MALAYSIA AS AN EMERGING MIDDLE POWER:

AN EVALUATION OF ITS SOUTH-SOUTH

COOPERATION POLICIES, 1981-2003

BY

SELVARAJ RAMASAMY

A dissertation submitted in fulfilment of the requirement for

the degree of Doctor of Philosophy of Political Science

(International Relations)

Kulliyah of Islamic Revealed Knowledge and

Human Sciences

International Islamic University Malaysia

SEPTEMBER 2017

ii

ABSTRACT

This thesis analyses the foreign policy behavioral patterns of Malaysia from 1981 to

2003 using the concept of an emerging middle power. In so doing, this study also

helps to clarify a significant period (1981-2003) of Malaysia’s foreign policy using the

framework of the emerging middle power. Hence, by critically analysing the strategies

under the South-South Cooperation, it provides another dimension of explanation to

the country’s foreign policies. The study attempted to investigate three critical

strategies associated with the South-South Cooperation policies, which were: the

Malaysian Technical Cooperation Programme (MTCP), the South Investment, Trade

and Technology Data Exchange Centre (SITTDEC) and Bilateral Payment

Arrangements (BPA) arrangements and as the Chair of Commission on Sustainable

Development (1992-1993). The study is evaluative in nature. This study comprises

library research and field research. Data collected were on information regarding

policies, strategies applied and the actual practices in the implementation of the

Malaysian Technical Cooperation Programme (MTCP), fostering economic relations

with countries of the South in the Group of 15 (G-15) using the South Investment,

Trade and Technology Data Exchange Centre (SITTDEC) and Bilateral Payment

Arrangements (BPA) and the role of Malaysia in voicing the countries of South’s

interest on environment and sustainable development issues in the Rio Earth Summit

(1992) and as the Chair of Commission on Sustainable Development (1992-

1993).These data have been analysed based on the behavioural patterns of an

emerging middle power, corresponding with foreign policy of Malaysia from 1981 to

2003. The findings from this study suggest that, it is now possible to state that

Malaysia can be identified as an emerging middle power not only because of its

features as explained by Eduard Jordaan’s (2003) theoretical framework of emerging

middle power, but also because it fulfills the foreign policy behavioural patterns of an

emerging middle power. The three behavioural patterns of the concept of an emerging

middle power that have been pursued in this study are preference to pursue

multilateralism, playing an active role in reforming global agenda and act as a good

international citizen. When applying these behavioural patterns to analyse strategies of

South-South Cooperation, it has fulfilled the foreign policy behavioural patterns of an

emerging middle power. The study also detects Malaysia’s active role in international

fora during the period of 1981–2003, had increased its international prestige. Further,

the study found out that the economic relations have changed the state of affairs of the

countries of the South. South-South Cooperation policies have also created strained

relationship between the countries of the South and countries of the North, in

particular when Malaysia was the most vocal opponent to any suggestion that their

natural resources should be "internationalized" during the Earth Summit and urged

countries of the North to build consensus on the sustainable development forestry with

the countries of the South. Finally, this study also provides recommendations to the

Malaysian government to further continue to play its role as an emerging middle

power by representing the countries of the South in speaking about issues confronting

these countries with practical solutions as Malaysia continues to render its modest

technical assistance under the auspices of MTCP to further strengthen the human

capital of countries of South.

iii

البحث ملخصABSTRACT IN ARABIC

إلى 1981من قامت هذه الأطروحة بتحليل الأنماط السلوكية للسياسة الخارجية لماليزيا للفترة باستخدام مفهوم نشوء القوة المتوسطة. وبذلك، ساعدت هذه الدراسة على م،2003

م( باستخدام إطار 2003-1981توضيح السياسة الخارجية لماليزيا لفترة مهمة بين عامي )مفهوم نشوء القوة المتوسطة. وبالتالي، من خلال التحليل النقدي لاستراتيجية التعاون بين

لجنوب، قدمت الدراسة بعدا آخر لتفسير السياسة الخارجية للبلاد. حاولت الدراسة بلدان االتحقيق في ثلاث استراتيجيات مهمة ومرتبطة بسياسات التعاون بين بلدان الجنوب، وهي:

(، وسياسة الاستثمار الجنوبي، ومركز التجارة وتبادل MTCPبرنامج التعاون التقني الماليزي )(، ورئيسا للجنة التنمية BPA(، وترتيبات الدفع الثنائية )SITTDECنولوجيا )البيانات التكم(. وقد كانت الدراسة تقييمية في طبيعتها، واعتمدت على 1993-1992المستدامة )

