MALAYSIA FOREIGN POLICY

DURING TUN DR. MAHATHIR

ADMINISTRATION (1981-2003)
DR. ROY ANTHONY ROGERS
• Look East Policy
• East Asia Economic Cooperation (EAEC)
• Middle East and Islam
a) Palestine
b) Conflict in the Balkans (Bosnia)
• Economic Diplomacy.
• Global Outreach (Latin America, Central Asia and Africa).
• Enhancing relations with the developing countries.
LOOK EAST POLICY
• The Look East Policy was the brain child of the Malaysian Prime Minister,
Mahathir Mohammad, in 1981.
• Emulate the Japanese work ethics, business management techniques and
technology and also acquire Japanese expertise and capital though aid and
investment and trade cooperation.
• Look at the east policy was seen as a radical departure from Malaysia’s
foreign policy stance that is from pro-Western, namely pro-British to a pro-
East (look towards Japan, but due to the World War II atrocities,
Mahathir choose the word “East” so as to incorporate Korea and Taiwan).
• Malaysia has taken a bold step to reduce the dependence from the former
colonial. It appeared to be in support of his other policy known as the “Buy-
British Last Policy”.
CONT.
• Look East Policy, East Asian investments
to Malaysia increase. The contracts for
construction projects given to Japanese
companies increased.
• One example was the Dayabumi Complex
constructed by the Takenaka-Kumgai.
Another was a cement plant that was
constructed with a contract with
Mitsui. Then in 1982, the
Korean construction company, Hyundai
Engineering and Construction Company,
was awarded with the contract to construct
the Penang Bridge.
CONT.
Industrialization & Planning
Joint ventures in
automobile industry
(Proton-Mitsubishi,
Perdua-Daihatsu)
Industrial Master Plan. Two
Japanese, Kasumaza Suzuki and
Keniche Omahe, advised the
Malaysian government for the
planning stage. Later on, Omahe
became also involved on the
inception of the high tech,
Multimedia Super Corridor.
Education & Training Investment
Japanese capital flowed
. To teach their workers,
heavily to Malaysia’s
Malaysia also sent
manufacturing sector.
workers to training
Trade between the
institute and companies in
countries as well as other
Japan and Korea to learn
East Asian countries
from the East Asian way.
increased remarkably.
Local universities Mitsubishi, Honda,
establish centers to send Daihatsu, Nissan, Mitsui,
Marubeni, Panasonic,
students to Japan to
Toshiba, Sharp, Taisei and
further their studies. Ibiden (Japanese).
Example ‘Ambang Daewoo, Samsung
Asuhan Jepun’ in UM. (Korean).
BUY BRITISH LAST
• Prime Minister Mahathir Mohamad led Malaysia over a diplomatic clash
against its former colonizer, Great Britain.
• The policy was a retaliation from a number of British aggravations. The main
spark involved the large British rubber company of Guthrie. In 1981, the
Malaysian Perbadanan Nasional Berhad or the National Equity Corporation
launched a dawn raid at the London Stock Exchange that resulted to
the acquisition of Guthrie.
• Another grievance done by the British to the Malaysian government was its
decision to increase the tuition fees of foreign students studying in Great
Britain. The increase was threefold, from about £300 to £900. The increase
highly affected the Malaysians, having 13,000 government-sponsored
students studying in Britain.
CONT.

