Open Letter to President, Armed Forces Veteran Association


February 24, 2017

Open Letter to President, Armed Forces Veteran Association: Don’t Ampu Corrupt Malaysian Prime Minister Najib Razak

by Dato’ Mohd Arshad Raji

I received many responses to the short write-up I wrote regarding an announcement to gather more than 100,000 veterans to an assembly in July this year, allegedly made by you at a recently held Round table Conference attended by the various Armed Forces Veteran Associations in Kuala Lumpur.

Image result for Veteran's Protest at Ambiga House

Why don’t Army Veterans do this to Corrupt Najib Razak ?

I am not privy to the reason(s) for the assembly, and the number of veterans to be gathered is unusually large. I then begin to question myself as to the purpose of the mammoth assembly, and it soon strike me to a rumour that has been going around of a possible GE-14 to be held anytime before the end of this year.

I don’t think you made the announcement on your own accord, but I strongly believe the announcement was prompted by someone high in the nation’s political hierarchy, and in all probability with selfish political agendas. I can only think of this i.e. the assembly is to propagate and influence the minds of veterans to support the current political regime.

Image result for fahmi reza at bersih 5.0

The ruling regime must understand what the Armed Forces Veterans had stood for, and many had lost their lives, and many others maimed for the rest of their lives in defence of the nation. The ruling regime today cannot question the loyalty of the veterans for they have proven themselves to have served the nation and King faithfully, that had brought about the prevailing peace and security of the nation today.

Image result for China owns Malaysia
A Facility for China’s emerging Blue Water Navy in the Malacca Straits

The issues affecting the nation today are startling and there is now a raising concern that the nation of which we defended with our lives will even lose it sovereignty to a foreign nation if the present regime remains ignorant to this three central issues i.e. firstly, the massive national debt that is simply ballooning; secondly, the selling off outright large tracts of land to a foreign company on the pretext of joint development and thirdly, the willingness to allow a foreign company to further develop the sea ports of Malacca and Kuantan on the pretext to facilitate and improve commercial shipping.

Now, just tell me who is actually financing all these massive projects when we know the national coffer couldn’t simply afford it. Are these loans taken from the foreign company that will only be paid many years later? Were all these projects thoroughly debated and approved by parliament? Who actually proposed and approved the projects bearing in mind the nation’s affordability to repay the loans? Now let me tell you this i.e. that all these projects will have a long-term security impact on the nation and I just wonder if the Armed Forces chiefs and leaders of our police force were ever consulted about these projects. If they were consulted and had approved it, then I say they are all foolish and are equally ignorant as their political masters as to the long-term security impact these projects will bear upon the nation. One only have to read what is happening to Sri Lanka today.

Image result for Malaysian Armed Forces Veterans to rally in July 2017

The Corrupt Couple –A lethal combination for the moral degradation of Malaysian polity

Now, going back to the proposed mass assembly of veterans, I demand the purpose of the assembly be reasoned out to us. If it has the slightest political connotation i.e. to boost the image of our political masters to meet their self-serving political agendas, then I demand most sincerely that the assembly be called off.

*_Pse viral this message as requested by the writer_*

The Kim Jong-nam Assassination: Tussle between China and North Korea


February 21, 2017

The Kim Jong-nam Assassination:Kuala Lumpur caught in an Ongoing Tussle between Beijing and Pyongyang

As dramatic and disturbing as the assassination of Kim Jong-nam is, it is simply a sideshow in the ongoing tussle between Beijing and Pyongyang. 

An uppity client state 

North Korea has long been a Chinese client state. It owes its very existence to China which also accounts for 89% of North Korea’s foreign trade. Chinese economic assistance, food aid and investments literally keep North Korea afloat.

As a client state, North Korea is expected to be mindful of China’s overall strategic interests in the region. No one, however, apparently briefed North Korea’s brash young leader about the niceties of client state behaviour. Since coming to power in 2011, Kim Jong-un’s actions have caused alarm and concern in Beijing.

His nuclear weapons programme and poorly timed missile testing threaten to upset the delicate balance of power that China is seeking to maintain in East Asia at a time when there is an unpredictable new occupant in the White House. The Chinese were also chagrined by the 2013 execution for treason of Kim’s uncle, Jang Song-thaek, who was well respected in Beijing. There were also a number of other unpleasant incidents between the two countries involving the treatment of Chinese investors and businessmen in North Korea.

More than anything else, however, a credible nuclear capability would give the North Korean dictator greater manoeuvrability vis-à-vis China and other powers, a worrying prospect for the Chinese leadership. As one Chinese professor put it, “If we choose an ally that can’t be tamed, we might become the biggest loser.”

To show its displeasure, China joined the international criticism of North Korea’s missile tests and last week rejected a shipment of coal from North Korea.

A slap in the face

Kim Jong-nam’s assassination has now plunged China-North Korea relations to a new low. It was no secret that Kim Jong-nam, the elder half-brother of Kim Jong-un, was under China’s protection, having lived in China since he fell from favour more than a decade ago. His presence in China was a constant reminder to Kim Jong-un that China had a convenient replacement, one who had perhaps a better claim to the throne as the eldest son, if he proved too unreasonable. For that reason alone, Kim Jong-nam was a marked man.

However, not even the mercurial and impulsive North Korean leader would have dared act against his half-brother while he was on Chinese soil. It would have been an insult that China would simply not have tolerated.

