

The title is a bit of a mouthful but the relatively short substack post (from the many I follow) serves as a useful tool in linking classic modern Marxist concepts and literature with current news pages in the context of Malaysia
Neoliberalism-as-Neo-Imperialism: Post-13MP Constraints, Economic Dependency, and the Entrenchment of Oligarchy in Malaysia
2nd August 2025
Introduction: Neoliberalism Reloaded in the 13th Malaysia Plan
Malaysia’s 13th Malaysia Plan (13MP) was heralded as a forward-looking framework to guide the country through economic recovery and structural reform. However, its implementation remains deeply constrained by a global order where neoliberalism, under the guise of liberalised trade and tech optimism, acts as a contemporary form of neo-imperialism. This essay draws from Samir Amin’s theory of unequal exchange, dependency theory, and Gramscian analyses of hegemony to frame Malaysia’s structural vulnerabilities—perpetuated by ethnocapital alliances, comprador capital, and collusion with Global North monopoly-finance capital.
remainder
- Unequal Exchange and the Myth of Reciprocal Trade Gains
“Trade is not development, especially if it transfers value upwards.” — Samir Amin
Malaysia’s trade diplomacy was recently celebrated with the United States reducing its reciprocal tariff rate from 25% to 19%—a move framed as a diplomatic win. However, as clarified in the MITI statement, critical export sectors such as semiconductors and pharmaceuticals are already exempt from new tariffs. Hence, there is no new material gain in terms of value-add or market expansion.
Key Argument: This scenario exemplifies unequal exchange, where the Global South (Malaysia) continues to export labor-intensive intermediate goods at low prices while importing high-value technology at inflated costs—creating a structural transfer of surplus to the Global North.
Reference: Samir Amin, Imperialism and Unequal Development, Monthly Review Press, 1977.
Further Source: MITI Trade Statement (July 2025)
- Comprador Capital and State-Enabled Tech Colonialism
Malaysia’s digital economy push, while ostensibly progressive, is underwritten by state-backed incentives to Big Tech platforms like Google Cloud, Microsoft Azure, Meta, and Amazon AWS. These corporations receive tax holidays, land grants (particularly in Johor and Cyberjaya), and preferential tariffs for electricity and water—subsidised by public spending.
Key Argument: Comprador technocrats within Malaysia’s GLC ecosystem facilitate this “digital rent extraction” in return for elite brokerage. The rakyat, meanwhile, face increasing cost of living, inflation, and underinvestment in public digital infrastructure.
Reference: Fadiah Nadwa Fikri, “Eliminate the Culture of Worshipping Wealth,” NUS Southeast Asian Centre, 2023.
Data Point: Electricity subsidy expenditure, MOF 2024 report.
Relevant Concept: Sweezy & Baran’s Monopoly Capital, Monthly Review, 1966.
- Ethnocapital Clientship and the Preservation of Oligarchy
Economic policy implementation under the 13MP remains tightly bound to ethnocapital alliances, where state contracts, subsidies, and ownership stakes favour politically connected Bumiputera elites. This arrangement both maintains political loyalty and diverts resources away from meritocratic redistribution or innovative sectoral development.
Key Argument: The post-NEP ethnocracy continues to thrive under neoliberalism, which ironically delegitimises state redistribution while reinforcing state-backed rentier structures—creating a dual crisis of legitimacy and inequality.
Reference: Gomez, E.T. et al. (2022). Malaysia’s Political Economy: Ownership and Control of Corporate Capital. ISEAS.
Supporting Concept: Gramsci’s theory of passive revolution and hegemony through clientelism.
- Malaysia as a Semi-Peripheral Cog in the Global $114 Trillion Economy
The IMF (August 2025) reports increasing geopolitical tensions, tariff risks, and stagnating multilateral trust in the global economy. Malaysia, with a GDP size constituting less than 0.3% of global output, finds itself trapped in the semi-periphery—dependent on FDI, vulnerable to external shocks, and constrained by domestic debt burdens and productivity stagnation.
Key Argument: Despite its ambitions for high-income status, Malaysia is structurally subordinated to global capital flows and FDI conditions. Its policy room is narrowed not only by fiscal limitations but also by ideological surrender to neoliberal integration.
