HOW MALAYSIA WEATHERED THE FINANCIAL CRISIS: POLICIES AND POSSIBLE LESSONS

Dr. Michael Lim Mah-Hui Dr. Goh Soo Khoon

[Dec 2012]

Abstract:

Malaysia, along with other Southeast Asian countries, suffered the worst of the 1997 Asian financial crisis. The experience of that crisis had not faded when Malaysia entered the 2008 crisis in a relatively strong position as far as government and corporate balance sheets where concerned. A key factor contributing to Malaysia’s ability to respond to the 2008 crisis was the buildup of ample foreign exchange reserves. Given its lower exposure to foreign debt, there was little currency mismatch. In order to derive benefit as well as shield this country from increasingly deeper integration into the world trade and financial system, Malaysian policymakers will need to remain open to pragmatic and flexible policies. These include targeting asset inflation and a willingness to “lean against the wind”. While government and corporate balance sheets are healthy, household balance sheets are an area of concern. The ratio of household debt to disposable income in Malaysia, driven by an increase in house prices and a deterioration of the housing affordability index in major urban cities is an area of concern.

THE SYMBOLIC UNIVERSE OF CYBERJAYA, MALAYSIA

Prof. Dr. Hans-Dieter Evers Mr. Ramli Nordin

[June 2012]

Abstract:

This paper analyses how various actors have used potent urban symbols to assert their vision of a modern, globalized Malay identity in the construction of the recently founded knowledge city of Cyberjaya, part of the flagship Multimedia Super Corridor project. As the state controls both the land and the urban planning process it has attempted to impose its own particularistic vision of Malaysian society on urban space and urban structures. This is demonstrated through an analysis of the discursive vision behind Cyberjaya, the logos of government corporations, the use of architectural forms and motifs, and the treatment of urban space itself. The discussion suggests the spatial and symbolic universe of Cyberjaya draws on both patterns of ‘traditional’ Malay life as well a projected vision of a modernized Malay identity that resonates with a globalized Islam. This generates contestations in which other possible imaginings of Cyberjaya’s symbolic space become possible.

POLITICAL PARTICIPATION AND THE CHINESE EDUCATION MOVEMENT IN MALAYSIA: THE ROLE OF LIM FONG SENG

Dr Tan Yao Sua [May 2012]

Abstract:

Since the 1950s, the Chinese educationists relied on internal negotiations within the ruling coalition government to resolve issues relating to Chinese education. But in the 1980s, the need for a new political strategy began to emerge following difficulties to safeguard the interests of Chinese education within the ruling coalition government. It is against this backdrop that the role of Lim Fong Seng as a leader of the Chinese education movement has become significant. In early 1980s, he advocated the political collaboration between the Chinese educationists and the Chinese-based political parties in the ruling coalition as well as in the opposition to strengthen the Chinese education movement through the fostering of Chinese political unity. He subsequently supported a group of Chinese educationists to join a Chinese-based political party in the ruling coalition to facilitate this collaboration. But such a move failed to bring about the desired outcome. However, this did not deter him from seeking a political solution to the Chinese education movement. Following his involvement in the Civil Rights Movement in the mid 1980s, he was deeply committed to the formation of an opposition front to counter Malay political dominance within the ruling coalition government. This political dominance was seen by him as detrimental to the securing of the basic rights of the Chinese, including equality for mother tongue education. Together with a group of civil rights activists, he joined a Chinese-based opposition political party in 1990 to work towards the formation of an opposition front. But this political endeavor did not yield the intended results. While Lim Fong Seng’s efforts to strengthen the Chinese education movement through political participation are certainly commendable, it is unfortunate that due to a host of m

SCIENCE POLICY FOR DEVELOPMENT

Prof. Dr. Solvay Gerke [March 2012]

Abstract:

Science is central to development, providing the knowledge inputs for social, institutional and technological innovations which are key drivers of economic and social development. The role that science and knowledge governance can play for development is, however, not fully valued. Sound policy and strategies are needed for domestic and international science policy, especially in emerging economies and in institutions who aim to support their development. Of increasing importance are knowledge-based innovations. To assess science policy requires interdisciplinary research efforts to link questions of innovation and implementation with research endeavors regarding institutional support systems for science production and the identification of the respective, locally grounded science policy for sustainable growth. Science policy is understood here as the design of science landscapes, institutional arrangements for science funding and partnerships, and the setting of goals and allocation of resources to science priorities

