First premiership of Mahathir Mohamad

This article is about the full article about the first premiership of Mahathir Mohamad from 1981 until 2003. For second Mahathir's administration from 2018 until 2020, see Second premiership of Mahathir Mohamad.

Mahathir in 1984
First premiership of Mahathir Mohamad 16 July 1981 – 31 October 2003
Monarchs	Ahmad Shah Iskandar Azlan Shah Ja'afar Salahuddin Sirajuddin
Prime Minister	Mahathir Mohamad
Cabinet	First Mahathir cabinet, Second Mahathir cabinet, Third Mahathir cabinet, Fourth Mahathir cabinet, Fifth Mahathir cabinet, Sixth Mahathir cabinet
Party	BN–UMNO
Seat	Seri Perdana

Mahathir Mohamad's first term as the Prime Minister of Malaysia, which lasted from 16 July 1981 to 31 October 2003, was marked by several significant developments and events. His tenure marked a shift in Malaysia’s political and economic landscape, focusing on modernization and reducing dependency on natural resources. Under his leadership, Malaysia saw rapid industrialization, with a shift from an agricultural economy to one centered on manufacturing and services.

Early years (1981–1987)

Main articles: First Mahathir cabinet and Second Mahathir cabinet

In January 1984, Mahathir visited Andrews Air Force Base in Maryland, United States

Mahathir was sworn in as prime minister on 16 July 1981, at the age of 56. He was the first commoner to hold that office. In an interview, Mahathir remarked that major power rivalry in Southeast Asia is dangerous, but "on the other hand, a lack of U.S. interest is also problematic. It creates the impression that Russia can act as it pleases." Two days later, he announced a new cabinet with minor changes, including the transfer of Home Minister Ghazali Shafie to Foreign Affairs. Mahathir appointed Musa Hitam as deputy prime minister. Several days later, on 23 July, Mahathir held his first Cabinet meeting, during which he announced that ministers would have one year to demonstrate progress in achieving national objectives and implementing development programs.

One of his first acts was to release 21 detainees held under the Internal Security Act. This included journalist Abdul Samad Ismail and Abdullah Ahmad, who was a former deputy minister in the former government but was suspected of being an underground communist. By August 1982, the Mahathir administration had granted pardons to approximately 250 people. Mahathir prioritized a clean and efficient government, initiating the Bersih, Cekap & Amanah (Clean, Efficient, and Trustworthy) campaign to combat corruption, enhance efficiency, and build trust in public service. He also introduced a clock-in system in government departments to ensure punctuality while emphasizing that efficiency should remain the priority. Under calls from opposition leader Lim Kit Siang and others, Musa Hitam, serving concurrently as Home Minister, lifted the ban on Mahathir's book The Malay Dilemma.

Shortly after taking office, Mahathir, in collaboration with Singaporean Prime Minister Lee Kuan Yew, initiated efforts to standardize Malaysia's time zones. Mahathir introduced and passed the Malaysian Standard Time Act, which came into effect on 31 December 1981, setting the clocks forward by 30 minutes to GMT+8. This legislation, championed by Mahathir, not only unified the time zones of East and Peninsular Malaysia but also aligned the country with regional economic hubs such as Hong Kong, Manila, and Perth.

Mahathir secured a decisive victory in the 1982 general election, strengthening UMNO's leadership with the government's best-ever result since independence in 1957. His development-oriented approach during his first nine months in office resonated with the people, reinforcing their support for his vision of a "clean, efficient and trustworthy" government. Afterwards, he reinforced this vision by implementing measures such as requiring ministers to declare their assets, limiting land applications to one piece per leader, discouraging conflicts of interest with public-listed companies, and advising against ostentation and visits to nightclubs. Mahathir further emphasized this vision by launching the "Leadership-by-Example" campaign in 1983 at Stadium Tun Razak, Kuala Lumpur, encouraging leaders and civil servants to uphold integrity, professionalism, and ethical behavior in order to inspire public trust and ensure that national objectives were achieved through exemplary conduct.

In 1983, Mahathir undertook one of the first challenges he had with Malaysia's royalty. The position of Yang di-Pertuan Agong, the Malaysian head of state, was due to rotate into either the elderly Idris Shah II of Perak or the controversial Iskandar of Johor, who had only a few years earlier been convicted of manslaughter. Mahathir had grave reservations about the two Sultans, who were both activist rulers of their own states.

Mahathir tried to pre-emptively limit the power that the new Agong could wield over his government. He introduced to parliament amendments to the Constitution to deem the Agong to assent to any bill that had not been assented within 15 days of passage by Parliament. The proposal removed the power to declare a state of emergency from the Agong and placed it with the prime minister. The Agong at the time, Ahmad Shah of Pahang, agreed with the proposals in principle, but baulked when he realised that the proposal would deem Sultans to assent to laws passed by state assemblies. Supported by the Sultans, the Agong refused to assent to the constitutional amendments, which had passed both houses of Parliament with comfortable majorities.

When the public became aware of the impasse, and the Sultans refused to compromise with the government, Mahathir took to the streets to demonstrate public support for his position in mass rallies. The press took the side of the government. A large minority of Malays, including conservative UMNO politicians, and an even larger proportion of the Chinese community supported the Sultans. After five months, the crisis was resolved, as Mahathir and the Sultans agreed to a compromise. The Agong retained the power to declare a state of emergency. However, if he refused to assent to a bill, the bill would return to Parliament, which could then override Agong's veto. In 1984, Mahathir was re-elected unopposed as UMNO president for a second term.

A 1989 model of the Proton Saga. Mahathir believed that an automotive industry could help turn Malaysia into becoming an industrial nation. His government used tariffs to support the development of the Proton as a Malaysian-made car and limited capital outflow of the ringgit to foreign countries.

