The Malay Dilemma Revisited (Updated and Revised Version)–A Strongly Recommended Read


May 23, 2017

The Malay Dilemma Revisited (Updated and Revised Version)–A Strongly Recommended Read

Few countries today have culturally or ethnically homogenous populations, the consequence of colonization, globalization, and mass migrations. Thus, the Malaysian dilemma of socioeconomic and other inequities paralleling racial and cultural divisions has global relevance as it also burdens many nations.

Malaysia’s basic instrument in ameliorating these horizontal (between groups) inequities has been its New Economic Policy (NEP). Its core mechanism being preferential socio-economic and other initiatives favoring indigenous Malays and other non-immigrant minorities, as well as massive state interventions in the marketplace. In place since 1970 in the aftermath of the deadly 1969 race riots, NEP has been continuously “strengthened,” meaning, ever increasing resources expended and preferences being imposed with greater assertiveness.

Malaysia succeeded to some degree in reducing her earlier inequities and in the process created a sizeable Malay middle class. There was however, a steep price. Apart from the marketplace distortions and consequent drag on the economy, those earlier horizontal inequities are now replaced by the more destabilizing vertical variety. NEP also bred a rentier- economy mindset among Malays and other recipient communities. Those preferences now impair rather than enhance the recipents’ (in particular Malay) competitiveness, the universal law of unintended consequences being operative.

Initiated by Prime Minister Razak in 1970, his successor, Mahathir, raised NEP to a much more aggressive level, only to have that initiative today corrupted and degraded by, ironically, Tun Razak’s son, current Prime Minister Najib. By July 2016, the US Department of Justice alleges that “Malaysian Official 1” (aka Najib) illicitly siphoned over US$3.5 Billion from a government-linked corporation, 1MDB. Corruption on such a gargantuan scale was the predictable and inevitable consequence of Malaysia’s New Economic Policy and state interventions in the marketplace.

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The book chronicles Mahathir’s and Najib’s perversion of a once noble endeavor. Najib now adds another volatile mix. Desperate to hang on to power, he adds religious fanaticism to his already corrosive corruption and destructive incomptence. He now cavorts with extremist Islamists, threatening and undermining the nation’s still fragile race dynamics. Malaysia is today still burdened and blighted by Najib’s inept, corrupt, and chauvinistic leadership, with no end in sight. This would inevitably undermone the current fragile but still peaceful racial equilibrium in the country.

Instead of arbitrarily-picked numbers and targets, Malaysia should focus on strengthening Malay competitiveness through enhancing our human and social capitals. Modernizing the education system to emphasize the sciences, mathematics, English fluency, and technical training would address the first. Curtailing royal institutions and other vestiges of feudalism, as well as the regressive form of religion as propagated by the state, would develop the second. It is difficult to wean Malays off the special privilege narcotic when the sultans are frolicking at the top of the heap.

Beyond chronicling the failures of both the Najib and Mahathir Administrations, the author offers these alternative strategies for enhancing Malay competitiveness. Apart from improving the quality of our human and social capital through modern education and responsive institutions, the author advocates removing or at least toning down the stifling influence of official religion.–Dr. M. Bakri Musa

Malaysia always in the News for Wrong Reasons


May 18, 2017

Malaysia always in the News for Wrong Reasons

by Dato Dennis Ignatius

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Malaysia’s disgraceful disregard for human rights

 

The  UMNO-led BN government seems to have a penchant for putting Malaysia in the international spotlight for all the wrong reasons. This time Malaysia is being widely criticised for the way it colluded with Turkey to detain and deport suspected opponents of the Erodogan regime.

Last week, three long-time Turkish residents of Malaysia – school principal Turgay Karaman, businessman Ihsan Aslan and academic Ismet Ozcelik – were surreptitiously detained and hastily bundled out of the country before their families could even mount a legal challenge.

The whole manner in which the Malaysian authorities handled the matter – the secretive way they were detained, the constantly changing reasons for their detention, the speed at which they were deported, the presence of Turkish agents – was deeply troubling.

