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51. Malaysia's China Policy in the Post-Mahathir Era: A Neoclassical Realist Explanation

Author:
KUIK Cheng-Chwee
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Malaysia's China policy in the post-Cold War era – as an instance of a smaller state's strategy toward a proximate and rising great power – has been characterized by three patterns. First, there was a shift from hostility and guarded rapprochement during the Cold War to cordiality and maturing partnership in the post-Cold War era. Second, despite the overall positive development, Malaysia's China policy has remained, in essence, a hedging approach that is driven by both a pragmatic desire to maximize benefits from a closer relationship with the neighboring giant and a contingent calculation to guard against any long-term strategic risks in the uncertain regional environment. Third, such a two-pronged approach, which took shape since the 1990s under Mahathir Mohamad, has endured beyond the Mahathir era. Indeed, under his successors Abdullah Ahmad Badawi and Najib Tun Razak, Malaysia has continued to pursue a policy of dualism vis-à-vis China. What explains the enduring continuity of the hedging approach in Malaysia's China policy? This paper adopts a neoclassical realist perspective, arguing that the continuity is attributed to both structural and domestic factors. Domestically, the changing bases of political legitimation in the multi-ethnic country, which highlight the increasing salience of economic performance and political inclusiveness as key sources of moral authority to the UMNO-led coalition government, have necessitated the succeeding leaders to continue pursuing a pragmatic policy aimed at ensuring a stable and productive relationship with China, not least to gain from the steadily growing bilateral trade and the giant's growing outward investment. Structurally, Malaysia's position as a smaller state has compelled it to be constantly vigilant about the uncertainty of state intentions and inter-great power relations, which in turn demands it adopts contingent measures to hedge against longer-term risks. It is such structural and domestic determinants that have fundamentally shaped the country's policy towards China in general and the South China Sea issue in particular, which characteristically bears the mark of a delicate dualism, i.e. an explicit preference for engaging China through bilateral and multilateral diplomacy, but one that is backed by a low-key practice of maintaining and strengthening its traditional military links with its Western security partners.
Topic:
International Relations, Security, Cold War, Diplomacy, International Trade and Finance, and Bilateral Relations
Political Geography:
China, Malaysia, and Israel

52. CHINA SPOOKING ALLIES WITH THE SEE-SAW BETWEEN SOFT AND HARD POWER

Author:
Richard Rousseau
Publication Date:
04-2012
Content Type:
Working Paper
Institution:
The Diplomatic Courier
Abstract:
Chinese leaders spend considerable time and energy in assuring the international community that they have no reason to be afraid of China’s “peaceful rise” and rapid emergence as one of the most important economic and diplomatic players on the international stage. Many countries, however, equate China’s growing economic might with greater political influence and are less accepting of the benign image that Beijing now wants to portray to the world. Although China’s current policy may appear at first impression to be a rather soft variety of imperialism, it is still perceived by many as “hard” imperialism. There are now mounting signs that other countries, especially China’s neighbors, are not totally convinced of Beijing’s proclaimed benevolent intent. Those countries are presently taking measures to protect themselves in case China’s “soft” imperialism eventually turns out to be more aggressive or of the “hard power” variety.
Topic:
Diplomacy, Imperialism, International Cooperation, and ASEAN
Political Geography:
China, Indonesia, Malaysia, Asia, South Korea, Philippines, Cambodia, Australia, and Myanmar

53. Executive Accountability in Southeast Asia: The Role of Legislatures in New Democracies and Under Electoral Authoritarianism

Author:
William Case
Publication Date:
01-2011
Content Type:
Policy Brief
Institution:
East-West Center
Abstract:
In an influential study, Steven Fish and Matthew Kroenig argue that “overarching institutional designs” (i.e., presidential, parliamentary, and dual systems) tell us less about the prospects of a new democracy than does the particular strength of the legislature. Specifically, executive abuses are best checked where legislatures are powerful, generating horizontal accountability. Indeed, Fish and Kroenig suggest that with judiciaries and watchdog agencies weak in most new democracies, the legislature is the only institution by which accountability can be imposed. What is more, ordinary citizens are better informed by the robust party systems that strong legislatures support, fostering vertical accountability. In comparing Freedom House scores with their Parliamentary Powers Index (PPI), Fish and Kroenig show clear correlations, leading them to conclude that democracies are made strong by legislatures that are empowered.
Topic:
Civil Society, Democratization, and Political Economy
Political Geography:
Indonesia, Malaysia, Asia, Philippines, Cambodia, Singapore, and Southeast Asia

