Malaysia and Globalization: Contradictory Currents

This paper discusses the contradictory approaches to and consequences of globalization over the last fifteen years in Malaysia, with special attention to the events after the onset of the Asian financial crisis in 1997. The discussion shows that globalization in Malaysia is conceptualized as both a transformation process and ideological construct that views the nation state and markets as a critical determinants of change in an increasingly internationalized world. The attitudes toward globalization have changed over time, in contradictory ways. Policies tied to globalization, in turn, have also changed, mirroring the different attitudes of the government. In the last two years, the Malaysian government has attempted to redefine globalization as a threat and adopted policies that have tried to limit global forces. These have had mixed consequences at home and abroad. The events in Malaysia highlight some of the important challenges facing developing countries in an increasingly interconnected world.