Mahathir haunts trade talks
The Advertiser
December 01, 2006

THE normalisation of relationships between Australia and Malaysia following the retirement in 2003 of Malaysian prime minister Dr Mahathir Mohamad never was going to be quick or simple.
In his 22 years' rule of Malaysia, Dr Mahathir's distrust and dislike of Australia was public and persistent.

Suspicion built up over a generation is not easily erased.

Also, as the Australian Prime Minister, John Howard, has found during a brief visit to Malaysia, Dr Mahathir continues to cast a dark shadow across Malaysian politics.

Mr Howard's visit was designed primarily to break down the remaining barriers and kick start free trade negotiations, fuse closer defence ties and boost bilateral trade.

His talks with the new Malaysian leader, Dato Seri Abdullah Ahmad Badawi, who was in Australia in April, have been constructive but hardly ground breaking.

In retirement, Dr Mahathir continues to criticise free trade arrangements, arguing they deliver few benefits to Malaysia. Clearly, the power and influence of former Malaysian leaders is greater than the opinion of discarded or retired prime ministers here in Australia.

Even Dr Mahathir, however, cannot continue to ignore the realities. In a global economy, Malaysia is Australia's 11th largest trading partner.

In 2005-06, bilateral trade peaked at $9.3 billion. The Government estimates a free trade agreement with Malaysia could be worth nearly $2 billion to Australia in the next 20 years.

While Mr Howard's welcome was cordial rather than effusive, he was right to go - and Australia is right to persist with free trade negotiations despite being haunted by the ghost of Dr Mahathir.