From 'Looking East' to the 1997 Asian Financial Crisis: How Mahathir Mohamad Steers Malaysia's Economic Development from the 1980s to 2000s

Abstract

The last two decades of 20th century signifies a time of burgeoning economic growth but also a time of financial turmoil and vulnerability for Southeast and East Asian Countries. Extensive studies have focused on the newly industrialized countries such as Japan and Singapore. The examination and critique on how the emerging new economies like Indonesia and Malaysia adapt to and resist the wave of globalization to achieve its political and economic autonomy remain a compelling topic of discussion, which can be further scrutinized through the lens of leadership roles and impacts. This paper will focus on the time of first tenure of Malaysia’s Prime Minister Mahathir Mohamod. Specifically, the paper will answer the question that how the national leadership and its political stance and economic policies play a role in realizing the rapid growth and modernization while revitalizing the economy amidst the contagion of financial crisis. By conducting a chronological analysis on legal documentations on policies implemented through end of 1970s to 2000s and probing onto the official statistics reflective of Malaysia’s economy’s performance, the paper concludes that an effective national leadership and its affiliated political and socio-economic policies play instrumental roles in helping Malaysia achieve a rapid economic growth and modernization since 1980s, while sustaining the economy’s vitality through the 1997 Asian Financial Crisis.