البحوث المكتبية والميدانية. وتم جمع بيانات الدراسة والمعلومات بشأن السياسات (، MTCPفعلية في تنفيذ برنامج التعاون التقني الماليزي )والاستراتيجيات المطبقة والممارسات ال

( باستخدام سياسة G-15) 15وتعزيز العلاقات الاقتصادية مع بلدان الجنوب في مجموعة ال ( SITTDECالاستثمار الجنوبية، وإجراءات مركز التجارة وتبادل البيانات التكنولوجيا )

يا في التعبير عن مصلحة بلدان الجنوب حول (؛ ودور ماليز BPAوترتيبات الدفع الثنائية )م(، ورئيسا للجنة التنمية 1992قضايا البيئة والتنمية المستدامة في مؤتمر قمة الأرض ريو )

م(. تم تحليل البيانات بالنسبة الى الأنماط السلوكية للقوة المتوسطة 1993-1992المستدامة )م. وتشير 2003م إلى 1981يا من عام الناشئة، وانسجامها مع السياسة الخارجية لماليز

نتائج هذه الدراسة إلى أنه الآن أصبح من الممكن تعريف ماليزيا بوصفها قوة متوسطة ناشئة م( لنشوء القوة 2003ليس فقط بسبب مميزاتها الموضحة في إطار نظرية إدوارد جوردان )

ابقت أنماط القوة المتوسطة المتوسطة، ولكن أيضا لأن الأنماط السلوكية لسياستها الخارجية طالناشئة. وقد اتبعت هذه الدراسة ثلاثة أنماط سلوكية من مفهوم نشوء القوة المتوسطة وهي تفضيل تطبيق التعددية، في إصلاح جدول الأعمال العالمي، والتصرف بوصفها مواطنا دوليا

بين بلدان الجنوب، جيد. وعند تطبيق هذه الأنماط السلوكية لتحليل استراتيجيات التعاون

iv

وجد أنها قد ماثلت الأنماط السلوكية للسياسة الخارجية للقوة المتوسطة الناشئة. كما كشفت م، 2003إلى 1981الدراسة أيضا أن دور ماليزيا النشط في المحافل الدولية خلال الفترة من

علاقات زاد من هيبتها على الصعيد الدولي. علاوة على ذلك، وجدت الدراسة أن الالاقتصادية بين بلدان الجنوب قد غيرت هذه البلدان من حالتها الراهنة. كما كشفت عن أن سياسات التعاون بين بلدان الجنوب خلقت علاقة متوترة بين بلدان الجنوب وبلدان الشمال، لا سيما عندما كانت ماليزيا من أشد المعارضين لاقتراح "تدويل" مواردها الطبيعية في مؤتمر

قمة الأرض، وحثت بلدان الشمال لبناء آراء توافقية بشأن غابات التنمية المستدامة مع دول الجنوب. وأخيرا، تقدم هذه الدراسة أيضا توصيات لحكومة الماليزية لمواصلة الاستمرار في القيام بدورها بوصفها قوة متوسطة ناشئة تمثل بلدان الجنوب والتحدث حول القضايا التي

جه بلدان جنوب وايجاد الحلول العملية لها، ومواصلة ماليزيا بتقديم المساعدة التقنية لهذه توا .( لزيادة تعزيز رأس المال البشري في بلدان الجنوبMTCPالدول تحت رعاية )

v

APPROVAL PAGE

The dissertation of Selvaraj Ramasamy has been approved by the following:

__________________________________

Ishtiaq Hossain

Supervisor

__________________________________

Wahabuddin Ra`ees

Internal Examiner

__________________________________

K.S.Nathan

External Examiner

__________________________________

Fahimul Quadir

External Examiner

__________________________________

Ismaiel Hassanein Ahmed Mohamed

Chairperson

vi

DECLARATION

I hereby declare that this dissertation is the result of my own investigation, except

where otherwise stated. I also declare that it has not been previously or concurrently

submitted as a whole for any other degrees at IIUM or other institutions.

Selvaraj Ramasamy

Signature…………………....………. Date …….……………….

vii

COPYRIGHT

INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

DECLARATION OF COPYRIGHT AND AFFIRMATION OF

FAIR USE OF UNPUBLISHED RESEARCH

MALAYSIA AS AN EMERGING MIDDLE POWER:

AN EVALUATION OF ITS SOUTH-SOUTH COOPERATION

POLICIES, 1981-2003

I declare that the copyright holder of this dissertation are jointly owned by the

student and IIUM.

Copyright © 2017 Selvaraj Ramasamy and International Islamic University Malaysia. All rights

reserved.

