Partyforumseasia: The Malaysian Chinese Association (MCA) has been thriving for decades as appendix of UMNO, helping to secure its absolute majority by bringing in substantial numbers of Chinese votes as a regular dowry and a counterbalance to the Chinese opposition DAP. Formation and success of the Pakatan Rakyat opposition coalition and the multi-racial approach of its Parti Keadilan Rakyat (PKR) as well as the growing attractiveness of the DAP for Chinese voters have undermined MCA’s traditional role. Factional infighting has crippled the party for some time already and the extremely narrow results in the recent internal elections may herald the further decline of what was once Malaysia’s second biggest political party. In 2008 it still won 15 parliamentary and 31 state seats, in May 2013 only 7 and 11 seats respectively. But, as it was pampered by big brother UMNO with ministerial portfolios and business opportunities during its heydays, MCA is still very rich. According to a Straits Times article on 22 December the party assets are estimated at nearly 3 billion RM, which comes to over 900 million US$. These assets, land, buildings, companies (Huaren Holdings) and a 42% stake in the Star daily may keep the leadership posts embattled. 2,325 delegates elected president and deputy president, four vice-presidents and 25 central committee members, and Mr. Liow Tiong Lai has won the presidency by just 26 votes.

Strategic Lessons: Piggy rides are dangerous coalition strategies. Junior partners have to maintain their usefulness for big brother or risk decline. Assets may keep them alive for some time but not for long.

Difficult to compare but interesting:
The German Free Democratic Party (FDP), a long term successful piggy rider in various coalitions, has lost all seats in the federal parliament in September this year. Its survival may be more difficult than for MCA because it has no assets…