1. Government/History 354 Southeast Asia
Malaysia
Government/History 354
Southeast Asia

2. Location Of Malaysia

3. Political Map of Maylaysia

4. Malaya became independent in 1957
Malaya became independent in It became Malaysia in 1961 when it incorporated Sarawak, Sabah and Singapore. Singapore seceded peacefully in 1965.

5. Malaysia Was a colony of Portugal, Netherlands and Britain.
Is a constitutional (elected) monarchy, composed of 13 states.
Population of 24.4 Million; 58% Malay, 26% Chinese & 7% Indian.
All Malays are Muslim.
Is the site of the Petrona Towers and Tunku Abdul Rahman College.
Parameshwara was fleeing his father-in-law. He attempted to take refuge in several places on the Malay Peninsula including a spot near Singapore. In each case he was run off. Malacca was his last stop.

6. Malacca and Islam
Malacca was founded in 1402 by Parameshwara, prince of Palembang.
Malacca competed for ships with other SEAsian states. Malacca sent tribute to the Thailand and China. Converting to Islam improved relations with Sumatra plus Indian and Arab traders.
Trade led to Malacca becoming a center for the spread of Islam.
Tun Perak ( ) made Malacca a Malayan empire.
It was only a few years after its founding that Malacca became a major port.
Other states such as Thailand and Majapahit. In spreading Islam, considerable accommodation was made to local customs and beliefs.
In 1459 Sultan Mansur Sha of Malacca married Princess Hang Li Po , the daughter of Ming Emperor Young Lo . The princess was attended by 500 maids.

7. Trade at Malacca
Malacca was an ideal location, half way along the sea route between India and China.
As an entrepot, it became a center for trade:
Silk and porcelain from China.
Textiles from Gujarat and Coromandel in India.
Camphor from Bornea.
Sandlewood from Timor
Nutmeg, mace, & cloves from the Moluccas.
Gold & pepper from Sumatra.
Tin from Western Malaya.
Cheng Ho visited Malacca in 1409 on the first of his seven great voyages.
In additon to its location, Malacca was very efficiently run as an entrpot. The port was administered by four Harbor Masters to whom ship captains reported based on their previous port of departure. Elephants were provided to transport cargo to assigned warehouses. Customs was collected – an average of 6%, and plus appropriate gifts were made to the Bendahara (Prime Minister). The goods were quickly sold in local markets or shipped to other surrounding points. The key was assuring that all transactions were completed in time for the ships to depart on the return monsoon.

8. Colonial Malacca
Alfonso De Albuquerque conquered Malacca in 1511 for Portugal. It remained Portuguese for 130 years.
Trade brought great riches.
Saint Francis Xavier visited during Found it to be a debaucherous cesspool of vice.
Malacca fell to the Dutch in In 1826, it became a British colony.
Alfonse De Albuquerque was Gov-Gen of the Portuguese state of India. It constituted a series of port cities: Goa, Calicutt, Celon, Malacca. Macao.
Christ Church (Dutch)

9. British Entry Into Malaya
The British withdrew from competition with the Dutch following the Ambon Massacre of 1623.
The Dutch (allied with the Sultan of Jehore) gained control of Malacca from the Portuguese in 1641, but did little with it. The principal Dutch interest was to direct trade to Batavia (Jakarta).
The British first gained a foothold in Malaya in 1786 when the Sultan of Kedah granted the island of Penang to the East India Company.
The angst the British felt over the massacre caused considerable political unrest in England. Eventually, British interest in the Moluccas was traded for Dutch interest in New York (New Amsterdam) in the Treaty of Breda in 1667.

