Edmund Terence Gomez

The Rise and Fall of Capital: Corporate Malaysia in Historical Perspective

Abstract This article argues that better informed insights into the benefits and repercussions of the form of development of East Asian economies could be obtained when the theoretical perspectives from two different bodies of literature are employed collectively. If the concepts from the discipline of political economy – specifically the body of literature dealing with the developmental state now commonly deployed in analyses of East Asian economies – are used in combination with concepts from the literature on business history based on the work of Alfred Chandler, the reasons for the rise and fall of major enterprises in East Asia can be better understood. A case study of enterprise and economic development in Malaysia is presented to substantiate this argument.

Chinese business in Southeast Asia : contesting cultural explanations, researching entrepreneurship

Introduction: Chinese Busines Research in Southeast Asia Edmund Terence Gomez and Hsin-Huang Michael Hsiao 1. Singapore Chan Kwok Bun and Ng Beoy Kui 2. Malaysia Edmund Terence Gomez and Hsin-Huang Michael Hsiao 3. Thailand Jamie Mackie 4. Indonesia Diao Ai Lien and Mely Tan 5. Taiwanese Business in Southeast Asia I-Chun Kung

Democracy in Malaysia : discourses and practices

Nationalism, capitalism and Asian values Muslim politics and the discourse on democracy developmentalism in the 1990s - is a shift from the politics of ethnicism under way? deconstruction - the myths of farmers, wives and (m)others defining democratic discourses - the mainstream Malaysian press limits of democratic administration dilemmas of judicial independence changing character of elections and political parties, NGOs and political participation women and political leadership trade unions - labouring under democracy commercialization, concentration and control - the structure of the Malaysian media and its implications for democracy.

Monetizing Politics: Financing Parties and Elections in Malaysia

This paper assesses the patterns of financing of political parties and elections in Malaysia. The poor regulation of the activities of parties and of all forms of political elections has contributed to allegations of covert funding of politicians, from both Malaysian and foreign sources. Since parties have grossly unequal access to funds, this has led to unfairness in federal and state elections. This paper also deals with two fundamental issues in the financing of politics. First, Malaysia is one of very few countries where parties own corporate enterprises, a trend known as ‘political business’. Second, money-based factionalism, known as ‘money politics’, is threatening the existence of parties and undermining public confidence in government leaders. Party factionalism is based not on ideological differences but on which political leader has the greatest capacity to distribute funds to capture grassroots-level support. Two core issues contribute to the extensive monetization of politics. First, existing disclosure requirements do not adequately restrict the covert funding of politics or ensure electoral fair play. Second, public institutions that oversee electoral competition are not sufficiently autonomous to act without favour. Finally, this paper reviews the levels of transparency built into current legislation, the pattern of financing of parties and electoral campaigns, and the relevant regulatory bodies’ institutional capacity to ensure fairness and accountability during elections. The paper proposes legislative and institutional reforms to ensure electoral fairness, within and between parties.

Privatization and public enterprise reform in the Asia‐Pacific region

Abstract Given the close links between politics and business in Malaysia, the political implications of privatization take on added significance, contributing, in particular, to considerable political patronage during privatization. This paper deals with the problems that emerged following state intervention in the economy which ultimately led to the governments justification for introducing privatization. The paper examines the meaning of privatization in Malaysia, its mode of implementation and its implications on society. The main emphasis here is the question of executive dominance over the state and the impact this can have on the implementation of privatization, in particular, facilitating the practice of political patronage and changing ownership patterns.

Politics, Economic Crises and Corporate Governance Reforms: Regulatory Capture in Malaysia

Abstract Following the 1997 Asian financial crisis, the regulatory system involving governance of the corporate sector was subjected to major legislative and institutional reforms, primarily in response to exposures of serious cases of corruption and abuse in the financial sector by well-connected businesspeople. However, the 2008 global financial crisis indicated continued occurrence of irresponsible forms of corporate development and practices, underscoring structural weaknesses within the regulatory system in spite of these reforms. This article argues that the reforms that had been introduced ignored how state-business nexuses shape the way firms operate, a core reason for the persistence of unproductive and speculative forms of corporate development, grand corruption and cronyism. Utilising Malaysia as a case study, this article indicates that institutional reforms involving devolution of power to regulatory institutions are imperative to provide them with the autonomy to objectively institute prudential controls and indict errant firms that violate legislation overseeing corporate activities.

