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Sunday, May 19, 2024

The ‘Chinese killed Jesus Christ’ post is a farce, but why it was allowed to spread on X is worth a closer look, "Cognitive Warfare"

Photo: VCG

Plunge into madness

Editor's Note:

"Cognitive Warfare" has become a new form of confrontation between states, and a new security threat. With new technological means, it sets agendas and spreads disinformation, to change people's perceptions and thus alter their self-identity. Launching cognitive warfare against China is an important means for Western anti-China forces to attack and discredit the country. 

Some politicians and media outlets have publicly smeared China's image by propagating false narratives in an attempt to incite and provoke dissatisfaction with China among people in certain countries. These means all serve the US strategy to contain China's rise and maintain its hegemony. The Global Times is publishing a series of articles to reveal the intrigues of the US-led West's China-targeted cognitive warfare, and expose its lies and vicious intentions. 

In the 14th installment in the series, the Global Times looks into how the US government and major social media platforms connive to spread anti-China slander online, as a non-obvious cognitive warfare trick that incites hostile sentiment toward China among ordinary US people.

People walk on a street in New York City, the US. Photo: VCG

People walk on a street in New York City, the US. Photo: VCG

Seeing unfriendly content toward China on today's US social media platforms is not uncommon, although some of them have reached the level of laughable absurdity. Dom Lucre, a US political commentator, recently wrote a controversial post on X (formally known as Twitter), in which he inexplicably claimed that the "Chinese killed Jesus Christ." This inexplicable post soon went viral online. Many X users seemed to have followed suit by fabricating rumors about "the Chinese," creating a wave of disinformation attacking Chinese people in recent days.

How did this campaign come about? Was it just the innocent dark humor of some individuals online, or a branch of the US' growing cognitive warfare against China to further deepen misunderstanding and hostility among Americans toward Chinese people? What roles do the US government and social media platforms play in such seemingly unofficially-initiated disinformation campaigns?

Dark humor?

"The Chinese killed Jesus Christ. This isn't a conspiracy. This isn't racist. This is history." The ridiculous post by Lucre on March 16 has since garnered over 3.5 million views and 1,500 forwards, much more than his other daily posts.

This was not the only ridiculous Chinese-themed post by Lucre that month. Earlier on March 9, he posted that "The Chinese control Hollywood. That's why every show they own can make fun of Jesus Christ and describe it as comedy…The Chinese [have] weaponized the American media against Christians." 

"China really controls the world," "China (is) allowed to legally mingle [sic] in American elections," "FBI caught five Chinese men dancing during 9/11"… Within a week, Lucre had posted several bizarre accusations against China and Chinese people, triggering widespread discussions on X.

So what was the motive behind it?

Some users commented that they guessed the posts were a form of "dark humor" satire by Lucre to "mock" the bans of US social media platforms like X on negative content about Jews as it appears Lucre had simply replaced the word "Jews" with "Chinese" in his post. Sharing personal experiences of Jew-related posts being deleted, they suggested that the platforms usually block or restrict posts attacking certain groups of people like Jews or Muslims, but seemingly allow similar content when directed at Chinese people, if not encourage them.

Superficially, Lucre's posts were a performance-art-like satire to highlight how different groups are treated on US social media platforms, and Chinese people unfortunately became a tool and the victims of such "satire."

However, as an increasing number of X users followed suit to fabricate and spread rumors defaming Chinese people, some anti-China forces thus seized on the opportunity to further muddy the waters with fake evidence to "support" the ridiculous claims. This "dark humor" farce has resulted in the inundation of disinformation that demonizes Chinese people.

There were more than 2,000 X posts containing the keywords "Chinese killed Jesus" within a week after Lucre's original post on March 16, showed online media monitoring company Meltwater. Instead of attaching so-called "background information" to Lucre's related posts, X seemed to have not blocked or clarified any of the forwarded posts, allowing them to keep going viral and mislead the public.

Obviously, the disinformation was spread under X's inaction and connivance, said Li Haidong, a professor at the China Foreign Affairs University. "X can hardly escape the blame," he told the Global Times.

Long-term connivance

US social media platforms have long connived with and acquiesced to anti-China misinformation, "a very vicious act" that is backed or promoted by some politicians and government agencies in the US, Li said.

