Continuity and change in Japanese-Malaysian relations before and after the Second World War

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Date
1985-01
Authors
Denker, Mehmet Sami
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Publisher
Universiti Sains Malaysia
Abstract
This thesis examines the external and domestic sources of Japanese-Malaysian relations Ln the issue-area of development and trade. It attempts to show that these relations constitute an historical continuity, orginating in the pre-World War II period. Japanese interest in Malaya on the eve of and during World War II was premised upon Japan's economic needs geared ultimately at the control of Malayan natural resources which were of vital importance to Japanese industries. Japan's early economic penetration was evident by the presence of a small but growing Japanese community in Malaya involved in trade and investment in the pre-war period and by the Japanese government's economic and political support as well as control and organization of the Japanese community. Early penetration was superceded by the direct control of the Malayan economy through military conquest and administrative control during the occupation of Malaya in the Second World War. In the post-World War II period, Japan established a new set of relations with Malaysia. However the underlying economic motive remained much the same. Relations were premised upon a need to secure sources of raw materials as well as markets for Japanese goods, a need for cheap labour and capital expansion.ยท Japanese expansion 1n Malaysia was rendered possible by the favourable balance of payments from the mid-1960's until the early 1970's, and by the generous support of the Japanese government to Japanese businessmen. Malaysia's foreign policy towards Japan was formulated and developed in the light of her overall orientation towards the external environmentwhich was in turn conditioned by British control and ownership of the Malayan economy. This resulted in the laissez-faire external economic posture. )t During Tunku Abdul Rahmari~period, Malaysia's orientation towards Japan remained cautious due to lingering memories of the Japanese occupation. and the 'blood debt' issue. Malaysia-Japanese relations under the Tun Razak and Tun Hussein Onn administrations became highly active and significant as a result of new directions contained in the New Economic Policy (NEP). The new posture of "economic nationalism" tended to encourage the economic involvement of new foreign partners which had immediate benefits for Japan. The Japanese investors in Malaysia tended to be more flexible than other investors, as indicated by their willingness to be minority shareholders in joint-ventures and this resulted ~n Japan emerging as the top economic partner in trade and in investment by 1980 A major finding of the thesis is that the higher level of Japanese involvement in Malaysia ~n the Tun Razak and Tun Hussein Onn periods as compared to the Tunku Abdul Rahman period had resulted in greater Malaysian economic dependence on Japan. With regards to the sources of Malaysia's foreign economic policy towards Japan, it was found that domestic sources have played a dominant role in determining the actual policy outputs while external sources tended to define the kinds of foreign policy strategies employed.
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Keywords
Japanese-Malaysian relations, development and trade, an historical continuity, and orginating in the pre-World War II period.
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