Malaysia: Thriving Under Neglect

  • Joel David MooreEmail author
Part of the The Political Economy of East Asia book series (TPEEA)


This chapter compares the overall evolution of economic governance systems in the Federation of Malaysia with that of Penang, one of its most prosperous states. Due to a number of historical factors, Penang experienced structural and institutional circumstances that differed from the rest of the states in the Malaysian federation. Because these differences exist against a larger backdrop of geographic, developmental, and cultural similarities, we can observe whether the proposed independent variables had the expected effects through the proposed mechanisms. Where veto power was concentrated, greater systemic vulnerability led to fewer political rents and more coordinative institutions.


  1. Andaya, B. W., & Andaya, L. Y. (2001). A history of Malaysia. Honolulu, HI: University of Hawaii Press.Google Scholar
  2. Bernama Daily Malaysian News. (2002). Adopt “X-Plus One” formula to stay competitive, Says Koh.Google Scholar
  3. Bernama Infolink Services. (1999). Malaysian factfiles—Industries and industrial development—Malaysia Electric Corporation (MEC)—Mec City.Google Scholar
  4. Bisnis Indonesia. (2006). Daikin Officially Acquires OYL.Google Scholar
  5. Bowie, A. (1991). Crossing the Industrial Divide: State, Society, and the Politics of Economic Transformation in Malaysia. New York: Columbia University Press.Google Scholar
  6. Brown, G K. (2005). Playing the (Non) Ethnic Card: The Electoral System and Ethnic Voting Patterns in Malaysia. Ethnopolitics, Routledge 4(4), 429–445.Google Scholar
  7. Burton, J. (2004, January 20). Businessmen feel the winds of change as Malaysia moves to end “crony capitalism”: New Prime Minister Abdullah Badawi aims to stamp out the informal lobbying of officials for contracts. Financial Times.Google Scholar
  8. Case, W. (2008). Malaysia in 2007: High corruption and low opposition. Asian Survey, 48(1), 47–54.CrossRefGoogle Scholar
  9. Chin, J. (2010). Malaysia: The rise of Najib and 1Malaysia. Southeast Asian Affairs, 2010(1), 164–179.CrossRefGoogle Scholar
  10. Fatt, L. K. (2000). Pensonic all set to go worldwide. The New Straits Times.Google Scholar
  11. Felker, G. (1998a). Malaysia’s industrial technology development: Firms, policies, and political economy. Industrial technology development in Malaysia: Industry and firm studies. New York: Routledge.Google Scholar
  12. Felker, G. (1998b). Upwardly global? The state, business, and MNCS in Malaysia and Thailand’s technological transformation. Princeton, NJ: Princeton University.Google Scholar
  13. Financial Times. (1992). Supplier to the Multinationals.Google Scholar
  14. Giroud, A. (2003). Transnational corporations, technology and economic development: Backward linkages and knowledge transfer in South-East Asia. Gloucestershire: Edward.Google Scholar
  15. Gomez, E. T. (2002). Political business in East Asia. Oxfordshire: Routledge.Google Scholar
  16. Gomez, E. T. (2008). Enterprise development and inter-ethnic relations in Malaysia. In R. S. K. Wong (Ed.), Chinese entrepreneurship in a global era (p. 91). Boca Raton, FL: Taylor & Francis.Google Scholar
  17. Gomez, E. T. (2009). The rise and fall of capital: Corporate Malaysia in historical perspective. Journal of Contemporary Asia, 39(3), 345–381.CrossRefGoogle Scholar
  18. Hai, L. H. (2002). Electoral politics in Malaysia: “Managing” elections in a plural society. In A. Croissant (Ed.), Electoral politics in Southeast & East Asia. Friedrich Ebert Stiftung: Singapore.Google Scholar
  19. Hamid, H. (1995). Govt aims to increase anchor companies in vendor scheme. Business Times (Malaysia).Google Scholar
  20. Hamsawi, R. (1995a). LKT Ind sees rise in pre-tax turnover. Business Times (Singapore). Google Scholar
  21. Hamsawi, R. (1995b). Loh’s ambitious dream come true. Business Times (Malaysia).Google Scholar