Malaysia, on the other hand, with its open doors, lax security and indulgent attitude towards North Korea is another story. Certainly, the North Korean leadership would not have expected that Malaysia would react the way it did. The law of unintended consequences just keeps cropping up in international affairs.

The reaction from Beijing was also not long in coming. Shortly after the assassination, China suspended all shipments of coal from North Korea until the end of the year. While the move was presented as part of China’s efforts to implement UN sanctions against North Korea, it is almost certainly a direct response to the Kim assassination in Kuala Lumpur.

As coal is North Korea’s single largest export item to China, the suspension is bound to hit the North Korean regime particularly hard. No doubt other measures are being planned as well although China is unlikely, at least at this stage, to attempt regime change in Pyongyang.

A tougher than expected response

In the immediate aftermath of the assassination, Malaysia appeared to go out of its way to avoid doing anything that would further exacerbate the situation. The Home Minister indicated that the body would, in due course, be returned to Pyongyang in accordance with international practice. He also insisted that the incident would not affect bilateral relations.

The provocative response of the North Korean Ambassador, however, appears to have stiffened Malaysia’s resolve.

In two rambling press conferences, the Ambassador accused Malaysia of a litany of offenses – colluding with his country’s enemies, scheming to implicate North Korea in the assassination, roughing up North Korean citizens and violating human rights and international law.

Failure to respond appropriately to such a provocation would have made the Malaysian government, already beset by a number of domestic scandals, look weak.

Interestingly, while the Ambassador alluded to South Korea when he accused Malaysia of colluding with “hostile forces,” his comments could apply to China as well.

Wisma Putra, which was largely silent in the early days of the drama, quickly responded by summoning the North Korean Ambassador for a dressing down. More significantly, Wisma Putra announced that Malaysia’s Ambassador in Pyongyang had been recalled for consultations – the strongest diplomatic show of displeasure short of breaking off relations.

Image result for malaysian embassy in north korea

Recalling our Ambassador is absolutely the right thing to do given that it is now pretty clear that North Korea was complicit in the assassination. No country can look with equanimity upon such outrageous behaviour.

The North Korean Ambassador is, of course, in a very delicate situation; he has a Damocles sword hanging over him. If he is not seen to be zealous and conscientious enough in defence of the regime, he could suffer the same fate as his predecessor who found himself at the wrong end of a firing squad after being recalled from Kuala Lumpur. It is this fear of the consequences of failure, as much as anything else, that might have pushed him to the point where his actions have now done serious damage to the bilateral relations. It is hard to see him continuing in his present post for long.

Such are the perils of working in the North Korean foreign service.

Diplomatic and protocol issues

The assassination also raises interesting protocol issues. According to Satow’s Guide to Diplomatic Practice, long the go to handbook for diplomats, “If the death [of a diplomat] takes place in circumstances where ordinarily an inquest would be held, the authorities in the receiving state should if necessary be reminded that it has been general international practice not to hold an inquest where a diplomatic agent or other member of a mission dies in office, whether in inviolable premises or not.”

Some would argue, therefore, that Malaysia did not have the authority to carry out the post-mortem and that North Korea is within its rights to demand the return of Kim Jong-nam’s remains given that he was travelling on a diplomatic passport.

However, it can also be argued that although Kim Jong-nam was travelling on a diplomatic passport he was not formally accredited here and is, therefore, not subject to the same protocol.

What this means is that Malaysia has a great deal of latitude in deciding how to proceed with the case. Given that other countries – China and South Korea come to mind – also have a vested interest in the outcome, Malaysia will have to tread a careful path if it wishes to avoid being caught up in the bigger power play that is unfolding behind the scenes.

For now at least, both China and South Korea will no doubt be pleased with Malaysia’s tough stance. They will take satisfaction that the investigation has resulted in prolonged negative exposure for Pyongyang that will both further isolate and discredit the regime.

What happens now will depend, to a large degree, on how things play out between Beijing and Pyongyang. Where the remains of Kim Jong-nam finally ends up will provide interesting clues.

Malaysia, which has been increasingly deferential to China – even quietly sending back to China Muslim Uighur refugees who sought asylum in Malaysia – will likely be mindful of China’s interest in the matter.

Rethinking Malaysia-North Korea relations 

embassy

Address: Diplomatic Enclave Munhung-dong, Taedonggang District Pyongyang …Malaysian Embassy

If nothing else, hopefully the assassination and the angry North Korean response to Kuala Lumpur’s handling of the case will prompt a reassessment of relations with Pyongyang.

For some unfathomable reason, Malaysia has had a resident diplomatic mission in Pyongyang since 2003, one of only 23 missions in the North Korean capital. Unfathomable because trade is practically non-existent (with almost zero prospects of improvement) and there are simply no bilateral issues worth talking about that would warrant the expense of a mission.

Perhaps in a desperate bid to add some substance to the relationship, both countries even explored ways to enhance tourism, never mind that North Korea is a country with no outbound tourists and only a few, possibly insane, inbound travelers.

What is more preposterous, however, was the decision some years ago to quietly take in 300 North Korean workers to work in Sarawak’s mining sector. Why Malaysia would even think of employing North Korean workers – slave labour, to all intent and purposes, toiling in a distant land to augment the regime’s scarce foreign reserves – is a mystery.

