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Not the Retiring Type
Malaysia's former leader, Mahathir Mohamad, is taking on his successor in a rancorous fight over the future of the nation
Interview: Mahathir Mohamad
"I'm being told you mustn't criticize the Prime Minister"
Extended Interview
TIME's extended interview with Mahathir Mohamad
Interview: Abdullah Badawi
Malaysia's Prime Minister responds

Malaysia Without Anwar
Dr. M battles protesters and his own deputy
[10/05/1998]
I'll Do It My Way
Without Anwar or the global economy, Mahathir goes it alone
[09/14/1998]
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Not the Retiring Type—Page 2

This darker side of Mahathir's legacy is now showing its face. Festering problems like corruption, cronyism and nepotism have contributed to a drop in foreign direct investment in Malaysia—down 14% last year. With alluring alternatives such as China and Vietnam, Malaysia's steady, English-speaking economy can no longer count on its competitive edge. Equally important, despite long-standing efforts to stitch together Malaysia's ethnic patchwork of majority Malays and minority Chinese and Indians, the three groups appear to be growing apart. Abdullah may have come to office with a reputation as a reformer and consensus-builder, but his three-year tenure has so far offered few solutions to these essential problems.

Yet it is precisely how he handles such fissures in the Malaysian economy and society—as well as the debilitating feud with his predecessor—that will dictate the place Malaysia will hold in the new Asia. "We used to believe we were a model for the rest of Asia, because the other countries were unstable or undemocratic or run by the military," says Tian Chua, information chief for the opposition National Justice Party. "But the rest of Asia has caught up and, in some cases, even surpassed us, so we must start looking at all the things we swept under the carpet for so long."

For a man prone to more vertical ambitions, examining the rot under the carpet can't have been foremost in Mahathir's mind. Born in 1925 in a village in Kedah state as the youngest of nine children, Mahathir earned a partial scholarship to study medicine in Singapore. By 1959, he owned one of the fanciest cars in his hometown, a Pontiac Catalina, and had a Chinese chauffeur. (Most other drivers were Malays at the time.) The cultivation of such emblems of power was to become a hallmark of his leadership.

Early on in his tenure, Mahathir stripped Malaysia's monarchy of its royal veto, strengthening the executive branch's authority. When the Supreme Court threatened the legality of UMNO, he arranged for the dismissal of more than half the bench. Mahathir also employed the Internal Security Act, a draconian preventive-detention law, to imprison without charge some of his most vocal opponents. But he used his clout to bring people up, too, handpicking tycoons such as Eric Chia to run state firm Perwaja Steel. And by virtual diktat, he unleashed a building spree of skyscrapers, dams, airports, stadiums. "I think very far ahead, not 10 years, 20 years, [but] 100 years ahead," Mahathir says. "All these things that I caused to be built are actually essential to this country."

The propensity to strike first and explain later backfired in 1998 when Mahathir engineered the downfall of his former deputy Anwar Ibrahim, who had been calling for a corruption cleanup within UMNO. Anwar was subsequently sentenced to 15 years in jail for sodomy and abuse of power, a conviction condemned by human-rights groups. Soon after Anwar was dispatched to prison, Malaysia's main opposition party, the Islamic Party of Malaysia (PAS), stunned UMNO by capturing control of two states, in part because of its antigraft platform. By the end of Mahathir's reign, even the urban middle class created by his export-driven policies no longer supported him unconditionally. "The good human-capital policies Mahathir put into place were what made a civil society that could think and speak out," says Shahrir Abdul Samad, a member of UMNO's Supreme Council. "But Mahathir couldn't handle what he had created. He understood buildings but not people."

The man Mahathir finally chose to succeed him could not be more different. Abdullah, 66, made his name in UMNO as the quiet, harmony-seeking underdog. Where Mahathir was blunt and uncompromising, Abdullah was soft-spoken and amiable. "Abdullah is not as smart as Mahathir," says longtime Mahathir friend and retired civil servant Shaari Daud. "But unlike Mahathir, he consults the cabinet." Five months after he took over in October 2003, Abdullah surprised even his supporters by winning the largest-ever mandate in Malaysian electoral history. His campaign pledges to distribute wealth more equitably and to root out corruption clearly resonated. Showing independence from his mentor, Abdullah canceled some of Mahathir's more profligate megaprojects. Steel magnate Chia was charged with criminal breach of trust, while the sentence against Anwar was overturned. "[Mahathir] has accused me of not doing anything for the last two years," Abdullah told TIME. "Well, I had to start off by cutting the budget deficit, reprioritize spending and maintain political stability."

1 | 2 | 3 | Next


A New Vision for Malaysia [Mar. 15, 2004]
Malaysians expected Prime Minister Abdullah Ahmad Badawi to be cautious, but he has quickly emerged as a bold reformer

Interview with Abdullah [Mar. 15, 2004]
"I Have a Different Style"

Not So Fast [Nov. 24, 2003]
Malaysia's new Prime Minister plays rough with his old boss' favorites

Regime Change [Oct. 13, 2003]
After 22 years in power, Mahathir Mohamad is stepping down. Can Malaysia thrive without him?

Malaysia Under Mahathir [Jul. 18, 2001]
TIME's Simon Elegant on the 20-year rule of Prime Minister Mahathir Mohamad

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FROM THE NOVEMBER 6, 2006 ISSUE OF TIME MAGAZINE; POSTED MONDAY, OCTOBER 30, 2006


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