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 km2) of agricultural land.

[4] 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.

[5] 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.

[1] 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.

Tengku Razaleigh and Raja Mohar played pivotal roles in obtaining government support and financial resources for the operation, ensuring its success.

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.

[11][12] The success of the Dawn Raid led to subsequent takeovers of other British plantation companies in Malaysia, including Highlands & Lowlands and Harrisons & Crosfield.