By indulging the false accusations against China online and deliberately elevating a few statements - no matter how absurd they are - to ignite a sort of public hostility toward China and its people, these platforms and politicians attempt to foment unfriendly consensus against Chinese people at the social level, so as to set off an anti-China sentiment among the general US public, noted Li.

The "Chinese virus" smear during the COVID-19 pandemic was a typical cognitive campaign that started on social media and was fueled by the US government and politicians. Meltwater data showed that the terms "Chinese virus" first appeared on social media platforms and in some news coverage around early January 2020, and surged in late March, soon after former US president Donald Trump used similar labels in his X posts

The US government was obviously happy to see these insulting words flooding social media, and actively joined the COVID-19 cognitive campaign that smeared China and obfuscated the facts. 

The so-called "Great Translation Movement" in early 2022, a malicious smear campaign against China on Russia-Ukraine issues on X, was also a vivid instance in which US social media platforms connived to spread rumors and hateful, discriminatory remarks against Chinese people. By translating cherry-picked, niche, and radical content from the Chinese internet into multiple languages, and spreading said translations on overseas social media platforms, participants of the "movement" attempted to portray Chinese people as an arrogant, populist, and cruel group, which maliciously misled the public. 

Disappointingly, during this "movement," X kept turning a blind eye to the rumors and attacks against Chinese people.

Some politicians are currently trying to take it a step further. On April 11, some members of the US House and Senate introduced the Open Translation Center Act, a bill to establish a federally funded research center that translates documents from countries like China and Russia, so as to "better understand threats" from these countries, they claimed.

One of the main initiators, Mike Gallagher, is infamous for his extreme anti-China attitude. 

Li analyzed that this bill is not to promote mutual understanding between China and the US, but to aggravate the US people's unfriendly attitude toward China. "The 'Open Translation Center' and the 'Great Translation Movement' are issues in two different fields, but they are similar in nature," he told the Global Times.

Sadly, negative content forms the majority of Chinese-related posts found on US social media platforms, with the continued connivance of the platforms and the US government. Meltwater showed that so far this year, among the posts containing "Chinese" on some major platforms including X and Facebook that were released in the US, negative, neutral, and positive sentiment stood at 26.8, 59.3, and 13.8 percent respectively.

A main battlefield

The US' cognitive warfare against China is evolving from simply distorting information about China to falsifying knowledge about China - in other words, turning misinformation to "common sense" that attempts to change people's basic knowledge and understanding of China, said Dong Guanpeng, dean of the National Institute of Public Relations and Strategic Communication, Communication University of China.

Falsifying knowledge about China is much nastier than fabricating misinformation, Dong noted. "It may mislead global audiences, particularly the young ones, during their formation of perceptions and judgments about China," he told the Global Times.

Lucre's "dark humor" posts have, to some extent, misled a few X users, who forwarded their complaints about the "misdeeds" of Chinese people that Lucre mentioned. Some Chinese observers worry that, for the less knowledgeable young netizens who are unaware of such "ironic narration," these ridiculous posts may eventually become a part of their initial cognition of China and its people.

Worse still, apart from indulging in the spread of rumors, US politicians and social media platforms have also created fake accounts to proactively make up and spread content discrediting China, and even banned pro-China posts and blocked pro-China accounts.

Earlier in 2019, during the riots in Hong Kong, many users criticized Facebook and X for suppressing their posts that support the central Chinese government.  According to CNN's report, X blocked more than 900 accounts in that same period, and was followed by Facebook. These accounts were closed for posting content "undermining" the rioters in Hong Kong. 

It is no wonder that social media has become a main battlefield for the US' cognitive warfare against China, said Li.

And the cognitive warfare has shaped or influenced US people's view of China to a certain extent. A Gallup poll released in March showed that 41 percent of Americans name China as the US' greatest enemy today, making it the top perceived US adversary for the fourth straight year. 

Yet the "greatest enemy" was created by the US itself with its meaningless hostility and panic.

 "The US has since (Huawei) spiraled into a full-blown outbreak of Sinophobia - a strong word that I don't use lightly," Stephen S. Roach, a faculty member at Yale University and former chairman of Morgan Stanley Asia, wrote in his article "American Sinophobia" published in March.