On the economic front, Mahathir inherited the New Economic Policy from his predecessors, which was designed to improve the economic position of the bumiputera—Malaysia's Malays and Indigenous peoples—via targets and affirmative action in areas such as corporate ownership and university admission. Like many of his economic liberal contemporaries such as British prime minister Margaret Thatcher, Mahathir actively pursued privatisation of government enterprises from the early 1980s. Mahathir believed this would provide economic opportunities for bumiputera and their businesses. His government privatised airlines, utilities and telecommunication firms, accelerating to a rate of about 50 privatisations a year by the mid-1990s.

Privatisation generally improved the working conditions of Malaysians in privatised industries and raised significant revenue for the government. One of the most notable infrastructure projects at the time was the construction of the North–South Expressway, a motorway running from the Thai border to Singapore. Mahathir oversaw the establishment of the car manufacturer Proton as a joint venture between the Malaysian government and Mitsubishi. By the end of the 1980s, with the support of protective tariffs, Proton became a profitable enterprise and the largest carmaker in Southeast Asia.

Under Mahathir's leadership, Malaysia implemented strict drug laws, considering drug-related offences a significant national security concern. In 1983, Mahathir launched an Anti-Drug Campaign, enacted the Drug Dependants (Treatment and Rehabilitation) Act, and established Pusat Serenti as a rehabilitation center for drug dependents. The Cabinet also approved the formation of the Anti-Drugs Committee (JKAD) and the Anti-Drugs Task Force (PPAD) under the National Security Council to oversee anti-drug efforts. As the campaign was officially launched on 19 February, this date was later designated as National Anti-Drugs Day in Malaysia.

These efforts led to a decrease in drug-related cases, from 14,624 in 1983 to 7,596 in 1987. The number of foreign nationals apprehended for drug trafficking also declined, attributed to strict law enforcement and preventive measures. Between 1983 and 1992, more than 120 individuals were executed for drug-related crimes, with an average of 15 to 16 executions per year recorded between 1980 and 1996, including at least 39 executions in 1992. In 1986, Australians Kevin Barlow and Brian Chambers became the first Westerners executed under Malaysia’s mandatory death penalty for drug trafficking, despite last-minute clemency appeals from Australia and the United Kingdom. Mahathir defended the decision, emphasizing that Malaysia's strict anti-drug laws applied equally to all, regardless of nationality or background.

In Mahathir's early years as prime minister, Malaysia experienced a resurgence of Islam and conservatism among Malays. PAS, which had joined UMNO in government in the 1970s, responded to the resurgence by taking an increasingly strident Islamist stand under the leadership of Yusof Rawa. Mahathir tried to appeal to religious voters by establishing Islamic institutions such as the International Islamic University of Malaysia which could promote Islamic education under government oversight.

He managed to draw Anwar Ibrahim, the leader of the Malaysian Islamic Youth Movement (ABIM), into the ranks of UMNO. In some cases, Mahathir's government employed repression against more extreme exponents of Islamism. Ibrahim Libya, a popular Islamist leader, was killed in a police shoot-out in 1985. Al-Arqam, a religious sect, was banned, and its leader, Ashaari Mohammad, was arrested under the Internal Security Act. Mahathir comprehensively defeated PAS at the polls in 1986, winning 83 seats of the 84 seats it contested, leaving PAS with just one Member of Parliament (MP). The election saw the BN achieve a landslide victory, securing 148 out of 177 parliamentary seats and control of 11 state assemblies, further consolidating Mahathir's leadership.

In 1987, Mahathir established the Langkawi Development Board and declared the island a duty-free zone. This was followed by the construction of key infrastructure, including the Kuah jetty and Langkawi International Airport in 1988, contributing to the island’s transformation into a major tourist destination.

Power struggles (1987–1990)

Main article: Third Mahathir cabinet

In 1988, Mahathir visited Belgium

In 1987, Tengku Razaleigh Hamzah, who had been demoted from Finance Minister to Trade and Industry Minister, challenged Mahathir for UMNO's presidency, and effectively the prime ministership. Razaleigh's bid was supported by Musa, who had resigned as deputy prime minister the previous year. While once close allies with Mahathir, both fell out with Musa claiming that Mahathir no longer trusted him. Razaleigh and Musa ran for the UMNO presidency and deputy presidency on a joint ticket against Mahathir and his new choice for deputy Abdul Ghafar Baba.

Mahathir's Team A enjoyed the press's support, most party heavyweights, and even Iskandar, now the Agong. However, other prominent figures such as Abdullah Ahmad Badawi supported Team B. In the election, held on 24 April 1987, Team A prevailed. Mahathir was re-elected by a narrow margin, receiving the votes of 761 party delegates to Razaleigh's 718. Ghafar defeated Musa by a slightly larger margin. Mahathir responded by purging seven Team B supporters from his ministry. At the same time, Team B refused to accept defeat and initiated litigation. In an unexpected decision in February 1988, the High Courts ruled that UMNO was an illegal organisation as some of its branches had not been lawfully registered.

Each faction raced to register a new party under the UMNO name. Mahathir's side successfully registered the name "UMNO Baru" ("new UMNO"), while Team B's application to register "UMNO Malaysia" was rejected. Nevertheless, UMNO Malaysia registered the party as Semangat 46 instead under Tengku Razaleigh Hamzah's leadership. The Lord President of the Supreme Court, Salleh Abas, sent a letter of protest to the Agong, which criticised the prime minister for his comments on the judiciary and called for them to be stopped. Mahathir then suspended Salleh for "gross misbehaviour and conduct", ostensibly because the letter was a breach of protocol. A tribunal set up by Mahathir found Salleh guilty and recommended to the Agong that Salleh be dismissed. Five other judges of the court supported Salleh and were suspended by Mahathir. A newly constituted court dismissed Team B's appeal, allowing Mahathir's faction to continue to use the name UMNO.

