# Dawn Raid (Malaysia)

The Dawn Raid (Malay: Serangan Subuh) was an economic maneuver carried out by Malaysia on 7 September 1981 to reclaim control of Guthrie Corporation, a British-owned plantation company. The operation involved the rapid acquisition of its shares on the London Stock Exchange, enabling Malaysia to secure a majority stake and reclaim approximately 200,000 acres (800 km$^2$) of agricultural land. This event is considered a significant moment in Malaysia's economic history, representing its efforts to regain control over key economic resources previously held by foreign entities.
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Prehistoric period Paleolithic  Lenggong Valley c. 2,000,0000 BCE  Mansuli Valley235,000 BCE Mesolithic  Niah cultures 65,000–40,000 BCE Neolithic  Bewah man/woman 16,000 BCE  Perak man/woman 11,000–200 BCE  Neolithic Klang 500 – 200 BCE :
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Independence period Malayan Independence 1957 Singapore self-governance 1959 ISA 1960 1960–2012 Sarawak Insurgency 1962–1990 North Borneo self-governance 1963 Konfrontasi 1963–1966 Sarawak self-governance 1963 Formation of Malaysia 1963 Singapore in Malaysia 1963–1965 ASEAN Declaration 1967 Second communist insurgency 1968–1989 :
Modern period 13 May incident 1969 National Operations Council 1969–1971 Declaration of Rukun Negara 1970 New Economic Policy 1971–1990 Federal Territory of KL 1974 1977 Kelantan Emergency 1977 Pedra Branca dispute 1979–2008 South China Sea dispute (Spratly) 1980–present Dawn Raid 1981 Federal Territory of Labuan 1984 Memali incident 1985 Operation Lalang 1987 Constitutional crisis 1987–1988 Peace Agreement of Hat Yai 1989 Royal Immunity Amendments 1993 Asian financial crisis 1997–1998 Reformasi Movement 1998–2022 2008 Malaysian Opposition Wave 2008 H1N1 flu pandemic 2009–2010 Sedition Dragnet 2014 1MDB scandal 2015–present Pakatan Harapan takeover 2018 COVID-19 pandemic 2020–2022 Political crisis 2020–2022 Bornean Amendment 2021–2023 Green Wave 2022–present :
Incidents Brunei revolt 1962–1966 North Borneo dispute (Philippine militant attacks) 1962–present Singapore race riots 1964 Brunei's Limbang claim 1967–2009 Penang Hartal riot 1967 13 May Incident 1969 Ligitan and Sipadan dispute 1969–2002 Kuala Lumpur flash floods 1971 Malaysian haze crisis 1972–present AIA building hostage crisis 1975 National Monument bombing 1975 Campbell Shopping Complex fire 1976 Sabah Air GAF Nomad crash 1976 Japan Airlines Flight 715 incident 1977 MH653 incident 1977 1985 Lahad Datu ambush 1985 Memali Incident 1985 Sabah Emergency 1986 Ming Court Affair 1987 Penang terminal bridge collapse 1988 Taufiqiah Al-Khairiah madrasa fire 1989 Bright Sparklers disaster 1991 Highland Towers collapse 1993 Genting landslide 1995 MH2133 incident 1995 Pos Dipang mudflow 1996 Tropical Storm Greg 1996 1998–1999 Malaysia Nipah virus outbreak 1998–1999 2000 Sipadan kidnappings 2000 Al-Ma'unah incident 2000 Sauk Siege 2000 2001 Kampung Medan riots 2001 2002 Taman Hillview landslide 2002 Indian Ocean tsunami 2004 2006–2007 Southeast Asian floods 2006–2007 Bukit Gantang bus crash 2007 Bukit Antarabangsa landslide 2008 H1N1 flu pandemic 2009 Attacks against places of worship 2010 Cameron Highlands bus crash 2010 Hulu Langat landslide 2011 Genting Highlands bus crash 2013 MH370 incident 2014 MH17 incident 2014 2014–15 Malaysia floods 2014–2015 Sabah earthquake 2015 2015 Plaza Low Yat riot2015 Movida Bar grenade attack 2016 Kim Jong-nam's Assassination 2017 Darul Quran madrasa fire2017 2018 Subang Temple riot 2018 2020-21 Malaysia floods 2021 LRT train collision 2021 2021-22 Malaysia floods 2021–2022 2022 Batang Kali landslide 2022 2023 Elmina plane crash 2023 2024 Lumut helicopters crash 2024 2024 Ulu Tiram police station attack 2024 :
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## Historical background

