Southeast Asia

Malaysia in transition, but to where?
By Anil Netto

PENANG, Malaysia - Events since New Year's have suggested that Malaysia is well inside a period of transition on several fronts: politically, economically, and even in education.

Just as Malaysians were getting used to the idea of life after Prime Minister Mahathir Mohamad, who is due to step down this year after 22 years in power, came indications that his key ally, Transport Minister Ling Liong Sik, the long-serving head of the Malaysian Chinese Association (MCA), is on his way out.

Ling, who delivered crucial ethnic-Chinese support for Mahathir's United Malays National Organization (UMNO) in the 1999 general election, is embroiled in a debilitating factional struggle within his own party.

The brouhaha surrounding Ling's talk of resignation parallels the farcical circumstances surrounding Mahathir's own announcement last June, when the premier announced he was stepping down only to retract his decision an hour later and then defer his retirement to October this year.

Ling, 59, revealed on January 7 that he had submitted an undated letter last August to the prime minister offering to resign as transport minister. Some see his move to reveal the existence of such a letter only now as a preemptive strike against his MCA party rivals - to take the wind out of their sails, so to speak. Deputy MCA president Lim Ah Lek (the leader of the so-called Team B faction) had said on January 5 that he would challenge Ling for the MCA presidency in 2005.

Just as Mahathir found out last year, parting after so many years in power was never going to be easy for Ling, who had tendered his resignation once before in May 2002. His talk of resignation is once again being apparently used to squeeze political mileage, though Ling's options look increasingly limited.

Ling, a medical doctor by training, has led the MCA since 1986, when he was also appointed Transport Minister. Politically, Ling's MCA has provided a stabilizing influence for the ruling coalition, especially in times when UMNO has been mired in crisis.

But there have been hiccups in relations: in recent times, the MCA has expressed reservations on government policy issues such as the use of the English language to teach Math and Science in local Chinese schools. The party was also forced to suspend two of its members in the Penang state assembly after they abstained from voting against an opposition-sponsored motion calling for a controversial UMNO-backed highway project to be deferred.

The heightened speculation about Ling's retirement plans also comes ahead of a potentially explosive trial involving businessman Soh Chee Wen, who is now in the dock on commercial-crimes charges. Soh, in a news conference on Tuesday, lashed out at his former mentor, Ling, for repeatedly denying previous business links between the two. He accused Ling of having abused his position to conduct business deals between 1996 and 1997.

Indeed, the past two decades have been characterized by a close nexus between business and politics that has eroded confidence in corporate governance - read corruption, cronyism, nepotism.

With Mahathir and Ling soon fading from the picture after years in power, a new leadership will take over the reins of the two biggest parties in the ruling coalition. Mahathir is due to step down in October, while Ling is likely to step down by 2005 or earlier. The spotlight thus falls on the succession scenario, which still looks very hazy.

This changing landscape comes at time of greater political debate on the role of Islam in public life. Should Malaysia be a secular state (with Islam as the official religion), should public life be infused with Islamic values, or should there be a conservative Islamic state?

The political uncertainty further clouds the economic outlook. Almost everywhere in Malaysia, economic planners are talking about the competition from China, which last year attracted a record US$52.7 billion in foreign direct investment (FDI). Its cheap labor market, in which wages are less than 5 percent of those in the United States, drew FDI away from Southeast Asian nations such as Malaysia.

In tandem with lethargic economic growth and the uncertain succession scenario, the Kuala Lumpur Stock Exchange appears to be under-performing. A new government-backed institutional investor, Valuecap Sdn Bhd, backed by some of the biggest institutional funds in the country, is providing some relief with RM10 billion in additional funds helping to shore up the market. But apart from the psychological value, the impact on the bourse, which has a market capitalization of some RM400 billion, is likely to be limited.

The government has also announced fresh stimulus packages,


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counting on big-ticket infrastructure projects to prop up economic growth and to provide a lifeline to the construction industry. But again there is a limit to such measures to prop up the economy. Little is heard these days of the Multimedia Super Corridor project near Kuala Lumpur - an indication perhaps that the initiative to propel the economy into the information-technology era is floundering. There is a growing realization that the MSC has turned out to be big on real-estate development but small on IT advances.

Malaysia badly needs to push for reforms in education that would not only facilitate greater computer literacy from the bottom up but also promote greater academic freedom and original research. But the education system is bogged down in a quagmire, the legacy of political decisions of the past: ethnic-based quotas (as is the practice now), needs-based affirmative-action quotas, or strict meritocracy? Wider use of English versus right to education in the vernacular? The latest move is to introduce compulsory national service at the end of secondary-school education - a mammoth undertaking.

These policy issues are diverting resources away from the key issue at hand: how to raise the level of creative and critical thinking among Malaysians to tackle new challenges in a climate of greater academic freedom. Clearly, as the political culture of the past two decades illustrates, an authoritarian political culture is not compatible with academic freedom, which Malaysia badly needs to haul itself up the next rung on the economic ladder.

As long as this issue of qualitative education reforms and greater political and academic freedom is not addressed, Malaysia will remain stuck in the middle of a transition from a developing nation (with a low-end assembly-based economy) to a more research-based developed nation (with a higher value-added economy).

(©2003 Asia Times Online Co, Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)
 
Jan 17, 2003


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