On the Margin of Capitalism

Malaysian 'development' has been concentrated first in plantation crops, and more recently in industrial growth. The Malaysian Government has attempted to decentralize the country's industrial activities by setting up industrial estates in smaller towns and rural locations. This book traces the industrial growth of a rural subdistrict in Johor following the state's investment in the 1,000-hectare Pasir Gudang Industrial Estate on the Johor Straits, the inflow of considerable foreign and domestic capital, the establishment of several key industries, and a massive housing development. It analyses the impact of these developments on the Malay rural kampongs, Chinese New Villages, agricultural plantations, and the FELDA resettlement scheme that existed prior to the establishment of the industrial estate. While the state is rightly proud of Pasir Gudang's impressive capital growth, it is less assured of the welfare and livelihood of its people. Industrial development has led to the displacement of the rural workforce and the increasing dependence of local residents on wage labour in factories.
The creation of a large migrant population has strained public services to breaking point and further aggravated the problems of tenancy and squatting. In addition, severe social tensions and racial divisions have coloured the transformation of industrial and residential areas.