Bumiputra Interests and Recent Trends in the Tin Mining Industry in Peninsular Malaysia

Abstract

Tin mining is the oldest primary industry in Malaysia which has contributed a lot to the income of the country. However its performance has been fluctuating. After the Second World War, its production level improved to reach the second highest peak in 1972 but since then it has been declining. Lately the industry has lost its importance as reserves have depleted and prices are very low. It was during this decline that Malaysia under its New Economic Policy (1971-90) attempted to increase Bumiputra participation in the industry, particularly in the ownership of mines and mining companies. In the initial stage, the efforts of the government proved successful as the number of mines owned by Bumiputras increased, but such an increase could not be sustained. As world tin trade in 1980s and early 1990s did not improve and kept on declining, most of the tin mines in Malaysia including those which were Bumiputra-owned had to close down. Mines that are left working are operating poorly. Some mines such as those owned by Malaysian Mining Corporation (MMC) are incurring losses. Thus, the efforts by the government to increase Bumiputra participation in the industry have not materialised well following the falling trend of the industry.