First premiership of Mahathir Mohamad

Mahathir Mohamad
Mahathir Mohamad
First premiership of Mahathir Mohamad
16 July 1981 – 31 October 2003
MonarchsAhmad Shah
Iskandar
Azlan Shah
Ja'afar
Salahuddin
Sirajuddin
Cabinet
PartyBNUMNO
Election
SeatSeri Perdana
← Hussein

Mahathir Mohamad was sworn in as Malaysia’s fourth prime minister on 16 July 1981, beginning his first premiership which lasted until 2003—the longest in the country’s history. He adopted the slogan "Clean, Efficient and Trustworthy" ("Bersih, Cekap dan Amanah") and introduced wide-ranging political, economic, and administrative reforms to modernize Malaysia and strengthen its presence on the global stage.

Domestically, Mahathir continued and modified the New Economic Policy (NEP), promoting Bumiputera economic participation through privatization, industrialization, and major infrastructure projects such as the North–South Expressway and the development of Langkawi as a duty-free island. In 1991, following the conclusion of the NEP, he introduced the National Development Policy (NDP), which retained affirmative action elements but placed greater emphasis on economic growth, private sector expansion, and poverty reduction. That same year, he announced Vision 2020, a national agenda to transform Malaysia into a developed country by the year 2020. During the 1997 Asian Financial Crisis, Mahathir took unorthodox measures including capital controls and a fixed exchange rate, which helped stabilize the economy and avoid IMF intervention.

Politically, Mahathir sought to modernize Malaysia’s governance by centralizing executive power and improving administrative efficiency. In 1987, Mahathir narrowly defeated Tengku Razaleigh Hamzah in a heated UMNO party election, a contest that deepened internal divisions and later led to the formation of a new UMNO in 1988. During his tenure, Mahathir’s government curbed the constitutional powers of the monarchy—including the removal of royal immunity from prosecution—thereby affirming the authority of the elected government within a parliamentary democracy. However, his leadership also saw challenges, including a major political crisis in 1998 when he dismissed Deputy Prime Minister Anwar Ibrahim, an event that drew widespread public attention and international scrutiny.

In foreign policy, Mahathir pursued the “Look East Policy” to deepen ties with Japan and South Korea, and temporarily boycotted British goods in response to diplomatic tensions, before later reconciling with Prime Minister Margaret Thatcher. He played an active role in international diplomacy, supporting anti-apartheid efforts in South Africa and advocating for Muslims in Bosnia. His tenure fundamentally reshaped Malaysia’s political and economic landscape, establishing his legacy as one of the most influential leaders in the developing world. Mahathir voluntarily retired in October 2003 and was succeeded by his deputy, Abdullah Ahmad Badawi. He was granted the soubriquet "Father of Modernisation" ("Bapa Pemodenan") of Malaysia.


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