Malaysia-China Relations: Not China but we are the financially irresponsible and reckless nation


April 4, 2017

Malaysia-China Relations: Not China but we are the financially irresponsible and reckless nation

by P. Gunasegaram@www.malaysiakini.com

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Malaysia’s sudden, new-found amour with China in a plethora of business deals worth hundreds of billions, coming in the wake of the 1Malaysia Development Bhd (1MDB) scandal where RM40 billion is already at risk or  wasted, is tremendously worrying.

The huge amount of China borrowings that will accompany such deals, with delayed payment for up to seven years in some cases, will put the country in grave economic danger in the future as many of the infrastructure projects are not viable.

If some of the projects do not raise enough cash flow to start repaying the massive borrowings by the time payments are due, a great strain will be imposed on the country’s financial position and may even result in it becoming unable to meet its obligations, leading to default.

Already, the involvement of China state-owned firms in 1MDB-related projects such as buying power assets and taking stakes in property development ventures have raised legitimate fears that some of these may involve quid pro quo arrangements in other deals which may benefit Chinese firms.

In other words, putting it bluntly, Malaysia may be giving China plum deals in return for help in covering the hole of over RM30 billion in 1MDB. More on that later but first, here’s a list of some mega deals made.

1. Purchase of 1MDB’s power assets for RM9.83 billion cash in November 2015.

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The purchase was made by China General Nuclear or CGN, putting power assets which were purchased from Malaysian private hands into a China state company. That rubbishes any claim that 1MDB was a strategic development company. The price was considered inflated, leading to speculation that other projects will go to China to compensate for this.

2. Purchase of 1MDB land for RM7.4 billion.

Less than two months later, on New Year’s Eve in 2015, 1MDB sold a 60% controlling interest in Bandar Malaysia to a consortium comprising Iskandar Waterfront Holdings and China Railway Engineering Corporation, a China state company. The latter holds a 40% stake in the venture. This is a highly questionable deal surrendering control of one of 1MDB’s two flagship projects to others, including a China company, when there is enough local property development expertise. It lends credence to there being a quid pro quo deal with China.

3. China is expected to get high-speed rail project costing RM40-80 billion.

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The high-speed rail project between Kuala Lumpur and Singapore is expected to go to a China firm despite international tenders being planned. Interestingly, the Kuala Lumpur terminus is at Bandar Malaysia.

4. The RM55 billion East Coast Rail Link (ECRL) project announced in November 2016.

China will both fund and build this project which has a seven-year delayed payment provision. Essentially a double-tracking project linking the east coast states with the west, there has been no economic viability study on it. There are genuine fears that the construction cost is terribly overstated and it is unviable.

5. A proposed RM200 billion port development in Port Klang.

China is supposedly in the running for this massive project if it does see the light of day. This is a long-term project which again may be unnecessary considering the number of ports being developed concurrently now.

6.The RM42 billion Melaka Gateway project in September 2016.

This includes four islands – three man-made, in a RM30 billion deal with China companies – a port, a bulk-and-break terminal, ship building and ship repair, mixed development, shopping complexes, ferry terminals, marina and so on. Where is the demand for these going to come from?

7. The RM400 billion gross development value Forest City off Johor.

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This massive development on four man-made islands, which may eventually house 700,000 people, is being developed by a China company, effectively in a joint venture with the Johor Sultan. Considering that it is a property development which local players could easily have undertaken, what is the rationale for bringing in yet a Chinese company into this?

Not for altruistic reasons

There are more. Prime Minister Najib Abdul Razak, after a visit to China in November, came back with memoranda of agreement for RM144 billion worth of projects. That list includes ECRL and the Melaka Gateway projects but not the others, which means there are several more projects worth tens of billions of ringgit.

What is very alarming about these projects is their dubious economic value, leading to strong suspicion that they could well be related to covering a hole of over RM30 billion in 1MDB – the Auditor-General’s Report on 1MDB reportedly says US$7 billion could not be accounted for.

In fact, the Financial Times of the UK reported in December that 1MDB is preparing to make a repayment with Chinese assistance to Abu Dhabi’s state-owned fund in settling a US$6.5 billion (RM28.6 billion) dispute over an alleged breach of contract.

The move to begin repaying what 1MDB owes Abu Dhabi’s International Petroleum Investment Company (IPIC) was confirmed by two people familiar with the matter, the FT said.

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Najib Razak and Big Momma

China has been approached as a source of funds for 1MDB, the FT said, citing three people with knowledge of the matter, one of whom said Malaysia would swap assets for financing.

China is of course not doing all of this for altruistic reasons but to further its own interests. First, it aims to get work for its companies and sometimes its own people – it sends in its own workers for many projects.

Two, if countries are unable to repay their debts, then more assets will have to be handed over to China and the affected countries become ever more indebted and linked to China in other ways, furthering China’s aim of strategic and military influence, as this article titled ‘China’s debt-trap diplomacy’ eloquently points out.

As a small country, Malaysia has been rather adept at playing the role of the nimble kijang or deer which keeps itself from getting crushed when elephants fight. But 1MDB’s problems may be leading us down a path which is even more dangerous than the garden path the so-called strategic development company led us up on earlier.

