Malaysian Development Since Independence

Abstract

This chapter will analyse the case of Malaysia. It will demonstrate an understanding of its development trajectory in terms of oscillations between goals of GDP growth and redistribution, in order to maintain both. Split into four sections, each analyses the contemporary development path through exposition of key strategies and policies of the state. It will show that rising ethnic tensions since its independence in 1957 led to a focus on redistribution to ethnic Malays through a series of positive-discrimination polices combined with state-driven industrialisation. After recession in 1985, this turned towards increasing liberalisation to reignite GDP growth, and then back to a redistributive emphasis in the context of the aftermath of the Asian financial crisis. The chapter finishes with a final section that analyses current development policy in the context of recent trends, not least the global financial crisis.