Malaysia also plays host to an approximately 1000 strong tightly knit community of North Korean businessmen, restaurant workers and other dubious ‘professionals,’ all of whom are controlled by the North Korean embassy and serve the interests of the state in one form or another.

Clearly, this is a one-sided relationship that benefits North Korea rather than Malaysia. Certainly, not many Malaysian taxpayers will lose any sleep if our mission in Pyongyang is shut for good.

 

Malaysia: China, Malaysian Chinese and GE-14


February 15, 2017

Malaysia: China, Malaysian Chinese and GE-14

by Dato Dennis Ignatius@www.freemalaysiatoday.com

Image result for Salleh Said Keruak

Communications and Multimedia Minister Salleh Said Keruak (pictured with de facto PM Rosmah Mansor) recently offered three reasons why Barisan Nasional (BN) can expect a significant increase in support from the Chinese community at the next general elections – “the opposition’s shortcomings despite being given the opportunity; Malaysia’s good relations with China; and, the good moral politics practiced by the BN.” (Bernama, 5th February 2017)

It is an astonishing assertion to say the least. In the first place, by any reckoning, the Opposition in both Selangor and Penang has, in fact, performed far better than previous UMNO-BN governments. In a few short years, corruption and waste are significantly down; there is greater accountability and transparency and people are better off than before. And this despite the unrelenting hostility and lack of cooperation from the federal government.

The Opposition may have their shortcomings but there’s little doubt that if they ever came to power at the federal level, Malaysia would be the better for it.

As for the claim that BN practices “good moral politics,” it is so risible that it isn’t even worth a second thought.

The China card

The reference to China, on the other hand, is significant if only for the mindset it reveals. It suggests that the Minister  who is notorious when he was a Sabah state minister  considers Malaysian Chinese more parochial than patriotic, that the Chinese community will overlook the bigotry and racial prejudice perpetrated against them as well as the injustice, corruption and scandal that have blighted our nation simply because they prize good relations with China.

Acting on this belief, UMNO-BN ministers have assiduously sought to co-opt China into their elections strategy in the expectation that China’s ringing endorsement of the current Malaysian leadership will play out well with Malaysian Chinese.

At the ground level, a senior UMNO minister even went so far as to accompany the Chinese Ambassador around as the ambassador distributed Chinese government assistance to Malaysian Chinese schools, something that was always frowned upon in the past.

The MCA too appears to be counting on China’s endorsement to restore its fortunes as the party of choice for Malaysian Chinese. By setting up a PRC affairs committee and an OBOR (One Belt One Road) centre, the MCA is clearly hoping to convince Malaysian Chinese that its close relationship with China will bring huge dividends to the Malaysian Chinese community through lucrative deals, projects and other businesses.

But is relations with China a key election issue for Malaysian Chinese? Even a cursory survey of Malaysian Chinese attitudes suggests otherwise. In fact, their key concerns – security, education, tolerance and good governance – are not even on Salleh’s radar.

Security and safety

There is no doubt that Malaysian Chinese have been quite traumatized by the rising level of anti-Chinese sentiment in the country as well as the threat of racial violence.

Image result for Chinese Ambassador in Petaling Street

The Chinese Ambassador to Malaysia in Petaling Street, Kuala Lumpur (2015)

For many, the 2015 Petaling Street affair – when senior UMNO leaders shamefully stood by and did nothing even as the Red Shirts threatened a bloodbath – was a turning point; it indicated that Malaysian Chinese could no longer count on UMNO-BN for their safety and survival.

Frustrated at the lack of government action and fearful for their safety, many Malaysian Chinese, and others as well, applauded when the Chinese Ambassador finally intervened to stop things from getting out of hand.

Those who believe that China might provide some protection for Malaysian Chinese might, therefore, welcome closer relations with China; not because of any loyalty per se to their ancestral homeland but simply in the hope that it would bring a measure of stability.

Some also harbour the hope that closer relations with China might somehow forestall the growing drift towards Islamic extremism in Malaysia, another area of great concern to Malaysian Chinese as well as to other Malaysians. They reason that the more indispensable China is to Malaysia’s economic well-being and to UMNO-BN’s survival, the less UMNO would want to scare them away with any dramatic Islamisation initiatives.

Related image

The Anti-Chinese Malays

Whether China can or will provide such a security blanket is, however, an open question. Observers have argued, for example, that the Chinese Ambassador’s intervention in the Petaling Street affair was aimed more at avoiding the kind of internal instability that could jeopardize China’s economic and political gains in the country rather than out of any particular concern for Malaysian Chinese.

Education

It is no secret that Malaysian Chinese also place a very high premium on education and the opportunities that a good education provides. It is, after all, education that transformed a ragtag bunch of largely indentured labourers into an economic powerhouse that Deputy Prime Minister Ahmad Zahid Hamidi recently described as “the group that will carry the nation forward.”

Image result for The Racist Zahid Hamidi

The Deputy Prime Minister Zahid Hamidi with UMNO Racists, Noh Omar and Jamal Ikan Bakar Yunos

In this context, the Chinese school system occupies a special place in the Malaysian Chinese psyche. It is more than just education; it is about inculcating traditional values, culture and language. Its very existence is a psychological beacon of hope and comfort, an assurance that their language, culture and identity will endure.