54. Inward FDI in Malaysia and its policy context

Author:
Rajah Rasiah and Chandran Govindaraju
Publication Date:
04-2011
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Malaysia is still perceived as an important destination for foreign direct investment (FDI). Deregulation by the Malaysian government in 1986 with a new round of Pioneer status tax holidays, tax allowances for expansion projects, liberal rules for firms operating in free trade zones (FTZs), and tax exemptions are encouraging stronger FDI inflows (IFDI). IFDI flows reached a peak in 1988-1993 as export-oriented foreign multinational enterprises (MNEs) relocated manufacturing production operations to Malaysia to benefit from cheap labor, government incentives and liberal conditions for manufacturing FDI. After 1996, due to the Asian financial crisis in 1997-1998, IFDI flows into Malaysia decreased and subsequently recorded the lowest level in 2001 as a result of the world trade recession. Following steady growth in 2002-2007, IFDI in Malaysia fell dramatically in 2008 and 2009 due to the global economic crisis. However, a strong resumption in the first quarter of 2010 and government efforts, including continued liberalization of manufacturing and services, the Government Transformation Programme, promoting new key economic areas, and the active role of the Ministry of International Trade and Industry (MITI), contributed to an increase in inward FDI flows in the second quarter of 2010.
Topic:
Economics, Industrial Policy, International Trade and Finance, Foreign Direct Investment, and Financial Crisis
Political Geography:
Malaysia and Southeast Asia

55. Securing the trade supply chain

Author:
Nazery Khalid
Publication Date:
02-2011
Content Type:
Policy Brief
Institution:
Maritime Institute of Malaysia
Abstract:
The recent report on the staggering value of cargos stolen in Malaysia may have triggered “Shiver me timbers!” expressions of surprise among many . It seems jarring for a progressive country like Malaysia to be ranked unfavorably in terms of the security of its trade supply chain, the network of resources, information and capital that links importers and exporters.
Topic:
Security, Crime, and International Trade and Finance
Political Geography:
Malaysia

56. The Sick Man of Asia

Author:
Yanzhong Huang
Publication Date:
11-2011
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
Although China has made remarkable economic progress over the past few decades, its citizens' health has not improved as much. Since 1980, the country has achieved an average economic growth rate of ten percent and lifted 400–500 million people out of poverty. Yet Chinese official data suggest that average life expectancy in China rose by only about five years between 1981 and 2009, from roughly 68 years to 73 years. (It had increased by almost 33 years between 1949 and 1980.) In countries that had similar life expectancy levels in 1981 but had slower economic growth thereafter -- Colombia, Malaysia, Mexico, and South Korea, for example -- by 2009 life expectancy had increased by 7–14 years. According to the World Bank, even in Australia, Hong Kong, Japan, and Singapore, which had much higher life expectancy figures than China in 1981, those figures rose by 7–10 years during the same period.
Topic:
Economics
Political Geography:
Japan, China, Malaysia, Asia, South Korea, Colombia, Australia, Mexico, and Hong Kong

57. Forest Clearing in the Pantropics: December 2005–August 2011

Author:
David Wheeler, Robin Kraft, and Dan Hammer
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This report summarizes recent trends in large-scale tropical forest clearing identified by FORMA (Forest Monitoring for Action). Our analysis includes 27 countries that accounted for 94 percent of clearing during the period 2000–2005. We highlight countries with relatively large changes since 2005, both declines and increases. FORMA produces indicators that track monthly changes in the number of 1-sq.-km. tropical forest parcels that have experienced clearing with high probability. This report and the accompanying spreadsheet databases provide monthly estimates for 27 countries, 280 primary administrative units, and 2,907 secondary administrative units. Countries' divergent experiences since 2005 have significantly altered their shares of global clearing in some cases. Brazil's global share fell by 11.2 percentage points from December 2005 to August 2011, while the combined share of Malaysia, Indonesia, and Myanmar increased by 10.8. The diverse patterns revealed by FORMA's first global survey caution against facile generalizations about forest clearing in the pantropics. During the past five years, the relative scale and pace of clearing have changed across regions, within regions, and within countries. Although the overall trend seems hopeful, it remains to be seen whether the decline in forest clearing will persist as the global economy recovers.
Topic:
Agriculture, Economics, Globalization, and Natural Resources
Political Geography:
Indonesia, Malaysia, and Myanmar