P GUNASEGARAM says throwing good money after bad is a lousy deal which only the desperate make. Email: t.p.guna@gmail.com.

Malaysia-China’s Asymmetrical Partnership


March 6, 2017

Malaysia-China’s Asymmetrical Partnership

by Dennis Ignatius

Image result for Najib in China

Even the most casual observer of our nation’s politics will not fail to notice the growing influence of China in our national affairs. Not a day goes by when reports of some new investment, some new deal, some new initiative by China doesn’t make headlines. Suddenly, China is everywhere and not in a small way.

Dominant economic partner

China is already Malaysia’s dominant economic partner – it is our second largest export market, is increasingly critical to the health of our tourism industry (4 million Chinese tourists expected this year), our education sector (10,000 Chinese students currently studying in Malaysia), and the sustainability of our oil palm industry.

It will soon come to dominate our ports and railways as well as our housing and construction sectors. With the purchase of 1MDB-related Edra Global Energy Bhd. assets, it also became the second largest independent power producer in the country.

In the next decade or so, it is estimated that China will invest, lend and spend at least half a trillion ringgit on infrastructure, property development and other projects across Malaysia. Never has our country seen this much money pouring in from a single source in such a relatively short space of time.

Manna from heaven

Many, particularly those who stand to profit most from this new relationship, welcome China’s growing involvement in our country. To them, it is, of course, a once-in-a lifetime bonanza, manna from heaven, an unparalleled opportunity to make millions. They assume that what is good for them is automatically good for the nation as a whole.

Consequently, many of our political leaders and business tycoons are falling over each other to sing China’s praises and highlight the benefits of the blossoming relationship. To them, China is a great friend, a powerful benefactor, a genuine economic partner, a benign political power. And they can’t seem to get enough of China.

The dangers of asymmetrical relationships

However, the sheer asymmetrical nature of the relationship as well as the enormous political and economic leverage that China now wields cannot but be cause for concern.

And yet, concern is the one word that is missing from the lexicon of our relations with China. In our rush to embrace China’s largesse, we are being wilfully negligent of the political, economic and security implications.

It is surely axiomatic that as China’s stake in Malaysia increases, China will be more proactive in our domestic politics if only to ensure the continuity of parties, personalities and policies that favour China.

Malaysia, is in fact, far too important to China now to be left to the vagaries of Malaysian politics and the caprices of the local electorate.

Open endorsement of UMNO-BN

 The clearest indication of this is China’s increasingly open and forthright endorsement and support of the UMNO-BN government, the most pro-China government we’ve ever had. In fact, it can be argued that China’s grand strategy vis-à-vis Malaysia is, in many respects, contingent on UMNO-BN remaining in office.

It should therefore come as no surprise that we are now seeing Chinese diplomats not only attending local party political gatherings but also accompanying UMNO-BN politicians to political events and on constituency visits.

Last year, for example, the Chinese Ambassador accompanied Defence Minister Hishamuddin Hussein, MCA Deputy President Wee Ka Siong, and MCA assemblyperson Teoh Yap Kun on visits to Hishamuddin’s Semborong parliamentary constituency and Teoh’s Paloh constituency.

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Since then Chinese diplomats have been spotted with MCA Vice-President Chew Mei Fun in Raub (where she is rumoured to be the candidate in the next elections), with MCA Youth chief, Datuk Chong Sin Woon in Nilai, with MCA President Datuk Seri Liow Tiong Lai when he officiated the opening of a meeting of the Federation of Hakka Associations, and with Gerakan President Mah Siew Keong in Teluk Intan.

And this is likely only the tip of the iceberg as many other visits go unreported.

During these visits, Chinese diplomats routinely take the opportunity to praise the Najib Administration, stress the importance of the MCA and press the point that the Malaysian Chinese community has a lot to gain from the relationship with China that is now being developed.

The Chinese ambassador has also urged Malaysian Chinese to support the MCA because without the MCA, “Malaysian Chinese have no say in the government.”

Champion of Chinese education

Having cast himself as ‘lord protector’ of the Malaysian Chinese community during the Petaling Street affair in 2015 and knowing the great importance Malaysian Chinese attach to Chinese education, the Chinese ambassador has now positioned himself as a champion of Chinese education in Malaysia.

He has tirelessly criss-crossed the country, often accompanied by MCA and even UMNO politicians, visiting dozens of Chinese schools and distributing hundreds of thousands of ringgit in assistance and scholarships. He has also promised to initiate a teacher-training programme that could see PRC teachers in our schools.

MCA-BN – China alliance

 China’s unequivocal message to Malaysian Chinese, therefore, is that they must support the emerging MCA-BN-China alliance if they wish to safeguard their rights, preserve Chinese education, have a strong voice in government, profit from business with China and ensure that relations with their ancestral homeland remain strong.

It is, as well, an exhortation to Malaysian Chinese to put aside their resentment and distrust of both UMNO and MCA and vote BN for the greater good of both countries.

