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Malaysia's stock market fell 10% on Monday on panic selling, reacting to the stunning strength shown by opposition parties in Saturday's elections.
Following 1969's ethnic violence involving Malaysia's three main ethnic groups -- the indigenous Muslim Malays, the Chinese, and the mostly Hindu Tamil Indians -- Malaysians got behind a single party, the National Front Coalition Party (also called Barisan Nasional or BN) that has won a 2/3 majority of the seats in Parliament in every election since then -- until Saturday's election.
Abdullah Ahmad Badawi, who has been Prime Minister since 2003, still theoretically holds enough seats to remain in power, but there is growing pressure on him to step down. If he does, then the future of his development projects is also in doubt. This fear caused foreign investors to pull out of Malaysian markets, leading to the panic selling.
Abdullah's Barisan Nasional (BN) coalition won a landslide victory in 2004, winning 199 of 219 seats -- a 91% majority. That election was characterized by the same kind of euphoria we saw in America following the 2006 Democratic party congressional victory, and that we're seeing now over Barack Obama. This kind of euphoria is a kind of generational manic-depressive disorder, and when the manic hopes aren't realized, there's often an angry reaction from the public, as happened in January, 2007.
In Abdullah's case, the economic gains that he promised in 2004 simply have not been realized. Abdullah himself is Malay, the indigenous ethnic group making up 60% of the population. It was considered important for him to win at least 67% of the seats because (a) the BN has won at least that much in every election since the 1969 race riots, and (b) it was necessary to prove that Abdullah was being supported by all three major ethnic groups, not just the Malays alone.
Instead, Abdullah got about 51% on Saturday, indicating that even the Malays are abandoning him, blaming him for the economy's poor performance since 2004.
Let's look at a brief history of Malaysia, and start with a current map:
Different portions of Southeast Asia have been colonies of the Portuguese, the Dutch the Spanish and the British since the 1600s, but by the 1900s, Malaya (as it was then known) became a British protectorate. Malaya's last crisis war was WW II, when the Japanese attacked and defeated the British in Malaya and Singapore, occupying them until the end of the war.
Malaysia is in two parts: The Peninsular portion, extending down from Thailand, and the Borneo territories, on the northern part of the island of Borneo, with Indonesia occupying the southern portion. The capital city is Kuala Lumpur.
Singapore, the island city-state at the southern point of the Peninsula, was once part of Malaysia, but was expelled in 1965 because of agitation by its majority Chinese population.
As you look at the above map, note the "South China Sea" label. That entire region, and all the islands therein, are being claimed by Beijing as territory belonging to China, as we discussed in "China continues massive military expansion / announces 18% budget increases."
The history of the three major ethnic groups is as follows:
Here's the attitude of K. Krishna, a 32 year old Indian born and raised in Malaysia, claiming that the government has discriminated against her for in favor of the Bhumiputra:
All the ethnic groups fought for independence -- Malay, Chinese, Indian -- all three of them fought for it.
There's agreement there must be equality for the three of us. Why are they denying us?"
Other accounts refer to race riots in Singapore in 1964, resulting in the latter's expulsion from Malaysia.
The big difference is that these two events occurred at very different points on the generational timeline. The Kenya incident occurred at the end of a generational Unraveling area, 52 years after the end of the previous crisis war. At that point, ethnic violence is UNLIKELY to spiral into genocidal violence, but is certain to do so within a few years, as the country approaches a generational Crisis era.
The 1969 Malaysia incident occurred in the midst of a generational Awakening era. These riots are best compared to America's race riots during the "long hot summers" of the late 1960s. A spiral into genocidal violence at this time is literally impossible, but there are always major political implications.
Today, Malaysia is well into a generational Crisis era, and new ethnic violence could well spiral into a full-scale civil war.
Jemaah Islamiyah is responsible for several major terrorist attacks in Indonesia, including the massive night club bombing in Bali. Jemaah Islamiyah is led by Malaysians Azahari Husin and Noordin Mohamed Top, the two most wanted men in Asia.
The Saturday elections are being described as a "political tsunami,"
recalling the real tsunami that struck Southeast Asia in 2005. The
1969 race riots fizzled fairly quickly, since Malaysia was in a
generational Awakening era; if race riots begin today, then they may
very well spiral out of control. So far, however, everyone is
behaving, and there are no major signs of violence. A lot will
depend on whether the euphoria of Saturday's election turns to anger
and vengeance and, if so, where the desire for vengeance is directed.
(11-Mar-08)
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