No part of this unpublished research may be reproduced, stored in a retrieval system,

or transmitted, in any form or by any means, electronic, mechanical, photocopying,

recording or otherwise without prior written permission of the copyright holder

except as provided below

1. Any material contained in or derived from this unpublished research may

be used by others in their writing with due acknowledgement.

2. IIUM or its library will have the right to make and transmit copies (print

or electronic) for institutional and academic purposes.

3. The IIUM library will have the right to make, store in a retrieved system

and supply copies of this unpublished research if requested by other

universities and research libraries.

By signing this form, I acknowledged that I have read and understand the IIUM

Intellectual Property Right and Commercialization policy.

Affirmed by Selvaraj Ramasamy

……..…………………….. ………………………..

Signature Date

viii

DEDICATION

This dissertation is dedicated to my beloved parents

ix

ACKNOWLEDGEMENTS

Praise be to God, the Almighty for enabling me complete this study. I would like to

express my sincere gratitude to my supervisor Assoc. Prof. Dr. Ishtiaq Hossain for his

continuous support of my Ph.D study and related research, for his patience,

motivation, and immense knowledge. His guidance helped me during the time of my

research and writing of this thesis. I could not have imagined having a better

supervisor for my Ph.D study. Besides my supervisor, I would like to thank the

following academic staff in the Department of Political Science, Kulliyyah of Islamic

Revealed Knowledge and Human Sciences (KIRKHS): Prof. Dr. Abdul Rashid

Moten, Prof. Dr. El Fatih Abdullahi Abdelsalam, Prof. Dr. Wahabuddin Ra'ees,

Assoc. Prof. Dr. Garout Suliman Eisa, Assoc. Prof. Dr Md. Moniruzzaman, Assist.

Prof. Dr. Khairil Izamin Ahmad and Assist. Prof. Dr. Tunku Mohar Tunku

Mohd.Mokhtar, Head, Department of Political Science, KIRKHS, for their insightful

comments and encouragement, but also for their searching questions, which

encouraged me to widen my research to various perspectives. My sincere thanks also

go to Tun Dr. Mahathir Mohamad, Tun Abdullah Ahmad Badawi, Tan Sri Dr. Syed

Hamid Albar, Tan Sri Rafidah Aziz, Tan Sri Razali Ismail as well as the following

officials: Mr. Zainal Abidin Bakar, Mr. Badaruddin Othman (Ministry of Foreign

Affairs), Datuk Wong Seng Foo (Ministry of International Trade and Industry), Mr.

Low Yew Eng (Ministry of Finance), Dr. Gary Theseira, Mrs. Norsham binti Abdul

Latip (Ministry of Environment and Natural Resources), Mr. Mohamad Razif Hj.

Abd. Mubin (Economic Planning Unit), Mr. Tan Nyat Chuan (Central Bank), and,

Mrs. Rokiah Jamil (INTAN), Ms. Chee Yoke Ling (Third World Network). My

special thanks go to Dr. Da'i Bachtiar (Indonesian Ambassador to Malaysia), Assoc.

Prof. Dr. D. Ravichandran (National University of Malaysia), Dr. Tan Er-Win, Datuk

Dr. Rajmah Hussain (University of Malaya) for their willingness to share their

expertise and knowledge for the research. Without their precious support it would not

have been possible to conduct this research.I am also indebted to the Public Service

Department of Malaysia for granting me the study leave enabling me to fully focus on

my research and writing. I thank my fellow class mates: Dr. Nor Azlina, Dr. Hawas,

Dr. Ammar Albadry, Dr. Belal Shobaki, Dr. Oracha Rakadee, Dr. Abdulhakeem, Dr.

Aliyu Mukhtar Katsina, Dr. Habib Hizaqi, Dr. Zahir Ahmad, Dr. Moghset Kamal and

Dr. Amnah Khalid, for the stimulating discussions and for all the fun we had during

our academic years. Also I thank my friends Rozie Johari, Adam Daniale, Norizan

Akmar, Ee Kim Hwee, Evon Manja, Kala Thangarajoo, Vasugei Periannan, Robert

Samuel and Samsudeen. Last but not least, I would like to thank my parents

Ramasamy Vellasamy and Rajam Arunachallam, my brother Murali, Mahendran, and

sisters Vaniseri and Malika for supporting me spiritually throughout writing this thesis

and my life in general.

x

TABLE OF CONTENTS

Abstract ........................................................................................................................ ii Abstract in Arabic ........................................................................................................ iii Approval Page .............................................................................................................. v

Declaration ................................................................................................................... vi Copyright ..................................................................................................................... vii Dedication .................................................................................................................... viii Acknowledgements ...................................................................................................... ix

List of Tables ............................................................................................................... xiii List of Figures .............................................................................................................. xiv

