Chinese Business in Malaysia

Chinese companies have managed to perform well in Malaysia, especially after the recession in the mid-1980s, since there has been a clear change in the Malay dominated government's attitude to Chinese capital, although mainly in the highest echelons. Despite the problems that prevail among UMNO politicians, the government has provided an economic environment that is stable and offers opportunities for domestic private investment, even for the Chinese. Given these circumstances, it does appear that Chinese capital in Malaysia has reasonable prospects for further growth in the immediate future. A review of the literature on Chinese business in Malaysia would indicate that although all studies acknowledge the dominant role of Chinese capital in the economy, there is a dearth of in-depth empirical research on its mode of development and styles of operation. This study, which covers the period from colonial times to the present day, fills that gap by identifying key issues pertaining to Chinese business operations in Malaysia: ownership and control patterns, style of growth, relations with the state, politicians and other Chinese businessmen, and the manner of development of business abroad, at the same time debunking the theory that large-scale Chinese capital is not very entrepreneurial in nature

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