During the 19th and 20th centuries, Malaysia (then Malaya) was under British colonial rule, which saw the establishment of large-scale plantation industries. Guthrie Corporation, founded in 1821 in Singapore by Alexander Guthrie, introduced major agricultural commodities to the region, including rubber in 1896 and oil palm in 1924. By the early 20th century, Guthrie had become the second-largest plantation company in Malaya after Harrisons and Crosfield.
Following Malaysia’s independence in 1957, British companies retained significant control over key economic sectors, including plantations and mining. Guthrie Corporation, like many British companies, continued to dominate the plantation industry. The company expanded its holdings to nearly 194,000 acres by the early 1980s, while maintaining limited representation of Malaysians in its workforce and management.
Despite mounting frustration over foreign dominance, Malaysia’s early leaders, including the first Prime Minister, Tunku Abdul Rahman, were cautious about nationalizing British companies, fearing potential economic repercussions. The New Economic Policy (NEP), introduced in 1971, aimed to eradicate poverty and restructure corporate ownership to achieve 30% Bumiputera equity. Progress toward this goal, however, was slow, as large foreign ownership in the plantation and mining sectors remained intact. To address this, the Malaysian government avoided outright nationalization, which could have deterred Foreign Direct Investment (FDI), and instead adopted market-based strategies. This cautious approach shifted significantly under Prime Minister Mahathir Mohamad, who implemented a more assertive economic policy to reduce foreign control and increase Bumiputera equity.
Economic tensions between Malaysia and the United Kingdom further fueled the initiative. These included disputes over tuition fees for Malaysian students in the UK and landing rights for Malaysia Airlines at Heathrow Airport.

## Planning and execution

The raid was masterminded by Permodalan Nasional Berhad (PNB), a government-linked investment corporation established in 1978 to increase Bumiputera ownership of corporate assets. Key figures included Ismail Mohamed Ali, Chairman of PNB and former Governor of Bank Negara Malaysia; Khalid Ibrahim, PNB’s CEO; Tengku Razaleigh Hamzah, then Minister of Finance; Raja Mohar, a senior economic advisor; and Prime Minister Mahathir Mohamad. The plan was supported by financial advisors from Rothschild & Co., including Evelyn de Rothschild, who provided strategic guidance.
PNB began by accumulating a substantial minority stake in Guthrie, with 5% of shares directly held and an additional 27.6% owned through Sime Darby, another PNB-linked entity. Additional shares were secured from Southeast Asian firms and investors, forming a foundation for the takeover. Tengku Razaleigh and Raja Mohar played pivotal roles in obtaining government support and financial resources for the operation, ensuring its success.
On 7 September 1981, the raid commenced with brokerage firms Rowe & Pitman and M&G Investments purchasing Guthrie shares on the London Stock Exchange. Within 10 minutes of trading, PNB secured a 51% stake, enabling Malaysia to relocate Guthrie’s management and plantations back to the country. The operation was executed with such precision that Guthrie’s management remained unaware of the takeover until it was complete.

## Immediate outcomes

The Guthrie Dawn Raid transferred ownership of vast plantation assets into Malaysian hands. The acquisition aligned with NEP objectives, redirecting Guthrie’s land and profits towards increasing Bumiputera economic participation. Khalid Ibrahim played a pivotal role in managing the transition, later serving as Guthrie’s CEO from 1995 to 2003.
The raid strained diplomatic relations between Malaysia and the United Kingdom. British Prime Minister Margaret Thatcher responded by enacting stricter stock market regulations to prevent similar events. Additionally, Malaysia implemented a policy of Buy British Last, further heightening tensions. Diplomatic reconciliation occurred in 1983 when Thatcher hosted Mahathir at 10 Downing Street, leading to agreements on student subsidies, technical assistance programs, and the resolution of the landing rights issue.

## Broader impacts

The success of the Dawn Raid led to subsequent takeovers of other British plantation companies in Malaysia, including Highlands & Lowlands and Harrisons & Crosfield. It is regarded as a significant step in Malaysia’s efforts to reduce foreign ownership and strengthen national economic autonomy.
Domestically, the raid revealed challenges in balancing economic restructuring with social equity. Although Guthrie’s ownership was transferred to Malaysians, plantation workers continued to experience low wages and limited advancement opportunities. Additionally, the operation’s success prompted discussions on the ethical implications of economic nationalism.