The Malaysian Solution
by Israel Shamir
Take a country populated by diverse communities, the indigenous and
immigrant, of roughly equal size. These communities profess different
religions and ply different trades. The immigrants are better at
business; the natives prefer to till their soil. It could be a
description of Palestine with its native Palestinians and the
immigrant Jewish communities. But here the comparison ends. In
Malaysia, the communities live in peace without UN peacekeepers, they
pursue their cultural and religious interests without submitting to
bleaching multiculturalism, their country prospers while rejecting
the IMF recipes, and it is a native son of soil who stands at the
helm of good ship Malaysia.
On a less formal note, Malaysia is warm, wet and exotic. On the
monsoon-swayed shore of Andaman Sea, a long-tailed, lithe monkey
throws coconuts from the heights of a palm tree, flying fishes jump
out of the warm blue sea and splash back, a white triangular sail
rises on the horizon.Indians serve their sweet and punchy tea, teh
tarik, pouring it with gusto in pulling motion, and neatly place
curry on ecologically-sound banana leaves. Malay fishermen unload
their haul on the shore and sort it under a broad banyan tree. At
night, hundreds of stalls open at the Night Bazaar, feeding, dressing
and entertaining locals and tourists.
In Malacca, the oldest-in-East-Asia Catholic church stands next to
the Great Mosque next to a Vishnu temple next to a Taoist pagoda. The
Dutch-built austere Town Hall is surrounded by spacious British
colonial mansions. Narrow streets preserve the charm of the
Seventeenth Century, when the Malaccan sultanate was the hub of
commerce. Many of its denizens bear proud Portuguese names, but in
appearance they do not differ from other residents.
In Penang, old Hakka smugglers warm their bones on the wooden jetties
that form a floating island off Georgetown. Tamils sell junk on
Armenian street, next to the most advanced chip plant, home to Athlon
microprocessor. Yuppies have not taken over all of the Old City, and
it reminds of Jaffa as it was before 1948: a modest, humane Eastern
city. The glorious Oriental Hotel preserves the days of Somerset
Maugham and the Straits' Settlements. Delightful and modish Chinese
girls flock out of the convent school. Native Malays carry on their
unruffled life in peaceful villages, happily serve in the army and
provide the backbone of the administration.
Islam is the state religion, as it had been in the Fourteenth and
Fifteenth Centuries, when it peacefully seeped in and eventually
became preferred to the older Hindu beliefs. Brought by the traders,
Malay Islam is exceedingly tolerant, local, thoroughly adjusted to
the place, as it is practically everywhere but on the pages of the
New York Times. The girls do not cover their faces, but often wear a
scarf, like religious Jewish women. On Fridays, men like to go to a
mosque for prayer, the great social unifier and integrator. As
Communism was always frowned-upon in Malaya, Islam is the preferred
style of social movement.
Prosperity is ubiquitous: perfect roads, new cars, brushed-up and
restored relics of the past. There are no beggars, no striking
poverty. Malaysians live well: they have given up home cooking and
eat out in countless restaurants and at the stalls, where one dollar
buys a square meal. Neighbouring Thais and Indonesians flock in and
to cook their national dishes. The Twin Towers in the centre of
futuristic Kuala Lumpur are the tallest in the world. 9/11 did not
happen here, and the hotel security's main worry is Durian, strong-
smelling fruit the tourists are prone to smuggle in, disregarding
the "No Durian beyond this point" signs.
It is a peaceful land: one rarely sees a policeman or a soldier.
There are no security guards in the shopping centres, no visible
tension, no American troops or bases, no prostitution, gambling and
narcotics. Evening open-air parties, much swimming in the warm sea,
friendly chat, unrushed small trade: in short, a relaxing spot. How
come . why do they not fight, these people of different backgrounds?
The secret of the Malaysian success was given away by their Prime
Minister, Dr Mahathir bin Muhammad, whom local newspapers
affectionately call 'Dr M': "It is better to share a pie than to have
all of no pie." In the 1960s, Malaysia was torn by strife, for the
native rural Malays felt threatened by the economic success of the
Chinese and Indian immigrants, city dwellers with a long tradition of
market economy. Numerically, the natives were hardly a majority,
rather a plurality, of citizens. Economically, they were nowhere.