When the Chinese school system is condemned as unconstitutional, detrimental to national integration and threatened with closure, when the Unified Examination Certificate is refused recognition, when funds are withheld, it is, rightly or wrongly, perceived as a thinly veiled attack on the Malaysian Chinese community itself.

After all, how is it justified to demand the closure of Chinese schools on the grounds of national unity when Chinese schools today are more integrated than national schools, when foreign English-medium private schools proliferate, when monoracial educational and religious institutions continue to flourish with government support?

To be sure, we have a serious national unity issue in this country that needs urgent attention. However, the way to build unity must surely be through consultation, cooperation and accommodation rather than further marginalising besieged minorities or demonising them for political expediency.

Tolerance

As well, Malaysian Chinese are deeply concerned, even grieved, over the way they have been racially harassed and taunted by many from within UMNO and PAS itself.

It hurts that even after more than a century of living in Malaysia and contributing to its development as much as anyone else, they are still considered interlopers, intruders and “pendatangs.” It hurts when they are taunted as unpatriotic, as disloyal, as ungrateful. It hurts when decades of blood, sweat and tears in the service of their nation are dismissed as irrelevant or deliberately downplayed. Or that their votes are not solicited with promises of wise policies but demanded with threats of punishment and retribution.

And it hurts when those who come from countries like Indonesia are permitted to be proud of their heritage while Malaysian Chinese must always be watchful lest they be accused of chauvinism and disloyalty.

Sure, no community is without their faults but the constant racist polemics is discouraging, discomforting and disquieting.

Good governance

Finally, there is the issue of good governance.Like other Malaysians, Malaysian Chinese are sick and tired of the corruption and abuse of power that has become commonplace in our nation today.

It was this concern that compelled thousands of them to join their fellow citizens in participating in the BERSIH rallies, despite the threats and intimidation, to press for political change, for respect for the constitution and for good and clean governance.

Image result for najib sold malaysia to china

Malaysian Chinese, in fact, feel insulted that politicians think they can be won over simply on the promise of good relations with China. They are, first and foremost, Malaysians and it is national issues like good governance, justice and respect for diversity that matter far more to them than relations with China.

Malaysian Chinese want what other Malaysians want

If UMNO-BN wants to win the support of Malaysian Chinese, it does not need to look to China; it simply needs to treat them with respect and dignity as fellow citizens of this nation we all call home.

In the final analysis, Malaysian Chinese want what everybody else in Malaysia so desperately wants – good governance, security, respect for our constitution and for the rights of all citizens irrespective of race or religion, and the opportunity to pursue their dreams and live in peace with their fellow citizens. And the answer to that is not found in Beijing but in Putrajaya.

 

 

 

The Domestic Frays in Sino–Malaysian Ties


January 27, 2017

The Domestic Frays in Sino–Malaysian Ties

by  Ngeow Chow Bing, University of Malaya

 

Image result for China and Malaysia

In the very first week of 2017, two People’s Liberation Army Navy (PLAN) vessels visited the port of Kota Kinabalu, headquarters to Malaysia’s Naval Region Command 2, which oversees the disputed South China Sea waters. The two vessels were identified as CNS Chang Cheng and CNS Chang Xing Dao on the Malaysian Navy’s social media account.

But a Chinese source provided more information about the two vessels. They were identified as Chang Cheng 271, a submarine, and Chang Xing Dao 861, a submarine support ship. Both ships belong to the North Sea Fleet of the PLAN and were returning from a mission in the Gulf of Aden. During their stay at Kota Kinabalu, the vessel’s officers met with the commander and officers of the Naval Region Command 2 and political leaders of Sabah, invited Malaysian sailors on board the Chang Cheng 271 and held a ceremony on the dock of Chang Xing Dao 861.

While there has been a history of PLAN port calls in Malaysia, this was the first PLAN submarine to visit a Malaysian port. But this is not the first time Chang Cheng and Chang Xing Dao have appeared together. Back in 2009, both vessels visited Sri Lanka. Chinese submarine visits to foreign ports are rare (or rarely reported openly) because submarines signify stealth warfare and are much more sensitive and secretive in nature. The visit by CNS Chang Cheng is therefore important in a symbolic sense, signalling that Malaysia has earned China’s trust despite the ongoing South China Sea dispute.

Image result for CNS Chang Cheng

CNS Chang Cheng 271

This CNS Chang Cheng visit, according to the same Chinese source, was mooted during the visit to Malaysia by PLAN Commander Admiral Wu Shengli back in November 2015. The then Malaysian navy chief admiral Abdul Aziz Jaafar proposed that PLAN vessels, including submarines, were welcome to dock at Kota Kinabalu for supply and replenishment, an offer that Admiral Wu accepted.

Two months earlier, three PLAN vessels were in the Straits of Malacca conducting a combined exercise with the Malaysian military. And in November 2016, Malaysia announced that its navy would procure four littoral mission ships from China, the first significant military procurement of its kind between the two countries. The submarine visit is the latest episode not only of intensifying Sino–Malaysian naval cooperation, but also of a burgeoning Sino–Malaysia bilateral relationship. Malaysian Prime Minister Najib reportedly said on several occasions that bilateral ties have hit a ‘historical high’ during his visit to China in October–November 2016.

