Advocacy in a Time of Change: Business Associations and the Pakatan Harapan Government in Malaysia, 2018–20

Summary

INTRODUCTION

Business groups and governments throughout Southeast Asia have a long history of mutual interaction, joint service delivery and involvement in economic policy. In Malaysia, this has largely developed during several decades of continuous rule by the same governing coalition, who held office from independence in 1957 until May 2018.

When government is stable and long-lasting, business groups, public servants and ministers develop a familiarity and knowledge of each other, and of their respective goals and views. However, when administrations change, these relationships are also up-ended and the relationship can become much more challenging.

What impact did the installation of a new government have on business associations in the country? How were business groups able to adapt and respond to the change? What lessons can be learnt from this when dealing with future changes of government? And how can business associations ensure they maintain their role as effective policy advocates going forward?

This paper details the views of a diverse range of Malaysian association leaders to these questions, based on a series of personal interviews held between February to April 2020. It begins with some background on the key characteristics and current status of associations in Malaysia today. A detailed discussion of the change in government, along with other observations and reflections from business chamber office bearers, is then provided. Finally, the report concludes with some suggestions from interviewees for the future enhancement of association advocacy when dealing with future governments.

UNDERSTANDING THE NATURE OF BUSINESS ASSOCIATIONS

Business associations are a well-established feature of all modern economies, and play an important role in business development, management, trade, entrepreneurship, skills training, public policy, and politics. Also, sometimes referred to as “industry associations”, “chambers of commerce”, and “professional associations”, there are over a hundred of these organizations in Malaysia today, representing at least 600,000 firms across the country.

The functions of business associations typically include lobbying and advocacy; workplace relations and human resources assistance to employers; the provision of training, skills development and education to members; organizing networking and social events; information collection, knowledge sharing and policy development; conducting trade missions; and acting as a public voice on behalf of business to politicians, public servants, ministers, the media and other interested external parties.