The article discusses the relationship between sub-national institutions, policies and economic development in Penang, Malaysia. The three characteristics of the Developmental State which are needed for promoting economic transformation are explored including autonomous and capable bureaucracy, a commitment to economic growth and public-private cooperation. How the Penang State Government influenced the development of its electronics manufacturing sector from the year 1969 on is discussed.

The purpose of this study is to reinvestigate the relationship between defence expenditure and economic growth in Malaysia, over the period from 1960 to 2006. The bounds testing procedure is used to examine the long-run equilibrium relationship between defence expenditure and economic growth. The bounds test suggests that the variables are co-movement in the long run, but defence expenditure and economic growth is negatively correlated in both the short and long run. Moreover, the MWALD test shows bilateral causality evidence.  Source: ICFAI Journal of Public Finance; May2008, Vol. 6 Issue 2, p45-51, 7p. Author: Tang, Chor Foon.

Drawing on longitudinal data on an array of ethnic policies in Malaysia, the study highlights the limits of cultural-determinist theories of policy. It shows that elite beliefs change over time, often creating layers of policy based on varying premises; that one set of beliefs can overcome another, inconsistent set; that critical events can alter the balance of authoritative beliefs; and that, where beliefs are in conflict, organized interests have room for maneuver. Moreover, the interaction of a mix of operative beliefs can produce outcomes very much at variance with what policymakers wish or anticipate. Finally, on the systemic effects of policy, the study shows that interests created by earlier policy can be decisive actors in the shaping of later policy. Policy itself can change the entire structure of the political system - an outcome rather clearly demonstrated in the case of Malaysia.

The article argues that maritime security in Southeast Asia can be best achieved within the context of a neutral multinational framework. Although their economic interests may differ, states such as Singapore, Indonesia, and Malaysia all have a vested interest in a secure maritime environment. The littoral states must take a preeminent role in providing security, even though extraregional forces have a role to play as well. Source: Naval War College Review; Winter2008, Vol. 61 Issue 1, p87-105, 19p. Author: Huang, Victor.