MEASURING THE MARITIME POTENTIAL OF NATIONAS. THE CenPRIS OCEAN INDEX©, PHASE ONE (ASEAN)

Prof. Dr. Hans-Dieter Evers [Dec 2010]

Abstract:

This paper describes the methods used to construct an index to measure the maritime potential of nations. This prototype uses a limited number of variables to measure (a) the locational advantage of having a long coastline in comparison to the landmass (Maritime Potential Index MPI) , (b) the maritime economy (MEI) and (c) the degree a nation or region has utilized its maritime potential (OI). A timeseries of data from 2000 to 2005 for ASEAN states are used to develop the prototype. It is planned to develop the index further by adding variables and extending the regional coverage to all states of Malaysia.

THE ISRAEL SECURITY BARRIER AND THE ROLE OF THE ICJ IN UPHOLDING INTERNATIONAL HUMANITARIAN LAW

Sharan Srinivas [Sept 2010]

Abstract:

The Arab-Israeli conflict remains one of the most intractable and long standing international disputes In the Spring of 2002, the Israeli government began construction of a contentious barrier in parts of the West Bank and Jerusalem that runs close to the 1949 cease-fire “Green Line”, but mostly on land occupied by Israel in 1967. On October 1, 2003, the Israeli Cabinet approved a significant expansion of the barrier project, which would intrude on roughly 15% of West Bank territory to surround Israeli settlements. In response to a question asked to it by the UN General Assembly on the legal implication of the barrier, the International Court of Justice on July 9, 2004 ruled in its advisory opinion that the barrier violated international law and that Israel must compensate those adversely affected by its construction. This paper seeks to analyze the ICJ advisory opinion and inspect the various sources of international humanitarian law used by the court to render its opinion declaring the Israeli barrier illegal. It will also, in the context of this particular opinion observe the role of the International Court of Justice in the development and advancement of international humanitarian law on the ground.

MALAYSIA’S OUTWARD FDI: THE EFFECTS OF HOST MARKET SIZE AND HOME GOVERNMENT POLICY

Dr. Goh Soo Khoon Dr. Wong Koi Nyen [Augt 2010]

Abstract:

This paper extends the empirical literature of Malaysia’s outward FDI (OFDI) by considering the impact of foreign market size and home international reserves using multivariate cointegration and error-correction modeling techniques. The empirical results reveal that there is a positive long-run relationship between Malaysia’s OFDI and its key determinants, viz. foreign market size, real effective exchange rate, international reserves and trade openness. The main findings suggest that apart from the market-seeking incentive and the adoption of outward-oriented policies, the Malaysian government could also encourage OFDI by implementing liberal policy on capital outflows. The present study provides policy implications for the country’s economic development and the internationalization of Malaysian firms in the era of globalization.

CHANGE, OBLIVION AND DEATH: THREE STAGES IN LANGUAGE ENDANGERMENT1

Sharan Srinivas [Augt 2010]

Abstract:

One of the enduring problems of the past century has been the increasing number of refugees displaced from their homes through a combination of different factors including war and more recently, ethnic cleansing. Once displaced, refugees may suffer many different fates. Some may be permanently relocated in third countries. Some may live indefinitely in squalid refugee camps run by the United Nations waiting for a political solution. Many of these refugees may want to return to their homes. Although the international legal principle of the ‘right of return’ guarantees them the right to do so, these rights have not been uniformly been available for refugees to avail due to differing realities on the ground. As a result, some situations, such as Kosovo, have seen a rapid return of refugees to their place of origin, whereas the majority of the significant displacements of the 20th century have never been reversed.This paper identifies the impact of various forms of international intervention in affirming the ‘right of return’ and on the actual returns of refugees in cases where ethnic conflict has occurred. Through analysis of several case studies, it examines the effects of various forms of international intervention including economic aid, military intervention during and after the conflict and protection of returning refugees. This paper intends to make a determination on whether international intervention is important in facilitating refugee repatriation and if so establish which policy tools used by the international community during and after ethnic conflict have been most successful in ensuring that the 'right of return' is a right attainable for all refugees.