But the growing Sino–Malaysian ties have come under increasing scrutiny in Malaysia. Ever since two Chinese state-owned enterprises (China General Nuclear Power Corp and China Railway Engineering Corp) stepped in to rescue the debt-ridden 1Malaysia Development Berhad (1MDB) — a government-owned development company — in late 2015, Chinese investments in Malaysia have been portrayed by Najib’s opponents as facilitating the political survival of Najib and the ruling regime.

Image result for Najib in ChinaNajib Razak to President Xi of China–Lu Tolong Gua, Gua Tolong Lu

Najib’s 2016 visit to China, for example, brought back 14 commercial agreements amounting to more than 144 billion Malaysian ringgit (about US$33 billion). But Najib soon found himself needing to defend his China policy against critics who accused him of selling out the country to China. More recently, two heavyweight leaders of the newest Malay-based opposition party Bersatu — former Prime Minister Mahathir Mohamad and former deputy prime minister Muhyiddin Yassin — also spoke out against Chinese investment as benefiting only Najib and his government and not the Malaysian people. Their criticisms drew a swift rebuke from the Chinese embassy in Malaysia.

These are signs that Sino–Malaysia relations can no longer be insulated from domestic politics in Malaysia. In past elections, the country’s foreign relations were not a major campaign issue. In fact, when the ‘China card’ has been played previously, it was always a ‘positive China card’, whereby the ruling coalition used a good relationship with China to draw support from ethnic Chinese voters. In the upcoming election there is a good chance that the ‘China card’ may be played negatively for the first time, especially by opposition parties such as Bersatu who seek to arouse dissatisfaction among rural Malay voters.

Image result for Najib in China

China also faces a dilemma. When Najib approached China for more investment, China saw this as a good opportunity to cement a relationship with a key Southeast Asian country. But China is also being criticised for investing too much into the relationship with Najib and his allies, to the extent that the Sino–Malaysia relationship now seems to be based on, and driven by, Najib’s personal agenda. Any threat to the prime ministership of Najib could therefore become a threat to Sino–Malaysian ties. There is a real risk that Chinese investment projects could be suspended or delayed if Najib is forced out of power or if the opposition wins.

To avoid this, China cannot simply dismiss concerns pointed out by critics of its investments and must be transparent in its economic dealings with Malaysia.

Ngeow Chow Bing is Deputy Director of the Institute of China Studies at the University of Malaya.

http://www.eastasiaforum.org/2017/01/26/the-domestic-frays-in-sino-malaysian-ties/

Harping on Chinese FDIs in Malaysia


January 16, 2017

Harping on Chinese FDIs in Malaysia

by Josh Hong @www.malaysiakini.com

Image result for China's Malaysian Investments

A leopard never changes its spots, does it? Having failed to offer a set of alternative policies and convince the general public of their ‘reformist’ credentials, Dr. Mahathir Mohamad, Zainuddin Maidin and Muhyiddin Yassin are now all back to bashing Najib Abdul Razak along the not-so-subtle racial lines.

Yes, China has been investing aggressively in Malaysia, but the Chinese are not the first ones who came, saw and conquered our market in recent years.

Before that, the Americans, Japanese and Arabs, too, had pursued very proactive business strategies in South-East Asia. With its relatively well-developed infrastructure and affordable land, Malaysia stood to benefit tremendously from their investments for more than three decades.

Since the 2000s, the Arabs, too, have been investing heavily in strategic industries in Malaysia, especially the petrochemical sector and real estate development, with the United Arab Emirates emerging as one of Malaysia’s largest trading partners and among the most vigorous investors in Malaysia’s oil and gas industries.

Mubadala Petroleum is currently setting its sights on Sarawak, while the International Petroleum Investment Company remains a key investor in Malaysia despite the 1MDB debacle. Both Putrajaya and Abu Dhabi maintain bilateral and trade relations are rock solid.

Meanwhile, the Qatar Investment Authority is a big player in Malaysia’s strategic real estate, commodities and energy sector. In 2013, it had plans to develop the Pengerang Integrated Petroleum Complex in southern Johor that was worth US$5 billion, aimed at making the country a petrochemical regional hub, not too dissimilar from China seeking to help turn Malaysia into a ‘transportation hub’ via Bandar Malaysia and the proposed high-speed rail terminal.

Even less well-known was that an agreement was signed in 2012 to make Qatar Holding a cornerstone investor in Felda Global Ventures Holdings Berhad, no doubt a highly important and vitally strategic global agricultural and agri-commodities company, while the Kuwait Investment Authority invested US$150 million in Malaysia’s IHH Healthcare.

At one time, the Qataris and the Najib government even agreed to build a ‘seven-star’ Harrods Hotel in the Bukit Bintang area in Kuala Lumpur, right next to the upmarket Pavilion shopping mall. The business venture somehow went awry and subsequently called off.

This aside, Saudi Arabia several years ago ranked fifth among Malaysia’s leading sources of investment, just behind Japan, South Korea, the US and Singapore. China was nowhere to be seen then.

Image result for Mahathir on Chinese Investments in Malaysia

Mind you, PetroSaudi International was deeply involved in the scandal-ridden 1MDB and the Saudi Foreign Minister Adel al-Jubei even confirmed in April last year that money was wired into Najib’s personal account and it was a “genuine donation with nothing expected in return”.

Now, one may derive from the s statement that the Kingdom of Saudi Arabia was complicit in corruption on a global scale but did any Malay or Muslim leader in UMNO or outside of it accuse the Saudi government of seeking to undermine Malaysia’s sovereignty or taking over the country? Is Saudi Arabia beyond reproach simply because it is where Mecca, Islam’s holy city is located?

