‘Adapt or Divest: The New Economic Policy and foreign businesses in Malaysia (1970-2000)Journal of Imperial and Commonwealth History (2012)
AbstractThis study explores the interplay between state policies and business strategies of foreign ﬁrms in Malaysia during and in the aftermath of decolonisation. Drawing from newly released British and US sources, this study demonstrates that distrust of state enterprises as well as antagonism towards Chinese speculators were signiﬁcant factors in shaping the business strategies of targeted British ﬁrms under the New Economic Policy (NEP) in Malaysia. In addition, the business culture of some British ﬁrms served only to harden misperceptions and strengthen the resolve of the government to implement the NEP fully. Finally, in cushioning external shocks, ﬁrms embarked on a diversiﬁcation strategy not only to multiply, but also to acquire differing portfolios in developed economies. Despite this familiar framework of mistrust and tension, this paper goes on to address the real ﬁrm-speciﬁc differences in the response to the NEP. As for the other foreign ﬁrms, they were nonetheless prepared to share assets, expertise and human resources with Malaysian enterprises through joint ventures. Such a varied response demonstrated the agility of foreign businesses in responding to state policies.
- economic Nationalism,
- New Economic Policy,
Citation InformationShakila Yacob and Khadijah Md Khalid. "‘Adapt or Divest: The New Economic Policy and foreign businesses in Malaysia (1970-2000)" Journal of Imperial and Commonwealth History Vol. 40 Iss. 3 (2012)
Available at: http://works.bepress.com/shakila_yacob/4/