Malaysia in the 1990s: Case Analysis
Decision analysis: What is the best strategy for the Malaysian government moving forward? This decision can only be made after the country’s current strategy and how well it works is analyzed. Adopt the view of the Prime Minister. Consider the character’s strengths, responsibilities, and blind spots. Why is the Prime Minister in this dilemma? 1. Are the charges of the environmental groups true?
Yes. Based on the information in the case, timber harvesting is out of control, particularly in Sarawak. The rate in which the timber is being harvested cannot be sustained and eventually will dry up. The Malaysian government recognizes this issue and the Western interests groups are threatening to ban exports from Malaysia unless there is an immediate resolution to this issue. The governments of Malaysia and Sarawak invited the International Tropical Timber Organization (ITTO) to assess the impact of harvesting trees in the rainforests and make recommendations to secure the economic future of the country in terms of timber exports. This invitation came on the heels of the charges of Western environmental groups that Sarawak was destroying the tropical rain forests. (ITTO) urged the country to reduce its timber harvest by 50% and the Malaysian government agreed to do so, but has not kept its word. The Malaysian government agrees that they need to reduce the timber harvest and seek alternative exports for financial stability. There appears to be corruption in the Malaysian government under the guise of “logging concessions” with Japan and the Chinese business people in Malaysia. 2. How important is timber to the Malaysian economy?
Even though the government encourages exports of value-added finished goods produced domestically, in the 1980s over ½ of the country’s exports were in the form of raw materials, logs and rubber primarily to Eastern Asia. In the 1990s the forest products industry received considerable...
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