  22. Heng, P. K. (1998). Chinese responses to Malay hegemony in Peninsular Malaysia (1957–1996). In cultural contestations: Mediating identities in a changing malaysian society (pp. 51–83). London: ASEA Academic Press.Google Scholar
  23. Hicken, A. (2007). Omitted variables, intent, and counterfactuals: A response to Michael H. Nelson. Journal of East Asian Studies, 7, 149–158.CrossRefGoogle Scholar
  24. Hightower, S. (1994). Air quality control products maker sold to Malaysian group. The Associated Press.Google Scholar
  25. Hock, C. H. (1985). Some observations on coalition politics in Penang. Modern Asian Studies, 19(1), 125–146.CrossRefGoogle Scholar
  26. Hutchinson, F. E. (2008). “Developmental” states and economic growth at the sub-national level. Southeast Asian Affairs, 223–244.Google Scholar
  27. Jacobs, J. (1993). Local participation in electronics industry wanting. Business Times (Malaysia).Google Scholar
  28. Jacobsen, M. (2009). Frozen identities. Inter-ethnic relations and economic development in Penang, Malaysia. In Asia Research Centre (Vol. 30).Google Scholar
  29. Jesudason, J. V. (1989). Ethnicity and the economy: the state, Chinese business, and multinationals in Malaysia. Ethnicity and the economy: The state, Chinese business, and multinationals in Malaysia. New York: Oxford University Press.Google Scholar
  30. Johnson, S. (2006). Malaysian capital controls: Macroeconomics and Institutions. Washington, D.C.: International Monetary Fund.Google Scholar
  31. Johnson, S., & Mitton, T. (2003). Cronyism and capital controls: Evidence from Malaysia. Journal of Financial Economics, 67(2), 351–382.CrossRefGoogle Scholar
  32. Jomo, K. S., & Gomez, E. T. (2000). The Malaysian development dilemma. In M. H. Khan & J. K. Sundaram (Eds.), Rents, rent-seeking and economic development: Theory and evidence in Asia (pp. 274–303). Cambridge: Cambridge University Press.Google Scholar
  33. K’Zaman, B. (1994). MEEIG plea against protection withdrawl. Business Times (Malaysia).Google Scholar
  34. Kathirasen, A. (1998). Pensonic optimistic of RM120 m turnover. The New Straits Times.Google Scholar
  35. Kaufmann, D., Kraay, A., & Mastruzzi, M. (2012). The worldwide governance indicators, 2011 Update, Aggregate indicators of governance 1996–2010. Downloaded May.Google Scholar
  36. Kenney, M., Han, K., & Tanaka, S. (2002). Scattering geese: The venture capital industries of East Asia: A report to the World Bank.Google Scholar
  37. Lee, H K. (2006). Enhancing Global Competitiveness of Penang Electronics and Electrical Small and Medium Industries through Improving Linkage Programmes. Ph.D. thesis, Universiti Teknologi Malaysia.Google Scholar
  38. Lopez, L. (2004, September 27). Abdullah dealt setback in Malaysia party polls—Allies’ unexpected losses may hurt premier’s plan to weed out corruption. The Asian Wall Street Journal.Google Scholar
  39. MacIntyre, A. (2003a). Institutions and investors: The politics of the economic crisis in Southeast Asia. International Organization, 55(1), 81–122.CrossRefGoogle Scholar
  40. MacIntyre, A. (2003b). The power of institutions: Political architecture and governance. Ithaca: Cornell University Press.Google Scholar
  41. Malaysia Industrial Development Authority. (2004). Photonics: Opportunities for growth in Malaysia.Google Scholar
  42. Martin, D. (2012, July 1). Sensational Malaysian submarine scandal resurfaces. Agence France Presse.Google Scholar
  43. Narayanan, S. (1996). Fiscal reform in Malaysia: Behind a successful experience. Asian Survey, 36(9), 869–881.CrossRefGoogle Scholar
  44. Narayanan, S., Hui, L. M., & Leng, O. W. (2009). Re-examining state finances and governance: The challenge for Penang. In PENANG OUTLOOK Forum. Socio-Economic & Environmental Research Institute.Google Scholar
  45. New Straits Times. (1997). MEC invites SMIs to join programme.Google Scholar
