Why Mahathir is So Anti-Global
He doesn't like globalisation for a very good reason.
July 30, 2001

For Dr. Mahathir Mohamad the story is clear. The forces of globalisation are out to destroy midsize countries such as Malaysia.

"There are so many corporate giants hiding their teeth and intent on gobbling us up, the Prime Minister told foreign businessmen last month. "The second great Asia colonialism is upon us."

Actually he is not alone. Many in the West also consider it a threat to humanity. I'm not referring to the anarchists and anti-capitalists who wrack havoc on world conferences.

In globalisation, liberals see an eventual domination of the world by the big MNCs, which will one day have more powers than governments. This pretty much parallels Dr. Mahathir's thoughts.

But while these people have an ideological reason, Dr. Mahathir has always been non-ideological.

He is a pragmatic man, a free marketeer who embarked on the process of privatisation faster and earlier than Singapore and transformed a small agricultural-plantation economy into Malaysia INC.

So, how does he become so anti-globalisation?

One short answer is that he doesn't believe Malaysia is competitive enough to play the game and fears its companies being gobbled up. But more than that; it is his protection of the Malays.

If they are unable to compete against non-Malays in Malaysia, how can they take on the world outside?

Malaysia's corporate structure is to have trusted Malays - to be in charge of major companies and they run it with a crony system of patronage and preferences rather than open tenders.

Selling a significant part to outsiders would entail having foreign directors into the board, an unacceptable measure.

These corporate figures who practice patronage - either known or unknown to Dr. Mahathir - don't want Americans, Europeans or other foreigners sitting next to them, asking awkward questions.

Dr. Mahathir wants to preserve wealth for the Malays, to protect them against foreign competition whenever necessary.

From his "Malay Dilemma" days when he fought for special rights and quotas for the Malays, his game plan was to raise the standards of the Malays.

That's why he feels embittered and letdown to find so many of them abandoning and attacking him during his sunset years after what he has done for them.

He has stopped talking about Wawasan 2020, achieving developed status in 20 years. The Malays, he now feels, can't do it despite all the special privileges. Why? They are lazy, not keen to learn.

Some of his "Malay Dilemma" views regarding the New Economic Policy that grants them these privileges have changed. One of them is university quota for Malays.

These students enjoy the best ethnic perks and yet remain the Prime Minister's strongest critics.

Mediocre students are guaranteed places with government scholarships, while straight-A Chinese and Indian students are turned away.

Dr. Mahathir wants this changed, the Malay quota reduced.

Given the choice, he'd want to see multi-ethnic parties replace today's racial ones for Malays, Chinese and Indians and a bigger role for meritocracy.

More recently Dr. Mahathir said the obvious: The influence of the Malay race has waned because of its own failure, its inability to compete with others. He did not refer to Indonesia but that was probably in his mind as well.

He admitted that his life's biggest failure was to change the lazy, lethargic ways of the Malays. Unfortunately the Malays' decline will also mean Malaysia's decline. And the shadow of China's economic power is lengthening rapidly throughout the region.

It is too early to say whether the Prime Minister's views will result in fundamental changes for Malaysia or whether they will affect the ruling Malay party - UMNO - after he retires. One certainty is that for a long time, UMNO will depend on the Chinese votes to stay in power.

It could mean, for example, a national programme to correct the low Chinese birth-rate. At one time, this was a source of political happiness. No longer among the pro-Mahathir quarters.

Another could be a more determined to push out the large population of illegal Indonesian immigrants.

But all this is unlikely to eradicate the deep-rooted existence of cronyism in Malaysia nor change its opposition to globalisation. Malaysia will not, for example, open its doors to foreign talent like in Singapore.
Seah Chiang Nee