58. From REDD to Green: A Global Incentive System to Stop Tropical Forest Clearing

Author:
David Wheeler, Robin Kraft, and Dan Hammer
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
In this paper, we develop and illustrate a prototype incentive system for promoting rapid reduction of forest clearing in tropical countries. Our proposed Tropical Forest Protection Fund (TFPF) is a cash-on-delivery system that rewards independently monitored performance without formal contracts. The system responds to forest tenure problems in many countries by dividing incentive payments between national governments, which command the greatest number of instruments that affect forest clearing, and indigenous communities, which often have tenure rights in forested lands. The TFPF incorporates both monetary and reputational incentives, which are calculated quarterly. The monetary incentives are unconditional cash transfers based on measured performance, while the reputational incentives are publicly disclosed, color-coded performance ratings for each country. The incentives include rewards for: (1) exceeding long-run expectations, given a country's forest clearing history and development status; (2) meeting or exceeding global REDD+ goals; and (3) achieving an immediate reduction in forest clearing. Drawing on monthly forest clearing indicators from the new FORMA (Forest Monitoring for Action) database, we illustrate a prototype TFPF for eight East Asian countries: Cambodia, China, Indonesia, Lao PDR, Malaysia, Myanmar, Thailand, and Vietnam. A system with identical design principles could be implemented by single or multiple donors for individual or multiple forest proprietors within one or more countries, as well as national or local governments in individual countries, tropical regions, or the global pan-tropics. Our results demonstrate the importance of financial flexibility in the design of the proposed TFPF. Its incentives are calculated to induce a massive, rapid reduction of tropical forest clearing. If that occurs, a TFPF for East Asia will need standby authority for disbursements that may total $10–14 billion annually for the next two decades. This financial burden will not persist, however, because the TFPF is designed to self-liquidate once all recipient countries have achieved clearly specified benchmarks. We estimate that the TFPF can be closed by 2070, with its major financial responsibility discharged by 2040.
Topic:
Agriculture, Economics, Globalization, and Markets
Political Geography:
China, Indonesia, Malaysia, East Asia, Vietnam, Cambodia, Thailand, Southeast Asia, and Myanmar

59. Executive Accountability in Southeast Asia: The Role of Legislatures in New Democracies and Under Electoral Authoritarianism

Author:
William Case
Publication Date:
01-2011
Content Type:
Policy Brief
Institution:
East-West Center
Abstract:
In an influential study, Fish and Kroenig argue that "overarching institutional designs" (i.e., presidential, parliamentary, and dual systems) tell us less about the prospects of a new democracy than does the particular strength of the legislature. Specifically, executives are best checked where legislatures are powerful, generating horizontal accountability. In addition, ordinary citizens are better informed by the robust party systems that strong legislatures support, fostering vertical accountability. In comparing Freedom House scores with their Parliamentary Powers Index (PPI), Fish and Kroenig show clear correlations, leading them to conclude that democracies are made strong by legislatures that are empowered. In this monograph, this thesis is tested in five country cases in Southeast Asia: the Philippines and Indonesia, both new democracies, and Malaysia, Cambodia, and Singapore, cases of electoral authoritarianism. Analysis uncovers that in the new democracies, though their legislatures may be rated as powerful, members are geared less to checking the executive than to sharing in state patronage. In addition, although the legislature is evaluated as weak under electoral authoritarianism, it features an opposition that, with little access to patronage, remains committed to exposing executive abuses. What is more, when the executive operates a regime type that lacks the full legitimacy gained through general elections, he or she grows more receptive to at least mild legislative scrutiny. Contrary to Fish and Kroenig, then, this study concludes that the executive is held more accountable by legislatures under electoral authoritarianism than in new democracies. But rather than leading to a transition to democratic politics, this accountability strengthens authoritarian rule.
Topic:
Civil Society, Democratization, Development, Government, and Politics
Political Geography:
Malaysia, Asia, Cambodia, and Singapore

60. Aligning the maritime industry towards realizing the New Economic Model aspirations

Author:
Nazery Khalid
Publication Date:
04-2010
Content Type:
Policy Brief
Institution:
Maritime Institute of Malaysia
Abstract:
Malaysia is at a crossroad. It has done well to boost economic growth, thanks to sound economic strategies and management. From being a developing nation dependent upon commodities and agriculture to power its economic growth, Malaysia is now one of the top 20 trading nations. However, it has found itself 'stuck' in so-called 'middle income trap'. The economy, while more diversified today compared to three decades ago, is still reliant upon labor intensive activities and, inevitably, cheap labor. Malaysia's vulnerability to external shocks, as seen during the recession and credit crunch, underscores the urgent need for the nation's economic planners and policymakers to take drastic actions to make the economy more robust and move it up the value chain.
Topic:
Economics, International Trade and Finance, and Maritime Commerce
Political Geography:
Malaysia and Southeast Asia