Colluding with the Erdogan regime

It is now clear that their arrest and deportation was in response to pressure from the Turkish government.

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Since the unsuccessful coup in Turkey last year, Turkish President Tayyip Erdogan has been on a witch hunt against anyone remotely connected with his political nemesis, the US-based cleric Fethullah Gueln. Thousands of military personnel, teachers, civil servants, judges, reporters and others have been summarily detained or dismissed. Turkish agents have also targeted Turkish nationals living abroad, many on spurious grounds.

While many countries have expressed alarm at Turkey’s slide towards authoritarianism, Malaysia apparently has no compunction collaborating with the regime.

The Home Ministry’s insistence that it acted on its own to deport the aforementioned Turks because they were “members of an organization deemed illegal in their country” is disingenuous to say the least.

 

Long history of dubious extraditions

This is, of course, not the first time that Malaysia has engaged in dubious extraditions.

In 2004, Libyan national Abu Abdullah al-Sadiq and his then pregnant wife, Fatima Bouchar, were arrested in Kuala Lumpur, detained for 13 days and then transferred to CIA facilities in Thailand under the now infamous rendition programme. In Thailand Abu Abdullah was tortured before being sent back to Libya where he spent years in prison.

Cynically, while Malaysia was publicly critical of the US war on terrorism, it was quietly cooperating with the CIA in extrajudicial renditions.

In 2012, a Saudi journalist, Hamza Kashgari, accused of insulting the Prophet, was detained while on transit to New Zealand. Despite not having a formal extradition treaty with Saudi Arabia and notwithstanding a high court injunction against his extradition, he was sent back to Saudi Arabia.

Since 2011, Malaysian Police have also been quietly working with Chinese authorities to round up and deport Muslim Uighur refugees fleeing the on-going crackdown in Xinjiang province. Many of these refugees had registered with UNCHR and were awaiting for their claims to be reviewed when they were deported.

It is more than likely that many others may have also been clandestinely detained and dispatched to uncertain fates in unknown destinations.

Transparent rather than secretive

Image result for Malaysia's Human Rights AbusesMalaysia’s  IGP Khalid Ashburn and his henchmen of the Royal Malaysian Police in Service of UMNO

No one is, of course, suggesting that suspected terrorists should not be deported or extradited. Malaysia has an obligation to cooperate with other countries in the apprehension of terrorists and criminals. What is important, however, is for the process to be open and transparent rather than secretive and ad hoc. And, of course, the decisions of the government should always be subject to judicial review.

In April this year, for example, an Iranian national accused of involvement in the 2012 bombing in Thailand was extradited after his case was heard by the Federal Court. Surely that is the way a civilized country does things.

A dumping ground for terrorists

Interestingly, while we oblige Turkey by doing their dirty work for them, they repay the favour by quietly facilitating the passage to Malaysia of known terrorists, as was reported recently. We have apparently become the dumping ground for terrorists that Turkey apprehends. With friends like that, who needs enemies?

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The Three Stooges of Islamic Extremism

In the meantime, while the government deports Turks whose only crime may be their dislike of Erdogan, it opens its arms wide to people like Zakir Naik, an extremist preacher blacklisted by several countries for spreading hatred, funding terrorism and money laundering. India has now requested for an Interpol red corner notice against Zakir, which, if granted, would make him an international fugitive in the fullest sense of the word. Let’s see how quickly the authorities will act to deport him and even strip him of his undeserved PR status, if he is still in the country.

 

A Secular Islam Possible for Malaysia?


May 11, 2017

A Secular Islam Possible for Malaysia?

by Dr. Lim Teck Ghee@www.malaysiakini.com

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The recent PAS Muktamar brings to the forefront – yet again – the question of whether secular Islam is a possibility in an increasingly racially and religiously acrimonious and divided Malaysia.

Secularism has been defined as the separation of public life and civil/government matters from religious teachings and commandments, or more simply the separation of religion and politics. It is an evolution that the great majority of the world’s nations have gone through – some quickly, others more slowly.