 "...Excessive fear of China conveniently masks many of America's own self-inflicted problems," Roach wrote. "The only thing we have to fear is fear itself," he quoted a line from US president Franklin Roosevelt's 1933 inaugural address, concluding that "amid today's Sinophobic frenzy, that message is well worth remembering."

Photo: Global Times

Photo: Global Times

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Thursday, February 8, 2024

Spring Festival links tradition, promotes global values

 Carry on historical memories

Chinese President Xi Jinping highly values culture and has a profound understanding of culture which has strengthened over time. Culture plays a vital role in inspiring national spirit, carrying forward civilizations, and promoting social development and well-rounded personal development.

As the most important traditional Chinese festival, the Spring Festival, or Chinese New Year, is viewed as particularly important by President Xi. During this time, he celebrates with both government servicepeople and ordinary citizens, extending well wishes of good luck to them.

For a non-Chinese person, nothing does better to help understand the people and culture of China than viewing ordinary people's Spring Festival stories. At this special occasion of the year, Chinese people travel for family reunions, celebrate in various forms, and share cohesive feelings about home and the country.


People perform a dragon dance during Spring Festival. In a Chinese dragon dance, the dragon's head biting its tail implies good luck. Photo: VCG

People perform a dragon dance during Spring Festival. In a Chinese dragon dance, the dragon's head biting its tail implies good luck. Photo: VCG



On the afternoon of February 1 ahead of Spring Festival, President Xi arrived at Tianjin's Ancient Culture Street. Walking along this street that possesses an air of antiquity, he stepped into several shops such as Guifaxiang 18th Street Mahua, Nut Products Zhang, Clay Figurine Zhang, and Yangliuqing New Year Painting, asking about the categories and sales of their products, as well as the inheritance and development of China's traditional cultural heritages. 

On the streets, drums and music were clanging, and dragon dance and lion dance performances were lively. Xi walked closer to everyone and extended Chinese New Year greetings to the people of Tianjin and the people of all ethnic groups in China. 

Xi said that seeing local residents and tourists beaming as they enjoyed traditional folk performances, he could feel the rich flavor of the Chinese New Year. The Chinese leader attaches great importance to the festival, which is celebrated by all Chinese in and outside of the country every year.

The Spring Festival has a long history, not only containing profound cultural connotations, but also carrying historical and cultural heritages during the process of Chinese modernization, experts said. Chinese New Year is a time when people bid farewell to the old and welcome the new, and a time that carries deep friendship and emotional bonds. Various Chinese New Year celebrations and customs are being held across the country with strong regional characteristics and around the world. These activities are mainly about removing the old and bringing in the new, exorcising evil spirits, receiving blessings and praying for good luck. The holiday is rich and colorful and embodies the essence of traditional Chinese culture, experts said.

People perform Chinese dragon dance in Kuala Lumpur, Malaysia on January 18, 2024. Photo: VCG

People perform Chinese dragon dance in Kuala Lumpur, Malaysia on January 18, 2024. Photo: VCG


From fortune to prosperity

Thousands of kilometers away from Tianjin, in the bustling cities and verdant countryside of South China' Guangdong Province, streets teem with life as communities prepare for the festivities ahead. 

The Chinese New Year festivities come alive with the exhilarating rhythm and vibrant spectacle of performances such as dragon and lion dances, as well as the captivating Yingge dance in the Chaoshan region in the east of Guangdong. 

These time-honored art forms, deeply rooted in Chinese culture, play a central role in ushering in the auspicious occasion of the Chinese New Year. 

Pointing out the coming lunar year is the Year of the Dragon, Xi noted that in Chinese culture, the dragon has multiple connotations, such as representing courage and endeavor, infinite vitality, and good luck and carries people's good wishes for and visions of the future. He said that everyone should have confidence in the coming year and live a better life.

The dragon dance, with its sinuous movements and spectacular dragon costumes, symbolizes power, prosperity, and good fortune. Accompanied by the rhythmic beats of drums and cymbals, the dragon weaves its way through streets and alleyways, captivating audiences with its majestic presence. 

Similarly, the lion dance, characterized by its colorful lion costumes and acrobatic feats, is performed to ward off evil spirits and bring blessings for the year ahead. 