Riots were frequent, and destruction appeared imminent. A pie was
there to share: mineral resources, oil deposits, tin and rubber, an
educated work force, a relatively small population; but the same is
true for many countries that nevertheless came to grief.
Where others failed, the Malaysians succeeded: they pursued a New
Economic Policy (later called a New Development Policy), aimed to
correct imbalances in agreement between the communities. That the pie
of national economy should grow and the respective shares of the
communities should be increasingly equalised was the idea of NEP and
NDP. The prospering immigrant communities understood that disparity
can ruin their good life, and agreed to affirmative action in the
interest of the indigenous people. The indigenous Malays acquiesced
to this relatively slow process.
The affirmative action is not too radical: a Malay student has
priority if he wants to study medicine or business management, as
before the NEP there were just a few Malay doctors, businessmen,
administrators. The native Malay gets a five percent discount when he
buys an apartment. Malay businesses have some small tax breaks. In
new developments, the developers have to secure 10 percent of flats
and houses for the Malays, in order to avoid ghetto formation. Malay
is the national language, but there are street signs in Chinese and
English; Islam is the state religion, but there is full freedom to
practise other religions as well.
A guest from distant Palestine, I cried: Eureka! If we, Israelis and
Palestinians, would learn from the Malaysian success, establish
equality and take affirmative action to ensure a fair share for each
community, Palestine would be at least as prosperous and happy as
Malaysia. Even the notorious Jewish settlements would cause little
irritation if their founders would ensure a fair share of Palestinian
residents. (Nowadays, a Palestinian is not allowed even to tread on
their fenced grounds.) Malaysia is an example to emulate. Let us
follow the Malaysian way, erase partition, restore broken unity,
return refugees home and live together happily ever after. Wealthy
and privileged minorities can impose their will for a while, but in
the long run, only agreement and fair sharing á la Malaysia will work.
Not only in Palestine: This is a general panacea against the malady of
inequality and national strife. In the Twentieth Century, the Masters
of Discourse promoted their own patent medicine: partition and
transfer. Liberally applied in Greece and Turkey, on the Indian
subcontinent, in the Middle East, in the Balkans and Eastern Europe,
in the former Soviet Union, and this has already ruined half a
planet. Nowhere had it improved things. Subcontinent Muslims I meet
regret the day Pakistan was torn off India. From Tajikistan to
Belarus people dream of returning of the Soviet Union. Hungarians and
Czechs feel nostalgia for Österreich. Ravaged Smyrna, devastated
Sudetenland and bleeding Palestine confirm that partition wounds
do not heal for centuries, and that population transfer ensures future
massacres. It should be undone.
The Malaysian way of integration had an alternative, the way of
partition, and it was pursued by Singapore, a splinter Overseas-
Chinese city-state at the tip of the Malay Peninsula. It has some
similarities to the Jewish state: authoritarian rule, vast employment
of foreign guest workers, aggressive stance towards their integrated
neighbours. A great friend of Israel and the Far East base of Mossad,
the Israeli intelligence service, Singapore is an important link in
the global system of currency trading, an integral part of the New
World Order, a supporter of the US and Australia. Singapore is better
than Israel: it did not expel its native Malays, did not conquer the
Peninsula, did not launch aggressive wars. It could be a free
and peaceful city-state, but the dynamics of partition made it a
potential source of trouble. By taking a leaf from Israel's book,
Singapore declared its 'right' to wage war on Malaysia if the country
hikes the price of the water it sells to the island.
Singapore poisons the minds of the Malaysian Chinese and encourages
their immigration to the island. It is a very unnecessary thing, for
the Malaysian Chinese community is well integrated in their country.
In Penang, there is a Chinese Prime Minister, and, despite
affirmative action, the Chinese retain commanding heights in the
economy. What is worse, Singapore politicians try to influence
decision-making of in the People's Republic, the economic giant
with little political will of its own. It is proof that the evils
caused by choosing the partition model do not stop at partition but
have lasting, damaging effect on the world.
