Mahathir Has Other Concerns
International Herald Tribune
March 10, 1994
Michael Leifer 

Signs of moderation in Malaysia's refusal to award any further government contracts to companies from Britain still leave unexplained an economic boycott that has gone far beyond the "Buy British last" policy of a decade ago.

The wounded feelings of Prime Minister Mahathir bin Mohamad at suggestions in the British press of financial impropriety have to be taken into account. However, his weakened political position after nearly 13 years in office is also a factor. The domestic advantage of taking up cudgels against a foreign adversary seems to have been a prime consideration in imposing sanctions on British industry.

Mr. Mahathir effectively lost control in November of the political party he heads, the United Malays National Organization. Despite his open objection, the finance minister, Anwar Ibrahim, announced that he would contest the post of deputy president of the party, which automatically carries with it the office of deputy prime minister and heir apparent. Deputy Prime Minister Ghafar Baba, a senior party figure, withdrew in the face of the overwhelming support that Mr. Anwar mobilized for his candidacy.

Mr. Mahathir's loss of control was further demonstrated in elections for the three posts of party vice president. He had appealed for candidates to stand as individuals, but political acolytes of Mr. Anwar stood collectively as a so-called vision team. They were easily elected. The effect was to make Mr. Mahathir seem little more than a figurehead party leader.

Mr. Mahathir had brought Mr. Anwar into politics for the 1982 elections to employ his Islamic credentials in the party's interest. Mr. Anwar has since enjoyed a meteoric career. He is 46, and Mr. Mahathir is 68. It would be an exaggeration to suggest that the prime minister is fighting for his political life. But a fundamental change of political generations has taken place to his disadvantage.

There have been additional political challenges and setbacks. For example, he has faced vocal opposition from vested interests within the universities in response to his announcement of a change in national language policy. Concern over educational standards led him to announce that the government intended to alter the provision that Malay be the exclusive medium of instruction, so that English could be used for teaching technical subjects. Critics have pointed out that neighboring Indonesia has not felt it necessary to compromise national pride over the use of its language, which is very similar to Malay.

More recently, Mr. Mahathir suffered a major setback in elections in Sabah, where his party failed to displace the ruling group, the Sabah United Party. He invested considerable political capital in the campaign.

The allegations of financial impropriety in the British press have enabled Chinese and Malay opposition politicians to harry Mr. Mahathir. National opposition figures have called for a royal commission of inquiry into the alleged scandal over the link between British aid and defense contracts.

At issue is Mr. Mahathir's political reputation as he faces what could be his last general election, expected later this year, as prime minister. It is understandable that he would want to refute his critics and reassert his authority. To show that he still commands Malaysia's political heights, he needs a resounding victory at the polls as head of a united party.

Muckraking by the British press has provided him with a convenient opportunity to attack a soft external target. He has picked on the former colonial power knowing the strength of Malaysia's economy, and that Britain's business competitors will be only too pleased to take up construction contracts that fall by the wayside. He has been able to rally and involve his party and cabinet colleagues, led by Mr. Anwar, in his cause - at least initially.

However, the signs of moderation in Malaysia's strictures may indicate that influential party and cabinet associates of Mr. Mahathir have judged that the short-term domestic gains of punishing the former colonial power could well be at the expense of Malaysia's longer-term international interests, including its reputation as

a reliable economic partner.

The writer, professor of international relations at the London School of Economics and Political Science, contributed this comment to the International Herald Tribune.

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