Home > JOURNAL > Vol. 5 (2016) > Number 2
Abstract
The development of ethnic minority business under the shadow of an ethnic hegemonic state is often at the mercy of the political contestations and bargaining between the dominant ethnic group and the ethnic minority concerned. The dominant ethnic group would resort to state intervention in order to control the economic resources and its distribution in the country. This policy of economic preference in favour of a particular group inevitably leads to encroachment upon the interests of other ethnic groups. The ascendancy of a Malay-hegemonic state in the aftermath of the 1969 racial riots under the initiative of the United Malay National Organization (UMNO) has dictated the course of Malaysian political and economic development. The political elites of UMNO have applied state intervention and affirmative action to address the economic backwardness of the Malays. This policy of affirmative action is realized through the efforts of state-owned enterprises and government-linked companies (GLSs). However, this endeavour has encroached upon the economic interest of the Chinese community. This article examines the relationship between the Malay hegemonic state and Chinese business groups and how it impacted the Chinese business. A case study on the acquisition of a Chinese-owned company, SP Setia, by a government-linked investment company (GLIC), Permodalan Nasional Berhad (PNB), is used to illustrate this negative impact.
Recommended Citation
THOCK, Ker Pong
(2016)
"Ethnic Minority Business in an Ethnic Hegemonic State: The Case of SP Setia as a Chinese Business in Malaysia,"
Malaysian Journal of Chinese Studies: Vol. 5:
No.
2, Article 3.
Available at:
https://mjcs.newera.edu.my/journal/vol5/iss2/3