Under Prime Minister Mahathir Mohamad, from 1981to 2003, Malaysia saw its emergence as a modern nation. During also this period, Malaysia started to become an oriental nation, with its design of modern structure and imitation of other Asian nations development model. The Economy of Malaysia also overcome the 1997 Asia Financial Crisis under Mahathir. Malaysia also saw emergence of its own automobile company. Mahathir's Administration also began a new economic development plan that will replace the New Economic Policy - Vision 2020.
July 16, 1981 Mahathir Mohamad was sworn in as Prime Minister after his predecessor, Hussein Onn, resigned and immediately made actions that will benefit the Malaysian economy. In September of 1981, The Perbadanan Nasional Berhad/ National Equity Corporation, in behalf of the Malaysian Government, make a "dawn raid" at the London Stock Exchange and manage to take over companies that have plantations in Malaysia, one example of the companies that was taken over was the company Guthrie.
Some change in the policies of the Thatcher government in Britain made Dr. Mahathir's government to launched new policies. The Thatcher government raised the tuition fee of foreign student, including Malaysian, that study in Great Britain. The rules of the London Stock Exchange were also changed in retaliation of the "dawn raid" in September. Dr. Mahathir then launched, in October 1981, the "Buy British Last" policy.
The "Buy British Last" policy is a an act where the government will only purchase British made products if it is only the and the only last solution. the civilians are also ask to follow the policy. It is also a policy to spur up nationalistic sentiments in Malaysia.
Dr. Mahathir began also to shift the inspiration for economic development, from the western model of development to eastern model of development, especially Japan and the Republic of Korea. In 1983, Dr. Mahathir introduced the "Look-East" policy. The "Look-East" policy made Malaysia to have a close diplomatic and economic ties with Asian countries. Malaysia send students to Japan and Korea to study in those country and learn from the Koreans and the Japanese. Japanese firms began to increase investment to Malaysia.
The "Look-East" policy can also be seen in architecture of some modern buildings that are constructed under Dr. Mahathir. Petronas Tower is one good example. The design of the Petronas Tower is base on the Islamic Star. Putrajaya, a city which will be the new seat of the Federal Government, is filled with buildings with Islamic designs as well, and not from Western designs.
Dr. Mahathir had an aspiration of making a national car of Malaysia. But the idea of a national car was criticize as it was to ambitious. But Dr. Mahathir still press on. With the joint-venture of Mitsubishi Motors and the Heavy Industries Corporation, the Perusahaan Otomobil Nasional or Proton was established. By the year of 1985, the first national car of Malaysia, the Proton Saga, is produced.
By the year 1990, the New economic Policy of Former Prime Minister Tun Abdul Razak will be over. Dr. Mahathir then introduced a new economic plan for Malaysia, Vision 2020. Vision 2020 urged Malaysian to developed the Malaysian Society. It also calls for a sustainable industrialization. But most of all, it calls for the development of science and technology, thus, supporting information
and communication technology.
In 1997, the Asia Financial hits Malaysia. Other countries of Asia immediately accepted loans from the IMF and World Bank. But Dr. Mahathir didn't accept loans from the IMF. He resolve the problem by introducing capital-control and pegging the Ringgit from the US Dollar. Mahathir again receive criticism but his actions did save Malaysia from the crisis.
Today, Mahathir's contribution can be seen on what is Malaysia today. Kuala Lumpur won't look the same without Mahathir. Proton won't have been possible without Mahathir's Look-East Policy. But some hated Mahathir because of cronyism that brought failure to some of his projects. To be hated or liked, that is up to the people. But Malaysia did change during Mahathir and that is how it came to be one of Tiger economies in Southeast Asia .
Sources:
Woronoff, J. (2009), Historical Dictionaries of Asia, Oceania, and the Middle East. Plymouth:
Scarecrow Press, Inc.
Mauzy, K. (1999) Malaysian Politics under Mahathir. New York: Routledge.
Cheah, B. (2002) Malaysia: the making of a nation. Singapore: Institute of Southeast Asian Studies.