The Arabs have been coming but no-one, certainly not UMNO, Mahathir or his minions in Bersatu, has said a word against investors from the Gulf region.

Nobody is talking about Najib turning the country into an Arab colony except for Marina Mahathir who lashed out at ‘Arab colonialism’ because traditional baju Melayu for women are now more difficult to find than in the old days as compared to the increasingly popular Arab attire. But her father has yet to cast aspersions on Najib selling Malaysia out to the Arabs through all the strategic investments.

Instead, Mahathir has been harping on Chinese nationals buying up lands and properties and blaming it on Najib, hoping that this would heighten the siege mentality of the Malays which would in turn alienate them further from UMNO.

Image result for Mahathir on Chinese Investments in Malaysia

But Mahathir’s subterfuge can escape anyone but me. After all, it was his alleged racist rhetoric that kept him in power for over two decades, and Malaysia’s complex racial dynamics have created a fertile ground for a cunning strategist like him.

Crafted with the Malay constituency in mind

The messages by Mahathir, Zainuddin and Muhyiddin are not a coincidence, for they are all carefully crafted with the Malay constituency in mind.

They cannot openly demonise the Chinese Malaysian community because they need to ensure the opposition parties including DAP win enough Chinese votes, but at the same time, they are in dire need of denying Najib critical Malay support. So the best way to achieve this is to play up China as a bogeyman.

Mahathir and Bersatu may appear to be concerned over the influx of mainland Chinese capital and money, but their articulation is nothing but a veiled warning to the Malays that continued support for Najib would mean a greater Chinese presence in Malaysia, to the detriment of the ‘indigenous population’, of course.

Why pick on the Chinese when your Muslim brethren from the Middle East are no less commercially greedy and strategically ambitious?

It is not very different from the days when Mahathir ‘cari pasal’ (find fault) with Singapore in order to consolidate the Malay base. Stigmatising Chinese Malaysians comes at too huge a political cost, hence the sudden ‘realisation’ of mainland Chinese investments being a threat.

It is nothing more than a repackaged argument that, in favouring the (mainland) Chinese, Najib would only end up marginalising the Malays, just like the British.

If Mahathir and his cohorts have an issue with excessive foreign investments, they must not just single out China but the Gulf countries also. Mahathir may even question his own national car policy which only resulted in Malaysia becoming almost totally dependent on Japan for spare parts and technology, while failing to make Proton a car giant as he would have dreamed!

I have a problem with Islamic conservatism, but I have no problems with the Muslims; I am sceptical about American expansionism but I am fine with the American people; I am opposed to Israeli policies on Palestine but I don’t hate the Jews; I disagree with Shinzo Abe’s historical revisionism but I appreciate Japan as a wonderful country, and I look askance at communist ideology yet I enjoy the friendship of my mainland Chinese friends.

And I remain very much a leftist and a liberal who considers neo-liberalism a major source of the global chaos today. But unlike Mahathir, I vow not to use race or religion as my weapon even if I am wary of the destructive power of capitalism, because I have always been acutely aware of the hard fact that capital and money have no motherland.

Go on supporting Mahathir and Bersatu if you want, and I won’t shed a tear for you even if one day you find yourself trapped in the quicksand of racial politics and unable to be free.


JOSH HONG studied politics at London Metropolitan University and the School of Oriental and African Studies, University of London. A keen watcher of domestic and international politics, he longs for a day when Malaysians will learn and master the art of self-mockery, and enjoy life to the full in spite of politicians.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

China’s Investments–Geo-Political Implications for Malaysia


January 14, 2017

China’s Investments–Geo-Political Implications for Malaysia

by Dennis Ignatius

Image result for China's Investments in MalaysiaHe is praying for the best but not doing his best

China’s ravenous appetite for Malaysian infrastructure assets has resulted in yet another multibillion ringgit deal. In early January, a RM6.3 billion deal to redevelop and expand Penang Port was signed between two Chinese port operators (Shenzhen Yantian Port Group and Rizhao Port Group) and local partner, KAJ Development, a relatively unknown reportedly state-owned company incorporated in 2001.According to press reports, the project would increase the port’s ship handling capacity to 100,000 ships per year.

Dominating the transport sector

The Penang deal comes on the heels of KAJ Development’s RM30 billion Malacca Gateway Project with another Chinese conglomerate, Powerchina International Group. The Gateway project includes extensive land reclamation and the development of what is expected to be the biggest port in the region.

Image result for RM12.5 billion Kuala Linggi International Port

Barely 55 km away from the Malacca Gateway project, work has begun on the RM12.5 billion Kuala Linggi International Port project, funded by China Railway, Port & Engineering Group. When completed, Linggi port will become, according to a company statement, “the world’s preferred shipping hub in the Straits of Malacca” offering port facilities, storage and transshipment of crude oil and petroleum products and repair and bunkering facilities.

According to press reports, construction has gone ahead despite objections that the project could well be an environmental hazard. Not to be outdone, the Port Klang Authority is now planning to build another giant port on Carey Island which is expected to cost RM200 billion. According to reports, the transport ministry is in talks with China Merchants Group to finance the project.