Reference: IMF Blog, “New Standards for Economic Data,” July 2025. (https://www.imf.org/en/Blogs/Articles/2025/07/31/new-standards-for-economic-data-aim-to-sharpen-view-of-global-economy)
Theoretical Base: Immanuel Wallerstein, World-Systems Theory
Conclusion: Towards a Post-Dependency National Strategy
The 13MP will not succeed unless Malaysia dismantles its dependency logic—whether on U.S.-China supply chains, Big Tech’s infrastructural colonisation, or the institutional entrenchment of ethnocapital and comprador elites. Only through a radical re-imagining of national development priorities, with a return to social wage policies, public digital infrastructure, and class-based redistribution, can Malaysia reclaim agency from neoliberal-imperialist constraints.
Linkages of Neoliberal Dependency in Malaysia: Capital Entrenchment & Global Tech Hegemony
It’s not as straight-forward. Basically PH gained power after the 2018 elections but was based on a tricky coalition with certain smaller parties. After the so-called “Sheraton move” in 2020 which involved many members in the ruling coalition defecting to the opposition thereby disrupting the tenuous majority in parliament, lead to PN gaining power with help from BN for 1.5 years.
This temporary alliance was then also beset with problems that lead to the 2022 snap elections. But the problems didn’t stop there because the results again saw a deadlock in which the 3 main coalitions, PH, BN and PN unable to secure a majority of the parliamentary seats. After negotiations, PH finally rose to power with Anwar appointed as PM, with BN supporting his candidacy.
Outside the political spectacle, the government has continued it’s neoliberal trajectory for nearly 4 decades, for example the privatisation of public healthcare and corporatization of GLCs for profit-maximisation. The government has recently given a cash handout of 100RM (~170CNY), a populist measure to dampen the discontent many people on the ground feel despite official statistics of very low inflation. A clear band-aid that does not solve the structural issues that are facing the economy,
As a result, there has been a lot of disappointment within the activist-NGO circuit, even for the NED funded ones, who were hoping for larger reforms that failed to materialize.
The socdem DAP has never really escaped it’s “democratic socialist” identity which stands in stark contrast to anti-imperialist Communism and Marxism - from it’s beginnings (as the Malaysian branch of Singapore’s PAP) to it’s current formulation. Although I would admit, it has probably drifted definitively into the neoliberal camp for decades at this point.
I’ve mentioned this before but Malaysia has no existing parliamentary party that is willing to decisively break from neoliberal politics. Malaysia has heavily suppressed and disempowered mass movements that face multiple contradictions upon multiple axes, in which ever since the 80s the Left has never really recovered in terms of popularity and mobilisation. There are perhaps a handful of parties and organizations I can name that truly fit the Left label, but regardless it’s going to be a long road with no straightforward path before a credible Left alternative will rise.
Anwar’s history is mired with complications that go beyond just his NED and Westward-facing smiles. To call him “the” NED candidate simplifies the political situation, which in my opinion is like calling Putin a comprador in 2005. In some regards that is true, but material reality limit a colour revolution style capture of the Malaysian political scene.
Anwar Ibrahim’s first rise to power was through an Islamic activist current in the 70s and 80s, with ideological affiliations with the Muslim Brotherhood. His disagreement with Mahathir and subsequent detainment, and extensive engagements within the policy-making circles in the USA is well-known, but consistent with the Malaysian political scene, he does not fall into the classic US-funded comprador politician found in other Global South countries. Because that would be a case of self-inflicted harm that disrupts his own class interests, and I have to give props for the ruling classes here in maintaining some level of cohesion and not committing suicide through US involvement (moreso than it already has).
A fun fact that I also forgot until I was reminded of recently was that Anwar Ibrahim actually proposed to revive the Mahathir’s old ideas of the Asian Monetary Fund 2 years ago.
I think the best way I can describe Anwar Ibrahim’s positions is that he is a product of internal contradictions within the Malaysian political economy as much as the international contradictions. In a way he represents a “new normal” of multipolar neoliberal capitalism where the old is still in the process of giving into the new.