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Trade with neighbours was
encouraged; Malaysia keeps an open
border with Thailand for trade
down but almost immediately the United
States became a large partner. Relations
with Japan were improved and Malaysian
industry benefi tted from Japan's technology
and investment. While India was
backing the USSR, Malaysia fi rst cultivated
the US, then Japan and now has
fl ourishing trade ties with China.
The interest rates have always been low,
infl ation kept in check even when the
economy was growing at above seven
percent year after year for the two dec-
ades of the seventies and the eighties.
Trade with neighbours was encouraged
and Malaysia keeps an open border with
Thailand for trade purposes. India tried
this with Nepal and Bhutan but just could
not sustain a cordial relationship. And less
said about Bangladesh, Pakistan and Sri
Lanka, the better. Singapore was proving
to be diffi cult state in the federation, it
was allowed to peacefully opt out and
become a peaceful and cooperative neighbouring
country. India meanwhile kept
C OMPARATIVE PLANNING
dallying with a reluctant Kashmir and
sixty years later wonders if the costs justify
the benefi ts.
The Malaysian society is diverse and
celebrates this heterogeneity. Muslims
girls wear the hijab, the Chinese and the
Indians wear modern dresses, and no one
could be bothered. Halal restaurants
abound. In many ways, a modern progressive
country that believes in its democracy,
its tradition and its economic strengths.
Finally, the most telling example; 12 years
ago, the 1998 Commonwealth games were
hosted in Kuala Lumpur. With minimum
fuss. The facilities were up and ready well
on time. Malaysia, with its 25 million
population, fi nished fourth overall behind
Australia, England and Canada, winning
10 gold medals with an overall medal tally
of 36, while India had seven and 25 respectively.
In the next few days, we will
know if we can do better.
It was not that the country did not face
crises. Be it racial strife, political turmoil,
xenophobia, Malaysia seems to have handled
it all with equanimity. The mid nineties
saw an enormous currency crisis, but
handled well enough for the economy to
bounce back quickly. The currency was
devalued like never before, and exports
quickly rose to fund defi cits.
Corruption is regular news in the newspapers.
Getting licenses to operate business
or work in the country is still diffi cult.
However, in disclosure norms and in investor
protection Malaysia ranks among
the best. This quarter the Malaysian
economy grew at more than 10 percent,
and much like India, surprised itself with
this spectacular increase.
(The views expressed in the write-up are
personal and do not reflect the offi cial policy
or position of the organization.)
THE INDIA ECONOMY REVIEW
97