Chinese networks and enterprise development: Malaysian investments in China

Abstract This study assesses the argument that common ethnic identity has facilitated the creation of transnational business networks leading to the rise of a new economically powerful “global tribe” comprising ethnic Chinese from East and Southeast Asia. The primary contention in this article is that a network with the economic clout of a “global tribe” would entail interlocking stock-ownership ties, a sharing of resources and cooperation to the point of merger. Through an in-depth analysis of investments in China by ethnic Chinese from Malaysia, this article proves that even major Chinese-owned companies have little or no interlocking stock ownership and directorate links, either domestically or across borders, with other Chinese-owned companies. The growing inflow of investments into China by ethnic Chinese from Southeast Asia is primarily due to endeavours by government leaders in the region and China to encourage businesses to invest in the Mainland.

Targeting Horizontal Inequalities: Ethnicity, Equity, and Entrepreneurship in Malaysia

This study examines whether the horizontal inequality policies in Malaysia that preferentially target the indigenous ethnic groups (Bumiputera) are the ideal tool to reduce racial conflict. It also reviews whether the employment of race-based (Bumiputera-biased) policies is an effective method to help nurture highly entrepreneurial small- and medium-sized enterprises (SMEs). The case of large Bumiputera enterprises indicates that horizontal inequality-based policies has unproductive outcomes. Although well-connected Malay “corporate captains” did emerge by the mid 1990s, many of them lost control of their businesses during the 1997–98 Asian financial crisis, and these conglomerates did not actively foster Bumiputera SMEs. Malaysia has well-formulated programs that support SMEs, but their procedures, specifically involving creating Bumiputera capital as well as redistributing equity, do not promote an environment for productive entrepreneurship. The new economic policy regime, recently unveiled, continues emphasizing the distribution of wealth along ethnic lines at its essence, although now the emphasis will be on “picking winners” from among entrepreneurial Bumiputeras in a transparent manner. These assertions will not result in a fairer system of picking and supporting Bumiputera SMEs as these documents do not discuss devolution of power to key oversight institutions to ensure checks and balances in the award of state-generated rents.

Resisting the Fall: The Single Dominant Party, Policies and Elections in Malaysia

ABSTRACT Before Malaysia’s 2013 general election, one of the few remaining dominant coalitions in the world was aware it would struggle to retain power. A fledgling opposition coalition had inspired public confidence of its capacity to competently rule while public discontent with the ruling party was rife due to the ubiquity of patronage that had prevented the responsible implementation of policies. However, regime change did not occur. How does the protracted rule of Malaysia’s Barisan Nasional coalition, and the hegemonic party in it, the United Malays National Organisation, relate to debates over authoritarian durability, during a period when dominant parties struggle to sustain power? Malaysian elections have been free enough that the opposition has been able to obtain and retain control of state governments, so why has Barisan Nasional not lost power? This article reviews the 2013 election examining three issues: the significance of coalition politics; how policies have shaped voting trends; and the growing monetisation of politics. These perspectives provide insights into the institutional structure of coalitions and their conduct of politics, including clientelistic practices, forms of mobilisation and governance and the outcomes of policies introduced to address socio-economic inequities and drive economic growth.

On Indigenous Identity and a Language of Rights

Over the past five decades, the category ‘indigenous peoples’ has emerged as a politically charged force on the global scene. Yet the meaning of indigenous is far from unambiguous. In theory, who is and who is not an indigenous person is largely defined through self-ascription, and the possibility of membership is determined by birth. As many indigenous leaders have argued, it would be incongruous for a state or state-like governing entity to be endowed with the authority to define indigenous membership.1 In practice, however, indigenous peoples are not those who simply say they are indigenous. Claiming to be (or disavowing one is) indigenous has never guaranteed (either in the past or present) that vital communities — be they indigenous or non-indigenous — or relevant institutions — be they indigenous federations, state agencies, multilateral banks, or international law — recognize that status. This is because indigenous identity is neither historically fixed nor universally apparent. Rather shifting regimes of recognition are what define one to be indigenous in lived practice.