Globalisation and economic development: Malaysia's experience [chapter]

Cassey Lee
2021 Globalisation and its Economic Consequences  
Globalisation has historically played an important role in the emergence of Malaysia as a nation and its subsequent development. Almost every important aspect of globalisation involving trade, capital, labour migration, technology, and information flows has left deep imprints on Malaysia's economy and society. The nature and impact of globalisation, however, have changed over time. These changes include the economic transformation of an economy that was highly dependent on primary commodities
more » ... in and rubber) into one driven by manufactured exports. Waves of migrant workers have also shaped the country into a multi-ethnic society especially since the nineteenth century. The openness of the country's economy in terms of trade and investment has also made it vulnerable to global economic shocks. The goal of this paper is to examine the impact of globalisation on the Malaysian economy through the different phases of its development experience. This will include socio-economic development (poverty eradication and inequality), structural transformation (industrialisation and deindustrialisation), and vulnerability to external shocks (oil crises and financial crises). The paper will also discuss the country's domestic and external economic policies aimed at meeting domestic needs (affirmative action) and managing the effects of globalisation. Globalisation and the formation of Malaysia The formation of Malaysia as a nation is a useful starting point for analysing the impact of globalisation on the country. Globalisation played an important role in the economic and political history of Malaysia in the pre-colonial, colonial, and post-colonial (independence) periods. In the pre-colonial period from the fifteenth to the eighteenth century, the early states in Peninsular Malaysia such as Melaka and Penang grew as major entrepôts for intra-and inter-regional trade flows. The strategic locations of these port cities together with bountiful natural resources (gold, tin, forest products) in their hinterlands attracted successive and competing colonial powers from the West.
doi:10.4324/9781003138501-6 fatcat:aiy3jh7kqjfcvikyhtpfgg2b44