• Under the Buy British Last Policy, restrictions were placed on British imports
and contracts. All contracts and imports from Britain must first be approved by
the Prime Minister’s Office through a request.
• Malaysia’s decision to withdraw the boycott British contracts and products, but
also the Commonwealth Heads of Government Meeting (CHOGM) in 1981 in
Melbourne. Mahathir's boycott of the CHOGM was again followed in 1983.
• In 1982, the Malaysian government took control of the Carcosa Hill. The
Carcosa Hill was a property of Great Britain and was the home of the high
commissioners of Malaysia.
• The hill became a property of Britain after Malaysian independence when the
first Malaysian Prime Minister, Tunku Abdul Rahman, gave the hills to Britain
as a sign of good faith. As an act against Britain, Mahathir had the property
taken back.
• Thatcher wanted the tension resolved. She sent her Foreign Minister, the
Baron Carrington and her Defense Minister John Notts to negotiate with
Mahathir for the end of the Buy British Last Policy. But they failed to
convince Dr. Mahathir.
• She invited Mahathir to visit London and have a discussion with her in
March 1983. The meeting of the British iron lady and the Malaysian strong
man resulted finally in the resolution of tensions. Both leaders earned the
respect of the other.
• The issue of tuition fees was resolved with the British government’s decision
to create a $160 million fund to aid Malaysian students in Britain. In May
1984, the British decided to return the Carcosa Hill to Malaysia, and in turn,
Mahathir offered a new site as a replacement for the hill.
• By April 1985, Margaret Thatcher’s visit to Malaysia cemented the return of
good relations between the two countries. The good mending ties were even
further strengthened when Mahathir attended the 1985 CHOGM meeting. To
the surprise of many, he offered Malaysia to chair the 1989 CHOGM which
Malaysia did lavishly, and bided for the 1998 Commonwealth Games, which
again, Malaysia hosted.
EAST ASIA ECONOMIC COOPERATION (EAEC)
• East Asia Economic Group (EAEG)
was a regional free trade zone (FTA)
proposed in 1997 by Dr. Mahathir bin
Mohamad and encompasses
the Association of Southeast Asian
Nations (ASEAN) member states,
China, Japan, and the Republic of
Korea.
• Dr. Mahathir Bin Mohamed attempted
to create such a trade union in East
Asia which was a much debated
approach to institutionalizing regional
East Asian cooperation structures
CONT.

• Mahathir actually wanted the EAEC to be led by Japan as it was part of

the G7 and he saw Japan’s ability to lead other East Asian countries.
• However, it was viewed as anti-West (opposition to APEC- Asia-Pacific
Economic Cooperation) for not including the US, Australia and New
Zealand.
• Japan was not willing to participate in the EAEC (too committed to the
US-economy and security/military alliance).
• EAEC never materialises but the ASEAN+3 as the successor of EAEC.
EAST ASIA SUBMMIT (EAS)
• East Asia Grouping has significant history going back to an idea first
promoted in 1991 by Dr. Mahathir Mohamad.
• A multilateral forum to discuss variety of issues (political, security, trade).
• Initially was confined to ASEAN and its Plus 3 Members (Japan, China and
South Korea). However, it was later decided to include other (5) states such
as India, Russia, the US, Australia, New Zealand.
• The first submit meeting was held in Kuala Lumpur December 2005
(recognition to Malaysia, since the idea was initially mooted by Dr.
Mahathir).
MIDDLE EAST AND ISLAM

• Under Dr. Mahathir, Islam assumed prominence in Malaysia foreign policy.

• Malaysia was in favour of reforming the OIC so that it can be a more
effective organization in dealing with issues faced by members.
• Support for the Palestinians struggle against Israeli support. Mahathir
allowed the Palestine Liberation Organisation (PLO) to establish its embassy
in Kuala Lumpur. Malaysia was the first state in Southeast Asia to recognise
the PLO by allowing it to set up its embassy. Two years later Malaysia under
the leadership of Mahathir hosted a UN co-sponsored Conference on
Palestine for Asia and in 1984, Yasser Arafat the PLO leader visited Kuala
Lumpur upon the invitation of the Malaysian government.
CONT.