  46. New Straits Times. (2006). LKT industrial berhad—Malaysia company factfile.Google Scholar
  47. New Straits Times. (2007). Personality profile: Omar Ong Yoke Lin, Tun.Google Scholar
  48. Ngiam, D. (1997). T.H. Hin to increase high-end mart exports. The New Straits Times.Google Scholar
  49. Nurani, N. (2001). The business that Shamsuddin built. Malaysian Business (New Straits Times).Google Scholar
  50. Pak, S. (1991). Restructured KLI grabs limelight on its re-listing. The Straits Times.Google Scholar
  51. Ping, L. P., & Yean, T. S. (2007). Malaysia ten years after the Asian financial crisis. Asian Survey, 47(6), 915–929.CrossRefGoogle Scholar
  52. Rasiah, R. (1999). Government-business co-ordination and the development of eng hardware. Industrial technology development in Malaysia: Industry and firm studies. Oxfordshire: Routledge.Google Scholar
  53. Rasiah, R. (2003). Fostering clusters in the Malaysian electronics industry.Google Scholar
  54. Rasiah, R., & Shari, I. (2001). Market, government and Malaysia’s new economic policy. Cambridge Journal of Economics, 25(1), 57.CrossRefGoogle Scholar
  55. Reuters News. (1998). Neico buys 10 pct of Pensonic.Google Scholar
  56. Rudner, M. (1994). Malaysian development: A retrospective. Ottawa: Carleton University Press.Google Scholar
  57. Searle, P. (1998). The riddle of Malaysian capitalism: Rent-seekers or real capitalists? Sydney: Allen & Unwin.Google Scholar
  58. Select Federal Filings Newswires. (1995). AAF-McQuay Inc.: Company background/capitalization. Dow Jones & Company, Inc.Google Scholar
  59. Sheng, A. (1989). Bank restructuring in Malaysia: 1985–1988. The World Bank: Policy Research Working Paper Series.Google Scholar
  60. Singh, B. (2009). Malaysia in 2008: The elections that broke the tiger’s back. Asian Survey, 49(1), 156–165.CrossRefGoogle Scholar
  61. Slater, D. (2005). Ordering power: Contentious politics, state-building, and authoritarian durability in Southeast Asia. Atlanta: Emory University.Google Scholar
  62. Snider, N. L. (1968). What happened in Penang? Asian Survey, 8(12), 960–975.CrossRefGoogle Scholar
  63. Sutter, J. O. (1966). Two faces of Konfrontasi: Crush Malaysia and the Gestapu. Asian Survey, 6(10), 523–546.CrossRefGoogle Scholar
  64. Syn, T. W. (2002). Privatisation and capital accumulation in Malaysia. In University of Manchester, Institute for Development Policy and Management (IDPM). Centre on Regulation and Competition (CRC) Working papers.Google Scholar
  65. Tahir, Z. (1996). Take in more firms under vendor scheme. Business Times (Malaysia).Google Scholar
  66. Tan, D. (2007). Electronics to drive Unimech. Star Business.Google Scholar
  67. TejAsia MY Company Annual Reports. (2002, February). Atlan Holdings Berhad.Google Scholar
  68. The New Straits Times. (1996). KLIG buying into Australian firm.Google Scholar
  69. Thoburn, J. (1978). Malaysia’s tin supply problems. Resources Policy, 4(1), 31–34.CrossRefGoogle Scholar
  70. UN Comtrade. (2012). United Nations.Google Scholar
  71. Valve, A. (2010). UNIMECH Group Berhad.Google Scholar
  72. Lam, Van. (1978). Incidence of tin export taxation in West Malaysia. The Developing Economies, 16(4), 434–445.CrossRefGoogle Scholar
  73. Warr, P. G. (1987). Malaysia’s industrial enclaves: Benefits and costs. The Developing Economies, 25(1), 30–55.CrossRefGoogle Scholar
  74. World Corruption Barometer. (2012). Transparency International.Google Scholar
  75. Yean, N. K. (2006). Corporate: Pensonic finds footing in tough business. The Edge Financial Daily.Google Scholar
  76. Young, K., Bussink, W. C. F., & Hasan, P. (1980). malaysia, growth and equity in a multiracial society. Published for the World Bank [by] Johns Hopkins University Press.Google Scholar
  77. Yu, L. C. (2000). Going for listing: Unimech aims for higher exports. The Edge Weekly Provider.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.Monash University MalaysiaBandar SunwayMalaysia

Personalised recommendations