MALAYSIA, THE BUMIPUTRA POLICY, AND FOREIGN INVESTORS: AN EVALUATION

In: Studies in comparative international development, Band 20, Heft 4, S. 86-107

Abstract

MALAYSIA HAS BEEN VIEWED AS ONE OF THE LESS-DEVELOPED WORLD'S SUCCESS STORIES SINCE ITS INDEPENDENCE FROM BRITAIN IN 1957. ITS ANNUAL GNP GROWTH RATE AVERAGED MORE THAN 7 PERCENT FOR OVER TWENTY YEARS, AND ITS CHANGES OF GOVERNMENT, WITH ONE EXCEPTION, HAVE BEEN ACCORDING TO CONSTITUTIONAL PROCESSES. THE COUNTRY HAS TAKEN ADVANTAGE OF ITS RICH AGRICULTURAL AND MINERAL ENDOWMENTS TO EXPAND ITS EXPORT BASE, WHILE MORE RECENTLY THE ECONOMY HAS BEEN DIVERSIFYING INTO THE PRODUCTION OF MANUFACTURED GOODS FOR BOTH THE DOMESTIC AND EXPORT MARKETS. FOREIGN COMPANIES HAVE PLAYED A MAJOR ROLE IN THE EXPANSION OF BOTH THE EXTRACTIVE AND MANUFACTURING SECTORS, ALONGSIDE BUSINESSES OWNED BY MALAYSIAN CITIZENS. MULTINATIONAL INVESTORS FOUND THE COUNTRY'S POLITICAL AND ECONOMIC STABILITY AND RELATIVELY OPEN, FREEMARKET ENVIRONMENT QUITE ATTRACTIVE FOR INVESTMENT. BUT THE GOVERNMENT ADOPTED A SERIES OF LAWS IN THE 1970S DESIGNED TO ACHIEVE CERTAIN SOCIAL OBJECTIVES AND ONE OF THE INEVITABLE EFFECTS WAS TO CHANGE THE COUNTRY'S ATTRACTIVENESS TO FOREIGN INVESTORS.