On the east cost of Peninsular Malaysia, another Chinese company, Guangxi Beibu International Port Group already owns a 40% stake of Kuantan Port Consortium and is investing billions to double the port’s capacity. China is also a key investor in Sarawak’s Samalaju Industrial Port project.

At this rate, and given China’s already sizeable investments in our railway infrastructure, China will soon be the dominant player in Malaysia’s transportation sector.

Unanswered questions

Quite apart from the obvious security implications, China’s massive investments in ports and railways have also raised a number of concerns which have yet to be adequately addressed.

How much port capacity, for example, do we really need bearing in mind that we spent billions developing the Port of Tanjung Pelapas (making it one of the largest container ports in the region) and that not all of our ports are operating at fully capacity?

And how will other major port developments now being planned along the Malacca Straits, such as the mammoth Tuah project in Singapore and the China-funded Tanjung Sauh port in Indonesia’s Batam island impact overall capacity? It certainly looks like this whole port building frenzy has gone off the deep end, especially as no convincing argument has been made that such a significant increase in port capacity is even warranted.

Without credible feasibility studies and greater transparency, these projects could well end up like the Petroleum Hub project which was taken out of service in 2012 after the government had spent more than RM100 billion on land reclamation, costs which Malaysia’s long suffering taxpayers are now having to shoulder. 

It is also unclear what the actual financial arrangements are for many of these Chinese projects and what kind of concessions and guarantees Malaysia has had to offer. That some of these projects involve secret negotiations and secret agreements with companies that don’t appear to have much experience or which have been blacklisted by the World Bank, only adds to concerns about control, ownership, costs, viability and the potential for corruption.

And unlike earlier infrastructure projects where local companies retained significant oversight and decision-making authority, projects with China invariably end up with Chinese companies in charge of management, design, procurement and construction. Even the workers come from China!

Whatever happened to all our national policies about equity, local participation and transfer of technology? At the end of the day, it is hardly the kind of “equal, mutually beneficial, win-win” situation that the Chinese embassy here likes to brag about.

OBOR?

Image result for China’s One Belt One Road (OBOR) Initiative

The other thing about many of these Chinese projects is the constant reference by Malaysian politicians and businessmen to China’s One Belt One Road (OBOR) initiative. Suddenly, it is no longer about Malaysia’s national development goals or priorities but about whether or not it is relevant to OBOR.

It is perhaps a testimony to China’s increasing power and influence that many of our political and business leaders are now gamely parroting the Chinese line about how great and magical OBOR is and how fortunate we lesser mortals are to receive Chinese loans, Chinese technology and Chinese expertise to help build OBOR-related infrastructure.

What they don’t see or don’t want to acknowledge is that through clever financing arrangements, China is in fact getting us to pay for the infrastructure that it needs to establish economic primacy in the region. OBOR is primarily about China’s strategic national objectives; whatever benefits to Malaysia are purely incidental.

In the absence of a critical and in-depth assessment of whether these OBOR-related projects genuinely serve Malaysia’s interests and are worth the costs to Malaysian taxpayers, it would be ‘bodoh’ to acquiesce to it.

The geopolitical element

And let’s not be unmindful of the geopolitical considerations as well. Will we see Malaysian ports, for example, being integrated into the Chinese Navy’s regional infrastructure to support its growing naval presence in the region?

While the government is coy about the kind of naval access that has been given to the Chinese Navy for obvious political reasons, port calls by Chinese naval vessels are increasing. Two Chinese submarines, for example, quietly docked at Kota Kinabalu port recently while Chinese warships now regularly use other Malaysian port facilities.

Image result for Chinese Navy in the Straits of Malacca

China of the 21st Century is a nation of geo-strategic thinkers and state entrepreneurs–Keeping Asia secure and safe means China is safe too.

China is making strategic investments to fortify its position as the dominant player in the South China Sea with modern port facilities in ASEAN and expand trade in Chinese manufactured goods and services. It is using Malaysia to have important stakes in the Straits of Malacca (in Malacca, Penang and Johore ports). Why not, particularly when assets in Malaysia can be acquired on the cheap or profitable investments made  at inflated cost (for the benefit of corrupt UMNO and Barisan Nosional politicians). I am not against Chinese investments per se, but I am very concerned with deals done on a hush-hush basis by Najib and his cohorts. China’s moves in Asia does not end with the  South China Sea. It is back to the age-old objective of keeping the barbarians at the gate.–Din Merican

Of course, naval vessels from other countries regularly berth at our ports, and in itself is no cause for alarm. However, only China is aggressively pursuing territorial claims against Malaysia. For that reason alone, caution is called for. Does it make sense for us to facilitate the very naval force that is intruding into our waters, harassing our fishermen, laying claim to our reefs and islands and gathering data to support those claims?

Colony building

Image result for RM100 billion Forest City project

There are also growing concerns about the massive residential and commercial development projects that are being built with Chinese capital.

The RM100 billion Forest City project, for example, one of two being built by Chinese conglomerate Country Garden, will reportedly house more than 700,000 people in a development that will include office towers, parks, hotels, shopping malls and an international school.

Meanwhile, China state-owned Greenland Group is building office towers, apartments and shops on 128 acres in Tebrau, Johor, while Guangzhou R & F Properties Co. has begun construction on the first phase of Princess Cove, another mixed development along the Johor coast, with hotels, offices, parks, shopping malls and clubhouses.

