Oleh 		: 	DATO SERI DR MAHATHIR BIN MOHAMAD 
Tempat		: 	CAMBRIDGE UNIVERSITY LONDON, 
			UNITE KINGDOM
Tarikh		: 	07-10-2000 
Tajuk 		: 	THE CONFERENCE ORGANISED BY 
			CAMBRIDGE UNIVERSITY MALAYSIA 
			SOCIETY (CUMAS) 
Penyampai	: 	PM


           " MALAYSIA IN THE NEW MILLENNIUM "

     
    Firstly  I  would  like to thank the organisers,  the
Cambridge   University  Malaysia  Society   (CUMAS),   for
inviting  me to this conference on "Malaysia  in  the  New
Millennium".  I hope that some of the glory of this centre
of learning will rub off on me, as I could never aspire to
be a graduate of Cambridge with the coveted B.A. Cantab.

2.    I  do not know whether I can set much light on  what
Malaysia would be like in this new millennium.  I  am  not
so  presumptive  as to think that I can  predict  anything
over such a long period; 1000 years to be precise.  But  I
will try to draw several possible scenarios of Malaysia in
the  next  few decades which can emerge based on  what  is
happening now in our country and in the world.

3.    All  things  being equal a country's development  is
dependent on the quality of its people.  That is why  some
countries  and  some people do well while  others  despite
their rich resources fail.

4.   As a developing country Malaysia has done quite well.
Actually  it shouldn't.  We are not particularly  rich  in
resources and we have a multiracial population divided and
divided again by our differences in language, culture  and
religion.    It   is   a   perfect  mixture   for   racial
confrontation and violence, for political instability  and
stunted economic growth.

5.    But  Allah be praised, race relations in the country
for  the  past 30 years have been quite good.  Not perfect
of   course,  but  good  enough  for  the  stability   and
development  of  the  country.   It  has  therefore   been
possible  for  the  country to be stable  and  to  develop
strongly.

6.    I  will  not be apologetic or unduly modest,  but  I
believe  that in Malaysia the politicians set the tone  in
terms  of race relations.  When Tunku Abdul Rahman decided
that  UMNO  should  downplay its  antagonism  towards  the
Chinese  over the Malayan Union affair, and should instead
work  together  to contest the crucial 1955  election,  he
initiated  a unique kind of inter-racial cooperation  that
has   continued   to  this  day.   The  Barisan   Nasional
politicians  are likely to continue with this  cooperation
and  will  try to ensure stability and prosperity  in  the
years to come if the people keep them in power.

7.    What is so unique about the Tunku's formula?   Dato'
Onn,  the first President of UMNO, had wanted to open UMNO
to  non-Malays and make it a multiracial party.  The Tunku
sensed  that neither the Malays nor the other  races  were
ready  to  ignore  their ethnic and cultural  origins  and
accept  the leadership of anyone not from their own  race.
And so he proposed a coalition in which race-based parties
could  come together to struggle for common causes.   This
way the bigger race or party would not be able to dominate
absolutely.   The identity of the minority race  or  party
would  not  be lost.  And if the minority felt that  their
interests were not being attended to, they could raise the
issues  in  a council where they have the same  number  of
representatives.   They  felt  safer  and  so   they   can
accommodate  the views of other parties and races  without
fear of losing much of their racial identity and interest.
And  they  could  accept the leadership  of  someone  from
another race because he is only the first among equals.

8.    On  the  ground the undertaking to help  each  other
during  elections meant that the minority race in a  given
constituency  would  be  able to tilt  in  favour  of  the
coalition  candidate  from  a  component  party  and  race
because  in  a  constituency where the minority  race  now
forms  the  majority, its candidate could  expect  support
from   the  other  coalition  members.   It  was  a   neat
arrangement  and it worked well until the  opposition  got
wise  to  it and set up their own coalition and  supported
each other's candidate in the same way.