The tantalizing aroma of local delicacies often attracts thousands of tourists to Guangdong, but during the Chinese New Year, the region has a lot more to offer.

Families gather to feast on niangao, or glutinous rice cakes, symbolic of prosperity and advancement in the new year. 

A top go-to destination for local people is the flower markets, a vibrant place brimming with a kaleidoscope of colorful blooms and fragrant blossoms.

The choice of going to the flower market is also embedded with auspicious expectations for the Chinese New Year, noted Wei Zhiyi, a Shenzhen local, as the pronunciations of the word "flower" and "prosperity" are the same in Cantonese.

"Families flock to the flower markets in search of auspicious plants and flowers to adorn their homes," Guangzhou local Chen Wenxia told the Global Times. 

Symbolism plays a crucial role in the selection of floral decorations, with certain blooms believed to bring prosperity, good fortune, and happiness in the coming year. 

"Peach blossoms, representing longevity and vitality, are a popular choice; while kumquat trees, laden with golden fruits, symbolize wealth and prosperity," Chen noted. "Orchids, with their delicate beauty, are cherished for their association with refinement and elegance." 

The diversity of colors is also echoed in Zigong in Southwest China's Sichuan Province, where the local people keep the tradition of going to the lantern festival, a tradition that dates back to the Tang Dynasty (618-907). 

Every Chinese New Year, the city brings up some giant and mesmerizing lanterns that transform the city into a luminous wonderland with intricate lanterns casting rays of different colored lights.

"The lantern festival attracts not only locals but also visitors from afar who come to marvel at the stunning array of lanterns," a local official surnamed Xie told the Global Times. 

The lanterns feature a diverse range of themes, from traditional Chinese motifs such as a 202.4-meter-long Chinese dragon that was made using nearly 200,000 used plastic bottles to modern interpretations of cultural symbols like the flying Apsaras icons from Dunhuang murals.

People in Bijie, Southwest China's Guizhou Province have dumplings together.Photo: VCG

People in Bijie, Southwest China's Guizhou Province have dumplings together.Photo: VCG



Close blood bonds 

Xi has previously addressed a festival reception at the Great Hall of the People in Beijing, where he extended his greetings to all Chinese in the mainland, in Hong Kong, Macao, Taiwan and abroad.

His greetings to all Chinese people with references to hard work and family values have struck a chord with overseas Chinese.

Until now, overseas Chinese keep the Chinese New Year traditions well and intact. The tradition of staying up late during Chinese New Year's Eve has also been kept by many families overseas that boast Chinese ancestry. 

Even among second or third generation overseas Chinese, most young people follow these traditions and customs for the traditional Spring Festival just as their fathers, grandfathers and even great-grandfathers did. 

Vindy Marcelina, a 24-year-old student from Indonesia, told the Global Times that many of her distant ancestors came from East China's Fujian Province, while her grandpa went to Indonesia from China when he was a child. 

Until now, they still keep a lot of traditions to celebrate the Spring Festival. 

According to Marcelina, in the morning of the day before the Chinese New Year, the family will have a prayer ceremony to god and their ancestors. At night they will have a family dinner together.

"We also have dishes that are a must have at Chinese dinners like fish, noodles, dishes with 10 types of food, and a sweet niangao [Chinese New Year sweet rice cake]. After having dinner we will stay up until midnight."

During the Chinese New Year, Marcelina's family will also visit her relatives' homes for bainian, which means to greet and wish each other luck during the new year. The big family will gather in the home of Marcelina's oldest aunt. They will have lunch together, express wishes for the New Year in the southern Fujian dialect, and members of the family that have already gotten married will give the younger members some red envelopes full of money. 

Global celebration

Shan Jixiang, former curator of the Palace Museum, told the Global Times that the Spring Festival is the most traditional festival of the Chinese nation as it is a kind of cultural inheritance and embodies Chinese people's wishes to "go home for the New Year."

The 78th United Nations General Assembly unanimously passed a resolution in December, officially designating the Lunar New Year, also known as the Spring Festival, as a UN floating holiday. Chinese experts said the decision indicates the increasing global recognition of China's culture and its influence, which will contribute to the promotion of the Global Civilization Initiative.

