Malaysia - Japan relations : economic and political implications

Abstract

Japanese involvement in Malaysia dates back to the beginning of this century. From the beginning Japanese interests were predominantly economic in nature Japan looked upon Malaya as a source of raw materials and also as a potential market for its finished products Japan was initially drawn by the rubber industry which became lucrative in 1910 and the iron ore mines which were essential for its steel industries. In 1928 iron ore imports from Malaya accounted for 40 percent of

Japan's total consumption. Japanese cotton goods and other manufactures were low priced and therefore popular in Malaysia. However Japanese efforts to make in-roads on the Malaysian economy were impeded by the British colonial administration. For example, the British enacted a Rubber Restriction Act in 1917 which limited rubber exports to Japan. The British also introduced a quota system on Japanese manufactured imports in the late 1930s. Show more