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Cultural Sensitivity in Global Marketing: Australia and Malaysia's Relations

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Cultural Sensitivity in Global Marketing: Australia and Malaysia's Relations
GLOBAL marketing class

CULTURAL SENSITIVITY IN GLOBAL MARKETING: AUSTRALIA–MALAYSIA RELATIONS

Australian companies have been exporting, forming joint ventures and setting up wholly owned overseas operations since the middle of the last century. In the 1880s Colonial Sugar Refinery Limited (CSR) invested in the Fijian sugar industry and Burns Philp and Co Ltd established stevedoring, shipping, retailing and copra production throughout the South Pacific. Early this century, Australian mining companies were prominent in Malaya’s and Siam’s tin industries. AustraliaMalaysia relations highlight how relations between two countries can have an impact on international marketing.

Malaysia ranks second in terms of Australian investment in the ASEAN countries (MITI 1993). During the 1980s both countries began to strengthen joint economic, trade and social ties. This process of bridge-building had its successes and failures. Most of the problems were caused by the meeting of two cultures with quite different historical, political and social origins. Some clashes were inevitable. The management and resolution of these conflicts has taken time, patience, sensitivity and respect from both nations (Woolcott 1991).

Australia’s involvement in Malaya (Malaysia’s original name) goes back to the days during World War II, the Communist insurgency, and later during the Indonesian ‘confrontation’. The Royal Australian Air Force has had a presence in Butterworth for at least two decades. Commercial links between the countries have been growing over the same period. This rate of growth has at times been affected by political problems, as explained in Figure C2.1.

Cultural Sensitivities
The first phase began with issues raised in 1986 and continuing till 1991. In 1986 there was a strong emotional reaction in Australia to the hanging of Barlow and Chambers. Although they were hanged in compliance with the Internal Security Act of Malaysia, Australians termed the

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