As the Global Civilization Initiative proposed by President Xi says, in spite of differences in histories, cultures, political systems and development phases, countries around the world share a common aspiration for peace, development, equity, justice, democracy and freedom, the common values of humanity. 

This Lunar New Year belongs to China and the world as well, as it is becoming a global celebration that transcends geographical and cultural boundaries. With rich cultural connotations such as paying tribute to one's ancestors, praying for good luck, respecting nature and expelling evil spirits, the Spring Festival has aroused emotional resonance among many people in the world. 

"The Spring Festival is always a time that all the people hope to share happiness and hope with close families, friends and relatives," Sun Jiashan, an associate researcher at the Central Academy of Culture and Tourism Administration, told the Global Times on Wednesday. 

Chinese welcome Year of Dragon with confidence amid nation's growing intl prestige

China's top leader as well as diplomats from around the world have extended greetings for the Chinese Lunar New Year, ...

China's top leader as well as diplomats from around the world have extended greetings for the Chinese Lunar New Year, ..

Xi's Footsteps: Xi's 12 years of greetings and visits before Spring Festival touch hearts, demonstrate Party's emphasis on people's livelihoods

While China prepares for the Spring Festival, also known as the Chinese Lunar New Year, President Xi Jinping extended messages of good wishes, support, and confidence for 2024 to all Chinese people during his inspection tour in North China's Tianjin Municipality on January 1 and 2.

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Tuesday, January 9, 2024

HUMAN RIGHTS ACTIVISTS, MISS FION HO YIK KING and JIMMY LAI MONEY TRAIL, MISLED AND CORRUPTED BY FOREIGN POLICY & ITS MEDIAS


Woman, 27, took own life after struggling to pay for food and £900 rent

 ...



You are not alone if you did not know Miss Ho Yik King because I didn't know her either and neither did any of my friends. However her suicide in the United Kingdom on November 2022 suddenly pushed her to the headline and many were compelled to read about her and to determine what it was that drove her to end her life in the manner it did.

Miss Ho was an intelligent 27 year old HongKong girl who achieved a degree from a HongKong university in 2017 and a master degree from Switzerland in 2019. A bright future was before her had she stayed on as a normal citizen of HongKong.

But youth and wisdom are at times not packaged together and she fatally follows her rebellious nature to confront the Authorities in HongKong on human rights and the Extradition laws etc. Most of her university mates were doing it and so why not her.

Swept along by the reckless HongKong student movement and a constant stream of propaganda from the West on human rights, democracy and freedom she "marched" with the rebels and determinedly wrecked HongKong whilst demanding for independence. For months and years the Western media portrayed them as freedom fighters and as heroes whilst denouncing the Authorities and China as evil.

They destroyed malls, train stations, shops and banks. By engaging hit and run tactics they successfully disrupted airport activities and brought the city centre to a stand still.

With funds and supplies from the West they relentlessly pursued their destructive activities. They used knives, paved stones , arrows, Molotov bombs as weapons . They even killed an innocent citizen through their projectiles, stabbed one on the neck and engulfed another in flame.

The United Kingdom fueled the mind boggling chaos by offering British national overseas visas to the activists which encouraged them to march with extra vigor . But this was only a visa and one that is tailored for HongKong citizens who were bent on leaving HongKong albeit with lots of money in their suitcases.

But the students were blind to the British visa nuance and to the cost of living in the UK . They stayed on the course of destruction . On paper the visa offered them a choice of escape from HongKong but they did not read the fine prints if they ever existed. Remember the saying " the devil is in the details".

Finally the HongKong Authority had enough of the student movement and chaos and issued the New Security Law in 2022 .Those who had a reason and the means to leave HongKong did so by way of the British magical visa.

Miss Ho was one of them. She sold everything and left HongKong and took the flight into the safe arms of Britain in April 2022 . She envisaged starting life afresh , getting a good job, getting married and all of her dreams would be fulfilled because she would be a British subject after five years of stay and she would qualify for social benefits that come with citizenship.

No, that dream didn't work out! Instead her real nightmare just started.

For whatever the reason she found difficulty in opening a bank account upon arrival. Her British visa did not qualify her to open one. She allegedly found out she needed a UK identification card number which she didn't have.