9.    I will not elaborate more on this but suffice to say
that  the  continued functioning of the coalition depended
on the coalition Government promoting the interests of all
the  races more evenly.  It would not do for the coalition
Government to neglect any of the races because this  would
result in a breakdown in the coalition party.  Failure  of
the  races and parties to support each other would  result
in the coalition losing the election.

10.   This  principle  of  sharing  is  reflected  in  the
management  of  the economic and social affairs  as  well.
When  dealing with race relations the coalition Government
never fails to consider the views of all races rather than
the  majority  race only as would happen in a multi-racial
party  where one race dominates.  The Robin Hood  approach
of robbing the rich to give to the poor is rejected by the
coalition.  Instead it tends to nurture the rich  so  they
will  contribute to the welfare of the poor  through  fair
taxes.  In fact we sometimes reduce taxes if we think that
by doing so we can persuade the goose that laid the golden
eggs  to  lay  more and bigger eggs.  And it  worked.   In
Malaysia  today  the  Chinese are richer  than  they  were
before, but the Malays also get a reasonable share of  the
wealth.

11.   This is the way Malaysia deals with its multi-ethnic
citizens.   Of course some will complain and  insist  that
they  are  getting less than their due.  But the  majority
are  quite  satisfied  and keep on returning  the  Barisan
Nasional coalition to power at every election.

12.   Having  dealt  with equitable sharing  and  achieved
political stability Malaysia and the Malaysian people  are
able to press on with developing the country.  I think  we
have  done  quite well there too.  No extreme  or  radical
approaches  or  policies  were  adopted.   We  could  have
nationalised  everything, but we did not.  We  could  have
allowed for rampant capitalism but we did not.  Instead we
tried  an  odd-mixture  of  state  enterprises  and   free
marketeering.  When  state enterprises  failed  we  easily
privatised  them.  There  was no  ideological  baggage  to
hamper us.

13.  Despite accusations that the Malaysian Government had
indulged  in  wasteful  projects  to  satisfy  the   Prime
Minister's monumental ego, the fact is that we had managed
our  finances rather well.  That is why when  our  Ringgit
was  devalued we were still able to carry on.  We  had  no
foreign debts to pay.  Indeed when Malaysia was down-rated
by  International  Rating  Agencies  to  prevent  us  from
borrowing money, we simply used the vast amount of savings
that  we  had  in the country.  Malaysia has  perhaps  the
highest savings rate in the world -- amounting to  38  per
cent of the GNP.

14.   If we had mismanaged the country's finances we would
not be able to recover so quickly from the turmoil even if
we impose exchange rate and capital flow controls.

15.  Under the New Economic Policy we had restructured the
economy  so  as  to give a fair share to everyone  without
having to sacrifice growth.  Between 1987-1996 we actually
grew  by  eight  per cent plus every year, an  achievement
that few can equal.

16.   And so when disaster struck in 1997 and our currency
was devalued we did not have to rush for foreign help.

17.   The  accusation that the turmoil was caused  by  the
Government  being corrupt and practised cronyism  etc  did
not hold water.  If we were it could not have been only in
1997.  We must have been corrupt etc for a long time.  Yet
our  economy  grew at a high rate and our development  was
rapid for years and years.  It was not corruption etc, but
it  was  due  to  the currency traders  selling  down  our
Ringgit  in order to make money for themselves.   When  we
condemned  the currency traders for their greed,  we  were
roundly castigated by the whole world.

18.   To  cut  a long story short, today the world  admits
that  we  were right about the rogue traders and  we  were
right too in handling the crisis by imposing exchange rate
control and regulating short-term capital flows.  Now  our
economy is back on track and growing much faster than  the
countries   supposedly  helped  by  the  IMF   and   other
international agencies.

19.  I have spoken at length on what we have been doing in
our  country  and how it has performed in  the  political,
economic  and  social fields.  But I am here  to  talk  on
"Malaysia in the New Millennium", on the future.  The fact
is  that  in order to forecast the future we have to  look
into  the  past.   Not  only will the past  influence  the
future but what happens in the past will help indicate the
possible trend of events in the future.