How the Malaysians did it
The ruling block of moderate nationalist Malays and its Chinese and
Indian counterparts have managed the country since the 1960s, and Dr
M, actually a medical doctor by profession, has served as the Prime
Minister for over twenty years. Next year he will retire at the ripe
age of 78. He came to power as a young radical and Malay nationalist,
expressing the natives' disappointment over the too-slow progress in
levelling economic misbalance between the communities. His victory
scared the immigrant communities and made them more amenable to Malay
demands. But Dr M carried out reforms gradually and gently. Under his
rule, Malaysia became a prosperous industrial nation, a leader in
computers as well as in traditional pursuits. Even more important, it
is a rather happy land of contented people.
Malaysia rejected the Western idea of nation-state, as it accepted the
many-coloured mosaic of its communities. They are not three, but
rather thirty-three. The Chinese form many communities of various
languages, cultures and religions. There are Cantonese, Swatow,
Hakka, Hokkien, as distinct as Sicilians and Swedes. Indians are
equally diverse: Muslim and Hindu, Punjabis, Tamils, Bengalis. The
native Malays also form various tribes and ethnic units. The oldest
inhabitants of the Peninsula, the orang asli or `original men',
Negroid tribes akin to Australian aborigines and Indian Dravidic
people, still roam the jungles. Europeans and their descendents (of
mostly mixed marriages) live in Malacca, Penang and Kuala Lumpur.
Malaysia rejected the idea of the `melting pot' as well. Communities
are not asked to integrate and assimilate; they are encouraged to
keep their identity and may attend schools in their native tongues
while keeping the same curriculum. They do not fall for the trap of
multiculturalism, either. The uncomfortable part of multiculturalism
as preached by New York is the removal of the backbone of the nation:
the rejection of the original religion and culture of the majority.
As I watched CNN on pre-Christmas days, I noticed their fear of
actually referring to the Christian holiday without balancing it by
an example of Hanukkah or Kwanza. Not so in Malaysia: there is a
state religion and a state language, and tolerance of minorities.
Most importantly, Malaysia rejected the faith of Neo-Liberalism.
Together with Castro and the Pope, Dr M is an outspoken critic of the
Chicago School. He does not want to sell assets to the highest
bidder, nor thereby to impoverish people and create a new class of
super-rich. Food and housing are inexpensive and often subsidised. Dr
M is not a socialist. He prefers a strong middle class, but he was
taught enough Mencius (Mengzi), the Second Sage of Confucianism, to
know of the obligation of rulers to provide for the common people.
The Neo-Liberalists tried to devour Malaysia. The Scourge of Nations,
the Imperial Wizard George Soros, a mysterious man with unlimited
resources and strong ties to the Israeli intelligence service Mossad,
who broke the Bank of England, ruined Taiwan, South Korea and
Thailand, attacked Malaysia, too. His financial offensive wiped out
ten years of Malaysian development and ten years of 20 million men's
labour: a cool $30 billion of damage. The country would have been
devastated but for Dr M, who slammed currency controls into place.
After the Soros plague, Malaysia asked for help from the IMF and the
World Bank, and was told that aid is conditional upon acceptance of
IMF rules, including lifting of currency controls. Ostensibly, that
was the purpose of Soros's raid: to break the country, to send it
running to the IMF and to turn it into a vassal of the New World
Order. All nations that accepted IMF rules were ruined: from
Argentina to Bulgaria, from South Africa to Russia.
Eduardo Galeano, the noted Uruguayan writer, in a recent interview,
said: "Argentina did everything it was ordered to do by the
International Monetary Fund and it's destroyed. The lesson is not to
buy into IMF discourse, which leads not only to the extermination of
national economies, but to horrific consequences that are not only
economic. A discourse that not only translates into mass
impoverishment and an offensive concentration of wealth, but into
slaps in the face, the daily insults that are the ostentation of the
power of the few, in the face of the helplessness of the many... It
discredits democracy. Nowadays, it is identified with corruption,
inefficiency, injustice, which is the worst thing that could happen to
democracy. Another tremendous injury is the great damage that the
culture of solidarity has suffered all these years. Right now the
predominant culture is that of "every man for himself," and if you
fall, you're screwed.
The new name for the financial dictatorship is the "international
community" ; anything that you do to defend the little that remains
of your sovereignty is "an attack against the international
community", rather than an act of legitimate defence against the
usury practiced by the banking system that rules the world, in which
the more you pay, the more you owe. That is why in a country like
Argentina everything has been dismantled: the economy, the state, the
collective identity of a people who no longer know who they are,
from where they came or where they are going.."