CHAPTER ONE: INTRODUCTION ...................................................................... 1 1.1 Introduction................................................................................................. 1 1.2 Statement of the Problem............................................................................ 3 1.3 Significance of the Study ............................................................................ 4 1.4 Research Objectives / Questions ................................................................ 5

1.5 Literature Review ....................................................................................... 6 1.5.1 Multilateralism .................................................................................. 6

1.5.2 Reformist ........................................................................................... 8 1.5.3 Good International Citizen ................................................................ 9

1.5.4 Regional Integration and Cooperation .............................................. 9 1.5.5 Islam in Malaysia’s Foreign Policy .................................................. 11

1.5.6 Tun Dr. Mahathir’s idiosyncrasy and leadership style in

Malaysia’s foreign policy ................................................................. 12 1.5.7 Malaysia’s foreign policy and its decision making process .............. 13

1.5.8 Historical phases in Malaysia’s foreign policy ................................. 13 1.6 Theoretical Framework ............................................................................... 16

1.6.1 Discussion on the Emerging Middle Power ...................................... 18 1.7 Arguments Of The Study ............................................................................ 24

1.8 Methods And Procedures ............................................................................ 25 1.9 Chapter Outline ........................................................................................... 28

CHAPTER TWO: MALAYSIA’S FOREIGN POLICY, 1957-1981 .................... 31 2.1 Introduction................................................................................................. 31 2.2 Background to Malaysia’s Foreign Policy ................................................. 32

2.2.1 Malaysia’s Foreign Policy ................................................................ 34

2.2.2 Factors influencing Malaysia’s Foreign Policy Decision

Making .............................................................................................. 35 2.2.3 Domestic Factors............................................................................... 36

2.2.3.1 Parliament ............................................................................. 36 2.2.3.2 The Cabinet .......................................................................... 36

2.2.3.3 Personality ............................................................................ 37 2.2.3.4 Institutional Structures in the Formulation of Foreign

Policy .................................................................................... 37

2.2.3.5 External Factors .................................................................... 38 2.2.4 Malaysia’s Foreign Policy 1957–1981 ............................................. 38

xi

2.2.4.1 Foreign Policy of Tunku Abdul Rahman ............................. 41 2.2.4.2 End of Confrontation and Formation of ASEAN ................. 42 2.2.4.3 Foreign Policy of Tun Abdul Razak .................................... 43

2.2.4.4 Foreign Policy of Tun Hussein Onn ..................................... 44 2.3 Foreign Policy Behavioural Patterns of Malaysia as an Emerging

Middle Power, 1957-1981 .......................................................................... 45 2.3.1 Foreign Policy Behavioural Pattern 1957–1969 ............................... 45 2.3.2 Foreign Policy Behavioural Pattern, 1970–1981 .............................. 46

2.4 Conclusion .................................................................................................. 47

CHAPTER THREE: MALAYSIA’S FOREIGN POLICY 1981-2003 AND

SOUTH-SOUTH COOPERATION ......................................................................... 48 3.1 Introduction................................................................................................. 48 3.2 Malaysia’s Foreign Policy 1981 – 2003 ..................................................... 48 3.3 South-South Cooperation ........................................................................... 52

3.3.1 Malaysia’s Involvement .................................................................... 60 3.3.1.1 Pressure to distance Malaysia from the West ....................... 60 3.3.1.2 Enhancement of Malaysian Economic interests ................... 61 3.3.1.3 Mahathir’s Leadership .......................................................... 62

3.3.2 Strategies of Cooperation .................................................................. 70 3.3.2.1 South Investment, Trade and Technology Data

Exchange Centre (SITTDEC) .............................................. 71 3.3.2.2 Bilateral Payment Arrangements (BPA) .............................. 72 3.3.2.3 Malaysian Technical Cooperation Programme

(MTCP) ................................................................................ 73 3.3.2.4 Earth Summit, Rio de Janeiro, 3-14 June 1992 .................... 74

3.4 Foreign Policy Behavioural Patterns of Malaysia as an Emerging

Middle Power, 1982-2003 .......................................................................... 75

3.5 Conclusion .................................................................................................. 77

CHAPTER FOUR: MULTILATERALISMAND THE MALAYSIAN

TECHNICAL COOPERATION PROGRAMME (MTCP) .................................. 78 4.1 Introduction................................................................................................. 78 4.2 Malaysian Technical Cooperation Programme (MTCP) ............................ 79 4.3 Multilateralism ............................................................................................ 88 4.4 Factors that Strengthened Malaysia’s Role in South-South