20.  As a result of what we have done so far, Malaysia  is
a  politically stable, relatively harmonious country where
economic growth has been quite fast.  We have developed  a
set of ethics and policies which have served us well.   We
have  a  vision  -- Vision 2020.  We want to  be  a  fully
developed country by the year 2020, developed in  our  own
mould,  not  a  fair  copy of the developed  countries  of
today.

21.  Given all this it is fair to expect that at least  in
the  first  few decades of the millennium, Malaysia  would
continue  to  remain peaceful and stable,  that  it  would
continue  to grow economically, that it would be  able  to
apply  I.T.  in  order  to maximise  the  benefits  to  be
derived,  that  it would remain fiercely  independent  and
outspoken.

22.  Malaysia will remain democratic but will not become a
liberal  democracy  where anything done  in  the  name  of
democracy  will be accepted unquestioningly.  Malaysia  is
more  interested in the results.  Democracy  is  meant  to
serve us not we to serve democracy.  We would be condemned
of  course  but we won't care because we will continue  to
know  what  is good for us.  We would continue to  believe
that the West does not have a monopoly of wisdom.

23.   As  a  result  of the continuation  of  the  present
policy, Malaysia is likely to achieve Vision 2020  and  to
remain a free and independent nation which would take  its
proper  place in the world community.  Its voice  will  be
heard.   It would still not get a good image in  the  West
and  with the Western media.  The developed countries will
continue  to say that Malaysia is undemocratic,  that  the
Government is not transparent, that it interferes with the
judiciary  etc.  But despite all these baseless criticisms
the  country would still remain stable, would  still  grow
and become an even bigger trading nation.

24.  But supposing Malaysia decides to take an about turn,
to  dump  the  ruling party and the policies that  we  had
followed  which  had  served us  so  well;  supposing  the
campaign  of  hate against the Government and its  leaders
succeeds,  and the Malays decide that they want  a  change
and  so voted the so-called Islamic Party into power, what
then would the future hold for Malaysia?

25.    Many  Malays  believe  that  there  is  really   no
difference  between  PAS  and  UMNO.   Many  declare  that
whereas  UMNO has no choice but to depend on  the  Malays,
the  Malays  are not so constrained.  They have  a  choice
between  UMNO  and PAS.  If they choose  PAS  nothing  bad
would really happen to them.  In fact PAS is likely to  be
more  Islamic  and this would fit will with the  religious
aspirations of the Malay Muslims.

26.   As  they see it they have nothing to lose.  I  don't
agree  with  them.  But more importantly will the  country
lose?   Will the other races lose?  So far PAS  has  ruled
Kelantan  and  Terengganu.  Is there anything  wrong  with
these  states which indicate that the party will  mess  up
the whole country?

27.  PAS claims and many Malays believe that anything that
UMNO  had  done  for  the  Malays  and  the  country   any
Government  could  do.  PAS as the Central  Government  of
Malaysia would be able to protect Malay special privileges
and  carry  out the same affirmative action by giving  the
Malays   special  preference  for  scholarships,  business
licences and opportunities, preserve Malay reserves etc.

28.   It is possible that PAS can do all these but special
privileges  are of little use if you have no idea  how  to
make  use  of  them.  UMNO had devised many strategies  to
take  advantage  of  the special privileges  in  order  to
enhance  the  position of the Malays.  It was  UMNO  which
came  up  with the New Economic Policy (NEP), a policy  to
restructure the economy so as to give the Malays and other
Bumiputeras  a  fair  share of the economic  cake.   Where
others  would have played Robin Hood and expropriated  the
wealth  of  the  Chinese in order  to  distribute  to  the
Malays,  UMNO decided that the enhancing of the wealth  of
the  Malays must come through enlarging the economic  cake
and  distributing the enlarged portion more to the  Malays
while apportioning some also to the Chinese and Indians.