• Dr. Mahathir has always maintain his

stand that the key to resolve the
problem international radicalization,
extremism and terrorism is to settle
the Palestinian-Israeli conflict.
• Mahathir has mentioned to the
international community the injustice
and brutality towards the Palestinians
have inspired many to join extremist
groups like ISIS, Al Qaeda.
BOSNIA
• During the early 1990s, Malaysia has
been actively involved in championing
the plights of the Bosnians. For example
in 1992, the Malaysian government used
the multilateral approach to raise the
Bosnian issue during summits organised
by various international organisations
such as the OIC (provide humanitarian
support), Commonwealth, ASEAN,
NAM (not to recognize Montenegro and
Serbia) and the UN (urged UN to expel
Yugoslavia; United Nation Protection
Force UNPROFOR).
CONT.
• Bilateral level, Malaysia requested the
Yugoslavia embassy in Kuala Lumpur to
be closed and its ambassador to leave the
country.
• Malaysia also criticised the Western
countries for their double standards in
dealing with the conflict. Similarly,
Malaysia questioned the ineffectiveness
of the UN in dealing with the problem.
Malaysia called for an international
peace enforcement to be send to Bosnia.
• Besides, the Malaysian government also
shown its solidarity towards the Bosnia
by providing refuge to 300 of its citizens.
CONT.
• After the invasion of Afghanistan by the Soviet Union in 1979, Malaysia
predicated on moral support for the Afghan Mujahedeen and called for the
withdrawal of the Soviet troops.
• In 1985, the Malaysian government allowed the Mujahedeen to establish
diplomatic mission in Kuala Lumpur. In 1987, during the OIC Summit
Malaysia also pushed for the recognition of the Mujahedeen.
• Malaysian government set up scholarship fund for Afghan students and
provided funds for the Afghan refugees.
 MALAYSIA’S GROWING RELATIONS WITH
THE MUSLIM WORLD
Mahathir’s vitriol against the West on
behalf of the worldwide Muslim Mahathir pushed for greater economic
community (ummah) has been cooperation and integration fostered by
legendary, and further promoted his the investment role of Islamic
image as an acerbic spokes person of Development Bank (IDB) based on the
the South hemisphere. concept of “mudarabah”.

The issue of Palestine figure

strongly in Mahathir’s
representation of Malaysia’s Islamic
identity which was very much
influenced by the increasing rise of
ummah consciousness which
promoted overt solidarity with the
rest of the Muslim world.
ECONOMIC DIPLOMACY
• Dr. Mahathir makes it a point to promote Malaysia’s economy through its
foreign relations. This is demonstrated every time during Dr. Mahathir’s
official visits he brings along with him a large entourage consists of traders,
manufacturers, contractors, bankers, etc. The aim is to establish business
contacts with their foreign counter parts.
• He makes a point to visit industrial areas and have meetings and meals to
discuss with foreign business councils, chamber of commerce. He even helps
in business matching between local and foreign companies.
• For Dr. Mahathir diplomacy is not limited to politics and security but
opportunity to expand business and trade.
(DR. M WITH US CHAMBER OF COMMERCE &
FILIPINO BUSINESS COUNCIL)
GLOBAL OUTREACH (LATIN AMERICA,
CENTRAL ASIA, MIDDLE EAST AND AFRICA)

• Malaysia foreign relations were further enhance during the Dr. Mahathir
administration.
• Dr. Mahathir made regular international visits across the globe to strengthen
diplomatic, economic, social relations.
• Latin America (Argentina, Chile, Brazil), Central America (Mexico, Cuba),
Central Asia (Kazakhstan, Uzbekistan), Africa (Nigeria, Zimbabwe, Mali)
and many more…
ENHANCING RELATIONS WITH THE DEVELOPING COUNTRIES.

Malaysia & South-South Cooperation

Provide them with a single

Mahathir also took the
voice could be seen in, for
The D8 was conceived to enable initiative to propose the
example, the formation D8
more focused multilateral Langkawi International
which brought together Muslim
relations within the developing Dialogue (LID) which is based
majority countries with strong
world. on the concept of ‘Smart
economic potential based on
Partnership.
their rate of growth.
• Strengthen • Equal partner
• Economic and • Critical
Industrialization • Remain cordial
• Political &Social • Cooperation (tech)
• Asian Solidarity • Social (Edu)

East (Jp, S.Kr, West (US &

Chn) Europe)

Developing
States (Africa, Middle East
Latin America)
• Solidarity
• Islamic solidarity among
• Economic &
Ummah
development • Economy
cooperation
CONCLUSION
• To understand Malaysia foreign policy under Tun Dr. Mahathir, we need to firstly
understand its belief system and how this belief system is being develop.
• This is crucial as it gives a clear understanding as why such policy is being
created and implemented.
• Malaysia foreign policy under Tun Dr Mahathir was very different from the
previous administration as a lot of changes has been made.
• Malaysia foreign policy under Mahathir has been described as independent, active
and pragmatic.
• Two decades of Mahathir’s leadership have resulted in Malaysia becoming more
internationally recognised as a model of stable, multicultural and developing
country with a relatively impressive economy.