Next, she found out that house rental in Britain was not only prohibitively expensive but that she was regarded by astute landlords with suspicion. Of course they would . Why would a British landlord accept a Chinese girl as tenant when her name was associated with a notoriously rebellious history. Eventually she lived in a modest flat in Richmond that came with a shared and unhygienic toilet.

Miss Ho was a picture of delusion. Britain was not meeting her minimum expectations. With limited funds she was allegedly often surviving on one meal a day . She needed help but found the visit to a psychologist was too exorbitant.

Finally , when living costs soared due to rising cost for food and heating, Miss Ho , with nowhere to turn to, decided to end her life in her rented flat. Days later her lifeless body was discovered along with a suicide note .

When alive she was regarded by the British as an unwanted immigrant and she lived a miserable life in Britain but when she died the coroner was full of praise for her. He said " Fion is an excellent example of the high calibre of person who is so welcome in England..."

This is the reality. Fiona's destiny was potentially one of distinction until she joined the band of delusional activists of HongKong who believed in western propaganda only to find out the dream was nothing but a damning mirage.

Hopefully there is a lesson here for the Taiwanese, the Philippines, the Japanese and the South Koreans. If the lesson is learnt then Fion's life story and death will not have gone to waste.

Jimmy received close to USD 400 MILLION FUNDING FROM outside HK!! 😳😳

INVESTIGATORS REVEAL JIMMY LAI MONEY TRAIL

Huge amounts of international money flowed into the bank accounts of Jimmy Lai—and large sums of cash went out to anti-China groups, a court heard yesterday.

The tabloid publisher received HK$2.945 billion in his nine bank accounts in recent years, with deposits coming from the United States, Canada, Taiwan, Hong Kong, Singapore and elsewhere. The money is said to have derived “from overseas securities trading”.

But the money didn’t sit there.

Who got cash? Chunks of finance went out to multiple China-hostile political groups in Hong Kong, the US, and the UK, the prosecution said, providing a detailed report from financial investigators. Jimmy Lai’s lawyer Steven Kwan Man-wai did not dispute the information.

Local recipients included the Hong Kong Democratic Party, the Civic Party, the Labour Party, the League of Social Democrats, the court was told.

A wildly critical UK group called Hong Kong Watch, whose members include Benedict Rogers and former Hong Kong Governor Chris Patten, received HK$202,000.

Paul Wolfowitz, former US deputy secretary of defence, was sent HK$1.76 million in payments from 2013 onwards, the court heard. Money also went to a right-wing think tank called the American Enterprise Institute.

Cash also went to a group called the Hong Kong Alliance in Support of Patriotic Democratic Movements of China, organizers of an annual meeting to keep the “Tiananmen Square massacre” story, debunked by Julian Assange and others, alive.

The biggest individual recipient named yesterday was Cardinal Joseph Zen, a retired Hong Kong churchman who has fallen out with his colleagues, including Pope Francis, over his relentless China-bashing. The churchman received HK$3.5 million in 2017, the prosecution said.

The court heard earlier that large sums of money from Jimmy Lai’s funds (held by various entities) were paid to media companies, including the publishers of the Washington Post, the Nikkei Weekly, the UK Guardian, and media groups in India.

Jimmy Lai, 76, is on trial for sedition and collusion, offences illegal worldwide. His colleagues and associates have pleaded guilty in related hearings. The trial continues

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Monday, December 25, 2023

How Malaysia is finding its way out of the middle-income trap

It has taken the slow but steady route while addressing an ethnic incongruity


. Kuala Lumpur's new landmark, Merdeka 118, is a symbol of the country's growing affluence. (Nikkei montage/Source photos by Hiroki Endo and Reuters) 

Malaysian Prime Minister Anwar Ibrahim vows to focus on achieving faster growth.

KUALA LUMPUR -- Asia's megacities often undergo surprising metamorphoses in short amounts of time. Kuala Lumpur is one such example. When I visited the city in late October, I was amazed at how much it had modernized since I visited nine years ago.