29.   The  UMNO-led Government came up with the Permodalan
Nasional Berhad (National Equity Corporation) to  take  up
the  shares  apportioned to the Malays so that they  would
not  be  sold back to the Chinese and so cause the NEP  to
fail.   Numerous other solutions have been put up  by  the
UMNO-dominated Government which were designed  to  promote
the Malays without discriminating too much against the non-
Malays.

30.   Growth  with  equity was invented and  developed  by
UMNO.   Would  PAS  have come up with  this  approach  and
implemented it?

31.   How  would  PAS  have handled  the  economic  crisis
recently?  The leaders of PAS had advocated going  to  the
IMF  and we all know what happened to countries which went
to the IMF.

32.   How  would PAS handle race relations  if  it  is  in
power?  PAS had initially condemned UMNO for working  with
non-Malays.  According to PAS, Muslims working  with  non-
Muslims will become apostates.  But now of course  PAS  is
willing  to  work with DAP.  It has always been  ready  to
trot  out religious arguments for whatever it does.  Would
a  PAS  Government  break  its promise  and  try  to  grab
everything  in the furtherance of its idea of  an  Islamic
state?   Or  would  it really work with the  DAP  and  the
others?   PAS records of making and breaking promises  are
not reassuring.

33.   If I may hazard a guess, Malaysia under PAS rule  is
not  going to be politically stable and will not  develop.
Malaysia  will probably retrogress.  Its domestic policies
and  its  relations with other countries would  not  work.
Despite  claiming  that any Government  can  do  what  the
Barisan  Nasional  Government has  done,  it  cannot  even
supply   water   to  Kelantan.   Although  the   developed
countries   are  against  the  present  Barisan   Nasional
Government and would like to see a change of Government in
Malaysia, I suspect that they are not going to like a  PAS
Government  anymore  than they do the present  Government.
They will continue to be busy trying to undermine this so-
called Muslim Government.

34.  What about the other races in Malaysia?  Will they be
better  off?   Will  they  be  given  fair  treatment  and
consideration by PAS Government?  I don't think  so.   PAS
has  made promises to the Malay electorate to set up  what
they   described  as  an  Islamic  Government  which  will
implement PAS's own interpretations of Islamic laws.   PAS
rejects the present laws as un-Islamic.  Will PAS do  away
with  the present laws?  If it does not then it will stand
accused  of not honouring a promise.  If it does then  the
non-Muslims  may  not like it.  This may  destabilise  the
country.

35.  Presently PAS interpretation of an Islamic country is
one  where the Hudud Laws and executions of apostates  are
carried  out.  By this interpretation there are no Islamic
countries in the world, because there is really no Islamic
country which implements these laws.  What will happen  to
the country when PAS tries to make good its promises?

36.   Frankly  I  don't think PAS is going to  win  enough
seats to set up a PAS Government in the near future.   But
it  can weaken the UMNO-led Government.  What would happen
in  Malaysia  if  the  Government is  weak  and  the  UMNO
leadership is ineffective?  All along the Barisan Nasional
had  asked  the electorate to return a strong  Government,
one with a two-thirds majority.

37.   In  other  countries the electorate usually  give  a
simple  majority.  A Government with a simple majority  is
forever under threat.  Defection by a member or two  could
bring  the  Government  down.  Instead  of  governing  and
developing  the  country the Government  would  always  be
looking  back to ensure that its members continue to  give
support.   Intraparty politics would be the  priority  not
governing and developing the country.

38.    Such   a   Government  cannot  function   properly.
Governments must do unpopular things.  New taxes  have  to
be   introduced  and  old  taxes  collected.    Disruptive
activities  have  to be curbed.  In a multiracial  country
like  Malaysia,  it is difficult to avoid displeasing  one
race  or  another at any one time.  With a weak Government
minor  issues can take on serious proportion.  The country
and the people must suffer because of this.

39.  If PAS through its campaign of hate, and DAP with its
racialism   were   to  undermine  the   Barisan   Nasional
Government and cause the Barisan Nasional's majority to be
greatly   reduced,  then  Malaysia  would  have  such   an
ineffective  Government  that  it  will  be  unstable  and
incapable of progressing economically.