CHANGE, OBLIVION AND DEATH: THREE STAGES IN LANGUAGE ENDANGERMENT1

Dr. Aone van Engelenhoven [July 2010]

Abstract:

Language shift is a common feature in the speech communities around the world and of all times. In a scenario where a language is still acknowledged as a receptacle of knowledge, the loss of a traditional language or its exchange for another one may be considered to be either a loss of traditional knowledge or, alternatively, an exchange for a ‘better’ knowledge. The awareness of language endangerment is therefore intrinsically linked to the awareness of culture endangerment. This paper discusses three Southeast Asian languages, ‘Melayu sini’ in The Netherlands, Serua in Indonesia and Nisa or Rusenu in East-Timor that illustrate incipient, advanced and terminal language endangerment, respectively.‘Melayu sini’ features extensive mixing with Dutch in such a way that it becomes more and more difficult for its speakers to differentiate between both languages. In Serua, linguistic endangerment is signaled through irreversible attrition and even erosion of morphological system. Nisa or Rusenu is the prototypical moribund language, whose final speaker in fact is not even a semi-speaker but only remembers the language through a single lullaby.

THE SHIPBREAKING DILEMMA: ECONOMIC OPPORTUNITY OR TOXIC COLONIALISM?

Sharan Srinivas Sharan Srinivas [July 2010]

Abstract:

One of the recurring themes in international environmental law and policy is the North-South divide over questions regarding the relationship between environmental protection and economic growth. This divide is particularly evident on the issue of the transportation and disposal of hazardous substances. This research paper aims to investigate the growing international environmental issue of shipbreaking, an issue that sees the competing objectives of economic growth, public health, international politics and environmental protection clash head on. After a discussion of the shipbreaking process and the threat it poses due to its environmental and health effects, this paper will analyze the interplay of international environmental law, economics and politics that have occurred in determining the current state of global shipbreaking. This paper will focus particularly on the case of the asbestos filled French warship Clemenceau, which in 2005 began a journey to the Alang shipyard in India to be decommissioned. Eventually, a mix of court decisions and NGO involvement forced the ship to return to France. Through an analysis of the Basel Convention, other applicable international law, judicial decisions on the Clemenceau case and subsequent writings of publicists, this paper will examine the current international legal regime with regard to shipbreaking and discuss current efforts being made to strengthen and improve it.

FROM SUB-ETHNIC MIGRANT TO NATIONAL/DIASPORIC CHURCH: THE BRIDGE AND THE CHINESE CHURCH IN MALAYSIA

Dr. Diana Wong Ms. Ngu Ik Tien [July 2010]

Abstract:

By reviewing the history of the establishment of a national Christian organization, The Bridge and its main publication, a nationally circulated magazine, the paper intends to examine the concerns and struggles of rural Chinese Christians for recognition and visibility in a newly formed nation. It is an attempt to fill a gap in the scholarship on Malaysian Christianity which has been focused on denominational church history and the development of urban churches in the period of post Independence. The paper shows how Chinese Christian intellectuals who operate in the Chinese language have engaged the East Asian and overseas Chinese Christian network while searching for their destiny in the national context of Malaysia. By pointing to the multiplicity of these networks and the complexity of non-western Christian subjectivity, the paper hopes to make a contribution to on-going debates on issues of localization, trans-nationalization and authenticity in global Christianity.

FIGHTING ETHNO-NATIONALIST TERRORISM: A NORTHERN IRELAND SOLUTION FOR PALESTINE?

Sharan Srinivas [July 2010]

Abstract:

In a time when much of the world appears focused on the specter of religious extremism, it is important not to forget the threat posed in many parts of the world by ethno-nationalist terrorism. From the LTTE in Sri Lanka to various organizations fighting in Palestine to the Irish Republican Army in Northern Ireland, ethno-nationalist terrorists are similar in that they seize on the grievances of ethnic minorities and mobilize these communities against their respective governments. This paper will focus on case studies of two of the most enduring political problems of the last century; the 'troubles' of Northern Ireland and the Palestinian Question. In each of these cases, ethno-nationalist terrorism has led to the death of many innocent civilians. Whereas intermittent terrorist activity continues in Israel and the Occupied Territories, peace appears to be here to stay in Northern Ireland nearly a decade after the signing of the 1998 Good Friday peace accords. Beginning by examining the shared commonalities of motivation and historical origins of the respective terrorist groups, the paper will then discuss the various strategies that have been used to in countering terrorism and peacemaking in these areas.