Mahathir suffered a heart attack in early 1989, which later inspired the establishment of the National Heart Institute (IJN) to improve cardiac care in Malaysia. Mahathir was praised for opting to undergo the surgery in his own country. He recovered to lead Barisan Nasional to victory in the 1990 election. Mahathir interpreted the election results as a reflection of the people's desire for a strong government. Semangat 46 failed to make any headway outside Razaleigh's home state of Kelantan. Following his electoral victory, Mahathir established the Domestic Trade and Consumer Affairs Ministry to better address issues related to trade and consumer protection.

During the same period, Mahathir led the government in negotiations with Chin Peng and the Communist Party of Malaya (CPM). These efforts culminated in a tripartite peace agreement in Hat Yai between Malaysia, Thailand, and the CPM. According to insiders, the Hat Yai peace accords were initiated by Mahathir. The negotiations, overseen by Special Branch chief Abdul Rahim Mohd Noor, were later documented in Colin Abraham's The Finest Hours, which included a foreword written by Mahathir himself.

Economic development to financial crisis (1990–1998)

Main articles: Fourth Mahathir cabinet and Fifth Mahathir cabinet

A view of Petronas Towers in Kuala Lumpur, which was built under his tenure.

Mahathir meeting Mohammad Mosaddak Ali in 1994.

The expiry of the Malaysian New Economic Policy (NEP) in 1990 allowed Mahathir to outline his economic vision for Malaysia. In 1991, he announced Vision 2020, under which Malaysia would aim to become a fully developed country within 30 years. The target would require average economic growth of approximately seven per cent of gross domestic product per annum. One of Vision 2020's features would be to gradually break down ethnic barriers. Vision 2020 was accompanied by the NEP's replacement, the National Development Policy (NDP), under which some government programs designed to benefit the bumiputera exclusively were opened up to other ethnicities. Mahathir highlighted that the policy would balance growth with addressing economic imbalances across regions and society.

The NDP achieved one of its main aims — poverty reduction. By 1995, less than nine per cent of Malaysians lived in poverty, and income inequality had narrowed. Mahathir also introduced the Bangsa Malaysia policy, which aimed to facilitate greater representation of non-Malay ethnicities in Malaysia. Additionally, he popularised slogans like Malaysia Boleh (Malaysia Can) in his domestic politics.

Mahathir's government cut corporate taxes and liberalised financial regulations to attract foreign investment. The economy grew by over nine per cent per annum until 1998, prompting other developing countries to emulate Mahathir's policies. Mahathir's bold economic initiatives propelled Malaysia to become the 17th largest trading nation globally. The government rode the economic wave and won the 1995 election with an increased majority.

Mahathir initiated a series of major infrastructure projects in the 1990s. One of the largest was the Multimedia Super Corridor, a new information technology district south of Kuala Lumpur modelled after Silicon Valley. Microsoft chairman Bill Gates, who was a member of an advisory panel assisting Mahathir in shaping the country’s information technology policies, praised the project as "really awesome" during a visit to Malaysia. Other significant initiatives included the development of Putrajaya as the home of Malaysia's public service. He also played a key role in bringing prominent international sporting events to Malaysia, such as the Formula One Grand Prix at Sepang and the Le Tour de Langkawi cycling competition, further enhancing the country's international reputation. Mahathir founded the Space Science Center (ANGKASA), leading to the establishment of the National Planetarium, which was launched in 1994. He also envisioned Malaysia having its own satellite, a vision realized with the launch of MEASAT-1 in 1995 and MEASAT-2 in October 1996.

Another significant development was the Bakun Dam in Sarawak. The ambitious hydro-electric project was intended to carry electricity across the South China Sea to satisfy electricity demand in peninsular Malaysia. Work on the dam was eventually suspended due to the Asian financial crisis. In 1995, Mahathir visited the Massachusetts Institute of Technology (MIT) and facilitated the establishment of a university modeled after MIT, leading to the founding of the Malaysia University of Science and Technology (MUST). The 1997 Southeast Asian haze, the worst haze event in history caused by Indonesian forest fires, was a major air pollution crisis for the country; Mahathir launched a cross-border firefighting operation in response.

Mahathir at the meeting at the Prime Minister's Office in 1995

In 1997, the Asian financial crisis threatened to devastate Malaysia's economy. The value of the ringgit plummeted due to currency speculation, foreign investment fled, and the main stock exchange index fell by over 75 per cent. At the urging of the International Monetary Fund (IMF), the government cut government spending. It raised interest rates, which only served to exacerbate the economic situation. In 1998, Mahathir defied the IMF's recommendations and implemented bold measures to stabilize the economy. These included pegging the ringgit at RM3.80 to the US dollar, banning offshore trading of the ringgit to curb speculation, and introducing capital controls. Mahathir also launched domestic policies, such as establishing the National Higher Education Fund Corporation (PTPTN) to provide education loans during the crisis. He argued that relying on a floating exchange rate would exacerbate financial speculation and increase the burden of repaying foreign-denominated loans. Concurrently, Mahathir authorized the repatriation of Malaysian assets from abroad.

Malaysia recovered from the crisis faster than its Southeast Asian neighbours, aided by an unorthodox capital control policy. The IMF's 1999 Article IV consultation report acknowledged that Malaysia's capital controls and exchange rate peg, initially met with skepticism, had produced more positive results than expected. The report also recognized that Mahathir's policies had helped stabilize the economy, allowing Malaysia to recover faster than many had anticipated. By 1999, the economy had rebounded with a growth of 5.4 per cent, followed by an 8.5 per cent growth in 2000. Mahathir later recalled that his decision to peg the ringgit to the US dollar in 1998 felt like "putting his head on the chopping block".

