IN the early hours of December 8, 1941, Japanese forces stormed the beaches of Kota Bharu, marking the beginning of the invasion of Malaya. Just a few hours later, across the Pacific, the Japanese attack on Pearl Harbour began.
These coordinated strikes signalled Japan’s intent to dominate Southeast Asia and the Pacific. For Malaya, Sarawak & North Borneo, it was the start of a brutal occupation that would bring even its most prosperous cities to their knees.
Kota Bharu’s fall set the tone for the campaign that followed. Within days, the Japanese advanced southward, capturing key towns and cities along the way.
By December 19, they had seized Georgetown, Penang. Georgetown’s bustling port, once a vital hub for British trade, became a staging ground for Japanese military operations, with Penangites subjected to forced labour and harsh rule.
By January 17, 1942, Japanese forces expanded their invasion into North Borneo and Sarawak, swiftly seizing the vast oil fields and strategic towns, including Kuching and Jesselton (modern-day Kota Kinabalu). For the settlers in these regions – formerly under British protection – the fall of these territories marked the collapse of the colonial order.
The campaign culminated in the fall of Singapore, the supposedly Gibraltar of the East, on February 15, 1942 – an event Winston Churchill himself described as the “greatest military disaster” in British history.
Singapore, which was now reduced to a Japanese command centre, was then renamed “Syonan-to”, to symbolise Japan’s assertion of its control. The collapse of these key cities from Kota Bharu to Kota Kinabalu – exposed the fragility of British promises of protection, leaving the Malay rulers and settlers to face the consequences of this loss and betrayal on their own.
Immediately under Japanese rule, cities like Kuala Lumpur and Ipoh became hubs for resource extraction to fuel Japan’s war efforts. Settlers across Malaya endured confiscation, starvation, and terror as the Japanese exploited the land’s wealth to sustain their military campaigns.
For the Malay rulers, their symbolic authority was rendered meaningless as the Japanese imposed absolute control.
Despite being caught between two “gajah” (elephants), Malaysia has always held the cards that make it indispensable.
The lands of Malaya, North Borneo, and Sarawak, like the proverbial “pelanduk” (mouse-deer) possessed treasures that both colonial powers and invaders coveted: vast reserves of oil, control over critical sea routes, and natural geographical safety.
Yet, perhaps most uniquely, the region’s docile Malay population – accustomed to the ebb and flow of colonial rulers—made it a territory easy to exploit and govern.
Pelanduk’s wealth: oil, sea routes, and natural advantage
The rich oil fields of Sarawak and North Borneo (Sabah) became key assets for the Japanese war machine in 1942. Towns like Miri and Sandakan, which had long been hubs for British-controlled extraction, were swiftly repurposed to fuel Japan’s military campaigns.
The Japanese fully understood the strategic importance of these resources, prioritising their seizure early in the war. Similarly, the tin and rubber resources of Malaya, already critical to British industry, became just as vital for the Japanese.
Control over the region also meant control over the Straits of Malacca, one of the world’s most important maritime chokepoints. This sea route links the Indian Ocean to the Pacific, making it indispensable for trade and military movement. The Japanese knew that whoever controlled the Straits controlled Southeast Asia, a fact that remains true even today.
Despite the horrors of war and the devastation, Malaya emerged from the ashes. Its wealth of natural resources, from sweet crude to natural gas, has long been the envy of the world. Yet, instead of leveraging this advantage for sustainable growth, they are trapped in a self-imposed cycle of dependency – a legacy rooted in policies introduced during Tun Dr Mahathir Mohamad’s era.
The gasoline and diesel subsidies, first implemented under Mahathir in 1983 were meant to ease the burden on Malaysians. Instead, they have systematically tongkat-fied the nation, making it complacent and uncompetitive. What began as a temporary relief has become a crutch, discouraging innovation and fostering inefficiency across the economy.
The legacy of ‘tongkat’ populariser
Mahathir’s subsidy populist move came at a steep price. These policies, designed to shield locals from the realities of market forces, have left the nation ill-prepared for global economic shifts. Subsidies drained billions from the national coffers while masking the true cost of fuel, leading to wasteful consumption and a lack of urgency in transitioning to sustainable energy.
Rather than empowering Malaysians to rise on their own, the subsidies entrenched a dependency mindset, much like the “tongkat” (crutch) often critiqued in Bumiputera affirmative action policies, (Article 153). Mahathir’s approach didn’t just tongkat-fy a segment of the population – it tongkat-fied the entire nation. Today, we are left grappling with a devalued ringgit, dwindling resources, and an economy that is dangerously reliant on oil and gas revenues.
The looming doomsday scenario
As China rises and tensions escalate in the South China Sea, Malaysia must confront the possibility of being caught in another geopolitical storm. The fear of a Chinese invasion may seem far-fetched to some, but history has taught us the perils of complacency.
Just as Japan exploited our resources during World War II, China—or any major power—could do the same if we fail to protect our wealth and assert our sovereignty.
Yet our greatest threat isn’t external – it’s internal. The subsidy mindset has left us vulnerable, unable to pivot toward industries that will secure our future. While nations like Vietnam and Indonesia rise through industrial innovation and economic reform, Malaysia remains stuck in the past, clinging to policies that no longer serve us.
The path forward: smarten up, arm up
Malaysia must act decisively to break free from this cycle of dependency. The first step is to end the fuel subsidies immediately. Instead of subsidising inefficiency, we must invest in industries that add real value to our economy. This includes protecting and maximising the value of their oil and gas reserves – not as a crutch, but as a catalyst for sustainable growth.
We must also acknowledge the shifting global dynamics. The United States, in its return to basics, is reshoring industries and reducing reliance on Asia. Malaysia cannot afford to hedge its bets on BRICS or rely solely on foreign powers for economic stability.
It is time to protect resources, strengthen industries, and ensure that Malaysians – not outsiders – benefit from its wealth.
This isn’t just about economic reform; it’s about leadership. We must smarten up, modernise our strategies, and, if necessary, arm up to protect our sovereignty. The era of tongkat economics must end. Only then can Malaysia rise as a nation that is not just rich in resources, but strong, self-reliant, and ready for the challenges of the future. – December 7, 2024
Mudasir Khan @ Tuan Muda from Penang is an entrepreneur in the global logistics industry and sees Malaysia’s potential as a global player. This is the first of a two-part article.