However, almost all nations, even as they develop at uneven speeds, have inevitably gravitated towards a separation of religion and state.

Today, except for a few countries such as Saudi Arabia, Sudan, Iran and Yemen, most nations – developed and developing – view a religiously-based state as a throwback to a more primitive form of government; and a historical era in which life was nasty, brutish and short, except for the religious elite.

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Secular states in which governments are neutral in matters of religion and public activities, and where the states’ decisions are not dictated or influenced by religious beliefs, are the opposite of theocratic states.

At the same time it needs to be noted that not all secular states are alike. Thus we find states with a comprehensive commitment to secularism; those that are more accommodating to religion; and others that, although committed to neutrality, will selectively actively cooperate with religions.

Whatever the degree of secularity, secular states, except those which morph into totalitarianism or autocratic systems, are committed to the implementation of national and international norms protecting the freedom of religion or belief, and abide by constitutions which guarantee the equal treatment of different communities of religion and belief within society.

In sharp contrast the theocratic state has a God or a particular deity to be the supreme civil ruler. Also the God’s or particular deity’s commandments are held to be the definitive law of the land; and the authorities and their representatives who interpret the commandments claim a superior or divine duty in running the affairs of state and society.

Debates on merits ongoing, but no poll held

Debate on the relative merits of theocratic and secular states has been ongoing for several hundreds of years in both Muslim and Christian worlds. In our era, a poll of the world’s foremost leaders – including religious – on what they may view to be a superior form of government – secular or theocratic – has never been held.

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The Late Karpal Singh is right but when he was Prime  Minister, Tun Dr. Mahathir had the audacity to claim that Malaysia is already an Islamic state, while his successor promoted Islam Hadhari and Najib Razak embraced Hadi Awang’s Hududism and Zakir Naik.  As a result, the Malays have become a confused people.–Din Merican

But if one were to be undertaken today, I will not be surprised if the polled group of religious leaders – despite their concerns about the negative impact that a sharp break separating public life from religion could have on their congregations – will agree that a secular state is the correct path to progress and a better life for their religious communities.

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I expect too that few among the religious leaders would want a return to the days when there was a fusion of religious and political authority, even if they may personally benefit from the shift of power in society.

For, make no mistake about it, history – past and current – is replete with examples of how theocratic states, even after co-opting or hijacking secularised concepts of equality and justice, have invariably lapsed into religious tyrannies with dire consequences for all of the citizenry.

As Thomas Paine, one of the founding fathers of the United States noted, “Of all the tyrannies that affect mankind, tyranny in religion is the worst; every other species of tyranny is limited to the world we live in; but this attempts to stride beyond the grave, and seeks to pursue us into eternity.”

The crisis in Malaysia

Secular Malaysia today is facing a crisis with Muslim politicians from both sides of the political divide seeking to strengthen conservative Islam through castigating its moderate and liberal proponents, and by making the case that supporters of a secular Islam are kaffirs, traitors and enemies of the religion.

The situation has become so bad that few Muslims in the country are willing to take a public stand on the issue or declare support for secular Islam for fear of reprisal by religious extremists.

The sole exceptions that have stood out have been non-political figures, such as Mariam Mokhtar, Noor Farida Ariffin and some other members of G25, Syed Akbar Ali, Marina Mahathir, Haris Ibrahim, Din Merican, and Farouk Peru, and an even smaller number of politicians, notably Zaid Ibrahim and Ariff Sabri.

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One sees in their messages to fellow Muslims in this country some of the same concerns that are animating liberal and secular Muslims in other parts of the world, viz:

  • The rejection of interpretations of Islam that urge violence, social injustice and politicised Islam;
  • The rejection of bigotry and oppression against people based on prejudice arising from ethnicity, belief, religion, sexual orientation and gender expression;
  • Support for secular governance, democracy and liberty; and
  • Support for the right of individuals to publicly express criticism of Islam (see ‘Muslim Reform Movement’ by M Zuhdi Jasser and Raheel Raza et al).