DR MK RAJAKUMAR: ON PRIMARY CARE (AND POPULATION HEALTH)

 Professor Chan Chee Khoon [July 2010]

Abstract:

Dr MK Rajakumar fought the good fight on many fronts. In the 1970s, with domestic left-wing politics on the ebb, Dr Rajakumar shifted his energies to another arena of human endeavor he was passionate about, health and medical care for the needful. Throughout the 1980s and 1990s, Dr Rajakumar worked tirelessly to advance primary care medicine and to raise the standard of its practice in Malaysia and in the region. This article explores his writings on primary care within the context of an emerging population health perspective.

THE POLITICS OF COMMUNALISM: MARGINALISATION OF ETHNIC MINORITIES AND WOMEN IN INDIA’S NORTHEAST

Sharan Srinivas [June 2010]

Abstract:

Historical, political and global forces have brought disparate and different looking peoples to live together and share the same land. Every multi ethnic state is a work in progress and maintaining communal harmony always involves a lot of constant hard work. Today, in northeast India, most, if not all spheres of public life in the region are largely communalised. Self styled insurgency groups compete with mainstream political parties to promise effective redress and remedies to particular ethnic groups who are victims of social injustice. Militants use violence to further their aims, often inviting heavy retaliation from security forces. A climate of impunity prevails, where both sides often indiscriminately violate human rights norms. Ethnic minorities and women are very often the worst affected and the most marginalised by the communalisation that has engulfed the region. This paper examines the effects of communal politics on the lives of ethnic minorities and women in the northeastern state of Tripura. Tripura was chosen as a case study because the speaker visited the state in 2009 and 2010 and held consultations with a wide range of stakeholders on the issue of communalisation, particularly within the police force and public services. Though the region is too vast and varied for one to claim that the situation in Tripura is fully representative of it, there nevertheless remain several important parallels between the state and the northeast as a whole. Indeed, the implications of communal politics in Tripura on minorities and women are indicative of the larger challenges policymakers in multi-ethnic states face in their respective ongoing projects of national integration.

CHINESE LANGUAGE MOVEMENT IN MALAYSIA, 1952-1967: THE NEXUS OF LANGUAGE AND ETHNICITY IN A PLURAL SOCIETY

Dr Tan Yao Sua [May 2010]

Abstract:

Between 1952 and 1967, the Chinese educationists in Malaysia launched the Chinese language movement to demand for the recognition of the Chinese language as one of the official languages of the country in order to legitimize the status of Chinese education within the ambit of the national education system. However, this movement had aroused intense ethnic sentiments and heightened ethnic tensions between the Chinese and the Malays. This paper begins by tracing the genesis of the movement during the British colonial period. It then examines the reasons behind the willingness of the Chinese educationists to halt the movement prior to the first Federal Election held in 1955 to elect the first interim local government. It goes on to discuss the reasons leading to the revival of the movement after the 1955 Federal Election. It further discusses the collaboration between the Chinese educationists and major Chinese associations to advance the movement. Finally, it examines the reaction of the Malay nationalists towards the movement and its demise following the enactment of the National Language Act in 1967.