Cooperation Leading to Its Emergence as an Emerging Middle

Power Through MTCP ............................................................................... 89 4.4.1 The role played by Tun Dr. Mahathir Mohamad .............................. 90

4.4.2 High expectation of Malaysia’s role in South-South

Cooperation by the international community ................................... 93 4.5 Conclusion .................................................................................................. 95

CHAPTER FIVE: REFORMING GLOBAL AGENDA AND THE

GROUP OF 15 ............................................................................................................ 97 5.1 Introduction................................................................................................. 97 5.2 The Group of 15.......................................................................................... 97

5.2.1 South Investment, Trade and Technology Data Exchange

Centre (SITTDEC) ........................................................................... 100

xii

5.2.2 Bilateral Payment Arrangements (BPA) ........................................... 103 5.2.3 G-15 Member States – Malaysian Joint Ventures ............................ 107

5.3 Reforming Global Agenda .......................................................................... 110

5.4 Evaluating on the Success of Malaysia’s Attempt in Fostering

Economic Cooperation among the Countries of the South through

G-15 ............................................................................................................ 111 5.5 Conclusion .................................................................................................. 114

CHAPTER SIX: GOOD INTERNATIONAL CITIZEN AND RIO

EARTH SUMMIT ..................................................................................................... 115 6.1 Introduction................................................................................................. 115 6.2 Rio Earth Summit 1992 .............................................................................. 116

6.3 Chair of the Commission on Sustainable Development, 1992 - 1993 ........ 117 6.4 Financial Resources to Fund Agenda 21 .................................................... 120 6.5 Managing Forests Sustainably .................................................................... 125

6.6 Good International Citizen ......................................................................... 128 6.7 Evaluating on the Role of Malaysia in Environment and Sustainable

Development Issues Representing the Countries of the South

Leading to its Emergence as an Emerging Middle Power ......................... 130

6.8 Conclusion .................................................................................................. 134

CHAPTER SEVEN: CONCLUSION ...................................................................... 135 7.1 Introduction................................................................................................. 135 7.2 Summary of Findings ................................................................................. 137

7.3 Implications ................................................................................................ 140 7.4 Recommendations....................................................................................... 141

7.5 Some Reflections for Further Research ...................................................... 142

BIBLIOGRAPHY ...................................................................................................... 146

xiii

LIST OF TABLES

Table 1.1 Distinguishing features between emerging and traditional middle

powers 19

Table 3.1 Meetings of the Summit Level Group for South-South

Consultation and Cooperation (G15) (1990 – 2003) 69

Table 4.1 Participants of INTAN’s Malaysian Technical Cooperation

Programme (MTCP) (1981-2003) According to the Regions 84

Table 4.2 Participants of IDFR’s Malaysian Technical Cooperation

Programme (MTCP) (1981-2003) According to the Regions 86

Table 4.3 Official visits to multilateral fora undertaken by Dr. Mahathir

during his tenure as the Prime Minister of Malaysia, 1981-2003 91

Table 4.4 Respondents’ Opinion on the MTCP’s Performance 94

Table 4.5 Respondents’ Opinion on Multilateralism approach adopted by

Malaysia in pursuing MTCP 94

Table 5.1 The G-15 Summit Meetings, 1990 – 2003 99

Table 5.2 Trade Figures of SITTDEC Member Countries between 1993 and

2003 103

Table 5.3 The Amount of Trade between Malaysia and BPA Signatories 106

Table 5.4 Amount of Inflow and Outflow FDI from /to G-15 member states

from/to Malaysia during the period of 1981–2003 109

Table 6.1 Statements Made by Country Representatives at the Preparatory

Committee Meeting (1993) on UNGA Resolution 44/228, 22

December 1989 on Agenda 21, 1992 132

xiv

LIST OF FIGURES

Figure 1.1 The Similarity and Difference between the Traditional Middle

Power and Emerging Middle Power 18

Figure 1.2 A Diagram Illustrating the Relations between the Behavioural

Patterns (Independent Variables) and Emerging Middle Power

(Dependent Variable) 24

1

CHAPTER ONE

INTRODUCTION

1.1 INTRODUCTION

In recent years, foreign policies of a number of progressively influential states known

as traditional middle powers, e.g. Australia, Canada, Norway and Sweden, have

attracted the attention of scholars of international relations. These are described as

traditional middle powers because they are states with intermediate influence, and are

considered neither small nor great powers (Chapnick, 1993). In other words, they do

not have great power status, but enjoy certain amount of international influence.

Subsequently, with the end of the Cold War, another set of middle powers,

dubbed as emerging middle powers by Jordaan (2003, p.168) burst onto the

international stage. Among these emerging middle powers the following are

considered as prominent ones: Malaysia, Argentina and South Africa.