10. The Straights Settlement
The British took control of Malacca from the Dutch under the Anglo-Dutch Treaty of The treaty was a response to the establishment of Singapore as a highly successful port.
The fishing village of Singapore was acquired from the Sultan of Johore in 1819 by Sir Thomas Stanford Raffles.
One reason for its great success was its location and excellent anchorage. Another, was that it provided a means for non-East India Company traders (country ships) to bypass the East India Companies monopoly on trade with China. Chinese goods purchased in Singapore were considered to originate in Singapore, not China. In 1833,the companyu lost its monopoly.
The Dutch did not accept the British position in Singapore gracefully. They had a treaty with the previous Sultan of Jehore for Rhio which included Singapore. Yet, they eventually concluded that they could not push the British out.
Thomas Stanford Raffles

11. Questions Who founded Malacca? What is ideal about Malacca's location?
Who conquered Malacca for the Portuguese?
Which famous Jesuit missionary visited Malacca?
Why did the British withdraw from the spice trade competition after 1623? What did they ultimately receive as compensation?
What prompted the Anglo-Dutch Treaty of 1824?
The acquisition of what territories in 1961 led to Malaya becoming Malaysia?
Malaysia is considered to be constitutional _____.
Parameshwara, prince of Palembang.
It’s about half way between India and China plus it is on the best route to the Spice Islands
Alfonso da Albuquerque conquered Malacca for the Portuguese.
Francis Xavier.
The Ambon Massacre of Ultimately they received New York (New Amsterdam) as compensation by treaty.
Thomas Stanford Raffles founded Singapore as a highly successful port. He received it in a treaty from the Sultan of Jehore. The Dutch contested the legality of the treaty as they had received Rhio from the previous Sultan which supposedly included Singapore. However, they soon concluded that they could not dislodge the British from Singapore and settled for splitting the Malay Archipelago between themselves and the British.
Sarawak, Saba and Singapore
It is a constitutional monarchy. The monarch is elected by the Sultans of nine Malay states.

12. British Crown Colony
Penang, Malacca and Singapore became the the Straits Settlement crown colony in 1826, but was administered from Calcutta by the East India Company until 1867.
The East India Company had little interest expending its resources in direct control of Malay territory.
It didn’t even object when James Brooke acquired as a private kingdom in Sarawak in 1846.

13. The Need for Intervention
Between 1871 and 1873 their was a period political instability in the Malay states.
Malay states were in constant turmoil over dynastic disputes and conflicts between Chinese secret societies. A civil war broke out between local chiefs backed by Chinese societies in Selangor.
Demand for tin suddenly increased with the U.S. Civil War and the opening of U.S. west.
Business relations with Malay states became unreliable in a time increasing competition for tin by other countries due to the opening of the Suez Canal.
Investment in business ventures such as telegraph lines was unlikely without assurance of British protection
There are five rivers in Selangor, each with its own chief. Each chief sought to attract Chinese laborers to the tin mines in his area to increase his revenue

14. Demands for Intervention
Straits Settlement Association established in London to lobby for intervention in 1868.
In , British merchants pressured the Colonial Office:
Chinese merchants prompted to petition the British to intervene.
Seymour Clark of Selangor Tin writes colonial office expressing concern that Malay states may seek German intervention.
W.H.M. Reed (Straits Settlement Ass.) obtains letters from Malay chiefs requesting British intervention.
All of these British merchants had interest in Tin mining (Selangor Tin in particular) and the Telegraph Line project which would run from Thailand thru Malaya and ultimately to Australia.

15. Residency System
The Residency System is established in Perak in The sultan agrees to accept a resident whose advice must be followed in all matters, particularly administration and revenue collection, other than religion and custom. In return, the British will protect the state against internal and external threats.
Within a month, Selangor and Negri Sembilan accept residents. In 1888, Pahang followed suit.
It is doubtful that the Sultan of Perak realized the extent to which he had surrendered power. From the Malay viewpoint, custom and religion governed most activity. Justice, tax collection, debt-slavery, and succession to the throne were all sanctified by custom and beyond the advice of the resident.

16. The Perak War
In 1875, the Perak Resident, J.W.W. Birch was murdered. Several issues were involved.
Governor William Jervois proposed that advisors be replaced by Queen’s Commissioners. The Commissioners would govern in the sultan’s name. Birch was required to obtain the sultan’s consent.
Conflict over debt slavery. Birch allowed his residence to become a sanctuary for runaway slaves, mostly women. The sultan imagined that he was stealing the slaves to provide mistresses for his police.
As punishment, three chiefs were executed and the sultan replaced.
Birch’s principal lever to obtain consent was the threat that the British would replace the existing sultan.
Debt slavery was an established practice. The debtor and his family were required to work as slaves until a debt was paid. Birch found the practice to be distasteful.

