Malaysia: The vanguard of pragmatic Islamic thinking

Karim Raslan, Lawyer, Kuala Lumpur

The events of the past two months have ambushed the international business community. The economic and commercial issues that used to determine virtually all investment decisions have been superseded by cultural and religious factors.

Since Sept. 11 a nation's competitive advantages would appear to depend on where it stands in the War Against Terrorism.

According to such narrowly defined principles of "Either you're with us or your're with them" most Islamic nations -- some 1.2 billion consumers and over 50 percent of the world's hydro- carbon reserves -- would drop off the radar screen. Such a proposition is clearly ridiculous.

The business community and the World Economic Forum must seek out an alternative scenario. It is incumbent on the WEF to promote Muslim nations and practices that have been able to balance the demands of economics, politics, human rights, religion and culture without undermining the commercial principles.

Malaysia, with its brand of moderate Islam, it's functioning democracy and qualified support for the U.S.-led alliance represent a vital paradigm. Its post-independence history demonstrates that the on-going struggle between Islam and the "West" is not a zero sum game.

The two forces: Modernity and the Koran are not implacable opposites.

Moreover, at a time when the Islamic world is in danger of being hijacked by the forces of extremism and intolerance, the Malaysian model of modernity and tradition constitutes a powerful force for international good.

Its accommodating Muslim practices have been combined with a modern approach to science, technology and business management to create the world's only dynamic, majority Muslim nation.

Contrary to Samuel Huntington's controversial thesis the chasm between the Islamic and the non-Islamic world is bridgeable. Malaysia's continued existence and on-going prosperity is the evidence for the naysayers.

This nation of 23 million straddles the divide, albeit awkwardly at times.

The demonstrations outside the American Embassy in Kuala Lumpur on Oct. 10 by the leading opposition party, Parti Se-Islam Malaysia (PAS) -- led by a host of extremist religious scholars is a clear example of the very real tensions within the majority Malay community.

Nonetheless, Malaysia has remained peaceful. This has been aided by the substantial Chinese and Indian minorities. They have helped anchor the voices of moderation within the ummah (Muslim congregation).

Their added presence has meant that Malaysia is the only society in the world where the vast Asian civilizational forces -- Islam, Confucian China and Hindu India have come into direct contact with one another and all at once.

In an age of anthrax and suicide bombers, the result has been relative political stability.

Malaysia's position in the Organization of Islamic Countries (or OIC) is also anomalous. It is an unusual member of that rogue's gallery. Whilst the nation is by no means perfect -- Prime Minister Mahathir Mohamad's disdain for the civil society agenda is a major hurdle to the country's maturation -- Malaysia remains democratic, prosperous and multi-racial.

Under the country's Federal system of governance, two of the 13 states are administered by PAS. Malaysia is a successful, modern and majority-Muslim polity at a time when such nation- states are painfully thin on the ground.

With its remarkably large and diverse trading-led economy (exports US$95 billion), it's Multimedia Super Corridor and its racially, diverse cosmopolitan cities, visitors often fail to realize that well over 50 percent of the population is Muslim.

This is due to the manner with which Malay-Muslim culture, history and society has evolved in Southeast Asia. Unlike in the Indian Subcontinent where Islam was imposed by conquest, the faith was to win converts in the region by force of example.

Muslim traders in the 15th and 16th century from the Hadramaut and the Malabar coast of India understood the need to make incorporate pre-existing Hindu and Buddhist practices into religious ritual making the faith syncretic and adaptable.

Of course, over the past 50 years there has been a backlash against the region's less doctrinal approach to religious ritual and observance.

Improved transportation and communication links with Arabian peninsular have led to a more globalized form of Islam as the narrow-minded Wahabi interpretations of the faith sponsored by the Saudi government and promoted by the PAS ulema, grew in adherents.

Nonetheless, the Malay-Muslim approach to the faith has retained its essential character of tolerance and accommodation. This has allowed Malaysia and its Malay-Muslim community to pursue a policy of rapid industrialization and modernization whilst never losing its cultural or religious identity.

As western policy-makers grapple with the new paradigm -- a world where a super-power's arsenal of weapons is in effectual in the face of a sustained terrorist assault -- American foreign policy professionals and CEOs of multinational firms would do well to work with on nations such as Malaysia.

As Americans engage with the ummah they must present a successful Islamic model -- and Malaysia is the model.

Whilst no one would accuse Dr Mahathir of being orthodox his economic management has been pragmatic and successful. He has also managed to shape economic policy so that it retains an Islamic character without undercutting the essential profitability and viability of the nation.

This intangible quality has been vital in the struggle to assure the more skeptical Muslims of the value of economic development, trade, foreign direct investment and growth.

With per capita gross national product at a creditable $3,531, Malaysia has avoided the pitfalls of skewered and inequitable economic growth.

A strong emphasis on alleviating rural poverty, health care, primary and secondary education, basic infrastructure of roads, potable water, electricity and telephone lines have addressed many of the legitimate grievances prevalent in other Islamic nations.

Corruption, economic mismanagement and wastage are still serious problems. Nonetheless the overall legal environment (including issues of corporate governance) still functions and the judicial system is undergoing a long-awaited revival.

Malaysia has long been in the vanguard of practical and pragmatic Islamic thinking. When the time comes for the leaders of the Islamic world to address socio-economic development, civil society and modernity from an Islamic perspective, they will have to come to Malaysia.

In centuries to come, 20th century Kuala Lumpur will be cited alongside Cordoba, Harun al-Rashid's Baghdad, as one of the great Islamic centers.

The above is based on an article written for the World Economic Forum East Asia Summit in Hong Kong, to take place on Oct.29 - Oct. 31.