Malaysia played an active role in international relations, especially during the

period from 1981 to 2003. During this period, Malaysia’s foreign policy took a new

sense of direction and purpose, particularly not only identifying itself with the

countries of the South but also working for increased cooperation, especially

economic, among countries of the South. South-South Cooperation was the policies

used by Malaysia to utilize resources of the South for their greater benefit. The

objectives of South-South Cooperation were as follows: First, to strengthen and

improve economic ties (trade and investment) among the countries of the South and

subsequently promote economic independence. Second, to gradually eliminate the

South’s dependence on developed countries in terms of economic and human

2

resources capacity building for the country. Third, to voice the aspirations and aims of

the countries of the South on issues affecting them at the global stage – e.g.

environment and price stabilization of primary commodities such as rubber, palm oil,

tin and timber (Ahmad Faiz, 2005, p.2-3).

In addressing the above objectives of South-South Cooperation, Malaysia had

extended its technical assistance to the countries of the South through the Malaysian

Technical Cooperation Programme (MTCP). In addition, Malaysia had significantly

contributed to the Group of 15 (G-15) to strengthen and improve economic ties (trade

and investment) among the countries of the South. Furthermore, Malaysia represented

the countries of the South in speaking about environmental issues at the Rio Earth

Summit (1992), and as the Chair of Commission on Sustainable Development (1992-

1993).

Based on these, this study assumes that by pursuing such a policy Malaysia

was behaving like an emerging middle power. In doing so, Malaysia had taken three

main strategies to support this foreign policy. These strategies included Malaysia’s

extension of technical assistance to the countries of the South through the Malaysian

Technical Cooperation Programme (MTCP), building economic relations with

countries of the South in the Group of 15 (G-15) through the South Investment, Trade

and Technology Data Exchange Centre (SITTDEC) and Bilateral Payment

Arrangements (BPA); and playing a significant role in voicing the countries of

South’s interest on environment and sustainable development issues in the Rio Earth

Summit (1992), and as the Chair of Commission on Sustainable Development (1992-

1993).

3

1.2 STATEMENT OF THE PROBLEM

Dealing with foreign policy behavioural patterns of emerging middle powers does not

allow easy predictions when compared with super powers and small powers. Super

powers can act as they please while small powers have little freedom of manoeuvre as

they lack the necessary essentials to follow active foreign policies and they may also

feel constrained by the super powers. What makes an emerging middle power so

intrinsically intriguing, as argued by Jordaan (2003, p.168) are the following foreign

policy behavioural patterns:

1. The emerging middle powers’ preference to pursue multilateralism;

2. The emerging middle powers playing an active role in reforming global

agenda such as strengthening and improving economic ties (trade and

investment); and

3. The emerging middle powers acting as a good international citizen in the

sense that, apart from their own interest, they voice the interests of the

group they are representing.

In relation to the above, it is submitted that Malaysia has displayed the afore-

mentioned foreign policy behavioural patterns of an emerging middle power that

seeks to stabilize and legitimize the global order. In addition, Malaysia has increased

its international profile and association with the countries of the South. It champions

the causes of creating a just world order, whether political or economic, based on the

principles of international law and international justice.

Therefore, this study aims to analyse the foreign policy behavioural patterns of

Malaysia from 1981 to 2003 using the concept of an emerging middle power. In doing

so, the study uses Malaysia’s foreign policy on South-South Cooperation with

particular reference to the Malaysian Technical Cooperation Programme (MTCP),

4

Malaysia’s economic relations within G-15 members through the South Investment,

Trade and Technology Data Exchange Centre (SITTDEC) and Bilateral Payment

Arrangements (BPA), and finally Malaysia’s representation for the countries of the

South on environment and sustainable development issues in the Rio Earth Summit

(1992) and as the Chair of Commission on Sustainable Development (1992-1993). In

this regard, this study contends that Malaysia’s foreign policy behavioural patterns

towards these issues demonstrated its emerging middle power image.

1.3 SIGNIFICANCE OF THE STUDY

Many studies have been published dealing with the different aspects of Malaysia’s

foreign policy. Some of these studies deal with the idiosyncratic variables in the

making of Malaysia’s foreign policy while others deal with the role of religion in the

country’s foreign policy. Yet other studies have been published on the country’s role

in various international organizations such as the Organization of Islamic Cooperation

(OIC), the Association of Southeast Asian Nations (ASEAN) or the Commonwealth.