17. Perak War Monuments
Monument to J.W.W Birch on the spot where he was killed in Pasir Salak. Built: 1900.
Warrior’s Monument to Malays who died in the Perak War.
The monuments are part of complex which includes a museum in Pasir Salak. Pasir Salak is about 60 km from Ipoh and Lumut in Perak. The sword is a Sundang. The design is Indonesian but adopted in Malaya.

18. Questions What territories composed the Straits Settlements?
James Brooke acquired a private kingdom in what territory?
Why were British businessmen interested in obtaining direct British intervention in Malaya?
What finally led to the Colonial Office agreeing to intervene?
To what did a ruler agree when receiving a Resident? What did he gain in return?
What were the two principal sources of disagreement that led to the murder of J.W.W. Birch and the Perak War?
FMS: Penang, Malacca and Singapore plus the Province of Wellesley and Dindings.
Sarawak.
To receive a resident, the ruler agreed to accept the resident’s advice in all matter, particularly administration and revenue collection, other than religion and custom. In return, he was guaranteed British protection against internal and external threats.
They had a considerable stake in Tin mining and a telegraph line. The Malay states were in political turmoil (in Selangor civil war) from succession disputes and Chinese secret societies.
The threat that Germany might be invited to intervene by the smaller states.

19. Federated Malay States
In 1895, Perak, Selangor, Penang and Negri Sembilan were merged into the Federated Malay States (FMS) with a Resident General in Kuala Lumpur.
In practice, the FMS tended to be more unitary than federal with the Resident General issuing instructions directly to Residents and departmental heads doing likewise to their state counterparts.
Periodic meetings of all Malay rulers and residents provided a limited deliberative and advisory function.
Negri Sembilan was itself a collection of nine smaller Minangkabau states. They included Sunjei Ujong, Jelebu and Sri Menanti and Rembau.

20. Extension of British Rule

21. Pre World War II
Malaya, FMS and the Straits Settlements enjoyed prosperity and relative peace prior to WW II.
The three major ethnic groups existed in superficial harmony: Malay (Bumiputras), Chinese and Indians. However, the number of Chinese and Indian immigrants and their share of the economy increased greatly.
The British built a major naval base in Singapore in 1938 with the principal goal of defending India from Japan.

22. World War II
British preparations for war in Malaya were sadly inadequate. The naval base at Singapore (fortified against attack by sea) fell in humiliation to a Japanese land campaign.
The Chinese in Malaya were forced to take sides between the Communist and the KMT.
The Chinese Communist in Malaya began an anti-Japanese guerrilla war.
The British supported Communist guerrillas thru Force 136 which provided training and supplies.
Remember we supported Ho Chi Minh in like manner.

23. Malay Union In 1945, the British proposed the Malay Union.
The union was to be composed of the nine Malay states plus Malacca and Penang, but not Singapore.
The nine Malay Sultans would surrender sovereignty to the union. Laws would no longer require their ratification.
There would be common citizenship for Malays, Chinese and Indians born in Malaya or who had been residents for ten years.
A massive protest movement led to the formation of the United Malay National Organization (UMNO).

24. Federation of Malaya
The strong reaction to the Malay Union led to a new structure in 1948, the Federation of Malaya.
Retrocession of sovereignty to the Malay states.
Integration of the states and Malacca and Penang (but not Singapore) into the new federation.
Citizenship rights restricted to Malays, only.
The Malays felt that the Chinese and Indians were trying to steal there country. Religious differences didn’t help.

25. Questions Which territories composed the Federated Malay States?
Which ethnic groups increased in number and economic power prior to WW II?
During WW II, what group did British Force 136 support?
The creation of the Malay Union deprived Sultans of _______ and granted Chinese and Indians full ________.
The United Malay National Organization (UMNO) was a reaction to _______.
The Federation of Malaya restored _________ to the Sultans and limited citizenship to ________.
The FMS was composed of Perak, Selangor, Pahang, Negri Sembilan, Penang and Malacca, but not Singapore.
Chinese and Indian.
The Chinese Communist Guerrillas. Remember, we were allies with the Russians.
Sultans were deprived of sovereignty; Chinese and Indians were granted full citizenship.
The UMNO was a reaction to the Malay Union.
The Federation of Malaya restored sovereignty to the sultans and limited citizenship to Malays.

