Dissecting Mahathir’s Grand Design


February 3, 2012

Dissecting Mahathir’s Grand Design

by Liew Chin Tong@http://www.liewchintong.com

Not many of us remembered that Barisan Nasional survived and thrived electorally for an extended period from 1991 to 2005 as a result of Tun Dr. Mahathir Mohamad’s grand compromise in the form of Vision 2020.

Coercive tools and undemocratic means like security power to arrest legitimate political opponents without trial, legal and financial controls over mass media, and a distorted electoral system, have helped BN to remain in power, becoming the current longest serving elected government in the world.

The Alliance formula and the beginning of “Malay First” hegemony

BN’s predecessor the Alliance’s formula was to win half of the votes of all ethnic groups. Being the sole coalition with multi-ethnic representation at all levels, the strategy paid off well in 1959 and 1964.

But the Alliance also pursued a small-government-do-very-little approach, resulting in rising inequality. It eventually resulted in an increased support for the opposition among members of all ethnic groups, including Malays, in 1969.

Contrary to the popular belief that only Chinese supported the opposition in the 1969 election, the Malays played their part too. Dr. Mahathir lost his Kota Setar Selatan seat as well as the defeats of other UMNO bigwigs demonstrated that there were substantial Malay swing against the Alliance.

Post-1969, Tun Razak’s formula strived to achieve a 70 percent Malay electoral support for BN. Non-Malay support was considered non-essential in such formula. All policies under the new arrangement, symbolised by the New Economic Policy, were geared towards that goal.

The “Malay first” strategy served UMNO well until the 1990 general election when the Malay votes were split after the formation of Semangat 46, led by Tengku Razaleigh Hamzah and other former senior UMNO leaders.

The Semangat 46-led opposition front almost won the day when BN managed to survive through a very cunning last-three-day manipulation of Tengku Razaleigh’s photo image with Kadazan headgear which resembled a Christian cross, suggesting to the Malay constituents that the opposition was about to sell out on Malay rights and dignities to foreign powers.

However, Malay votes for BN have not returned to the NEP-era level since then. Indeed, Malay votes for BN have further declined in every election since 1990, with the exception of the 2004 election, the first in the post-Mahathir era. (In 2004, Prime Minister Abdullah Badawi won due to his promises of reforms.)

BN won the 1995 election with the all-time high of 65 percent popular votes despite suffering a mild decline in Malay support and continued to survive the 1999 election despite more than half of the Malays voting against BN; a reaction against the sacking and subsequent jailing of Anwar Ibrahim. How did Dr Mahathir and Barisan Nasional survive since the 1990 election?

Vision 2020 and “Bangsa Malaysia”

Barely four months after the October 1990 election, Dr Mahathir unveiled his Vision 2020 and the concept of “Bangsa Malaysia” in February 1991 which set the tone for the next fourteen years until July 2005.

The strategy was to supplement the declining Malay base of UMNO with new-found Chinese middle class support by staring down the Malay right and cooling off racial temperatures. The major bones of contention among ethnic Chinese against UMNO between 1970 and 1990 were the lack of economic opportunities and cultural rights.

In the early 1990s, however, the economy was growing rapidly and life was good. Instead of curbing the cultural desire of ethnic Chinese, all rights were allowed as long as the price was paid.

For instance, higher education opportunities for ordinary ethnic Chinese were extremely lacking in the 1970s and 1980s. But in the 1990s when one was willing to pay for private education, hundreds of colleges were jostling for students.

Another example is Chinese language television broadcast time. In the 1970s and 1980s, not more than two hours of airtime were allocated for Chinese language broadcast on television. In the 1990s, if you could pay for satellite television, endless programmes await to tame the noisy middle class.

If you do not belong to the burgeoning middle class, or could not afford to pay for your children’s private education, or to pay for satellite television, don’t blame the government. It is your problem – either you are not lucky or you don’t work hard enough. After all, BN strategists were fully aware that the poorer components of both Malay and Chinese electorates would vote for PAS and DAP, respectively, anyway.