40.   Let  us  look at the building of Penang  Bridge  for
example.   When it was being built there were  accusations
that  the  Government  was wasting money.   With  a  small
majority  the Government might have abandoned the  project
for  fear  of  defection  by a few  of  its  Parliamentary
members  and  the consequent fall of the Government.   The
result  would be no Penang Bridge today.  Can  we  imagine
what it would be like to have no Penang Bridge today.  Can
we  imagine what the cost would be if we have to build the
Penang Bridge now.  But because the Government had such  a
big  majority  it  was able to ignore the  criticisms  and
build the bridge.

41.  The same can be said of the National Car project.  We
would  be  happily  assembling foreign cars  and  have  no
knowledge   about   automobiles,   engineering   and   the
production of cars.

42.   With a small majority it is likely that there  would
be  no industrialisation of Malaysia, no NEP, no equitable
distributions  of  wealth  and  opportunities.    A   weak
Government  for Malaysia would just be unable  to  develop
the  country.   Probably the Malays, Chinese  and  Indians
would  be  at each other's throats.  There would  be  mass
emigrations.

43.   But  the people of Malaysia had always given  a  big
majority to the party which formed the Government.  And so
unpopular decisions could be made and Malaysia is able  to
go ahead with seemingly wasteful projects which in the end
prove to be wise undertakings.

44.  Is it democratic to have the same party returned time
and  time again?  Some say it is not democratic.  They say
a   democratic  country  must  see  frequent  changes   of
Government.   Will  the future see such  changes?   It  is
possible of course.  Many are already saying that we  need
a  change, we need a new Government merely for the sake of
change.  That the present Government performs well  is  no
reason for not changing.

45.   Assuming  that a new party is elected  to  form  the
Government, it must change most of the plans and  policies
of  the previous Government.  Perhaps the changes would be
good   for   the   country.   But  changes   must   create
uncertainties and uncertainties are disruptive.

46.    The   present  Malaysian  Government  is  business-
friendly.   It  encourages  the private  sector  including
foreigners to invest and act as the engine of growth.  But
a  new  Government  might not think that  being  business-
friendly and giving the private sector a major role in the
economy is a good thing.  Promises and agreements made  by
the  present Government will accordingly be dumped.   This
will  hurt  investors, both local and foreign.  They  will
take their business elsewhere.

47.   The  growth of the country's economy cannot possibly
go  on at the same rate.  There will be shrinkage, loss of
jobs,  loss  of  income etc.  Jobless  people  can  become
unruly.   There  will  be instability which  would  affect
investments further.

48.   Changing Government may be considered democratic but
it is very disruptive.  It affects a country's development
adversely.   Again  we have to consider  whether  we  want
democracy for its sake or we want democracy for  the  good
that it can deliver.

49.   In 1969 we saw what could happen when we allowed our
emotions  to take over from our common sense.  Fortunately
we very quickly retreated from the brink and worked out  a
formula  which has served us well over the past 30  years.
I  don't think Malaysians, the majority of them at  least,
would  want to play around with racialism again.   But  we
might forget as we take our present stability for granted.
Will another May 13 occur when the Government becomes weak
or  a new Government is put in place?  I am not trying  to
threaten but the possibility is very real.

50.   Recently  we  had the Al-Ma'unah, a deviant  Islamic
group  which  tried to use violence to realise  their  so-
called  Islamic  state.  The Government acted  quickly  in
order to protect the people and the country from what  was
planned  to be religious violence.  Members of this  group
have been arrested and charged in court under the relevant
laws.

51.   The  question  that  arises in  everyone's  mind  is
whether  there  could  be  more such  incidents,  probably
bigger and more difficult to handle.  No one can guarantee
that  this kind of irrationality would not recur.  But  it
would certainly recur if people think it was a "sandiwara"
or  "stage-play" and do not take it seriously.   It  would
certainly  recur  if  the campaign  of  hate  promoted  by
certain so-called religious groups do not stop.