26. Independence Delayed.
The British were withdrawing from everything east of Suez. India and Burma had already been granted independence. Malaya was to be next.
Chinese Communist insurgency began in 1948 leading to a declared state of emergency that lasted until The Chinese saw the new federation as imperiling their legal status. The Chinese revolution provided the model of insurgency and guerrilla warfare.
The vehicle was the Malayan Communist Party (MCP).

27. Combating Insurgency
The British success in combating the insurgency was the product of :
The guerrillas never exceeded 10,000 and could claim the support of no more than 15-20% of Chinese population.
The guerrillas were easily distinguished racially.
The Malayan Chinese Association (MCA) was formed as political solution to unrest.
Insurgents received little outside support.
The Briggs Plan of 600 new villages and deportation of 10,000 Chinese back to China.
The MCA was able to collaborate with the UMNO in a common call for independence of Malaya (merdeka).
Not all guerrillas were eliminated. Some are still operating along the Thai border.

28. Independence 1957
Malaya granted independence in 1957, although the emergency last until 1960.
Tunku Abdul Rahman was the first P.M. He was an English educated prince from Kedah. He served until 1970.
He sought to give special attention to Malays to makeup for past neglect.
Tunku Abdul Rahman

29. The Bargain
The key feature of the bargain was that the Chinese would be allowed to prevail in the economic sector, but the Malays would control the political sector.
The Malays received constitutional advantages:
Head of state (king) would be a Malay sultan.
Malay would be the official language
Islam would be the official religion
Malays would receive preferences in land acquisition, educational assistance and civil service employment.
The king (Yang diPertuan Agong) was elected by and from among the nine peninsular Malay states.

30. Federation of Malaysia 1963
An enlarged Malaysia was formed in 1963 from Malaya, Singapore, Sarawak and Sabah.
The British sponsored this arrangement to improve the viability of the state. Singapore, Sarawak and Sabah were all British dependencies.
Sarawak and Sabah would balance the largely Chinese population of Singapore, thus not threatening the bargain.
Singapore remained part of the federation for only two years.

31. A Malaysian Malaysia
Tunku Abdul Rahman expelled Singapore from Malyasia in 1965 after Lee Kuan Yew called for a Malaysian Malaysia, i.,e., equal participation by all groups. Tunku Abdul Rahman sought a Malayan Malaysia.
The wish by minority groups for equality continued and led to the 1969 riots.
Lee Kuan Yew

32. 1969 Riots
Abdul Rahman’s Alliance Party lost 23 seats in the parliament when the opposition parties won a 51.5 % majority. A victory celebration by Anti-Alliance forces in Kuala Lumpur led to rioting.
Mob violence raged for four days.
The King proclaimed a state of emergency, parliament was disbanded, civil liberties curtailed and the National Operations Council (NOC) under Deputy P.M. Tun Abdul Razak granted total authority for 21 months.
Sedition Acts were passed prohibiting discussion of “sensitive issues.

33. Greater Economic Opportunity
Tun Abdul Razak followed Tunku Abdul Rahman as P.M. from
Believed ethnic tension was due to insufficient economic opportunities for Malays.
Set the New Economic Policy (NEP) in motion in 1971.
Granted special privileges to Malays: business ownership, tax breaks, investment incentives & employment quotas.
The NEP was a 20 year plan to eliminate poverty and give Malays a greater share of the economy.
Tun Abdul Razak

