Embedding Ethnic Politics in Malaysia: Economic Growth, its Ramifications and Political Popularity

Abstract

The cornerstone of postcolonial Malaysian political economy is to embed ethnic politics. Following the 13 May 1969 race riots, economic growth, and in particular the material advancement of the Malays has become the prime policy objective of the government to consolidate the country's ethnic constitutional edifice and through it the Barisan Nasional's political survival. Foreign investment from the 1970s until the early 1990s helped Malaysia become a global producer of manufactures. Tin and rubber, which were synonymous with Malaysia, had become sunset industries by the 1980s. This article identifies the major contradictions and challenges arising from embedding ethnic politics and examines the approach of the Malaysian government in dealing with these problems. It concludes that as economic growth in itself has not helped consolidate ethnic politics, Malaysia's democratic foundations should be strengthened in the interest of its long-term political stability.

Keywords:

• Ethnic Politics
• Economic Growth
• Democracy
• Malaysia

Notes

1. For a good discussion on the subject see Nair (2005).

2. For a good critique of rational choice theories see Malesevic (2002).

3. This concern owes much to the persuasive arguments in Rodrik (1997, 1999).

4. For a discussion of the 1969 general election see Ratnam and Milne (1970).

5. See Fisk (1982).

6. Bumiputera includes Malays and non-Malay natives of Sabah and Sarawak.

7. See Key Economic Indicators, Malaysia at http://www.epu.jpm.my.

8. See http//www.mier.org.my/presentation/archives/pdf/NEOC2004 accessed on 18 October 2005. See also the Eighth Malaysia Plan, Economic Planning Unit, Prime Minister's Department, URL: http//www.epu.jpm.my assessed on 20 September 2004; Fong (1989) and Jesudason (1989).

9. See Athukorala (2005) for a discussion on how the failure to build a more broad-based industrial structure could have important ramifications for Malaysia's medium- and long-term growth.

10. See National Economic Recovery Plan, Chapter 6, p. 4, at: http://www.mir.com.my.

11. According to Asiaweek's Best Universities Guide there was a marked drop in the rankings of Malaysia's so-called top university—University of Malaya—from 27 in 1999 to 47 in 2000. University Sains Malaysia which was ranked 42 in 1999 dropped to 57 in 2000. See http://www.asiaweek.com/asiaweek/features/universities2000/index.html. World University Rankings by the Times Higher Education Supplement also indicates a significant slip in University of Malaya's position from 89 in 2004 to 169 in 2005. See http://www.thes.co.uk/worldrankings.

12. See The Star (15 January 2005) for Badawi's defence of Hadhari, particularly its role in promoting women's rights and gender equivalence. See also Jusoh (2004).

13. For details on the IIM see its web page at www.iim.com.my.

Additional information

Notes on contributors

Vejai Balasubramaniam

Vejai Balasubramaniam, PhD, is a Research Fellow at the Centre for Policy Research, Universiti Sains Malaysia