normal today, they want to make it just today, without taking into account all developments of humanity in the field of human rights, gender equality and knowledge.

One issue that kept Malay divided for years: Hudud and Qisas (law on Criminal Punishment, popularly called just Hudud law).

To PAS, its leaders and followers, this law is more important that issue of economy, technology, industry and development projects which has marked Malaysia in the past few decades.

Haji Abdul Hadi Awang about the Islamic Malaysia based exclusively on Shariah said: “if non-Muslims can see that Islam is not just about HUDUD but about the economy, about land and other law, I believe they will accept Islam as the national policy while they remain believers of other faiths. They are not forced to embrace Islam.”

Malaysia ‘s two main actors on its political stage-Dr Mahathir Mohammad and Abdullah Ahmad Badawi are ready to make a peaceful transition of power after October 2003

Abdullah gave clear indications of continuity, and had this to say about Mahathir:”The modern Malaysia is a testament of his leadership.

Mahathir passing on his view on leadership to Abdullah said:” You have to lead. You should be sensitive to what your followers think. But if you do exactly as they wish, you are not a leader”