In the 1990s, Mahathir found himself at odds with Malaysian royalty over conflicting economic interests. In response to conflicts between Malaysian royals and prospective business leaders, Mahathir's government passed a resolution on royal activities. In the 1992 Gomez Incident, Sultan Iskandar's son, a representative field hockey player, was suspended from competition for five years for assaulting an opponent. Iskandar retaliated by pulling all Johor hockey teams out of national competitions. When a local coach criticised his decision, Iskandar ordered him to his palace and beat him. The federal parliament unanimously censured Iskandar, and Mahathir took the opportunity to remove the constitutional immunity of the sultans from civil and criminal suits. The press backed Mahathir and, in an unprecedented development, started airing allegations of misconduct by members of Malaysia's royal families.

As the press revealed examples of the rulers' extravagant wealth, Mahathir resolved to cut financial support to royal households. With the press and the government pitted against them, the sultans capitulated to the government's proposals. Their powers to deny assent to bills were limited by further constitutional amendments passed in 1994. In 1997, Mahathir officially named the Malaysian flag 'Jalur Gemilang' during the 40th Independence Day celebration.

Final years and succession (1998–2003)

Main article: Sixth Mahathir cabinet

Mahathir addressing the United Nations General Assembly, 25 September 2003

According to biographer Ian Stewart, by the mid-1990s Anwar's leadership ambition was the most serious threat to Mahathir's power. Anwar began to distance himself from Mahathir, overtly promoting his superior religious credentials and suggesting loosening the restrictions on civil liberties. However, Mahathir continued to back Anwar as his successor until the collapse of their relationship during the Asian financial crisis, with Mahathir abandoning the tight monetary and fiscal policies urged by the IMF. As Mahathir took the reins of Malaysia's economic policy over 1998, Anwar was increasingly sidelined. On 2 September, he was dismissed as deputy prime minister and finance minister and promptly expelled from UMNO. No immediate reasons were given for the dismissal. However, the media speculated that it related to lurid allegations of sexual misconduct circulated in a "poison pen letter" at the general assembly. As more allegations surfaced, large public rallies were held in support of Anwar. On 20 September, he was arrested and placed in detention under the Internal Security Act.

Anwar stood trial on four charges of corruption, arising from allegations that Anwar abused his power by ordering police to intimidate persons who had alleged Anwar had sodomised them. He was found guilty in April 1999 and sentenced to six years in prison. In another trial shortly after, Anwar was sentenced to another nine years in prison on a conviction for sodomy. The sodomy conviction was overturned on appeal after Mahathir left office.

Anwar's conviction drew criticism from the international community. US Secretary of State Madeleine Albright defended Anwar as a "highly respectable leader" who was "entitled to due process and a fair trial" and met with Anwar's wife, Wan Azizah Wan Ismail. Wan Azizah had formed a liberal opposition party, the National Justice Party (Keadilan) to contest in the 1999 election. UMNO lost 18 seats and two state governments. By July 2001, Mahathir had reached his 20th year in power but discouraged grand celebrations.

Around the same time, Mahathir established the Women's Affairs Ministry and proposed an amendment to Article 8(2) of the Federal Constitution to include "sex" as a prohibited ground for discrimination, ensuring women’s equal rights. He also launched Puteri Umno, urging party members to support and nurture the new women's wing.

In May 2002, Mahathir officially opened the PETRONAS Petroleum Industry Complex (PPIC) in Kerteh, a world-class integrated petroleum hub developed by PETRONAS that attracted significant foreign investment. During the same time, he also approved Malaysian Chinese Association (MCA) President Ling Liong Sik’s proposal to establish Universiti Tunku Abdul Rahman (UTAR). During his tenure, Mahathir proposed sending a Malaysian into space, and on August 7, 2003, he officially announced the astronaut programme. This initiative came to fruition in 2007, when Sheikh Muszaphar Shukor became the first Malaysian astronaut to travel to the International Space Station aboard a Soyuz spacecraft under an arrangement with Russia. Sheikh Muszaphar later regarded Mahathir as the 'father of Malaysia's space programme.'

At UMNO's general assembly in 2002, he announced that he would resign as prime minister, only for supporters to rush to the stage and convince him tearfully to remain. He subsequently fixed his retirement for October 2003, giving him time to ensure an orderly and uncontroversial transition to his anointed successor, Abdullah Badawi. Mahathir simultaneously pledged that he would not take on an elder statesman role after retirement. During his final year in office, Mahathir introduced the teaching of Mathematics and Science in English (PPSMI) in 2003, believing that it is crucial for Malaysians to remain competitive in a fast-changing world. During the Severe Acute Respiratory Syndrome (SARS) outbreak, Mahathir introduced an RM8 billion stimulus package, contributing to Malaysia's 6.5% economic growth in the third quarter of 2003. The package focused on four main strategies and 90 measures to stimulate economic activity, boost consumption, and encourage investment.

On 29 October 2003, the cabinet paid tribute to Mahathir for his invaluable service to the nation as Prime Minister for the last 22 years. He also received a record-breaking outpouring of public gratitude, marked by a 5.5 km-long banner displaying messages from over 50,000 Malaysians. The following day, Mahathir presented a review of Malaysia's five-year economic plan at Parliament House. Having spent over 22 years in office, Mahathir was the world's longest-serving elected leader when he retired on 31 October 2003.

