Malaysian companies foray into foreign countries: a preliminary analysis of their competitiveness

Abstract

In the late 1990s there were studies on the development of the Malaysian economy. Such studies by Gomez and Jomo (1999) and Searl (1999) used the concepts of rent and rent-seeking as tools of analysis to investigate rent-seeking behavior and state intervention in the formation of a Malay capitalist class as outlined in the New Economic Policy. However, both studies concluded differently. Gomez and Jomo contended that rent-seeking activities are not competitive in terms of resource usage and costly for the state. Conversely, Searle argued that there was important transformation taking place between state and capital, and he asserted that a domestic capitalist class has emerged among the rentiers, cronies and clients that contrast between dependency and self-reliance in the Malaysian economy. Pertinent to that regard, this present study investigates Malaysian firms, especially construction-related companies which have successfully clinched small-medium and mega projects in foreign countries. This study attempts to answer a few questions: What types of project do Malaysian companies secure abroad? Can we establish a link in terms of their performance in Malaysia and their success of securing projects abroad? To what extent are Malaysian firms competitive in securing projects overseas? What are the implications of this study to the development of rent and rent-seeking theory and dependency theory?