Retail trades were largely owned by Chinese family businesses. In the immediate post-independence period, the government adopted policies that were friendly to Foreign Direct Investment for import-substituting industries.
The Guthrie “Dawn Raid” by Permodalan Nasional Bhd , 38 years ago, on Sept 7, 1981, needs to be seen against this background. The raid was a fine-tuned and balanced initiative. The following is a brief account of now almost forgotten events, but a vital chapter in our nation’s history.I have been privileged to research and record a major milestone in our nation’s history.
The Dawn Raid mounted on the stock exchange secured 51 per cent of the shares in Guthrie in just 10 minutes. PNB had successfully acquired control of the company and was in a position to relocate the prestigious plantation group back to Malaysia. The project fitted into the broader framework of the New Economic Policy. In the words of Armitage, “The great triumph of the NEP was that it used the market to transfer Malaysian assets into Malaysian hands”.
The Malaysian government adopted a policy of “Buy British Last”. British shareholders had suffered a humiliation as Guthrie was a great source of pride and prestige.To them, the end of the empire had not led to the severance of ties.The British government took immediate steps to enact new legislation to prevent future corporate raids. The amended Substantial Acquisition of Shares Rules were a response. Anglo-Malaysian relationships evolved in the aftermath of the Guthrie Dawn Raid.
The two societies referred to above were instrumental in paving the way for Margaret Thatcher to host a reception at 10, Downing Street two years later for Dr Mahathir. Malaysia, in turn, rescinded its policy of “Buy British Last”.
Waiting for new movie ECRL debt independence 😁
Someone please go and fund Bront Palarae to produce this movie. The trailer came out a few years ago, but I heard the production got stalled due to budgetary issue.