For his contributions to the development and progress of Malaysia, Mahathir was honored by his successor, Abdullah Badawi, with the title Bapa Pemodenan Malaysia (Father of Malaysia's Modernisation) after stepping down from office. The following year, Barisan Nasional leaders and members paid tribute to Mahathir during a dinner in Kuala Lumpur, acknowledging his remarkable contributions to the coalition and the nation.

Foreign relations

Mahathir with Russian President Vladimir Putin in 2003

Mahathir stands with APEC leaders for their group photo in Bangkok, Thailand, 21 October 2003

During Mahathir's term, Mahathir maintained a collaborative relationship with the West, despite him being an outspoken critic and prioritised development models and collaboration from elsewhere in Asia. On his first day in office, Mahathir announced that his government would prioritise strengthening ties with neighbouring ASEAN countries, particularly through closer economic cooperation. He chose neighboring Indonesia for his first official overseas visit. Early during his tenure, a small disagreement with the United Kingdom over university tuition fees led to a boycott of all British goods led by Mahathir, in what became known as the "Buy British Last" campaign. Mahathir successfully negotiated with Indonesian President Suharto to bring the 27-year Ligitan and Sipadan dispute with Indonesia to the International Court of Justice for resolution.

In a shift from his predecessors, Mahathir frequently condemned Israel and ensured Malaysian support for the Palestine Liberation Organization, although toned down his criticisms after the Oslo Accords were agreed. He has been internationally acclaimed as the voice of the developing world. As Prime Minister, Mahathir undertook numerous international visits to enhance diplomatic relations, promote trade, and gather insights on foreign nations. In 1987, he was elected as the President of the International Conference on Drug Abuse and Illicit Trafficking.

Mahathir was prominent at the 1992 Earth Summit, arguing against an international forest conservation treaty over what he saw as the undue impact on the development of poorer Global South countries. He had previously threatened to pull Malaysia out of the summit if environmentalists intended to criticise logging in the country. In 2003, Mahathir spoke to the Non-Aligned Movement in Kuala Lumpur, where he blamed Western nations and Israel for a global rise in terrorism. During his final 100 days in office, Mahathir remained focused on offering potent advice to Third World countries on nurturing healthy economies, among other issues.

Sovereignty

During his tenure as prime minister, Mahathir asserted Malaysia’s sovereignty over several features in the Spratly Islands, claiming Swallow Reef in 1983, Ardasier Reef and Mariveles Reef in 1986, and Investigator Shoal and Erica Reef in 1999. His administration cited Malaysia’s continental shelf limits and the 1982 UNCLOS as the basis for these claims, while also responding to Vietnam’s territorial activities in the region. To strengthen Malaysia’s position, Mahathir oversaw the transformation of Swallow Reef into an artificial island with military fortifications, establishing it as a permanent naval outpost. Despite this militarisation, he maintained diplomatic engagement with Beijing, balancing relations with ASEAN claimants and employing a hedging strategy involving China and the United States.

Mahathir's foreign policy towards China on the Spratlys was notably pragmatic. While Malaysia pursued its territorial claims, he emphasised dialogue over confrontation. In 1993, he stated that Malaysia had "no problem with China" regarding the Spratlys, and in 1994, he welcomed China’s proposal for joint exploration, opposing further internationalisation of the dispute.

Japan

Main article: Japan–Malaysia relations

On 25 November 2000, Mahathir shakes hands with Japanese Prime Minister Yoshirō Mori in Singapore

In the early 1960s, Mahathir visited Japan and witnessed its remarkable recovery from the devastation of Hiroshima and Nagasaki, symbolized by the 1964 Tokyo Olympics. Mahathir announced a "Look East" policy in December 1981. Under "Look East", Mahathir particularly prioritised relations with Japan, hoping this would bolster Malaysia's economy and that Japanese work ethic, values and moral norms would have a positive influence on Malaysians. He made over 100 visits to Japan. Consistent with the "Look East" strategy adopted under his leadership, there was a major push for heavy industries by Malaysia in the early 1980s.

China and Taiwan

Main articles: China–Malaysia relations and Malaysia–Taiwan relations

Mahathir also strengthened political and economic cooperation with China, whilst maintaining diplomatic ambivalence on security issues to avoid escalating territorial disputes in the South China Sea. He openly criticised China's involvement in Malaysia's communist insurgency, but downplayed any military threat from China after the Cold War ended. In 1985, Mahathir visited China for the first time as Prime Minister, where he met Chinese leader Deng Xiaoping, establishing a new level of trust that laid the foundation for Malaysia-China relations and set the stage for decades of economic and diplomatic growth. Later, he visited China again in 1993, 1994, 1996, 1999, and twice in 2001.

In the early 1990s, Mahathir played a key role in engaging China with ASEAN despite South China Sea disputes, particularly in the post-Tiananmen and post-Cold War contexts, paving the way for then Chinese Foreign Minister Qian Qichen to attend the ASEAN meeting’s opening ceremony in July 1991 as a guest of the Malaysian government, and eventually leading to China’s upgrade to ASEAN’s dialogue partner in 1996. Amidst the Asian financial crisis, Mahathir also led several large delegations to China and Russia to seek regional economic cooperation.

Besides that, Mahathir also had significant interactions with Taiwan, especially during the 1980s and 1990s, when economic ties between the two sides were at their strongest despite the lack of formal diplomatic relations. During this period, Taiwan was a major investor in Malaysia, ranking among its top five sources of foreign investment, even reaching the top spot in 1990 and 1994. Mahathir himself visited Taiwan in 1984, 1988, and 1997, with two of these visits involving transit diplomacy at Taoyuan Airport. In 1988, he led a delegation of three cabinet ministers on a discreet visit to Taiwan, which drew criticism from Beijing. However, Mahathir defended the trip by emphasizing that Malaysia’s engagement with Taiwan was based solely on economic considerations rather than political recognition. His government also facilitated closer ties by allowing Taiwan’s trade office in Malaysia to be upgraded and by engaging in high-level exchanges, such as meetings with Taiwanese leaders like Premier Lien Chan in 1993.