The stubborn old man, Dr M refused to accept the IMF diktat, and
Malaysia retained its prosperous independence. It did not go under as
Russia and Argentina, because its ruler was a determined man who
deeply felt his solidarity with his people. But it was not an easy
feat: Dr M had to fight a to-the-last-man-standing battle with his
Deputy Prime Minister, Anwar Ibrahim, the IMF supporter in Kuala
Lumpur. Anwar Ibrahim used the Soros-inflicted depression and stirred
unrest. A weaker man, a Gorbachev, would have collapsed and vacated
his seat, plunging the country into chaos. Dr M is made of sterner
stuff: he deftly dealt with the Neo-Liberal by using some old and not-
too-liberal laws against homosexuality. That was a correct if
difficult decision: In similar vein, the Americans had sent Al Capone
to jail on a trumped-up charge of small tax evasion, as they could
not make other charges stick. An IMF supporter is no better than a
However, for many Malaysian intellectuals this was a traumatic
experience: they would have preferred correct results to be obtained
by correct means. "Dearie, don't we all! But we can't put 'IMF
support' into the penal code", I said to them. "The ruler has a duty
to his people to protect them from neo-liberal wolves, and this
obligation precedes his personal ethics."
Soros retained a menacing presence in Malaysia. He paid for a Web
magazine and repeatedly tried to buy a newspaper to brainwash
Malaysians, as he does elsewhere, notably in Russia. In a Kuala
Lumpur hotel, I met Malaysian fellow journalists who expectedly
complained about another very non-Western Malaysian precept, that of
government-controlled media. This would have been an embarrassing
moment for me if I had not heard this complaint twelve years ago, in
the offices of Russian newspapers. The Russians had no Dr M of their
own; they privatised their media. It was snatched up by a bunch of
moguls and turned into subversion tools against Russia. Now, almost
all Russian media belongs to a galore of Israeli citizens.
That is why I told my Malaysian colleagues: "Sorry, guys. If you had
had it your way and made your newspapers and TV independent of
government, you would have had a lot of fun for a whole week. One
week later, your media would have been bought by George Soros, the
man who preaches of the advantages of open society to oysters. As
long as a wolf roams outside, a clever sheep sticks to its shepherd".
This week, Dr M had an unexpected reason for joy: a French court
found Soros guilty of insider trading. Its small fine of $2 million
means little for a man who makes $1 billion a day, but it is
satisfying to see him branded a thief. I would not be amazed to learn
that the terrible excesses of the Zionists in Palestine were arranged
as a diversion of attention away from their Globalist brethren. While
Zionists ruin a village, Soros and the IMF ruin a country.
Together with Castro, Dr M understood that the source of their power
lies in the overvalued US dollar. Since 1972, the US freely issued
green bucks no longer tied to gold. This financial swindle, the
biggest in the history of mankind, brought enormous wealth to some
people, and ruined a lot more. That is why Malaysia is the brain and
the engine of an ambitious plan to create a stable currency, the
golden Dinar. It is also called the 'Islamic Dinar', as Islamic Law
forbids usury and interest, and the Dinar will bear zero interest. (A
similar step was taken by Solon the Wise in Sixth Century BC
Athens: he cancelled debts, zeroed interest and made people free. A
hundred years later, Athens ushered in its Golden Age.) This year,
the Dinar will become the currency to settle deals between Malaysia
and some Arab countries.
Currency trading, the pet tool of Soros, should be banned, thinks Dr
The traders sell huge sums of currency they do not have to buyers who
are members of the same circle. The buyers in turn sell this
fictitious currency to others, force down the value and buy at the
depressed prices. Short selling has been taken to the ultimate level.
The currency trading is many times bigger than total world trade.
The New World Order has in Dr M a most outspoken enemy. He views it
as a continuation of old colonialism by new methods:
Free trade had always been the war cry of the Europeans. In the 19th
century they used gunboats to open East Asia for trade. They went to
war when they were not allowed to supply opium to China. Now, the
gunboats have disappeared, but the pressures are no less effective.