However, a thorough study analyzing Malaysia’s foreign policy from the perspective

of an emerging middle power is yet to be done. Therefore, this study aims to add to

the existing knowledge on Malaysia’s foreign policy. Additionally, although studies

on traditional middle powers like Australia, Canada, Norway and Sweden are in

abundance, not much has been done in explaining the foreign policies of an emerging

group of middle powers like Malaysia, Argentina and South Africa.

This study also helps to clarify a significant period (1981-2003) of Malaysia’s

foreign policy using the framework of the emerging middle power. Hence, by

critically analysing the strategies under the South-South Cooperation, it hopes to

provide another dimension of explanation to the country’s foreign policy. The

5

strategies associated with the South-South Cooperation, which have been chosen for

investigation in this study, are: the Malaysian Technical Cooperation Programme

(MTCP), Malaysia’s economic relations within G-15 members through the South

Investment, Trade and Technology Data Exchange Centre (SITTDEC) and Bilateral

Payment Arrangements (BPA), and environment and sustainable development issues,

in reference to Rio Earth Summit and as the Chair of Commission on Sustainable

Development.

This study will be a source of reference to foreign policy practitioners,

academicians, students and researchers in the future.

1.4 RESEARCH OBJECTIVES / QUESTIONS

In view of the above-mentioned significance of the study, this study is set forth to

achieve the following objectives:

1. This study intends to explain the factors that strengthened Malaysia’s role

in South-South Cooperation leading to its emergence as an emerging

middle power through its MTCP.

2. This study aims to analyse the success of Malaysia’s attempt in fostering

economic cooperation among the countries of the South through the G-15,

as part of its effort to becoming an emerging middle power.

3. The study assesses the factors for Malaysia’s participation in the 1992 Rio

Earth Summit and its post-Rio activities as well as its role as the Chair of

Commission on Sustainable Development from 1992 to 1993. These

subsequently defined its position at the global level as an emerging middle

power.

In addition, the study attempts to answer the following research questions:

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1. What were the factors in Malaysia’s MTCP strategy with the countries of

the South that strengthened its multilateralism leading to its emergence as

an emerging middle power?

2. Had Malaysia been successful as an emerging middle power in fostering

economic cooperation among the countries of the South through the G-15

that demonstrated its active role in reforming global agenda?

3. Did Malaysia’s involvement in environment and sustainable development

issues representing the countries of the South reflect its role as a good

international citizen, leading to its emergence as an emerging middle

power?

1.5 LITERATURE REVIEW

There were some studies that have used the concept of middlepowermanship in

explaining Malaysia’s foreign policy. The following may be cited as examples: Johan

(2010), Izzuddin (2007), and Nosal, Richard and Stubbs (1997). However, unlike this

research, the studies only focus on Malaysia’s relations with the Western world,

ASEAN, China and India. None of them has explained Malaysia’s foreign policy

using the concept of an emerging middle power. However, some of the literature

discussed below have indirectly dealt with the behavioural patterns of an emerging

middle power such as multilateralism, reformism, good international citizenship and

regional integration and cooperation.

1.5.1 Multilateralism

Rajmah Hussain (2010), has evaluated Malaysia’s foreign policy and its participation

at the United Nations (UN). She discusses the mechanisms of the formulation and

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implementation of Malaysian foreign policy and examines Malaysia’s role at the

United Nations. Rajmah’s approach to the study was thematic. She divides Malaysia’s

foreign policy into five phases; the pro-West and anti-Communist posture (1957-

1962), a shift towards regionalism and non-alignment (1963-1969), neutralization and

rapprochement to China (1970-1976), consolidation of policy (1976-1980) and a

rearrangement of priorities (mid-1981 to 1987). Rajmah’s study concentrated on the

issue of Malaysian foreign policy at the United Nations. The behavioural pattern of an

emerging middle power in adhering to multilateral framework has been indirectly put

forward by Rajmah.

The works by Zainal Aznam Yusof (2003) and Muhammad Ben Muda (2009)

focused on Malaysia’s promotion of foreign and economic policy at the multilateral

level vis-à-vis China and the Commonwealth. Zainal discusses the importance of

China to Malaysia in terms of both the destination of its products and the source of

investment in the country with a detailed account of the proportion of exports, imports

and foreign direct investment being furnished. Zainal’s work also focuses on the

ASEAN-China Free Trade Area which covered trade, services and investment. In

addition, Zainal also explains the ways Malaysia planned to respond to the ASEAN-

China Free Trade through its policy and strategies. He suggests some policy options

for Malaysia to consider in response to the challenges and opportunities posed by

China. Zainal firstly recommends that Malaysia should work closely with other

ASEAN states and major trading partners like Japan and the United States as to how

to deal with the growing Chinese economic power in the region. Secondly, Zainal

suggests that Malaysia should focus more on technology based industries rather than

labour intensive industries. He also emphasizes the importance of improving the skills

of Malaysia’s workforce (pp. 66-67).