Imagined enemies and the short  tenure of Abdullah Badawi

During the 1970s and 1980s, a month would not pass without seeing some racial fanfare being played out in the media. But in the 1990s, whenever Dr Mahathir needed a whipping boy to consolidate his standing among the Malay base, it was always a choice among the British “colonisers”, the American “oppressors”, the Jewish “conspirators”, or the “arrogant” and “uncouth” Australians.

And, if Dr Mahathir needed an ethnic Chinese-looking enemy, the “surrogate” Chinese across the Causeway was there for him to attack. Images of UMNO Youth demonstrating in Johor Bahru against Singapore from this side of the Tebrau Straits vividly summed up the politics of the time perfectly – that UMNO did not have to change its methods, just look beyond our shores to see the “enemy”.

In 2004, Abdullah Badawi inherited Dr. Mahathir’s framework with an even more “Malaysian” or wasatiyyah (moderate) message. In his first National Day Address in August 2004, Abdullah said, “Kita semua adalah sama, kita semua rakyat Malaysia. Tidak ada individu di negara ini yang diiktiraf ‘lebih Malaysia’ dari individu lain.” (We are all the same, we are all Malaysians. No individual in this country is more Malaysian than others)

But something changed in 2005. The grand bargain ended abruptly in the last week of July of that year.

 

 

18 thoughts on “Dissecting Mahathir’s Grand Design

  1. Sorry, guys. His name keeps cropping up most of the time. Under Najib’s charge, Mahathir has become the man of the moment. He is the master puppeteer of UMNO politics. So he cannot be ignored.–Din Merican

  2. master puppeteer or tok dalang can only perform when the puppets are dumb, spineless and dead…In this case the umno members are alive and kicking but choose to…(whatever).
    Cest la vie. My dragon crystal ball tells me, the majority of the population will be the bulk of the eventual losers…

  3. Every issue from every angle has been dissected, examined and cross-examined and the jury of his peers has come out with the same verdict: GUILTY as charged.

    This is another re-run of the same trial. To keep tempers from flaring, and spare the bloghost from the bricks that are coming his way, Pak Semper should take the lead as lead DJ today being Friday (the equivalent of Saturday since over here we don’t work on Saturday) and give us what Terrence Netto would jump at the thought i.e. the “food of love”

  4. mahathirs grand design was not for the betterment of the country or the betterment of the malays but rather the taming of the people of malaysia.
    he proved that he is more malay than the malays themselves and that he could make them dance to his tune. he feels like a white man who became the chieftain of a tribe deep in Africa and very soon he’ll expect the malaysians to dance in the streets to attract more tourist to lift up the economic downturn.
    reminds me of Henderson the Rainking by Saul Bellows!

  5. Mr Liew Chin Tong should have talked about Dr M’s handling of the Asian Financial Crisis in 1998.

    The worth of a prime minister (this time is Najib) in my humble opinion is only known when the country is in trouble, and the country is against exogneous factors. We cannot really measure a prime minister as a prime minister when the whole country is under his control.

    What would happen if right now, the financial crisis hits Malaysia or Asia?

    I do not know about Malaysian banks but if the European banks pulls back their loans to Asian (Malaysian) banks in response to newly sanctioned higher requirements would cause a credit crunch in Asian .

    Borrowers beware.

  6. What would happen if right now, the financial crisis hits Malaysia or Asia?
    -Tang Loon Kong

    No problem. We have Petronas and EPF to bail the country out.

    You see, we have oil under the ground,and we are still digging and found we have more oil, and we have workers working their brains off putting their money each month into the EPF.

    Hey, we are flushed with money for eternity. What financial crisis in Malaysia? None.

  7. Tang Loon Kong , I don’t know where have you been, but didn’t you know that when the banks decided it was not financially viable to finance some 20,000 fellas to buy a home, because they cannot pay back, the Govt thinks it is financially sound to use your EPF money (meant for folks to retire when they grow old) to finance these financially unsound loans to these people. And the Govt wants to pull out RM 1.5 BILLIION.

