Domestic affairs Mahathir Mohamad

1 domestic affairs

1.1 years (1981–87)
1.2 exerting power (1987–90)
1.3 economic development financial crisis (1990–98)
1.4 final years , succession (1998–2003)

domestic affairs

mahathir sworn in prime minister on 16 july 1981, @ age of 56. 1 of first acts release 21 detainees held under internal security act, including journalist samad ismail , former deputy minister in hussein s government, abdullah ahmad, had been suspected of being underground communist. appointed close ally, musa hitam, deputy prime minister.

early years (1981–87)

mahathir exercised caution in first 2 years in power, consolidating leadership of umno and, victory in 1982 general election, government. in 1983, mahathir commenced first of number of battles have malaysia s royalty during premiership. position of yang di-pertuan agong, malaysian head of state, due rotate in either elderly idris shah ii of perak or controversial iskandar of johor. mahathir had grave reservations 2 sultans. both activist rulers of own states , iskandar had few years earlier been convicted of manslaughter. mahathir tried pre-emptively limit power new agong wield on government, introducing parliament amendments constitution deem agong assent bill had not been assented within 15 days of passage parliament. proposal remove power declare state of emergency agong , placed prime minister. agong @ time, ahmad shah of pahang, agreed proposals in principle baulked when realised proposal deem sultans assent laws passed state assemblies. supported sultans, agong refused assent constitutional amendments, had passed both houses of parliament comfortable majorities. when public became aware of impasse, , sultans refused compromise government, mahathir took streets demonstrate public support position in mass rallies. press took side of government, although large minority of malays, including conservative umno politicians, , larger proportion of chinese community, supported sultans. after 5 months, crisis resolved, mahathir , sultans agreed compromise. agong retain power declare state of emergency, if refused assent bill, bill returned parliament, override agong s veto.

on economic front, mahathir inherited new economic policy predecessors, designed improve economic position of bumiputera (malaysia s malays , indigenous peoples) through targets , affirmative action in areas such corporate ownership , university admission. mahathir actively pursued privatisation of government enterprises 1980s, both liberal economic reasons being pursued contemporaries such margaret thatcher, , because felt combined affirmative action bumiputera provide economic opportunities bumiputera businesses. government privatised airlines, utilities , telecommunication firms, accelerating rate of 50 privatisations year mid-1990s. while privatisation improved working conditions of malaysians in privatised industries , raised significant revenue government, many privatisations occurred in absence of open tendering processes , benefited malays supported umno. 1 of notable infrastructure projects @ time construction of north–south expressway, motorway running thai border singapore; contract construct expressway awarded business venture of umno. mahathir oversaw establishment of car manufacturer proton joint venture between malaysian government , mitsubishi. end of 1980s, proton had overcome poor demand , losses become, support of protective tariffs, largest car maker in southeast asia , profitable enterprise.

in mahathir s years prime minister, malaysia experiencing resurgence of islam among malays. malays becoming more religious , more conservative. pas, had in 1970s joined umno in government, responded resurgence taking increasingly strident islamist stand under leadership of man in 1969 had defeated mahathir parliamentary seat, yusof rawa. mahathir tried appeal religious voters establishing islamic institutions such international islamic university of malaysia promote islamic education under government s oversight. attracted anwar ibrahim, leader of malaysian islamic youth movement (abim) join umno. in cases, mahathir s government employed repression against more extreme exponents of islamism. ibrahim libya, popular islamist leader, killed in police shoot-out in 1985; al-arqam, religious sect, banned , leader, ashaari mohammad, arrested under internal security act. mahathir comprehensively defeated pas @ polls in 1986, winning 83 seats of 84 seats contested, leaving pas 1 mp.