United States

Main article: Malaysia–United States relations

Mahathir and Ronald Reagan in 1984

Mahathir and Bill Clinton in 1994

The United States was the biggest foreign investment source and one of Malaysia's closest allies during Mahathir's rule. A 2003 house hearing by the Subcommittee on East Asia and the Pacific of the U.S. House International Relations Committee (now called the House Committee on Foreign Affairs) summarises the relationship between the United States and Malaysia as follows: "Despite sometimes blunt and intemperate public remarks by Prime Minister Mahathir, U.S.-Malaysian cooperation has a solid record in areas as diverse as education, trade, military relations, and counter-terrorism." Mahathir was publicly critical of the foreign policy of the United States, particularly during George W. Bush's presidency. He has also condemned the US-led war on Iraq and Afghanistan.

In 1984, during his first visit to the United States, Mahathir received a warm welcome. He met President Ronald Reagan in the Oval Office, followed by discussions, lunch, and a press conference. He also made a private visit to Tulsa, Oklahoma. In the years that followed, Mahathir held informal meetings with US presidents George H. W. Bush, Bill Clinton, and George W. Bush at various locations to discuss issues related to palm oil and the United States' attitude towards Muslim countries. In January 1997, Mahathir visited the United States to promote Malaysia's Multimedia Super Corridor. In May 1986, Nancy Reagan became the first First Lady of the United States to visit Malaysia.

In 1998, US vice-president Al Gore gave a speech expressing sympathy for the Reformasi movement at the Asia-Pacific Economic Cooperation (APEC) conference hosted by Malaysia, infuriating Mahathir and other ministers. Analysts interpreted Gore's comments as criticism of Anwar's imprisonment. Anwar, who was the preeminent Malaysian spokesperson for the economic policies and reforms preferred by the IMF, later faced criticism after becoming Prime Minister in 2022 for implementing many conservative and regressive policies.

Shortly after the 9/11 attacks, U.S. President George W. Bush called Mahathir, describing their discussion as one of the best he had with world leaders and thanking Malaysia for supporting America’s anti-terror efforts.

United Kingdom

Main article: Malaysia–United Kingdom relations

A newspaper headline from September 1981 reporting the successful "Dawn Raid", an initiative under Mahathir that enabled Malaysia to regain control of Guthrie Corporation from British ownership.

In September 1981, shortly after Mahathir assumed office as Prime Minister, the country carried out the "Dawn Raid", a calculated operation orchestrated by Permodalan Nasional Berhad (PNB) to regain majority ownership of Guthrie, one of the largest British-owned plantation companies at the time. This move symbolized a broader effort under Mahathir's leadership to reduce foreign dominance over Malaysia's economy and reclaim control of national assets.

A month after the Dawn Raid, Mahathir introduced the "Buy British Last" (BBL) policy, which lasted from October 1981 to March 1983. The reason for this policy was rooted in several grievances with Britain. Britain’s decision to abolish tuition fee subsidies for Commonwealth students placed a heavy financial burden on Malaysia, which had to cover the increased costs for approximately 17,000 Malaysian students studying in the UK. Additionally, British media criticism of Malaysia’s internal policies further strained relations. The BBL policy, which directed government ministries and agencies to deprioritize British goods and services, significantly affected Britain, causing estimated losses of between £15.5 million and £50 million in the early months. This eventually led to negotiations, culminating in Mahathir and British Prime Minister Margaret Thatcher meeting in 1983 to resolve the tensions and end the policy. Mahathir later recalled persuading Thatcher that raising tuition fees was a mistake, leading Thatcher to introduce scholarships for Malaysian students.

Mahathir reclaimed Carcosa Hill, which had been given to the British by Tunku Abdul Rahman after independence as a sign of good faith, and was home to the British High Commissioner's residence. Mahathir developed a close friendship with Thatcher, leading to strengthened bilateral relations between the two countries during their tenure. Thatcher once praised Mahathir as a truly remarkable national leader and described Malaysia as a textbook example of how to build a prosperous nation. After Thatcher's 1985 visit to Malaysia, bilateral ties improved significantly. Key progress included enhanced trade, particularly in palm oil exports and British technology imports, as well as increased educational cooperation through scholarships for Malaysian students in the UK. Malaysia-UK relations were back on track, leading to Malaysia being chosen to host two major world events — the Commonwealth Heads of Government Meeting in Langkawi in 1989 and the Commonwealth Games in 1998. Mahathir spoke of his good working relationship with Thatcher, saying, "Malaysians should remember that she visited Kuala Lumpur three times — no other British PM has done this before or since." During John Major's visit to Malaysia in September 1993, five memorandums of understanding, involving several billion ringgit, were signed between Malaysian and British companies.

Australia

Main article: Australia–Malaysia relations

Mahathir's relationship with Australia and its political leaders was particularly rocky. Although Malaysia-Australia relations were collaborative, Mahathir was publicly critical of the country's colonial history and close relations with the United States. Relations reached a low point in 1993 when Australian prime minister Paul Keating described Mahathir as "recalcitrant" for not attending the APEC summit. The Malaysian government threatened trade sanctions as a response, while the Australian government claimed that Keating's description was a linguistic gaffe, and that what he had in mind was "intransigent".