    And what is a Quarter of a BILLION ringgit to give to an UMNO Minister’s family to run a COW project, which instead of producing beef, Shahrizat’s husband and children produce two condos in Bungsar and one in Singapore and to ensure they can move between Bungsar and Singapore, they bought a brand new Mercedes Benz. Perhaps they can put in 10 cows in the boot of the Mercedes Benz when driving to stay in the cow-funded condo in Singapore.

  8. Frank, a bank is there to make money for its shareholders and protect its deposits. If not it can be sued or fined. In other words, banks must win. If banks give to charity, it is strictly public relations.

    However, the government’s job is to promote social development – housing is one of them. What would happen if there are people living on the streets?

    One can only imagine. There are many other things that the government should do – for example, increasing the supply of food such as beef, and providing schools .

    The problem is prioratization. Prioratization can be a bit confusing as the government is run by politicians as well. Partisan and self interests influence decision making of the government all the time.

    Sometimes these non-rational influences spill over to the banking system and more recently on the securities commission.

    In the case of housing, the banks cannot simply lend to people with high credit-risks. Look what happened to the American and European banks in 2008?

    The government could have sourced funds from the World Bank, and others like the EPF. In many such cases, the intention may have been good for the long term, but the process is just terrible. There lies the weakness of the present UMNO-led BN government.

  9. Tang Loon Kong

    You mean it is ok to use EPF money to encourage subprime lending .

    That money is workers savings for old age. Invest by all means, but not on something even the banks don’t want anything to do with it.

  10. The banks can only lend money and deal in a smattering array of financial instruments, all under the ambit of strict regulations.

    Governments should be able to do more as they have more resources. When someone talks about using the EPF, the echo says they are more worried about strain of our country’s accumulated debts has on the EPF. Some of these debts were incurred from ‘crony projects’ no doubt.

    By virtue of that fear (not without basis), many have come to conclude that ‘subprime lending’ (very poor people) for housing is not tenable because of problems afflicting prioratization.

    It is thus the job of the opposition like the PR to pressure the BN government not to incur reckless expenditures using the EPF and start using money wisely. Hopefully, they can get the government to recoup some of the expenditures and even out the keel.

    What would your answer be if there was no such strain in the first place? It could be an entirely different answer that even surprises you.

    For your information, these poor people are not going to disappear. They are real and they need help. It is not the banks’ responsibility, but the government’s under the current context.

    Even if the PR comes into power, the problem will never go away – if not bigger because it would have morphed into social problems by then.

    My first worry is that the housing projects will be another crony project – low quality but with much cost overrun. My second worry would the future economic well-being of the borrowers.

    The first can be solved by good project control [job of Auditor General, MoF and MACC] better still if put under a certain ‘Housing Commission’, and the second, is to improve the incomes of the borrowers so that they can pay for the instalments [jobs of MoL, MoEd, Mo . . .. ].

    With all these in place, the government can sell special vehicle bonds to the banks and public to quickly revive the fluidity of the EPF funds because the risks are abated.

    Maybe the government can build the housing projects near industrial estates so that jobs are easily available. The industries will also benefit and more FDIs.

    The subprime lending in the United States was also influnced by speculation. Here in Malaysia, if the EPF was used, it must be for the meeting of basic needs. That means one borrower can only buy one unit.

  11. All these 100% or 110% loan to first time house buyers for properties categorised under the affordable housing (<400K) is just a political gimmick. Go ask Nazir or Teh Hong Piow if they are supportive and become active lenders to these group of buyers.? They will say loud and clear yes to the press but their managers will tell us quietly go fly kites, our boss will just do some cosmetic decoration to show they are indeed supportive but will set 101 road blocks or hurdles to frustrate the borrowers.

    Special purpose vehicles is the most misleading or "con" term abused by the financial guys and politicians. Simple logic, u will not lend to borrowers who don't have means to repay. Creation of SPV is just a means to prolong settlement period. It is a way to hide a mistake by offering more time to find a solution essentially by sacrificing one party's benefits/entitlement. Nothing more.

  12. The connection with certain banks has already made him history. In UMNO once you do not hold office you have no powers. People will be polite to you. You have to look into the mirror and play your role according to the size of your thumb

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