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The Case for Rentierism As a Cause for Underdevelopment in Malaysia: Tourism Planning from Mahathir to the Present Day

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The Case for Rentierism As a Cause for Underdevelopment in Malaysia: Tourism Planning from Mahathir to the Present Day Durham E-Theses The case for rentierism as a cause for underdevelopment in Malaysia: Tourism Planning from Mahathir to the present day ASHCROFT, KATHRYN,ALEXA How to cite: ASHCROFT, KATHRYN,ALEXA (2011) The case for rentierism as a cause for underdevelopment in Malaysia: Tourism Planning from Mahathir to the present day, Durham theses, Durham University. Available at Durham E-Theses Online: http://etheses.dur.ac.uk/3580/ Use policy The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that: • a full bibliographic reference is made to the original source • a link is made to the metadata record in Durham E-Theses • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders. Please consult the full Durham E-Theses policy for further details. Academic Support Oce, Durham University, University Oce, Old Elvet, Durham DH1 3HP e-mail: [email protected] Tel: +44 0191 334 6107 http://etheses.dur.ac.uk 2 Abstract Classifying Malaysia as a rentier state is unusual but the label allows for new insight into the development state debate. Rentier states are considered to be developing states on the basis that their governments purchase the growth that improves wealth and quality of life at a cost to enterprise and citizens become accustomed to reward being unrelated to effort. Purchased growth (where governments create employment by investing in projects) creates challenges for true development (where an economy evolves and develops without continual governmental involvement) and recognising the breadth of this phenomenon is significant. By looking at tourism planning in Malaysia, a case for rentierism being the cause of underdevelopment in Malaysia was made. Making particular reference to the Meetings, Incentives, Exhibitions and Conferences (MICE) aspect of the tourism market, the thesis demonstrates that Malaysia is not only a rentier state economy but that its tourism industry demonstrates purchased growth that is compatible with rentierism. The main argument of the thesis is that the most significant component of what signifies a rentier state is a rentier state mentality. Four case studies of MICE tourism destinations are used to demonstrate attitudes that have emerged from a government policy of purchased growth. When the case for underdevelopment as emerging from rentierism is made, the rentier state mentality in Malaysia is used as evidence for the label and its application. Tourism is a commonly proposed solution to the problem of underdevelopment but what this thesis demonstrates is that the way diversification of a rent-based economy is approached is more significant that what that economy diversifies into. Underdevelopment in Malaysia results from the tourism planning being based upon purchased growth not because tourism is an inappropriate industry for economic development in Malaysia. 2 Institute of Middle Eastern and Islamic Studies Durham University The case for rentierism as a cause for underdevelopment in Malaysia Tourism Planning from Mahathir to the present day PhD Thesis: 2011 Kathryn Ashcroft 3 Contents ___________________________________________________________________ Acknowledgements p.5 Preface p.6 Acronym List p.7 Malay-English Dictionary p.8 1. Introduction p.9 1.1 Aim of the research p.9 1.2 Research questions p.10 1.3 Objectives and thesis outline p.12 2. Methodology p.14 2.1 Hypothesis p.14 2.2 Research strategy and methods p.16 2.3 Review of the literature and writing of the thesis p.22 3. Historical perspective p.31 3.1 The Malaysian Government p.31 3.2 The Malaysian tourism market p.57 4. Literature Review p.70 4.1 Theorising tourism; Economic and (Geo)political approaches p.70 4.2 Tourism as a global phenomenon p.78 4.3 Tourism as a domestic tool for development p.82 5. Theoretical framework p.88 5.1 The ‘equality’ and identity of the Malays p.88 5.2 The legitimacy and effectiveness of Mahathir’s mega p.119 Projects 5.3 Summary p.135 6. Case Study – Pulau Langkawi and Genting Highlands p.137 6.1 Pulau Langkawi p.137 6.2 Genting Highlands p.143 6.3 Empirical research p.150 6.4 The role of state involvement, the impact on Malaysian p.175 society and the significance of rentierism 4 7. Case Study – Kuala Lumpur and Putrajaya p.181 7.1 Kuala Lumpur p.182 7.2 Putrajaya p.186 7.3 Empirical Research p.191 7.4 The role of state involvement, the impact on Malaysian p.205 society and the significance of rentierism 8. A new identity for Malaysian economic development p.209 8.1 The characterisation of rentier mentality p.209 8.2 Distorted development; finding a Malaysian identity p.216 8.3 The case for rentierism as a cause for underdevelopment p.223 in Malaysia 9. Conclusion p.226 9.1 Summary p.226 9.2 The solution to underdevelopment in a rentier state p.227 Appendices p.229 Bibliography p.240 5 Acknowledgements ___________________________________________________________________ This thesis owes much to my friends in Southeast Asia who supported my relocation: To Stefany who invited me to stay with her in Brunei while I acclimatised to the idea of actually living in the region that had long fascinated me I am eternally indebted and our girly weekends in Borneo Malaysia and Jakarta were an absolute joy; to Jo as well for providing British female gossiping (and complaining) on those amazing weekends; to Louise, for sharing some wonderful insights and positivity. ‘KL’ will forever feel like a home I’m away from now and I left many wonderful people behind. Thanks go to Danielle, Qurratu, Guna and especially to Hussein. You were my family. Thanks also to my mum and brother for their much appreciated visits and to Trev who was a fantastic travelling companion for a number of weeks and with whom I shared a memorable tropical Christmas. Appreciation goes also to Jan and to Richard for our many msn conversations across the miles and time zones. I’m indebted yet again to my incredible supervisor Gordon whose encouragement frees me from doubt and whose insight gives my ideas scope and direction. No doubt you’ll be happy to see the back of me after my BA dissertation, MA thesis and now PhD thesis but I promise I’ll pop in now and again. You are an inspiration. Finally, thanks to James. You gave me the push I needed to move to Malaysia and then a reason to return. The copyright of this thesis rests with the author. No quotation from it should be published without the prior written consent and information derived from it should be acknowledged. 6 Preface ___________________________________________________________________ Around the time I was writing up my MA thesis, Confidence as a route to Economic Development in Post War Vietnam, an advert was being aired on British TV. The advert was for Malaysia, a country I had previous given little thought beyond its diplomatic and economic relations with Singapore and Vietnam. What captured my attention was the slogan Malaysia, Truly Asia. The grandness of this claim led to an almost immediate fascination with this diverse nation with its passionate leaders, multilayered cultures and incredible ambition. I had always dreamt of living in a foreign country and was struck by a desire to move to Kuala Lumpur. Less than 48 hours into my first trip to Kuala Lumpur I had signed the lease on an apartment with a view of the Petronas Towers. It was the most impulsive thing I have ever done and when the recession hit in the UK and the exchange rate saw my rent soar I almost regretted it. But KL for me reflects transition and resilience; I learnt many important lessons. A trip that started as fieldwork for a PhD ended up changing my life. Is Malaysia truly Asia? I’d like to dismiss the claim as arrogant hyperbole but as I sit here today (on a train from Stockport to my new hometown of Gloucester) I’m struck by an inability to frame the country better. Malaysia was truly the Asia of my dreams. Arrogance and hyperbole is all part of the charm she holds for me. 7 Acronym List ___________________________________________________________________ ASLI Asian Strategy and Leadership Institute BMA British Military Administration BN Barisan Nasional CPPS Centre for Public Policy Studies (part of ASLI) EPU Economic Planning Unit ISA Internal Security Act KLIA Kuala Lumpur International Airport LCCT Low Cost Carrier Terminal MICE Meetings, Incentives, Conferences and Exhibitions MCA Malaysian Chinese Association MCP Malayan Communist Party MPAJA Malayan People’s Anti-Japanese Army NEP New Economic Policy NRIC National Registration Identity Card OSA Official Secrets Act PA Police Act PPPA Printing and Presses Act TUA Trade Unions Act UMNO United Malays National Organisation UNDP United Nations Development Program UNWTO United Nations World Trade Organisation UUCA University and University Colleges Act 8 Malay-English Dictionary ___________________________________________________________________ Allah-u-akbar God is great Aurat Islamic law relating to parts of the body which may be shown BERSIH Malay for ‘clean,’1 the electoral watchdog Bumiputera Sons of Soil; native people of Malaysia. See page 114 for the legal definition in Malaysia Cukuplah Enough, i.e. no more than that Fatwa ‘In Islamic jurisprudence a fatwa is an opinion that a Muslim is not obliged to follow. It is not a law.’2 Mee Noodles Rakyat s. Person, pl. The People Rukunegara Basic principles of the nation Sharia Law based on the Qur’an; Islamic law Warung Small informal eatery, often outdoors 1 Ang, Helen, ‘The Turning-Point Rally’ in Chye, Kee Thuan, March 8 : The Day Malaysia Woke Up (Selangor, Marshall Cavendish Editions, 2008) p.83 2 Surin, Jacqueline Ann ‘Decision not to gazette law laudable’ (21-22 Jan, 2006) in Surin, Jacqueline Ann, Shape of a Pocket (Petaling Jaya, The Edge Communications Sdn Bhd, 2008) p.p.24-25 9 1 : Introduction ___________________________________________________________________ 1.1 Aim of the research A rentier state is characterised by highly valued national resources owned and controlled by the government.
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