exerting power (1987–90)

any illusion 1986 election may have created mahathir s political dominance short-lived. in 1987, challenged presidency of umno, , prime ministership, tengku razaleigh hamzah. razaleigh s career had gone backwards under mahathir, being demoted ministry of finance ministry of trade , industry. razaleigh supported musa, had resigned deputy prime minister previous year. while musa , mahathir close allies, 2 had fallen out during mahathir s premiership, musa claiming mahathir no longer trusted him. razaleigh , musa ran umno presidency , deputy presidency on joint ticket against mahathir , new choice deputy, ghafar baba. tickets known team b , team respectively. mahathir s team enjoyed support of press, party heavyweights, , iskandar, agong, although significant figures, such abdullah badawi, supported team b. in election, held on 24 april 1987, team prevailed. mahathir re-elected narrow margin, receiving votes of 761 party delegates razaleigh s 718. ghafar defeated musa larger margin. mahathir responded purging 7 team b supporters ministry, while team b refused accept defeat , initiated litigation. in unexpected decision in february 1988, high court ruled umno illegal organisation of branches had not been lawfully registered. each faction raced register new party under umno name. mahathir s side registered name umno baru ( new umno ), while team b s application register umno malaysia rejected. umno malaysia, under leadership of tengku razaleigh hamzah , support of both of malaysia s surviving former prime ministers abdul rahman , hussein, registered party semangat 46 instead.

having survived political crisis @ least temporarily, mahathir moved against judiciary, fearing successful appeal team b against decision register umno baru. steered amendment constitution through parliament remove general power of high courts conduct judicial review. high courts engage in judicial review specific acts of parliament gave them power so.the lord president of supreme court, salleh abas, responded sending letter of protest agong. mahathir suspended salleh gross misbehaviour , conduct , ostensibly because letter breach of protocol. tribunal set mahathir found salleh guilty , recommended agong salleh dismissed. 5 other judges of court supported salleh, , suspended mahathir. newly constituted court dismissed team b s appeal, allowing mahathir s faction continue use name umno. according milne , mauzy, episode destroyed independence of malaysia s judiciary.

at same time political , judicial crises, mahathir initiated crackdown on opposition dissidents use of internal security act. appointment of number of administrators did not speak mandarin chinese schools provoked outcry among chinese malaysians point umno s coalition partners malaysian chinese association , gerakan joined democratic action party (dap) in protesting appointments. umno s youth wing held provocative protest triggered shooting lone malay gunman, , mahathir s interference prevented umno staging larger protest. instead, mahathir ordered wain calls biggest crackdown on political dissent malaysia had ever seen . under police operation codenamed operation lalang , 119 people arrested , detained without charge under internal security act. mahathir argued detentions necessary prevent repeat of 1969 race riots. of detainees prominent opposition activists, including leader of dap, lim kit siang, , 9 of fellow mps. 3 newspapers sympathetic opposition shut down.

mahathir suffered heart attack in 1989, recovered lead barisan nasional victory in 1990 election. semangat 46 failed make headway outside razaleigh s home state of kelantan (musa had since rejoined umno).

economic development financial crisis (1990–98)

the expiry of malaysian new economic policy (nep) in 1990 gave mahathir opportunity outline economic vision malaysia. in 1991, announced vision 2020, under malaysia aim become developed country within 30 years. target require average economic growth of approximately 7 per cent of gross domestic product per annum. 1 of vision 2020 s features gradually break down ethnic barriers. vision 2020 accompanied nep s replacement, national development policy (ndp), under government programs designed benefit bumiputera exclusively opened other ethnicities. ndp achieved success out 1 of main aims, poverty reduction. 1995, less 9 per cent of malaysians lived in poverty , income inequality had narrowed. mahathir s government cut corporate taxes , liberalised financial regulations attract foreign investment. economy grew on 9 per cent per annum until 1997 prompting other developing countries try emulate mahathir s policies. of credit malaysia s economic development in 1990s went anwar ibrahim, appointed mahathir finance minister in 1991. government rode economic wave , won 1995 election increased majority.

mahathir initiated series of major infrastructure projects in 1990s. 1 of largest multimedia super corridor, area south of kuala lumpur, in mould of silicon valley, designed cater information technology industry. however, project failed generate investment anticipated. other mahathir projects included development of putrajaya home of malaysia s public service, , bringing formula 1 grand prix sepang. 1 of controversial developments bakun dam in sarawak. ambitious hydro-electric project intended carry electricity across south china sea satisfy electricity demand in peninsular malaysia. work on dam suspended due asian financial crisis.

