November 7, 2016
Najib’s Bailout by China comes at a price to Malaysia
by Dr.M. Bakri Musa, Morgan-Hill, California
Embracing China for Political Survival
With Prime Minister Najib Razak dancing with the Chinese dragon, it is worth reminding him and his admirers that dragons have no dance partners, only prey.
Najib is using the old and dangerous game of playing the major powers against each other. During his latest visit to Beijing he railed against the Americans for lecturing him on lapses in his leadership, specifically his corruption and trampling on his fellow citizens’ human rights. Najib then went on to poke America’s eyes by putting out a joint declaration with his Chinese counterpart calling for no outside interference in the brewing South China Sea crisis.
Only the deluded would believe that Najib had an equal or any say in that joint communique. His only contribution was to agree. Najib was there to beg China to bail out his 1MDB, as well as to borrow money. Beggars don’t get to choose.
The world is full of tragic examples of once stable nations now in tatters because their leaders thought they were smart or adroit enough to play one world power against the other. Egypt’s Nasser had the Russians finance his ambitious Aswan Dam, and banked on them to help Egypt against Israel. The humiliation of the Six Day War still haunts the Egyptians. His successor Anwar Sadat reversed course and cozied up to America, and in the process won the approval of the ultimate values gatekeeper of the West, the Nobel Committee, which awarded him the Peace Prize. At least Sadat brought peace to his people, albeit only too briefly. Egyptians today are still being whipsawed from one extreme to the other.
In dealing with others, local or foreign, small or great powers, we must be guided by our internal compass, our values. Those others may or may not share our qiblat. We have for example, no desire to emulate China on how it treats its minorities or dissidents. Nor does Malaysia wish to be treated like Tibet or China’s western Muslim provinces. Although I must admit that at times I wish Malaysia would adopt China’s treatment of its corrupt officials.
I am reminded of the rich towkay in a Malay village, charitable to his customers, extending them easy credit. Soon he owned the entire village. As we Malays say, Menang sorak, kampung tergadia (win the applause but mortgage the village).–M. Bakri Musa
Najib thinks that he looks elegant and puffed up dancing with the Chinese dragon. To me, he is more the painted lady on the dance floor of a Vegas whorehouse. We know who is paying for Najib’s services, on the dance floor and afterwards. Najib is paid well to act like an equal and enthusiastic partner, but we know what his role really is, as well as his price tag.
It is well over RM140 billion. Regardless, a high-priced hooker is still a hooker.Najib would like us to believe that China is investing in Malaysia, and he has convinced many. The reality is that Malaysia is borrowing those hundreds of billions. That money has to be repaid. The only positive aspect is that some of the money would be for financing infrastructures like the East Coast Rail and Trans Sabah Gas Pipeline, not for skyscrapers and fancy headquarters for civil servants.
Left unanswered however, is how much those projects would have cost had there been competitive international bidding. Nor do we know the financing terms. The 1MDB bonds cost several hundred basis points above the prevailing rates. Another unknown is how much of the Chinese money would be shifted to Najib’s personal account a la the Saudi investor and 1MDB, in gratitude for Najib’s ‘leadership?’
Beijing was generous to Najib. I am reminded of the rich towkay in a Malay village, charitable to his customers, extending them easy credit. Soon he owned the entire village. As we Malays say, Menang sorak, kampung tergadia (win the applause but mortgage the village).
China is an important country, quite apart from it being Malaysia’s biggest trading partner and sharing an extensive and contested maritime border. That relationship should be based on mutual respect and in accordance with international laws and norms, acknowledging that China is a major power while Malaysia isn’t. Being deeply in hock to China is not a good start to that kind of relationship.
The sparkle of Najib’s golf soiree with President Obama in Hawaii during Christmas of 2014 was short-lived, eclipsed by the blasting Malaysian sun. Najib is discovering to his sorrow that America has robust independent institutions. You may be Obama’s golfing partner, but if you indulge in illicit activities, its media will expose you and the Attorney-General will prosecute you. Malaysian officials may be bought with cheap titles and trinkets, not so America’s.
The Malaysian media is Najib’s lapdog, not so foreign ones or local social media. Thanks to the Guardian, The Wall Street Journal, and others, Najib is being subjected to unaccustomed scrutiny. Local alternate media amplify and extend the reach of those foreign news sources to average Malaysians.
There are a few certainties to Najib’s leadership. One, it will end. As for when, how and under what circumstances, the bomohs have as much credibility as the experts. With his echo chambers well amplified, Najib feels invincible. So did Saddam and Gaddafi not too long ago; they were even more ruthless and in power far longer than Najib. Two, the massive debts through 1MDB and now the Chinese loans incurred by Najib will burden Malaysians for generations. Three, Najib’s rank corruption. Regardless of the outcome of the current US Department of Justice’s 1MDB asset forfeiture lawsuit, it has already put a black mark on Malaysia.
Najib’s future does not interest me. As for the debt load, at least that is quantifiable; not so the soiling of Malaysia’s name. The plastic glitter of Najib dancing with the dragon star, like his earlier soiree with Obama, will also be short-lived. The dragon will not be denied its prey. Najib, and Malaysians, may yet feel the true impact of a tsunami, the Chinese version.