Urban rail lines now crisscross the city, with new shopping malls sprouting everywhere. Particularly eye-catching was Merdeka 118, a 118-story skyscraper completed earlier this year. The 678-meter tower -- the world's second-tallest after the Burj Khalifa in Dubai -- is a symbol of the country's growing affluence. Its spire was designed to evoke the image of Tunku Abdul Rahman, Malaysia's first prime minister, raising his hand as he proclaimed national independence in 1957.

Malaysia over the past few years has experienced a rapid turnover of prime ministers, though the political situation seems to have stabilized. On Dec. 5, about a year after the launch of his government, Prime Minister Anwar Ibrahim stressed his intention to push for faster economic growth. "It's time to focus on developing the economy," he said in an interview with a local broadcaster.

Anwar's government in July unveiled its 10-year Madani Economy plan and the National Energy Transition Roadmap. These were followed in September by the midterm review of the 12th Malaysia Plan and the New Industrial Master Plan 2030. In October, Anwar's government launched its Hydrogen Economy and Technology Roadmap.

"It is not clear how these relate to one another," a Japanese businessperson said. Still, it seems clear that the government's main goal is to achieve annual growth of over 5.5%, a target specified in the Madani plan.

A view of Kuala Lumpur's skyline. Given Malaysia's relatively young population, domestic demand is expected to keep expanding. © Reuters 

Malaysia's gross domestic product grew 8.7% last year, the highest in 22 years, and growth for this year is estimated at 4%, despite the global slowdown. Given its relatively young population, domestic demand is expected to further expand. The country's semiconductor and other sectors are also attracting foreign direct investment as alternative supply chain bases amid mounting U.S.-China tensions.

The country's per capita gross national income was $11,780 in 2022. If the economy grows 5.5% per year and there is no sharp depreciation of the ringgit against the dollar, it could shed its middle-income status, as defined by the World Bank, in two or three years, joining the ranks of high-income nations.

Graduation has been a long time coming.

Malaysia became an upper-middle-income country in 1996, according to a working paper that Jesus Felipe, a professor at De La Salle University in the Philippines, wrote in 2012, when he was with the Asian Development Bank. Felipe reasons that upper-middle-income nations become ensnared in the middle-income trap if they are unable to move up for more than 15 years. Once trapped, countries suffer stagnant growth, sandwiched between technologically advanced developed nations and developing countries abundant in cheap labor. The description fits Malaysia's situation.

To see why Malaysia could not extricate itself from the trap for so long, one needs to look at its history.

Twelve years after the country gained its independence in 1957, a racial riot engulfed the capital. Malays accounted for nearly 70% of the population, but ethnic Chinese, who made up less than 30%, controlled the economy. The strain of this incongruity led to the clash, resulting in about 200 deaths.

To prevent a recurrence of the tragedy, the government began to address the economic disparity and in 1971 adopted a policy called Bumiputera (sons of the soil) -- a type of affirmative action for ethnic Malays. The policy treats Malays favorably in all aspects of life, including school admissions, employment and even stockholding.

The country's ethnic Chinese are traditionally considered to be strong in commerce and industrial activities. "If we recruit people by ability alone, many could be Chinese," an executive at a Japanese company said.

By trying to fix the racial imbalance artificially, Bumiputera is often cited as a source of inefficiency, but it has its merits.

"If the government had not provided elementary and secondary education to Malay villagers and helped them migrate to cities and find jobs in the commercial and industrial sectors, the country would have suffered a serious labor shortage in the early stage of economic development," said Satoru Kumagai, director of the economic geography studies group at the Institute of Developing Economies of the Japan External Trade Organization. It can be said that Bumiputera's goal is to strike an optimal balance between distribution and growth.

A shopping mall in Kuala Lumpur. Malaysia's Bumiputera policy has helped educate young Malay villagers and bring them to cities hungry for workers. (Photo by Toru Takahashi)

Mahathir Mohamad, who in 1981 became Malaysia's fourth prime minister, shifted the national focus to growth by adopting the Look East policy, which sought to emulate Japan's economic success. The country also began to actively attract more foreign capital. In 1991, Mahathir launched Vision 2020, the goal of which was to become a high-income country in 30 years.

"His greatest achievement was to set a goal of becoming a high-income country," said Abdul Razak Ahmad, founding director of Bait Al Amanah, a private think tank. He "thus changed the people's mindset, encouraging them to have a can-do attitude."