34. “Look East” Policy Mahatir served as P.M. from 1981 to 2003.
He was the first P.M. not to be a royal and not educated in the U.K. He’s a medical doctor.
He downgraded relations with England and the Commonwealth in favor of Asia and ASEAN.
Established the Bumiputra Investment Foundation and initiated “dawn raids” on London Stock Exchange.
The foundation was a guarantor of loans made to Bumiputras. It also was designed to permit small investments or as little as $ The dawn raids were to buy controlling interests in companies owning businesses and plantations in particular in Malaysia. One target was Guthrie Corporation, the holder of 190,000 acres of rubber plantations in Malaysia. Gutherie had allowed the MCA to buy 73% of the shares in one of its companies in Singapore.
Dr.Mahatir bin Mohamad

35. Dictatorial Desperation
How Mahatir retained power:
Operation Lallang (1987) arrested of 119 opposition leaders and closed three opposition newspapers.
Eliminated judicial review of security and the operation of political parties in 1988.
Accused the Jews of causing the currency crises of 1997.
Charged Awar Ibrahim with corruption and sodomy in 1998.
The Operation Lallang arrests were made under the Internal Security Act (detention without charges or trial).
The Malaysian supreme court ruled that the UMNO was an illegal organization because it had not registered 30 of its branches. The court required that UMNO be deregistered as a political party. This led to a split in the party and a scramble to reregister at least 50% of the party membership to gain control of the UMNO’s financial assets.Thus Mahatir’s interest in eliminating judicail review in this area.
Mahatir later claimed that his remarks about Jews causing the 1997 economic crises referred to George Soros, the investor.
In 1998, Anwar Ibrahim supported economic reforms in line with the IMF’s recommendations and at odds with Mahatir’s proposals. Anwar Ibrahim’s supporters held a rally in in Kuala Lumpur in September Mahatir perceived this as a challenge by Anwar to his leadership.
Deputy Anwar Ibrahim spent six years in jail on dubious charges.

36. Current Prime Minister
Received a B.A. in Islamic Studies. He includes “bin Haji” in his full name.
His backing of “Team B” in the UMNO split led to his loosing his post as Mahatir’s Minister of Defense.
Was considered fully rehabilitated when he was appointed to replace Anwar Ibrahim as Mahatir’s Deputy P.M. for Home Affairs.
Mahatir has been critical of his performance on the Proton and the bridge to Singapore.
The Proton is the Malaysian national car. It is being sold in Asia and the U.K.and Australia. First produced in There are two causeways that connect Singapore to the mainland. The issue is not so much auto traffic as that fact that the causeways block access to Malaysian Ports. The bridge would replace one of the causeways and would have to be elevated or crooked. The Malaysians have even proposed replacing ½ of a causeway (their half) and leaving the remainder a causeway.
Abdullah Ahmad Badawi

37. Questions
Q1. What was the source of Chinese discontent that led to the insurgency?
A1. The feared lose of legal status.
Q2. The British success in combating the insurgency was based on what five factors?
A2. (1). Less than 20% of Chinese population supported the insurgents. (2). Guerrillas easily distinguished. (3). MCA offered a political solution. (4). The insurgents received little outside support. (5). The Briggs Plan.
Q3. Who was the first P.M. of the Federation of Malaysia?
A3. Tunku Abdul Rahman.

38. More Questions Q4. What was the “Bargain”?
A4. The Chinese would prevail economically; the Malays would prevail politically.
Q5. What was the purpose of the enlarged Federation of Malaysia?
A5. To give Singapore, Sarawak and Sabah a secure home as Britain pulled out.
Q6. Why was Singapore expelled from the Federation of Malaysia?
A6. Lee Kuan Yew threatened the bargain by demanding a Malaysian Malaysia.

39. And More Questions Q7. What was the cause of the 1969 Riots?
A7. An Anti-Alliance celebration of the UMNO’s loss of its majority in the parliament.
Q8. What was the “Look East” policy?
A8. Mahatir’s decision to look to East Asia in the future for models of success.
Q9. What were the “Dawn Raids” on the London Stock Exchange about?
A9. Regaining national control of companies such as Guthrie that owned huge plantations and other assets in Malaysia.

40. And Still More Questions
Q10. Why did Mahatir charge Anwar Ibrahim with sodomy and corruption?
A10. He perceived that Anwar was challenging his leadership.
Q11. Why did Mahatir amend the constitution to eliminate judicial review of security matters and the operation of political parties.
A11. It was judicial review of UMNO registration that led to the party being deregistered. This forced a scramble to reregister 50%+ to gain control of the party’s assets.