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Muhammad analysed Malaysia’s relations with the Commonwealth, and

makes the point that the successive governments in Malaysia have maintained close

relations with the Commonwealth since Malaysia’s independence in 1957. According

to Muhammad, Malaysia’s relations with the Commonwealth have always been based

on economic and strategic interests. On a similar note, the author argues that the

Commonwealth connection has helped Malaysia in exploring trade opportunities and

subsequently economic achievement (p.133). In his analysis, Muhammad also

explains the usefulness of the Commonwealth as a platform to voice various Third

World issues and effectiveness in promoting Malaysia’s Technical Cooperation

Programme (p. 130).

Both works by Zainal and Muhammad provide another perspective in

describing Malaysia’s relations within a multilateral context. Thus, in an indirect way

it touches on the behavioural pattern of an emerging middle power.

1.5.2 Reformist

Abdul Faiz (2005), focuses on Malaysia's relations with developing countries under

the leadership of Dr. Mahathir Mohamad. The author addresses four critical issues

with the first being issues that persuaded Malaysia's relations with developing

countries and the repercussions of such relations; second, the impacts of Mahathir's

leadership on Malaysia's involvement in the South-South Cooperation (pp. 69-123);

third, the reasons that brought Mahathir's involvement in expressing North-South

concerns and its implications; and finally, the visions and dilemmas of Malaysia's

economic relations with the countries of the South (pp. 125-234). In this work, the

author argues that Malaysia had a moral responsibility towards the countries of the

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South in enriching their economies. This can be seen as a reformist action in bringing

changes to Malaysia’s relations with the countries of the South.

1.5.3 Good International Citizen

Liow (2009) assesses the impact of Mahathir Mohamad’s personality on the

formulation and execution of Malaysia’s foreign policy. The author acknowledges that

Mahathir had earned the world’s respect due to Malaysia’s high economic growth and

Mahathir’s embracement of liberal Muslim values. Furthermore, according to the

author, since Mahathir understood Third World issues such as the bridging of the

North-South division, the development of Islamic nations and his dedication to the

Third World blocs such as ASEAN, the Group of 77 (G-77), the Non-Aligned

Movement (NAM), and the Organization of Islamic Cooperation (OIC), Mahathir

was considered as one of the greatest spokesmen for the Third World. Liow mentions

that Malaysia, under Mahathir’s leadership, behaved as a good international citizen –

an important behavioural pattern of an emerging middle power.

Liow also highlights Tun Ghazali Shafie’s key role in facing the nation’s early

challenges and then as the theoretician behind whom the fundamental pillars of

Malaysia’s foreign policy were created. The author also discusses the demands of

domestic needs as well as international politics, which were considered the

determinants of foreign policy of Malaysia.

1.5.4 Regional Integration and Cooperation

Meanwhile, Abdul Razak and Chee Seng (1990) deal with the following two aspects

in Malaysia’s foreign policy; the regional security and the economic issues,

respectively. While dealing with the regional security issue, Abdul Razak emphasizes

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that Malaysia paid particular importance to striking a balance between various

agencies connected with defence planning and security affairs. He also points out that

relying on diplomacy was important in keeping levels of conflict at a tolerable level.

Nonetheless, he does not discount the possibility of equipping the military, taking into

account any eventualities regionally (pp. 37-52). Under the economic issue, Chee

Seng’s discussion is mainly on the role of the Ministry of Foreign Affairs in securing

Malaysia’s economic interests abroad (pp. 53-62).

On ASEAN, Azhari examines how ASEAN camaraderie had brought the

association to new heights of achievements. This could be witnessed through the

involvement of the private sector and more emphasis placed on human resource

development. Furthermore, it was vital that the member states of ASEAN balanced the

national development goals and economic interests of the association. ASEAN only

projected the necessity of having a collective voice on global economic issues

affecting the countries of the South. Azhari also points out that ASEAN should not be

overloaded in its undertakings (pp. 65-76).

The above literature shows that that those discussions focus on multilateralism,

reformist, good international citizen and regional integration and cooperation which

are the features of an emerging middle power. In this regard, this study has obtained

helpful ideas and information from the afore-mentioned studies undertaken by other

scholars. However, these studies do not discuss in detail the concept of an emerging

middle power. Thus, this study provides an in-depth and more comprehensive analysis

of Malaysia’s foreign policy as an emerging middle power.

The following sections deal with the studies on the role of Islam in Malaysia’s

foreign policy, Tun Dr. Mahathir’s idiosyncrasies and leadership style in Malaysia’s