IN 1982, former Prime Minister Tun Dr Mahathir Mohamad introduced the Look East Policy.
The purpose was to avoid continued reliance on western support and re-direct our diplomatic efforts towards forming greater eastern economic alliance with developed countries such as Japan and Korea.
But these two Asian economic powers wanted to utilise the Look East Policy mainly for their own economic interests. There was no real transfer of their technologies or work ethics, business and cultural values, management skills and experiences to Malaysia.
It didn’t really work out and following Japan’s economic recession and the rise of China, the Look East Policy gradually receded to the background and was forgotten over time.
Malaysia touched off the second wave of the Look East Policy when current Prime Minister Datuk Seri Najib Tun Razak brought it up during his visit to Japan in July last year. He raised the matter again at the 32nd Conference of the Malaysia-Japan Economic Association (Majeca).
Najib explained this time around, the concept would be based on a fiscal approach that is mutually beneficial in terms of trade and investments.
Since the 80s’, Japan has been Malaysia’s largest direct foreign investments partner. In 2011 alone, Japan-Malaysia trade amounted to US$45 billion.
Due to the global economic slowdown and cutback in foreign investments, Malaysia is trying to raise funds from other advanced countries, including Japan, through economic collaborations.
Since the US ‘pivot’ to Asia, there have been attempts to draw in Japan and other neighboring countries to contain China’s rapid growth.
Economists say Malaysia’s revived Look East Policy will be to Japan’s advantage in that it enables Japan to play an active and important role in the US-inspired Asia’s Contain China Team.
Japanese Prime Minister Shinzô Abe said the basis for Malaysia-Japan ties was anchored on the multiple layered Look East Policy and he hoped relations between the two countries could be taken to the next level.
To win over its neighbours, it’s necessary for Japan to come up with a “large silver bullet” in the form of economical aid. But Japan’s current economic situation does not exactly inspire optimism.
According to reports, Japan’s economical growth rate shrank by 6.8 per cent in the second quarter – which is a sharp negative growth and the most severe setback for the country in the last three years.
As Japan embarks on a path of renewed militarism, further constraints will be placed on its economy. Going by recent signs, indicating the decline of Japanese enterprise and workers’ wages, there is a risk the economy may shrink further or even collapse.
As the Chinese saying goes, the Clay Buddha crossing the river cannot even guarantee its own safety. So how is it possible for Japan to step up investments in our country when it’s faced with these problems?
But the Japanese are smart – they will never do business that brings losses. In fact, there’s another purpose behind their “economical aid” to third world nations. For one, they will never selflessly pass on their technology, business management skills and financial management experiences to Malaysia.
Malaysia may not be able to meet all its own requirements. And while Japan has the advantage of advanced technology and management skills, the question is can we really learn from them?
Looking at Japan Airlines which once faced huge losses but after undergoing restructuring, the company which was almost bankrupt, made an amazing turn-around.
In contrast, Malaysia Airlines has repeatedly suffered financial “landslides.” We say we are learning from Japan but why isn’t Malaysia Airlines able to follow the example of Japan Airlines?
We can say our system is not good enough. Even if there are funds and talented people, we also cannot fully utilise them. Many people have criticised our system and policies. Looking at corruption, lack of transparency, abuse of power and other negativities, we have to ask ourselves how many people really have confidence in the Look East Policy?
Yes, it can perhaps bring benefits to a few but the question is how much can it benefit the country and its people?
Recalling the times when the Japanese showed their aggression towards Asia and wrought devastation militarily across the region, they have yet to repent from and admit their wrong doings. They have even attempted to change historical facts and Abe had visited the Yasukuni Shrine and chosen to follow the “militarist” path.
The fact that such a nation is now closely coordinating with the strategic deployment of the American military to the region sends chills down the spine, yet why are we still so determined to learn from them?
We must give it a second thought. Paying a double penalty will be too heavy a price for us to bear. — (From Oriental Daily).