WHY CHINA SHOULD NOT CAVE IN TO U.S. PRESSURE: SOME COMMON SENSE THINKING

Dr Lim Ewe Ghee [May 2010]

Abstract:

Drawing from Japan’s experience, this paper argues that a cave-in to bashing can lead to a destructive dynamic whereby bashing causes cave-in (appreciation), unresolved trade surplus, which sets up expectations of further bashing and more cave-ins—as long the surplus remains unresolved. Bashing is a political weapon that changes the economic environment and a problem in itself. Thus China must not cave in to U.S. bashing. The paper argues that China’s exports reflect productivity increases and the financial stability delivered by its fixed exchange rate system; that buying/selling foreign exchange to maintain fixed rates is not currency manipulation--otherwise almost all countries would be currency manipulators because most have managed floats; that a free float would not be right for China; and that appreciation alone will not solve the surplus “problem” but China would likely deflate. The paper argues that the trade frictions likely reflect U.S. special interests in the export and import-competing sectors, which have lost out to Chinese competition; by agitating for appreciation, the special interests will increase costs/lower living standards for millions of U.S. consumers and throw millions of poor Chinese laborers out of work. The paper recommends that China assesses its exchange regime based solely on its economy’s own needs; that it must ensure that any policy revision is not viewed as a cave-in to bashing, which would be interpreted as a loss of control of its economic destiny. The U.S. must rein in the special interests; and reform its broken Social Security/Medicare and tax system to encourage rather than discourage saving.

PERFORMING INTERNATIONAL RELATIONS: TWO EAST ASIAN ALTERNATIVES TO THE WESTPHALIAN ORDER

 Professor Erik Ringmar [April 2010]

Abstract:

The problems of the international system inaugurated at Westphalia, 1648, are well known, but particularly acute in the face of the challenges of globalization. Even if a world government is impossible to achieve, we need new ways of providing world governance. This the Westphalian system, with its guarantees for state sovereignty and decentralized decision-making, cannot achieve. By contrast, two East Asian international systems -- the tributary system of imperial China and the sankin kotai system of Tokugawa Japan -- provided better means of achieving collective outcomes. In this article these three systems are contrasted and compared through an analysis of the way they were performed in front of different audiences.

SETTING THE CONDITIONS FOR DIALOGUE HOW TO BRIDGE FARMERS’ AND SCIENTISTS’ KNOWLEDGE ON FOOD IN THE PERUVIAN ALTIPLANO REGION

Dr. Maria A. Salas [April 2010]

Abstract:

TThis is a methodological case study. It deals with the question on how to organise a process of bridging farmers’ and scientists’ knowledge on food sovereignty. The source for this methodological reflection is a workshop that took place in the Highlands of Peru in December 2009 with farmers and community facilitators from Peru and Bolivia.

RE-INVENTING THE WELFARIST STATE? THE MALAYSIAN HEALTH SYSTEM IN TRANSITION

 Professor Chan Chee Khoon [March 2010]

Abstract:

This paper begins with a theoretical perspective on privatisation which links it with systemic tendencies towards over-accumulation in the global capitalist economy. To analyse health system dynamics, the health system is conceptualised as an articulation of component subsystems (provision, financing, treatment accessories, support services, research and product development, education and training, etc). These sub-systems are increasingly brought within the circuit of capital, in the process re-configuring the fine structure of the system along with its built-in incentives and disincentives which interactively modulate the system’s overall operating characteristics. The paper ends with an update on the evolving role of the Malaysian state as provider, as financier, as investor, and as regulator of the health system.

THE LINKAGES BETWEEN HEALTH EXPENDITURE AND INCOME IN THE SOUTHEAST ASIA ECONOMIES

Mr. Chor Foon Tang [March 2010]

Abstract:

The objective of this study is to investigate the health-income relationship for the ASEAN-5 economies within the time series framework from 1970 to 2006. This study adopted the bounds testing approach to cointegration developed by Pesaran et al. (2001) to examine the presence of long run equilibrium relationship via the autoregressive distributed lag (ARDL) framework. The empirical evidence reveals that health expenditure and income are cointegrated for the case of Indonesia, Singapore and Thailand. On the contrary, for the case of Malaysia and the Philippines, we found that these variables are not moving together in the long run. Apart from that, the bootstrap Granger causality tests results suggest that income Granger cause health expenditure for all the selected ASEAN countries, except Indonesia (neutral causality).

IS THE TOURISM-LED GROWTH HYPOTHESIS VALID FOR MALAYSIA? A VIEW FROM DISAGGREGATED TOURISM MARKETS

 Mr. Chor Foon Tang [March 2010]

Abstract:

This study attempts to re-investigate the validity of tourism-led growth hypothesis for Malaysia based on the dataset of twelve different tourism markets from January 1995 to February 2009. The ECM-based cointegration test (Kremers et al., 1992) shows that economic growth and international tourist arrivals are cointegrated for all tourism markets. Nevertheless, the Granger causality results demonstrate that not all international tourism markets are Granger-cause economic growth. Therefore, identification of potential tourism markets is vital for implementing effective tourism marketing policies.

