CONFIDENTIAL
Malaysia
3.
The Malaysian "Buy British Last" policy of the early to mid-1980s prompted by the fee issue for foreign students is well behind us. This is not merely because of the work put into building bridges at Prime Ministerial level over the past few years. It is also because the Malaysians have discovered that you get what you pay for and that cut-price but third-rate educations at minor North American or Australasian colleges do not properly equip their students for the real world; also that fluency in English matters not just in dealings with the West but increasingly in Asia itself. The fall in the value of sterling means that we are well placed to attract Malaysians in large numbers (some 13,000 students are in the UK at the moment): the British Council's Education Fair - opened by the Lord Chancellor - was doing brisk business when I visited. This helps to maintain valuable bonds between our countries. But we would do well to bear in mind that if British Scholarships become prohibitively expensive again there could be harmful fall-out into many other areas of bilateral business.
4. Malaysia is a vital, exciting country, full of opportunity if we are willing to do things the Malaysian way. The current debate about air services is an example. During my visit I started what will no doubt be a difficult and
We tortuous process of creating linkage on air services. should not underestimate the importance of the air services issue for the Malaysians: they have put their own prestige very much on the line, as the local newspapers' coverage of my visit demonstrated.
5. We have a solid foundation in Malaysia on which to build in advancing our interests. As well as student links we are well placed linguistically, with all significant players operating in English. There is a great sentimentality for things British as long as we are able to offer added value and transfer of technology. The trend in Malaysia will continue to be away from exports of primary goods towards high technology industry and manufacture based on local raw materials. I discovered a dynamic, thrusting economy (with confident politicians). But British industry can only survive by creating the right political atmosphere:
we will be stretched to maintain our current pace. There is a need for more attention, resources and cross-Departmental cooperation at home to secure the real commercial
opportunities open to us. A Prime Ministerial visit could pay dividends if we can work up the commercial opportunities in the meantime.
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CONFIDENTIAL