In November 2002, Mahathir opposed Australia’s bid for a seat at the ASEAN summit, emphasizing the need for a thorough study before expanding membership to non-Asian nations. His firm stance, along with Indonesia’s reservations, led ASEAN leaders to defer the decision. This marked the third time he had vetoed Australia’s efforts to expand its role in the region, having previously played a key role in excluding Australia from the ASEAN Free Trade Area and the regular ASEAN-EU talks.

Singapore

Main article: Malaysia–Singapore relations

My warmest congratulations on your appointment as the Prime Minister of Malaysia. Your rise to this high office has sprung from your deep convictions and your constancy of political purpose which have led the people of Malaysia to trust your integrity, fairness and firmness. I feel confident that we can work together to strengthen the traditionally close ties between our two countries. I send you my warmest wishes for your success.

–This congratulatory letter was sent by Lee Kuan Yew on the day Mahathir was sworn in as Prime Minister

Not long after assuming office, Mahathir visited Singapore in December 1981 as part of a delegation to meet with Prime Minister Lee Kuan Yew. Among various bilateral discussions, the two leaders agreed to implement a coordinated time adjustment. This led to the passing of the Malaysian Standard Time Act (1981), initiated by Mahathir. Later, Lee paid a return visit to Malaysia in August 1982. In the early days of his tenure, Mahathir improved relations with Singapore, not only strengthening bilateral ties but also gaining the support of the Malaysian Chinese community.

During his time, Singapore's requests to Malaysia to move its railway immigration checkpoint away from Tanjong Pagar and disputes over water payments were major disagreements between the two countries. The Points of Agreement of 1990 set out the terms for developing land for a Rapid Transit System, although disputes still continued throughout the following decade. Mahathir and Singaporean counterparts also oversaw a dispute over the ownership of Pedra Branca, several islets between the two countries, with an agreed exchange of documents to settle ownership of the islets in 1981 being delayed until at least 1992. The 1997 Asian financial crisis further escalated tensions, with Singapore offering high interest rates for ringgit deposits leading to cash flow issues in Malaysia. However, Lee remarked that he had made more progress resolving bilateral issues with Mahathir between 1981 and 1990 than during the previous 12 years under Mahathir's two predecessors.

On Lee Kuan Yew's death in March 2015, Mahathir wrote an entry on his blog, expressing grief at the news. Although he often disagreed with Lee, Mahathir wrote that he bore him no enmity for the differences of opinion on the direction of Singapore's development, and that ASEAN had lost the strong leadership of both Lee and Suharto of Indonesia, who had died in 2008. Some analysts observed that with Lee's death, Mahathir was the last of the "Old Guard" of Southeast Asia. On the anniversary of Lee's death, Mahathir told the media that Singaporeans must recognise Lee's contributions towards industrialising Singapore. He said that he does not view Lee "as an enemy and all that, but as a Singapore leader who had his own stand that was not the same with the stand of Malaysia".

Myanmar

Main article: Malaysia–Myanmar relations

In 1997, Mahathir strongly supported Myanmar's inclusion into ASEAN, stating that "we are going to work very hard to get Burma into ASEAN" despite international criticism and American sanctions against the military regime. Mahathir presided as ASEAN chair over Myanmar’s admission, playing a key role in ensuring its membership.

However, by 2003, Mahathir's stance toward Myanmar had shifted significantly, particularly following the prolonged detention of pro-democracy leader Aung San Suu Kyi. In an interview, he openly stated that if Myanmar's military government continued to refuse Suu Kyi's release, ASEAN might have to consider expelling the country. This marked the first time an ASEAN leader had raised the possibility of Myanmar's expulsion, drawing considerable international attention.

South Africa

Main article: Malaysia–South Africa relations

Mahathir was pictured alongside South African President Thabo Mbeki during the 29th G8 Summit in 2003. The photograph also features Russian President Vladimir Putin and Canadian Prime Minister Jean Chrétien.

Mahathir and Nelson Mandela shared a close relationship, forged during South Africa's struggle against apartheid. Malaysia played a crucial role in supporting South Africa's transition to democracy, particularly in its preparations for the historic 1994 election that saw Mandela elected as the country's first black president. Mahathir was the first international leader to visit Mandela following his release in 1990. During a meeting held at a Zambian government guest house, Mahathir presented Mandela with a silver keris, a symbol of Malaysia’s constitutional monarchy system of government.

Mandela visited Malaysia thrice during Mahathir's tenure as prime minister, first in 1990, second in 1993 and again in 1997. During his third visit, Mahathir hosted a private dinner for the South African president in Langkawi. The close relationship between the two leaders also benefited Malaysian businesses, granting them a "most favoured" status for securing contracts and business opportunities in South Africa. During Mandela's visit, Mahathir further strengthened this partnership with him by jointly launching the Malaysia-South Africa Business Council (MSABC) in Kuala Lumpur. The strong bilateral relations also led to significant progress in political and economic cooperation, with key agreements signed in trade, air services, and shipping. Additionally, Malaysia supported South Africa's development through scholarships for South African students and collaboration in science and technology.

Mahathir visited South Africa three times during his tenure as Prime Minister: a private visit in April 1994 to congratulate Mandela, an official visit in August 1995, and another in May 1997 when he received the Order of the Cape of Good Hope.

On 27 August 2013, the Mahathir Global Peace Foundation honored Mandela with the Mahathir Award for Global Peace. In the same year as Mandela’s passing, Mahathir expressed his deep sorrow, calling Mandela a great leader who dedicated his life to social justice. He admired Mandela's magnanimity, noting that despite years of imprisonment, he focused on reconciliation and sharing opportunities between blacks and whites. Mahathir also paid his last respects to Mandela in Pretoria, where he attended as a personal representative of Malaysia.