41. Malaysian Political Parties
Two coalitions have ruled Malaysia:
The Alliance (prior to 1969) composed of
UMNO, MCA & MIC
The National Front (Barisan Nasional) (since 1969)
UMNO plus eleven including PAS & DAP.
Malaysia's P.M.s have all come from the UMNO.

42. United Malayas National Organization.
The UMNO survived the 1988 split and the APU (Islamist & Chinese) challenge of 1990.
The UMNO has access to almost unlimited funds. It has become a huge business conglomerate holding assets in numerous corporations.
UMNO Logo

43. State Royalty Nine Malay states have ruling sultans.
The King (Yang diPertuan Agong) is elected by and from among the nine for five years.
The Kings powers include ceremony, religious duties, appointments and delay of legislation.
In 1993, Mahatir was able to gain passage of legislation placing the sultans under the law.
The Attorney Generals consent is required to bring charges against a sultan and special court must be convened.

44. Legislature
The structure of Malaysia’s legislature is based on the British Westminster system.
The P.M. must be a member of the lower house and command majority support.
Lower house is composed of 219 members of which 199 seats are held by the BN (National Front).
The upper house is composed of 70 members, 26 appointed by state legislatures and 44 appointed by the king on recommendation of the P.M.
The upper house is elected for 6 years; the lower house is elected for 5 years unless parliament is dissolved sooner.

45. Institutions
Military. Malaysia has maintained only a minimal national force. Instead, it has relied on the defense arrangements with British and Anglo-Malayan Defense Agreement (Singapore, Great Britain, Australia, and New Zealand).
Women. Consistent with Islamic beliefs, women only play a very minor role in public affairs. There are a growing number of professional women and women have formed auxiliaries to political parties which give them some voice.

46. Democrtization
Malaysia is considered to be only semi-democratic due to the limitations on civil liberties such as the Official Secrets Act, Internal Securities Act and Sedition Act which prohibit all discussion of “sensitive issues.”
The key issue is what are the rights of Malays in a polycommunal society.
The success of the Malaysian economy has mitigated demands for equality.

47. Economic Development
The standard of living has improved immensely for the average person since From close to Zero, access to piped water, electricity and TV are all 100%. The Malay poverty level is < 17%.
The New Economic Plan (NEP) of 1971 was a 20 year plan to eliminate prosperity as a function of race. It sought rapid growth in the Malay sector without weakening Chinese enterprise.
The NEP also sought to increase the Malay share of capital ownership to 30%, reduce foreign share to 30% from 63% and allow a 40% Chinese share.
The Malay portion of capital was only 20% in Hence, the need to continue the program.

48. Economic Development (Cont’d)
Malaysia’s economy is a market oriented, export economy with state ownership of heavy industry, only. Growth rate of GNP has been about 8% in the 1980s & 90s.
Malaysia is the world’s largest exporter of semiconductors, one of the world’s largest exporters of single-unit air conditioners, textiles and footwear.
Malaysia is considered both a Tiger and a NIC.
The Malaysians must import plantation labor from Indonesia and Sri Lanka.
Malaysia has privatized public utilities, communications, transportation, etc.

49. Questions
Q1. Name the two political party coalitions that have ruled Malaysia since 1957.
A1. The Alliance and the National Front.
Q2. Does the UMNO suffer from lack of funds?
A2. No. It has large investments in various businesses.
Q3. How is the King of Malaysia elected?
A3. By and from among the nine Sultans.

50. More Questions
Q4. The Malaysian upper house (senate) is composed of 70 members. How are they selected?
A4. State legislatures appoint 26; the king appoints 44.
Q5. Why is Malaysia considered to be only semi-democratic?
A5. The lack of civil liberties to discuss sensitive issues.
Q6. Under the NEP, what was the goal for the Malay capital share of the economy?
A6. 30%. Only 20% has been achieved.

51. Still More Questions
Q7. What is the disadvantage of being labeled a newly industrialized country (NIC)?
A7. Loss of preferential import tariffs.

52. The End