52.   The  Al-Ma'unah  group was  formed  because  of  the
perception  and even belief that the Malaysian  Government
is  un-Islamic  and  should be  hated  and  overthrown  by
whatever means.  They were quite ordinary people and  must
know  the  serious nature of their plan and  the  possible
consequences if they were apprehended.  But such was their
hatred  that  they were prepared to kill, despite  knowing
that murder attracts the death sentence.

53.  Hate is a powerful emotion.  It can move people to do
the  unthinkable.  Nations use hatred of other nations  in
order to get their people to fight and kill and be killed.
In Malaysia today hate is being used extensively by PAS in
order   to   gain   fanatical  support   for   themselves.
Inculcations  of  hate  begin in  the  kindergarten  where
little children were taught to hate the Government and its
leaders.  In schools certain teachers, religious and  non-
religious, amplify this hatred by spreading all  kinds  of
lies.   In  the  universities, at home  and  abroad,  more
hatred is sown among the students.

54.   By  the  time these people mature,  the  feeling  of
hatred  is so deeply ingrained that it cannot be  changed.
It  can only get worse.  And at this stage acting the  way
the Al-Ma'unah Group did is entirely possible.

55.   The correct thing to do is for the Government to put
a  stop to this hate campaign.  But there will be quite  a
few who would regard any action taken by the Government as
undemocratic,  oppressive, and a denial of the  rights  of
the  citizens.   These  people will  of  course  gain  the
support of human rights and democratic groups outside  the
country.   After  all these outsiders  are  not  going  to
suffer in any way if the country goes up in flames.   Some
of them would quite enjoy it.

56.   Will  there be more `Sauk' incidents in Malaysia  in
the  new  millennium?  It is up to us  to  determine.   We
dealt  very firmly with the Communist uprising.  Shall  we
wait  until  a  full-scale so-called Muslim uprising  take
place  before we act or do we act now?  If we act  now  we
may  save  the future.  But of course we will be condemned
by the liberals in the world.

57.   These  are some of the scenarios which Malaysia  may
see  and experience in the new millennium.  There  may  be
others  of course.  It all depends on what we will  do  in
the  future.  If we have not learnt from the past, if  the
future  generations are so anxious to try  new  things  to
change,  then  any  of  the  given  scenarios  may  become
reality.   If  we  have learnt from the past  then  it  is
likely  that  we  will continue to progress  to  become  a
developed country by 2020.

58.  I believe that Malaysians by and large are reasonable
and  moderate people.  Whether they are Malays or  Chinese
or  Indians  or Ibans or Kadazans or whatever, they  would
not  want to do anything which may plunge the country into
a  state of uncertainty and turmoil and destroy the Vision
that they had planned for.

59.   No one can be certain of what the future will bring.
We can hazard a guess.  We can make deductions based on an
analysis  of  what  had  happened  in  the  past,  on  the
character  and  psyche of the people, on  the  trends  and
developments  in the world outside.  But we can  never  be
absolute certain.

60.  I have tried to give several possible scenarios.   To
a  certain extent we can influence events so that the best
scenario would materialise.

61.  At the moment I am hopeful that Malaysians would make
every effort to bring about the best scenario, that  of  a
stable,   rapidly  growing  country  which   will   become
developed  by  the year 2020.  The present  Government  is
dedicated  to  achieving  this  Vision.   I  believe  most
Malaysians  are similarly dedicated.  And so it  is  quite
likely  that  Malaysia  in the new millennium  will  be  a
developed  nation of 30 million plus hard working,  peace-
loving  people, respected and trusted by the rest  of  the
world.

62.   I  am  a  bad futurologist.  I hope that others  are
better and will tell you precisely what the new millennium
would  bring  for Malaysia.  I hope you will  be  able  to
discuss  and make up your minds as to the roles you  would
want to play.  I wish you the best of luck.
  


 
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