Bosnia and Herzegovina

Main article: Bosnia and Herzegovina–Malaysia relations

In 2020, a monument dedicated to Mahathir was erected in the Bosnian capital Sarajevo.

Mahathir was a prominent international advocate for Bosniaks in Bosnia and Herzegovina during his tenure. His government permitted Bosnians to come to Malaysia without a visa during the Bosnian War. He was influential in the establishment of an OIC summit in Karachi in 1993 to discuss the need for weapons for Bosnia during the War. Malaysia sent UN Peacekeeping forces to Bosnia and was part of the Contact Group advocating for Bosnia at the UN.

In February 2007, Mahathir was nominated by four non-governmental organisations in Bosnia and Herzegovina for the Noble Peace Prize Award 2007. The nominations were made by the Serb Civic Council from Bosnia and Herzegovina, the Croat National Council, the Sarajevo School of Science and Technology, and the Congress of Bosnik Intellectuals.

Pan-Asia rail link plan

Main articles: Kunming–Singapore railway and Kazakhstan–Malaysia relations

Mahathir revived the plan for a “pan-Asian” railway network in 1995, an idea with roots in the early 1900s and later resurfaced in a 1960 UN proposal for a trans-Asian railway spanning 118,000 kilometers. In the post-Cold War era, as regional development cooperation gained momentum in East Asia, Mahathir proposed the construction of the Trans-Asian Railway linking Singapore, Malaysia, Thailand, and other countries in the central and southern peninsula to China. This was an early example of ASEAN's approach to regional connectivity through infrastructure cooperation. His push led ASEAN to focus on three main routes from Kunming to Bangkok, with extensions south to Kuala Lumpur and Singapore.

In 1996, during a visit to Kazakhstan, Mahathir emphasized the railway’s role in connecting Southeast Asia with China and, eventually, Central Asia, granting landlocked nations access to the sea. His comments also foreshadowed China’s Belt and Road Initiative (BRI), highlighting Kazakhstan’s strategic position between China, Russia, and Europe.

Antarctica

In 1982, Mahathir discussed the governance of Antarctica at the United Nations Convention on the Law of the Sea (UNCLOS). He emphasized that Antarctica should be regarded as the common heritage of mankind, opposing any unilateral claims of sovereignty and advocating for international cooperation in its management and resource utilization. At the time, there were concerns that minerals could be exploited in Antarctica, and the media regarded Mahathir’s stance as the only political challenge ever mounted to the Antarctic Treaty in decades. In 1984, Mahathir stated that while the Antarctic Treaty system had contributed positively, there was a need to establish a broader foundation for international cooperation in Antarctica, and he proposed the formation of a "special committee on Antarctica" to conduct an in-depth study and build consensus on a new administrative framework for the continent and the mechanisms required to achieve it. Later, in October 1999, Malaysia sent four scientists to Antarctica to conduct research, focusing on air pollution as part of Universiti Malaya's air pollution research unit. Then, in November 2001, Malaysia launched a second mission, sending two scientists from Universiti Malaya to conduct research on marine and biological sciences.

In February 2002, Mahathir led a Malaysian delegation, including his wife and several cabinet members, on a visit to Antarctica. They traveled from Ushuaia, Argentina, aboard the Russian icebreaker Kapitan Dranitsyn. Mahathir described the trip as a "once in a lifetime" experience and expressed his amazement at the continent’s cold yet beautiful landscape.

Defence

Main article: Military history of Malaysia

Mahathir at the Langkawi International Maritime and Aerospace Exhibition 1997. He initiated LIMA in 1991, establishing it as a major defense and aerospace exhibition.

Under Mahathir's leadership, Malaysia undertook significant military modernization efforts. As Minister of Defence from 1981 to 1986, he played a key role in shaping the country's defense strategy. His administration oversaw the procurement of advanced military assets, including 18 Russian-made MiG-29N fighter jets and eight American-made F/A-18D Hornets, diversifying Malaysia’s defense partnerships beyond traditional suppliers. Malaysia also explored the purchase of submarines, with plans to acquire British Oberon-class submarines in 1988, although the deal was later canceled. Additionally, Mahathir strengthened Malaysia’s defense ties with various countries, including Poland, Brazil, India, and Pakistan, expanding the range of military equipment procurement.

A major structural reform during Mahathir’s leadership was the establishment of the 10th Parachute Brigade (10 Briged Para) in 1994 as a Rapid Deployment Force (Pasukan Aturgerak Cepat). Internationally, Malaysia became a key contributor to United Nations peacekeeping missions, deploying around 18,000 military and police personnel between 1998 and 2003. The country’s active participation peaked between 1992 and 1996, with about 2,500 peacekeepers sent to Cambodia, Bosnia, and Somalia. In recognition of Malaysia’s commitment, the Malaysian Peacekeeping Training Centre (MPC) was established in Port Dickson in 1996, following an agreement with the UN to provide personnel for peacekeeping missions at any time.

See also

• Second premiership of Mahathir Mohamad

Sources

• Milne, R. S.; Mauzy, Diane K. (1999). Malaysian Politics under Mahathir. Routledge. ISBN 0-415-17143-1.
• Sankaran, Ramanathan; Mohd Hamdan Adnan (1988). Malaysia's 1986 General Election: the Urban-Rural Dichotomy. Institute of Southeast Asian Studies. ISBN 981-3035-12-9.
• Stewart, Ian (2003). The Mahathir Legacy: a Nation Divided, a Region at Risk. Allen & Unwin. ISBN 1-86508-977-X.
• Wain, Barry (2010). Malaysian Maverick: Mahathir Mohamad in Turbulent Times. Palgrave Macmillan. ISBN 978-0-230-23873-2.