Unfortunately, these messages – partly because they are communicated in English and partly because the mainstream Malay (and English ) media have chosen to ignore them – are unable to reach the Malay masses – whether in rural or urban communities. They have even failed to elicit support from the unknown number of open-minded and liberal Muslims who are now openly branded as “deviants” by Islamic religious authorities.

In the Malay world, it is Malay politicians and the Islamic elite and bureaucracy who have a monopoly over the variant of Islam that is propagated to the masses. It is a variant that is currently feeding on heightened ethnic and religious insecurities and jealousy, so as to make it much more difficult, if not impossible, to have a rational discourse on secular Islam, save that advocated by Umno and PAS.

LIM TECK GHEE is a former World Bank senior social scientist, whose report on bumiputera equity when he was director of Asli’s Centre for Public Policy Studies sparked controversy in 2006. He is now CEO of the Centre for Policy Initiatives.

Putting Malaysia’s Future in the hands of Mahathir Mohamad


April 28, 2017

Putting Malaysia’s Future in the hands of Mahathir Mohamad

by P. Gunasegaram@www.malaysiakini.com

If only the Opposition thought like Mahathir and stayed focused on their goal – which is not to just remove Najib but to change the government for the better – they will stay well away from a man like Mahathir – his record is there for all to see. Instead they have been seduced by the mantra, let’s get rid of Najib first.

If Opposition, in its strange state of amnesia, continues to forget to remember, they are going to lose their chance to heal this nation, their agenda hijacked by the one who was ultimately responsible for all this.–P. Gunasegaram

Dr Mahathir Mohamad was the one who tore UMNO apart, six years after he became Prime minister in July, 1981 when a bruising battle saw him win the UMNO presidential elections against challenger Tengku Razaleigh Hamzah by the narrowest margin ever. But he did much worse than that.

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The Opposition trusts Mahathir, do we Malaysians? Hopefully we are not a bunch of suckers–Din Merican

When Razaleigh challenged the election results and the courts declared it illegal, he did not respect the law and hold a new election. Instead, he set up a new UMNO, UMNO Baru, using the power of incumbency to force officialdom to facilitate the transfer of assets to UMNO Baru from the old, original UMNO.

He excluded from UMNO Baru those who considered his opponents compelling Razaleigh to form the alternative Semangat 46. He went about solidifying his position in UMNO Baru by altering the party constitution making it well nigh impossible for anyone to challenge the party president again, removing a check-and-balance so vital for democracy.

In 1987, via Operasi Lalang, he imprisoned over 100 people under the Internal Security Act or ISA and shut down several newspapers ostensibly to defuse interracial tension and bring back order, sending waves of shock and fear throughout the country and consolidating his then tenuous hold on power.

He is the man who is a master at exploiting racial divisions for his own gain, using it pre and post the May 13, 1969 riots – riots whom by some accounts he “predicted” will happen – to gain rapid ascension after Malaysia’s First Prime Minister Tunku Abdul Rahman was effectively deposed by his deputy, Abdul Razak Hussein, current Prime Minister Najib Abdul Razak’s father. Razak worked closely with young Turks within UMNO who included Mahathir and Musa Hitam among them.

Mahathir took revenge on the Judiciary in 1988, emasculating them by suspending Tun Salleh Abas,the Lord President and several Supreme Court judges and putting puppets in their place, a body blow from which the judiciary is yet to recover. Then on, Mahathir played enforcer, prosecutor, and judge. He could pretty much do what he wanted without controls, setting the stage for Malaysia’s descend into an abyss from which it is struggling to crawl out of now

There’s a fuller list of questionable things he did in an article I wrote for The Edge in June 2006 which was used in The Sun, three years after he stepped down, which posed a series of 22 groups of questions on his leadership, one for each of the 22 years he held the reins of power in the country.

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Then and Now (below)

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During the Asian financial crisis in 1998, he again resorted to strong-arm tactics to stay in power when his deputy then Anwar Ibrahim, now jailed opposition leader, mounted a thinly-disguised challenge to his leadership as the ringgit declined precipitously and the region was in turmoil following sharp falls in regional currencies.