a view of petronas twin towers , surrounding central business district in kuala lumpur, testament of malaysian phenomenal economic evolution under mahathir s 22-year rule.

the financial crisis threatened devastate malaysia. value of ringgit plummeted due currency speculation, foreign investment fled, , main stock exchange index fell on 75 per cent. @ urging of international monetary fund (imf), government cut government spending , raised interest rates, served exacerbate economic situation. in 1998, mahathir reversed policy course in defiance of imf , own deputy, anwar. increased government spending , fixed ringgit dollar. result confounded international critics , imf. malaysia recovered crisis faster southeast asian neighbours. in domestic sphere, political triumph. amidst economic events of 1998, mahathir had dismissed anwar finance minister , deputy prime minister, , claim have rescued economy in spite of anwar s policies.

in second decade in office, mahathir had again found himself battling malaysia s royalty. in 1992, sultan iskandar s son, representative hockey player, suspended competition 5 years assaulting opponent. iskandar retaliated pulling johor hockey teams out of national competitions. when decision criticised local coach, iskandar ordered him palace , beat him. federal parliament unanimously censured iskandar, , mahathir leapt @ opportunity remove constitutional immunity of sultans civil , criminal suits. press backed mahathir and, in unprecedented development, started airing allegations of misconduct members of malaysia s royal families. press revealed examples of rulers extravagant wealth, mahathir resolved cut financial support royal households. press , government pitted against them, sultans capitulated government s proposals. powers deny assent bills limited further constitutional amendments passed in 1994. status , powers of malaysian royalty diminished, wain writes mid-1990s mahathir had become country s uncrowned king .

the final years , succession (1998–2003)

by mid-1990s had become clear serious threat mahathir s power leadership ambition of deputy, anwar. anwar began distance himself mahathir, overtly promoting superior religious credentials , appearing suggest favoured loosening restrictions on civil liberties had become hallmark of mahathir s premiership. however, mahathir continued anwar successor until relationship collapsed dramatically during asian financial crisis. positions gradually diverged, mahathir abandoning tight monetary , fiscal policies urged imf. @ umno general assembly in 1998, leading anwar supporter, ahmad zahid hamidi, criticised government not doing enough combat corruption , cronyism. mahathir took reins of malaysia s economic policy on coming months, anwar increasingly sidelined. on 2 september, dismissed deputy prime minister , finance minister, , promptly expelled umno. no immediate reasons given dismissal, although media speculated related lurid allegations of sexual misconduct circulated in poison pen letter @ general assembly. more allegations surfaced, large public rallies held in support of anwar. on 20 september, arrested , placed in detention under internal security act.

anwar stood trial on 4 charges of corruption, arising allegations anwar abused power ordering police intimidate persons had alleged anwar had sodomised them. before anwar s trial, mahathir told press convinced of anwar s guilt. found guilty in april 1999 , sentenced 6 years in prison. in trial shortly after, anwar sentenced 9 years in prison on conviction sodomy. sodomy conviction overturned on appeal after mahathir left office.

while mahathir had vanquished rival, came @ cost standing in international community , domestic politics. secretary of state madeleine albright defended anwar highly respectable leader entitled due process , fair trial . in speech in kuala lumpur, mahathir attended, vice-president al gore stated continue hear calls democracy , including among brave people of malaysia . @ apec summit in 1999, canadian prime minister jean chrétien refused meet mahathir, while foreign minister met anwar s wife, wan azizah wan ismail. wan azizah had formed liberal opposition party, national justice party (keadilan) fight 1999 election. umno lost 18 seats , 2 state governments large numbers of malay voters flocked pas , keadilan, many in protest @ treatment of anwar.

in september 2001 debate caused prime minister mahathir announcement malaysia islamic state.

at umno s general assembly in 2002, mahathir announced resign prime minister, supporters rush stage , convince him tearfully remain. subsequently fixed retirement october 2003, giving him time ensure orderly , uncontroversial transition anointed successor, abdullah badawi. having spent on 22 years in office, mahathir world s longest-serving elected leader when retired. remains malaysia s longest-serving prime minister.