LONDON, 26 July 2004 — “Malaysia Inc.” or “the Malaysian Model” or “Vision 2020” (call it what you like) got its latest airing in London in the last few days during the whirlwind visit by new Prime Minister Abdullah Badawi — his first to Britain in his capacity as premier of Malaysia.
The basic vision remains the same that by the year 2020 Malaysia must join the ranks of the fully industrialized countries with an economy based on the knowledge sector; with a democracy soundly in place; and a multi-ethnic and multi-religious country moving forward “based on fraternity and egalitarianism”.
But above all, Prime Minister Badawi has thrown down the gauntlet to the Muslim countries in particular, and the Muslim ummah in general. It is just as well that there were many diplomats from the OIC countries in the audience including Saudi Ambassador to the UK Prince Turki ibn Faisal.
“Malaysia,” he stresses, “is indeed a rare breed. It is a modern Muslim country; a democratic Muslim country; an economically dynamic Muslim country; a respected and confident Muslim country; and a multi-ethnic and multi-religious nation at peace with itself.
“We must accept that Islam is a religion for progress and development. True Islam is a great guide, beacon, catalyst, and driver of modernity. A good Muslim must be the epitome of modern man, or should I say modern woman. Malaysia has shown that Islam is not an impediment to modernity and to democracy; to rapid economic growth; to self-respect and confidence; to tolerance and mutual respect across religions, cultures and ethnic groups. Islam in Malaysia does not advocate a clash of civilizations but a feast and a celebration of civilizations. This is a message that deserves a wider audience.” In this respect Malaysia will continue to speak for the Muslim world and for the developing nations per se.
The style of premier Badawi too could not be more different compared with his predecessor Dr. Mahathir Mohamed.
While Mahathir was perceived to have had an authoritarian streak and was not averse to the odd confrontation, Badawi is more relaxed, confident and actually has a sense of humor. But there is also a new-found sense of urgency especially in the delivery of government policies whether on Malaysia’s role in the region, the Muslim world, and in international affairs in general; in the economy; in education, and so on.
But there is also a shift in priorities - eradictating poverty especially among the hardcore poor; rooting our corruption; developing education; and renewing the confidence of Muslims in their religion. Absolute poverty in Malaysia, for instance, which stood at 16.5 percent in 1990, should be eradicated, says Premier Badawi, by 2010 and not 2020, the original target. Malaysia, according to UNDP (the United Nations Development Program), has the best record of any country in eradicating poverty. At a keynote address which he gave to an invited audience of senior bussinessmen, bankers, politicians, and community leaders organizsed by Asia House on Friday, he introduced his Cabinet colleagues, including the Cabinet secretary, who were traveling with him. He assured the audience that he and his Cabinet secretary “did not have a ‘Yes Minister’ relationship”. Malaysia’s future, he stresses, will be determined “by what we are; what we believe in; and where our core vital interests lie”.
In one generation, Malaysia’s GDP growth rate has more than doubled from 3.5 percent in the two decades after World War II to more than 7.6 percent in 2003. This year, according to Badawi, GDP growth is projected at 7 percent. In fact, Malaysia in terms of percentage of industrial output over GDP is now the fourth most industrialized country in the world. Malaysia’s reserves have also touched $53.4 billion. There is no doubt that there is a new emphasis and a working of Vision 2020. There is a strong social and financial inclusion ethic which straddles not only the Muslim Malays but all the other ethnic groups.
Badawi is quick to remind that during the 1998 Asian financial crisis there was not a single incident of ethnic tension or conflict or terrorism. This may be a reflection on the maturity and success of the Malaysian political and economic system, and of society in general.
“We must not relent on the mission of creating an economically just society in which there is a fair and equitable distribution of wealth and full partnership in economic progress,” warns Badawi. However, this may be more difficult to achieve than he is envisaging. If Malaysia Inc. is successful, then by 2020 the country’s GDP would have grown from 115 billion Malaysian ringgit in 1990 to 920 billion ringgit in 2020 (at 1990 prices); and GDP per capita would have quadrupled from 6,352 ringgit in 1990 to 24,229 ringgit in 2020 (at 1990 prices).
“We will move to enhance the public sector’s delivery system and ensure prudent management of our financial resources, as well as upgrade the private sector’s efficiency, quality and cost-effectiveness,” adds Badawi.
He acknowledges that his landslide general election victory earlier this year places a huge burden of responsibility on him. The economy will focus on more value added and high technology. Malaysia will embrace a culture of “high performance, good governance, and transparency, erradicating corruption and enhancing integrity”. All this for the benefit of the Malaysian people and enhancing its capacity “to compete any time, anywhere, and with anybody”.
At the party level, Abdullah Badawi was recently elected unopposed as leader of UMNO (the United Malaysia national Organization) the dominant party in Malaysia’s ruling National Front Coalition. But Malaysian elections have traditionally been steeped in “money politics”. UMNO itself as political party needs urgent overhauling and democratization.
At the national level, Malaysia’s opposition is almost non-existent — confined to PAS (the outdated and discredited rump of an Islamic party), and one or two minor parties including one launched by the supporters of the former Deputy Premier Anwar Ibrahim, now serving a jail sentence.