Mahathir reacted swiftly and sharply, expelling him from all government and party posts and then sending in an elite squad to capture him at machinegun-point and detain him under the infamous ISA. He simultaneously imposed capital controls to stem the damage on the currency. And then came the sodomy charges against Anwar.

Paradoxically, it was Anwar who ensured Mahathir’s narrow victory in the 1987 party election when he prevailed upon Najib to cast the votes controlled by his block to Mahathir. If Najib had not and favoured Razaleigh instead, Razaleigh would most likely have won.

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Mahathir Mohamad with Singapore’s Philosopher-King Lee Kuan Yew

Mahathir did not even use the benefit of his dictatorial powers for the sake of the nation the way Lee Kuan Yew did for Singapore as I pointed in an article comparing the two. Lee used his immense powers to cut corruption, improve the quality of education and evolve a strong, competent and incorruptible civil service amongst others. Mahathir effectively promoted corruption and patronage, oversaw a decline in educational standards and undermined one of the finest civil services in Asia with his arbitrary decision-making.

What is it about Mahathir that makes the Opposition so enamoured of him? People like Anwar and Lim Kit Siang who directly suffered so much from his blatant misuse of authority to perpetuate his own power and continuance?

Forget to remember

Perhaps the Opposition feels, like a lot of people, that Mahathir has some power of invincibility and that he can influence the people. But an examination of history does not show this as I explained in an article in 2006.

Mahathir was elected MP for the Kota Setar Selatan seat in Kedah in 1964. It was established early on that he was not invincible when he lost the seat to PAS’ Yusof Rawa in 1969. According to some accounts, he had said in 1969 that he did not need Chinese votes to win.

Following the May 13, 1969 riots, Mahathir wrote a widely-circulated letter criticising then Prime Minister Tunku Abdul Rahman. He was dismissed from his UMNO supreme council position and expelled from the party. The following year, he wrote the controversial book ‘The Malay Dilemma’ which was promptly banned, the ban being lifted in 1981 when Mahathir became Prime Minister.

Mahathir was readmitted into UMNO 1972 after Razak assumed the mantle. The Tunku had stepped down in 1970 after the 1969 riots. Mahathir stood for the Kubang Pasu parliamentary seat in 1974 and won unopposed, retaining the seat until 2004 when he did not contest after his retirement. He was appointed education minister in 1975. The vital turning point for Mahathir came the following year when Hussein Onn became Prime Minister following Razak’s untimely death. Hussein picked Mahathir as his deputy.

And this was not because Mahathir enjoyed overwhelming support in UMNO. Mahathir was picked over two UMNO Vice-Presidents who had higher votes than him, Ghafar Baba and Razaleigh. An accident of fate put Mahathir in line for the top position. When Hussein retired due to failing health, Mahathir became Prime Minister in 1981.

And in 2006 when he attempted to get elected as a delegate to UMNO, after stepping down as Prime Minister, so as to voice his opinions at the UMNO General Assembly, he got a thumping defeat, meriting an article in The New York Times. He was placed ninth in a field of 15 for delegates from Kubang Pasu, his former seat! Mahathir pleaded money politics – something he never bothered to check during his time.

Despite his intense, tireless campaigning at the age of over 90 in both Sungai Besar and Kuala Kangsar in June last year, BN won handsomely in both seats, indicating that Mahathir has insignificant sway with the Malay voters anyway.

The Opposition is not likely to benefit much from Mahathir and his party Bersatu, especially with PAS now seeming to align itself with the government. It seems unlikely that the disunited Opposition will win.

But what if the Opposition won? What if Bersatu held the balance of power? Would it stick with Pakatan Harapan or would it go over to UMNO and make a deal by telling to get rid of Najib and bring back Muhyiddin Yassin to take over as Prime Minister?