An occupation army cannot colonise more effectively than the economic
arm-twisting used by the West. Now international institutions are
used to open up the countries for 'free trade'. Once the countries
are opened up, the big corporations and banks would move in, and the
locals will be swallowed up.
Dr M has not mellowed with years. His thinking has become even more
striking and extraordinary. While visiting Japan, he called upon the
Japanese to reject the Western model as it is sure to ruin their
Japanese system worked very well for the Japanese. It made Japan the
second most powerful economy in the world. It may not be the Western
way, but it can't be all wrong if it can achieve so much.
In Dr M's view, Japan should return to strong government involvement
in economy, and take up its leading role in Asia, for "East Asia and
the world need Japan, its dynamism and its single-minded dedication".
For Dr M, as for many important politicians in Asia, WWII was not a
war between ultimate good and ultimate evil. "The success of the
Japanese army in the early days of the war finally broke the spell
cast by the Europeans. East Asians learned that their European
overlords could be defeated." Similar sentiments are voiced in Iran
and in Arab countries, where anti-British resentment brought
nationalist leaders to seek help of the Axis Powers.
Malaysia is an 'alternative' country where many Western ideas were
found wanting and were rejected. We are used to frequent changes of
prime ministers and presidents and see it as a success of democracy.
But Dr M, this benevolent king-philosopher in Plato's mould,
disagrees. It takes many years for policies to produce fruits, he
says. First year in power, the ruler learns to be addressed and to
address others properly. Next year, he forms his opinions. Then he
makes decisions, and only in a few years can we judge his decisions
properly. He succeeded because he had enough time, he says.
This idea is unusual for us, but as the matter of fact, three of the
most charismatic and extraordinary statesmen of our days, Dr M, Dr
Fidel Castro and the Pope, persist in power for tens of years with
great success. Commercial companies, nowadays as powerful as any
state, also do not change their helmsmen without urgent need.
Surely, if a statesman like Dr M were to lead Japan, (or China, or
Russia, or, indeed, the EU) the world would be different. Many things
have changed since WWII, and Europeans, together with ordinary
Americans, are now experiencing the brunt of the same policies Asia
suffered in its colonial past. 'The Open Society' has become the tool
for robbery brought home, as the New World Order is the colonisation
of Europeans and Americans by their new financial elite.
Dr M is a strict opponent of the American War on Terror. For
him, "terrorism never dies until the causes for terrorism are
eliminated". He speaks against the impending Anglo-American
aggression in Iraq, he refuses to accept the rant of 'Islamic
terror'. Dr M supports the much-suffering people of Palestine without
the caveats usually produced by his meek-hearted colleagues in
Europe. His voice is heard, for Malaysia has not surrendered
its discourse to its enemies.
Malaysia reminded me of Cuba, the Island of Freedom in the Caribbean
Sea. It is also an alternative society where highly educated men map
a different future for mankind, for "today's world is in shambles.
The abuses of the free trade system, the unlimited greed of
speculators, have resulted in the world losing its way", in the words
of Dr M. Similar ideas are expressed in Castro's speeches. The two
politicians met a few times and expressed mutual admiration, despite
their huge ideological differences: Castro the Communist and Dr M the
Nationalist. In Cuba and in Malaysia, one can read a newspaper
or watch TV without nausea. These two small countries have much for
us to learn from.
* * *
Penang, Malaysia, is home to some of the best NGOs, notably the Third
World Network, Consumers' Society, Citizens International and Taiping
Peace Initiative. Their brilliant gurus, Dr Idris Mohammed
), Dr Rajamurti (twnet@...
) and Anwar
) amazed me with their knowledge and
devotion to mankind, and shared with me their insights. I am most
grateful for their guidance and assistance. I would also like to
thank Dr Alijah Gordon, the American writer who made Malaysia her
home, and Dr Hishamuddin Ubaidullah, the chairman of Deir Yassin
Remembered in Malaysia. For the local Chinese opinion I am indebted
to Mr To, a Minister of the Penang Government. I am grateful to the
hospitable people of Malaysia and their Prime Minister, Dr Mahathir
Mohammad, for showing a possible solution to the problems of
 See Heather Cottin, `George Soros, Imperial Wizard', CovertAction
Quarterly, No 74, Fall 2002.
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