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Immediately after the end of the World War II, British Firms in Southeast Asia were confronted by unprecedented challenges posed by war destruction, political and economic instability, and the presence of nationalist movements across the region, over which the British government hardly had any control. The British governments and firms with business interests in the region worked together to overcome post-war problems. However, despite the fact that there was a symbiosis of interest in the interactions between them, there were limitations as to how far that this could go and the firms were often left alone to deal with problems. In such circumstances, if the firms were determined to survive, they had to adapt to new situation.
This paper aims at exploring firms’ own strategy for survival, often in the absence of assistance from the central governments. The findings suggest that the British firms needed flexibility to continue their business, thus pursued the localization of management. They also diversified the range of business operations and widened the sphere of investment. Underlying these efforts was a belief that their contribution to the region’s economy would also help get them through the post-war difficulties. In spite of the efforts made by the Southeast Asian governments to diversify their economies away from concentration on the extractive industries, the significance of these industries in the Southeast Asian economies remained throughout 1950s and 1960s and even beyond, and so did the foreign influence in these economies. British firms had the relative advantage of being the traditional commercial power in the region, but nevertheless much depended on the goodwill of the newly independent countries.
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