Image result for bandar malaysia – china’s new regional capital

In Kuala Lumpur, China Railway Group (CRG) will be developing the mega Bandar Malaysia project which is expected to cost between RM160 – 200 billion. Bandar Malaysia will host the world’s largest underground city together with shopping malls, indoor theme parks, a financial centre, residential and commercial units as well as the RM8.3 billion regional headquarters of China Railway.

CRG is also involved in another RM2.1 billion project in Ampang to build 7,000 residential units as well as commercial and retail outlets. In keeping with the management practices of most China-based corporations, CRG has been appointed the main contractor with sole responsibility for monitoring, managing and supervising the day-to-day construction and operations of the project.

Reports suggest that these massive residential and commercial developments in Malaysia are being marketed mainly to PRC nationals who wish to work, reside or holiday in Malaysia. Country Garden, for example, has been aggressively promoting its Forest City project in China; it is already the 11thmost popular investment destination for Chinese home buyers on Juwai.com.

In addition, relatively cheaper living costs, affordable private medical facilities, a (mostly) smog- free environment and proximity to both China and Singapore, make Malaysia a preferred retirement destination for middle-class Chinese. China’s ageing population (240 million over the age of 60 by 2020) makes for a huge potential market that Chinese developers are hoping to exploit.

If the expectations of these China-based developers are realized, we could be seeing more than a million PRC nationals living in Malaysia within a decade.

Malaysians must ask themselves whether it would be desirable to see a huge influx of citizens from just one country establishing foreign enclaves here. It is not beyond the realm of possibility that these colonies could soon evolve into exclusive, semi-autonomous zones serviced and managed by PRC nationals for the benefit of PRC nationals.

What impact will this have on the social, cultural and political fabric of our nation? How will it affect property prices? How will any downturn in the Chinese economy influence the local property market? How much of the related infrastructure costs of these projects are being borne by Malaysian taxpayers? And what kind of concessions are being given to these property developers?

Viewed from almost any perspective, therefore, Malaysia’s burgeoning economic, political and military relationship with China ought to set off alarm bells across the nation.

Image result for bandar malaysia – china’s new regional capital

The combination of a rising power with global ambitions backed by an unlimited stash of cash buying up strategic infrastructure assets, on the one hand, and a local political elite bent on staying in power at all costs tethered to cronies more interested in profits than patriotism, on the other, could prove a fatal one.

Even in the best of circumstances, it would be simply too risky to allow any one country to dominate our economy and control critical infrastructure networks the way China is now set to do. It gives China too much power and influence in the affairs of our nation and it leaves us too indebted, too exposed to a country whose intentions must be considered with some circumspection.

How far will China go to protect its position?

One thing we can be sure of, though, if history is anything to go by: the more China invests in Malaysia, the more China will be tempted to intervene and meddle in our affairs to protect its investments and ensure its strategic position is not jeopardized. Indeed, China has already begun to do so.

In a statement just this week, the Chinese embassy lashed out at opposition leaders and others for questioning the government’s policies towards China, accusing them of having ulterior motives and instigating hatred against China and warned that “China will not allow anyone to jeopardize the mutually beneficial bilateral cooperation between China and Malaysia.”

Amazingly, the Embassy also dared to presume to speak for Malaysian Chinese when it suggested that such actions by the opposition would not earn them the trust of the Malaysian Chinese community.

Clearly, the Chinese embassy now feels it has the right to threaten our politicians, inveigh against those who raise questions about China’s investments and inject itself into what is essentially a domestic discussion.

Such brazen interference in our domestic affairs will only get worse. How far will China now go to stifle domestic opposition and criticism to its increasing role in our nation? Will it work behind the scenes to prop up local pro-China leaders in much the same way as the CIA did in other countries? 

The most pressing foreign policy challenge

Tellingly, while the Chinese embassy grows bolder, many of our own leaders remain silent despite blatant acts of interfere in our domestic affairs.

In the early years of our relationship with China, our security agencies were extremely concerned that Malaysia’s ethnic Chinese community might sell out to China; who would have thought we would end up in situation where many of our politicians and officials would be so blinded to the challenges that China now presents or worse still, resign themselves to the inevitability of some sort of Chinese domination?

One minister, for instance, recently remarked in his blog that “it is futile trying to resist China’s great march forward just like it was futile to resist Western colonialism 500 years ago.” He also said that China is buying up assets all over the world and that is something that “Malaysia needs to accept or else get left behind and perish.”

Let’s be clear: this is not about trying to stop China from rising or about shunning Chinese investments but about ensuring that we don’t get colonized again, about making sure that China does not get to the point where it controls our economy and is able to dictate policy as it already does in some neighbouring countries.

Whatever it is, Malaysians must not be lulled into a false sense of complacency by all the sweet talk of mega contracts, grandiose promises of prosperity and jobs or the effusive pledges of eternal friendship for that matter.

China is no different from any other big power and we would do well to be wary when dealing with it.

Image result for tun muhammad ghazali bin shafie

As the late Tun Ghazali Shafie, arguably the best Foreign Minister we’ve ever had, was fond of reminding us at Wisma Putra: small countries on the peripheries of a big power don’t have the luxury of taking anything for granted.

At the very least, we owe it to ourselves, and to future generations, to have a national debate on this, the most pressing foreign policy challenge we now face as a nation. And the Chinese embassy would do well to butt out of it.