Malaysia enjoyed annual growth of nearly 10% for 10 years before the Asian financial crisis hit it hard in 1997. Afterward, its growth slowed to around 5% to 6%. Anwar, then the deputy prime minister and finance minister, clashed with Mahathir over how to cope with the crisis and was dismissed.

When Anwar this year announced the Madani plan, he said the country had been "caught in a vicious cycle of high costs, low wages, low profits and a lack of competitiveness" since the 1997 crisis. Anwar clearly sees the plan as a roadmap to push the country into the high-income category during his tenure -- something his old enemy could not achieve.

The reason for Malaysia's inability to pull itself out of the middle-income trap becomes clear when looking at the economic development of Taiwan and South Korea.

In terms of population, Taiwan and South Korea are not much different from Malaysia. Taiwan is home to 23 million, South Korea to 51 million and Malaysia to 33 million.

In 1981, when Mahathir became prime minister, the three were not far apart in per capita GDP. Taiwan's was at $2,691, South Korea's at $1,883 and Malaysia's at $1,920.

Taiwan became an upper-middle-income economy in 1986, followed by South Korea two years later, according to Felipe. Taiwan stepped up to high-income status in 1993, with South Korea following in 1995. It took just seven years for the two to move from upper-middle-income to high-income status.



Unlike Malaysia, they did not fall into the trap. Last year, Malaysia's per capita GDP was $12,465, far below Taiwan's $32,687 and South Korea's $32,418. Several factors were at play here.

First, Taiwan and South Korea do not have complex ethnic problems that cause them to pursue difficult socioeconomic policies. Second, the two had no choice but to industrialize as they are not blessed with natural resources like Malaysia, which is rich in petroleum, natural gas and palm oil.

Third, democratization in Taiwan and South Korea began shortly before the end of the Cold War in 1989, allowing them to catch the waves of globalization and information technology. Taiwan democratized in 1986 and South Korea in 1987.

Malaysia has held democratic elections since it gained independence, but the country was under a "developmental dictatorship" that prioritized economic development while restricting political freedom. Malaysians had to wait until 2018 for their government to hand power to another party for the first time.

Fourth, internationally competitive businesses like Taiwan Semiconductor Manufacturing Co., Hyundai Motor and Samsung Electronics have driven growth in Taiwan and South Korea. Malaysia, meanwhile, has failed to nurture such companies with an economy that instead has been led by government-affiliated entities. Its automobile, electrical and electronics industries have depended on foreign businesses.

Grab Holdings, whose ride-hailing superapp is now ubiquitous across Southeast Asia, was founded in Malaysia but quickly relocated its head office to Singapore to facilitate fund-raising and other benefits.

On the whole, Malaysia's lack of economic dynamism was to blame for its lower growth curve.

Still, it should be noted that Malaysia has avoided the so-called resource trap, in which the presence of abundant resources holds back a country's industrialization. Malaysia's leading exports are electrical and electronic products, which account for 40% of its total exports. It tops the U.S. and Japan in terms of exports of semiconductor-related products by value.

A worker inspects chips at Unisem's semiconductor packaging plant in Ipoh, Malaysia, in October 2021. It is becoming imperative for Malaysia to boost investments in higher value-added upstream industries. © Reuters 

This trap can be seen in Saudi Arabia, which in 2016 drafted its Vision 2030 strategy to reduce its dependence on natural resources. Malaysia achieved 40 years ago the industrialization Saudi Arabia is now pursuing.

Said Kumagai: "Malaysia is different from East Asia's elite economies like Japan, Taiwan and South Korea, and from countries with unique strengths such as Singapore, Hong Kong and oil-producing Gulf states. If it achieves high-income status, it will be the first 'normal' country to do so."

Still, challenges abound. In chip manufacturing, Vietnam and India are catching up fast, making it imperative for Malaysia to boost investments in higher value-added upstream industries. Given the accelerating trend toward carbon neutrality, demand for its fossil fuels will likely decline.

Yet, while balancing growth and stability, the multiethnic country with an average age of 30 has succeeded in making slow but steady progress toward overcoming the middle-income trap. Its industrial success will certainly serve as a beacon for other emerging and developing countries in the Global South.


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