Clearly, if this shrewd political strategy succeeds, the main losers will be the DAP.

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But such is the power and influence of China in our domestic affairs that even the DAP has now been forced to moderate its hitherto principled opposition to the sheer lunacy of some of the China-related projects and make peace with the Chinese Ambassador. All that this has accomplished, however, was to vindicate, in the eyes of DAP supporters, the MCA’s collaboration with China.

The MCA, for its part, increasingly behaves as if it is but an extension of the Chinese mbassy rather than a member of the ruling coalition. It recently established a PRC affairs committee as well as an OBOR centre and does more to promote OBOR than the Chinese Embassy itself. Some would argue that these actions make the MCA the main vehicle of PRC influence and propaganda in the country today.

 

Unchallenged and unchecked

And yet, these clear and troubling manifestations of foreign political interference in our domestic affairs, in contravention of established diplomatic practice, go unchallenged. That it is being done with the connivance of local political leaders does not make it any less troublesome.

One can only wonder how the UMNO-BN crowd would react if the Australian or American ambassador urged Malaysians to vote for the opposition if they wished to safeguard their democratic rights.

Once this door is open, there is no telling where it will lead to. UMNO-BN politicians make a big fuss over trivial things like the paltry sums given to a few NGOs to promote free and fair elections by the Open Society Foundation but think nothing of facilitating a far more insidious form of foreign interference that threatens to undermine what’s left of our democratic process.

Hijacked elections?

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MCA playing the China Card to enhance credibility and isolate DAP

The question now is how far China will go to protect its interests in Malaysia. Will PRC money come into play in the next elections, taking money politics to new heights? Will the upcoming elections be the first elections in Malaysia when a foreign power will be actively working behind the scenes to influence its outcome?

The next general election is already shaping up to be one of the most critical we’ve ever had. The very future of our country is at stake – whether we will remain a secular democracy or not, whether corruption and cronyism will triumph over transparency and good governance, whether our constitution itself will survive in its present form.

Certainly, too much will be riding on these elections for us to allow a foreign power to hijack them for its own purposes.

And any political party which comes to power with China’s help will undoubtedly be subservient to China’s interests. What is at stake, therefore, is not just the sale of critical infrastructure assets but possibly the sale of the country itself.

A nation at its lowest ebb

The fact that China is knocking on our doors at a time when our nation is at its lowest ebb renders us particularly vulnerable.

We are today a nation more divided than ever before – not just Malay against non-Malay but Malay against Malay, Chinese against Chinese, Indian against Indian. It’s Muslim against non-Muslim, rural against urban, rich against poor.

Nearly 60 years after independence we are still arguing bitterly about language, citizenship, education, religion and race while decades of racial and religious manipulation have left us wary and suspicious of each other.

We are so suspicious of each other that we’d rather depend on foreigners than work together to find solutions to our pressing problems; we are so busy fighting each other that there’s literally no one to guard the front door.

In the meantime, corruption and abuse of power have rendered our national institutions and our political processes weak and dysfunctional, unable to provide the essential checks and balances, the steady hand, the careful and impartial analyses, the proper legal and regulatory framework that is a prerequisite for national resilience.

When we find ourselves in a situation, for instance, where suddenly almost every single port in the country needs to be massively expanded with Chinese money or that we suddenly need not one but three, and perhaps four, expensive railway systems built by China, we have to wonder whether projects are now being driven by economic necessity or pure greed and foreign pressure.

Malaysia First

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Many will, of course, dismiss these concerns as alarmist or reject them as anti-China or anti-government rhetoric.

China’s growing influence in our domestic affairs cannot, however, be easily dismissed.It is alarming and Malaysians ought to be deeply, deeply concerned.

At the very least, we ought to have an informed discussion of what is going on so that we understand all the implications and consequences and ensure that policies and projects serve the national interests rather than undermine them. It is simply much too important an issue to be left to vested interests to decide behind closed doors.

It’s not about being anti-China but about being pro-Malaysia. It’s not about being opposed to good relations with China or being against Chinese investments; it’s about ensuring that relations with China do not come at the expense of our independence and sovereignty.

It is most assuredly not about the loyalty and commitment of any of our own citizens or about marginalizing the very real concerns they have but about ensuring that a foreign power does not exploit our internal divisions to its own advantage.

As well, this isn’t about being pro-West or pro-China but about ensuring that no country – east or west – dominates us to the point where we lose our ability to chart our own destiny.

And if standing up against corruption, mismanagement, the abuse of power, the lack of transparency and the deliberate neglect of vital national interests makes one anti-government, than so be it.

The greatest challenge

If China turns out to be unique among the big powers for its beneficence, munificence, generosity and respect for smaller states, well and good; but if not, then at least we’ll be better prepared to face the challenges ahead.

Our nation now faces one of the greatest external challenges it has ever faced. The dangers are real. The stakes are high. There will be no winners save the corrupt, and a foreign power, if we fail to successfully manage this great challenge that lies before us.

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.

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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.

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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.

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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.

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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.

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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 

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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

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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.

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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.

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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.”

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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.

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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

 

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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.

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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.

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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/