Excellencies, Ladies and Gentlemen,

1. Many thanks to Professor Charles Hirschman for his uplifting words and I want to extend my warmest welcome to everyone here, especially those who have travelled from overseas. I also want to mention the wonderfully imaginative video that we watched earlier, which animates some of the historical photos from the book we are about to launch. The video illustrates some of the magic that is possible with AI, which was used in its production. I can assure you that this is not the case for my speech today!

2. This book has been a long time in the making. I established the Economic History of Malaysia Project at Universiti Malaya a quarter of a century ago. At that time, I was preoccupied with preparing a robust and comprehensive set of historical accounts of Malaya’s GDP for the first four decades of the 20th century. I believe such an exercise is vital for us to better understand the country’s long run economic growth and development. These accounts were subsequently published in 2017 in my book Charting the Economy: Early 20th Century Malaya and Contemporary Malaysian Contrasts.

3. Prior to that, in 2016, the Project had entered a new phase of research and outreach, with a website established to house and disseminate the outcomes of this research. Besides its own large historical economic and population database, the EHM website provides access to an extensive collection of digitally-archived British Colonial Office documents. It also hosts articles by eminent scholars on the economic and social history of Malaysia. More than 60 have been uploaded thus far, representing a rich vein of diverse and fascinating material.

4. Among the articles, 35 were selected to be published in this book. They are representative of three interconnected themes: the economic development of Malaysia, covered in Part 1 of the book; social development, covered in Part 2, and the development of states and cities, which is the focus of Part 3. In the book’s Introduction, I contextualize the articles in relation to relevant phases and events in the country’s history, drawing from my own published research.

5. Understanding the economic and social history of any country — including both its achievements and its challenges — is fundamental for framing transformative policies. Policies are not conceived and implemented in a vacuum. Context matters. History matters. Culture matters, as does institutional capacity. I hope that all institutions responsible for formulating policies at any level in Malaysia will strive to understand better the country’s past. And I hope that through the publication of this book, a broader readership will become familiar with the economic and social themes of Malaysia’s compelling history.

6. This volume aims to provide fresh perspectives on Malaysia’s remarkable journey of transformation, from colonial rule to independence, through our post-independence struggles, to issues and challenges of contemporary relevance. Its chapters examine the dynamic and complex history of our multi-cultural and multi-ethnic country, as it has progressed from a low-income to a near high-income economy.

7. The book explores the institutions and governance of British colonial rule, when tin and rubber were the mainstays of Malaya’s rising prosperity; the country’s struggles during and after the Japanese occupation; the Emergency and Communist insurgency; Britain’s counter-insurgency, as it fought to protect its huge investments in the country; and Malaya’s independence in 1957. It critically evaluates the New Economic Policy, and analyses Malaysia’s experience of structural transformation, from agricultural dependence to modern industry and services, which helped lagging rural communities move out of poverty.

8. Alongside these historical discussions, the chapters touch on many issues of contemporary relevance, including Malaysia’s current middle-income trap predicament, changing definitions of poverty, the challenges of its education system, women’s contribution to development, the rise of Kuala Lumpur as a great Asian city, and the emergence of Penang as a global electrical and electronics hub.

9. Malaysia has made impressive economic, social, and institutional progress in the near seven decades since the end of British colonial rule. Our development policies and plans have generally been pragmatic, and have successfully promoted macro-economic stability, structural diversification, and beneficial integration with the global economic community. These advances would not have been made without purposeful investment in the capacity of the state, which has played a fundamental role in guiding and driving this progress.

10. Malaysians today are far better educated and more highly skilled than their forebears, live much longer and healthier lives, and enjoy a level of affluence that once would have seemed unimaginable. The benefits of progress have been widely shared, with the extreme absolute poverty that affected more than half of the population at independence now largely eliminated, and income inequalities have narrowed. Most Malaysians now live in their own homes, in and around vibrant modern cities, reflecting a highly successful structural transformation from dominance by agriculture to the rise of the far more dynamic industrial and service sectors.

11. Looking ahead, if Malaysia is to complete the transformation to a fully developed and high-income nation, it will need to adapt to a new paradigm. A paradigm in which the global economy has become fragmented with the rise of populism and economic nationalism, but also one which offers much opportunity for growth, especially in the trading of services, and related productivity advances. Our expanding regional relationships provide another important route towards higher levels of development. If we succeed in making the bold domestic policy choices required to accelerate productivity growth and promote further structural shifts, we will be even better placed to take advantage of the opportunities these turbulent times present.

12. Modernizing and improving the quality of education, for example leveraging generative AI tools, should be a priority at all levels. Malaysia should continue to build on its investments in relevant technical education that aim to match students’ skills with employers’ needs. The quality of our labour force will be critical in adapting effectively to future challenges. Institutional adjustments will also be required to arrest and reverse our chronic brain drain.

13. One important lesson from history is that the absence of social cohesion, especially in a diverse society such as ours, risks increasing conflict and undermining progress. Sustained efforts must therefore continue to be made to foster greater inclusion amongst our ethnically and culturally diverse population. Good governance plays a crucial role by building trust in our institutions, and is thus a key foundation for stronger social cohesion.

14. I will conclude by extending my warmest appreciation to all the authors of the articles on the EHM website, many of whom are present here today. My sincerest thanks to World Scientific Publishing for their excellent production of the book. I hope you will enjoy reading this book as much as I have enjoyed putting it together.