RE-THINKING THE STATE AND HEALTH CARE IN PENANG

 Professor Chan Chee Khoon [Mac 2010]

Abstract:

The Federal Constitution of Malaysia decrees that with the notable exceptions of land matters and matters pertaining to the Islamic religion, all other areas which are subject to governmental jurisdiction fall under the federal purview. Notwithstanding this, the Johor state government operates through its corporate arm, the Johor Corporation, a diversified healthcare conglomerate which includes the largest chain of private hospitals distributed throughout the country (Kumpulan Perubatan Johor), a veritable mini-Ministry of Health but operated along largely commercial lines. Should the Penang state government explore the feasibility of a non-profit, publicly-owned version of the Kumpulan Perubatan Johor? A modest chain of state-owned (and operated?) medium-sized hospitals which could provide medium-cost healthcare and at the same time serve as a price bulwark against even steeper price increases in the for-profit private sector? Hospitals aside, what are other potential interventions that the state government could consider, to improve population health in Penang within the existing (and foreseeable) political, economic and jurisdictional contingencies? Improved urban management of the (social) ecology of dengue propagation and transmission?

COMPARATIVE STUDY OF “CONVERSION” AND “E-SHIN

Dr. Yukio Tokuda [Jan 2010]

Abstract:

This article aims to indicate the common structure of “conversion” in Christianity and “eshin” in Buddhism, suggest a common structure of human existence beyond the difference of the religions. The important commonalities in these religious transformative experiences are their discontinuity and passivity. Both characteristics refer to common structure of religions and human being. In this sense, conversion and “e-shin” could present an effective means to approach not only the core of religions but also human existence itself.

THE MONEY-PRICES NEXUS FOR MALAYSIA: FRESH EMPIRICAL EVIDENCES FROM THE ROLLING SUBSAMPLES

Mr Chor Foon Tang [Jan 2010]

Abstract:

The main objective of this study is to empirically re-investigate the money-prices nexus for Malaysia through the Johansen multivariate cointegration and MWALD causality techniques. This study covered the monthly dataset from 1971:M1 to 2008:M11. The Johansen cointegration test suggests that the variables under investigation are co-move in the long run. Furthermore, the MWALD causality test shows a bidirectional causal relationship between money supply (M2) and aggregate prices, meaning that both the monetarist’s and also the structuralists’ views vindicate in the Malaysian economy. However, the time-varying cointegration and causality tests indicate that the cointegrating and also the causal relationships are not stable over the analysis period. These results suggest that inflation in Malaysia is not purely monetary phenomenon. Therefore, implementing tighten monetary policy may not be an effective macroeconomic instrument in managing the inflationary behaviour in the Malaysian economy.

MALAYSIA AND THE GLOBAL FINANCIAL CRISIS: CHALLENGES AND RESPONSES

Dr Goh Soo Khoon Dr Lim Mah Hui Dr Tan Yao Sua [Jan 2010]

Abstract:

This paper argues that the current Global Financial Crisis (GFC) is different from the 1998 Asian Financial Crisis (AFC) in terms of its impact on Malaysia’s economy. The AFC was essentially a financial crisis that led to the collapse of Malaysia’s currency, financial industry and economy. In contrast, the impact of the current GFC is on the export sector with direct repercussions on Malaysia’s real economy. This paper reveals the structural weaknesses of Malaysia’s economy. It shows that growth in Malaysia’s economy has become more tradedependent after the AFC. But, domestic investments, including foreign direct investments, grew anemically after the AFC. This does not augur well for its long-term growth and productivity. This paper also raises concerns on whether the expansionary policies, without meaningful structural changes, will yield the right economic remedies to cope with the recession. Lastly, the paper assesses the New Economic Model proposed by the present government. Malaysia will need to address a number of weaknesses before it can escape its middle income trap and climb up to the next income ladder.