Surely Anwar as PM would be unthinkable for Mahathir even if a process of pardon could be initiated. Mahathir can tell Harapan, no deal unless Muhyiddin becomes PM. And so we go from Najib to Muhyiddin – is that a big improvement in the overall scheme of things.

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Mahathir Mohamad and his Accomplices in the Political Destruction of Malaysia

That’s what Mahathir wants to be – a power broker, the king-maker. That way no matter who is in power, he is not going to be brought into account for his past misdeeds. That way he has a pretty good chance of putting his son, Mukhriz, in a strong position to assume future leadership. That way he is assured that history – written by the victors as the wise tell us – will be far more kindly to him.

If any one takes the trouble to remember what this man did and stood for, he would be mad to think that Mahathir is the solution – he was, and is, the problem. Without him and his 22 years of misrule, Malaysia would not have descended to what it is today.

Mahathir was accountable to no one. Not the people, not the party, not the judges. He could do almost anything he pleased and get away with it using the apparatus and machinery of control he had put in place.

He made opaque many decisions of government, putting anything marked secret by the government as secret under the law by removing the power of judges to judge even if the secret posed no danger to the country but only embarrassed the government and exposed its corrupt ways

That was the legacy he left behind – and a leader who followed him used it to do nasty things, some worse than that by Mahathir. Now we expect Mahathir – the source of all this – to save us Malaysians from Najib!

Is that why Mahathir is sticking his neck out? For the good of the country? But remember he had his chance – 22 years of it. He bungled – all he did was to stay in power and do the greatest damage to the country ever by any one, Prime Minister or not

His goal now is not to get into power but to ensure that whoever comes into power does not destroy him. As far as Mahathir is concerned, it is always about him – not Malaysia, not Malaysians, not even the Malays.

If only the Opposition thought like Mahathir and stayed focused on their goal – which is not to just remove Najib but to change the government for the better – they will stay well away from a man like Mahathir – his record is there for all to see. Instead they have been seduced by the mantra, let’s get rid of Najib first.

If Opposition, in its strange state of amnesia, continues to forget to remember, they are going to lose their chance to heal this nation, their agenda hijacked by the one who was ultimately responsible for all this.

 

Malaysia: Harassment of Critics intensified


April 24, 2017

Malaysia: Harassment of Critics intensified

by John Berthelsen@www.asiasentinel.com

http://www.asiasentinel.com/politics/new-round-repression-malaysia/

Image result for Najib Razak --Harassment of OpponentsSorry Dad, I messed up Felda and stole billions from the rakyat(people)

Malaysian authorities have increased the pace of their harassment of critics, according to human rights organizations in Kuala Lumpur, which political analysts view as a prelude to early elections.

Ominously, five people have been kidnapped or disappeared and people are being arrested over Facebook postings and held for three or four days, critics say. Opposition websites and independent news publications have been warned to mute their criticism or face being shut down. The Chinese-language newspaper Nanyang Siang Pau was warned over a cartoon satirizing the Speaker of Parliament as a monkey and told to suspend the staff involved.

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Hudud Monkees–Pandikar Amin (Tak) Mulia and PAS Hadi Awang

A general election must be held before August 23, 2018. However, Parliament is expected to be dissolved sometime in August or September of this year in preparation for the polls, to allow time for slippage in case unexpected events take place, such as the possible prosecution in the United States of the scandal-scarred Prime Minister Najib Razak, who is under investigation by the US Justice Department’s kleptocracy unit on suspicion that as much as US$1 billion from the Malaysian state-backed 1Malaysia Development Bhd. investment fund found its way into his personal accounts.

“They have been warning people, there have been many arrests over Facebook postings, things deemed to be critical, not only of government but of government leaders,” said Ambiga Sreenevasan, one of Malaysia’s most prominent lawyers and civil rights advocates. “There is a general feeling that the government is not going to tolerate dissent.”

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By all rights, the government should be confident of a landslide in the upcoming polls. The opposition’s most charismatic figure, Anwar Ibrahim, languishes in prison on what human rights organizations have criticized as trumped-up charges of sexual perversion. Other leaders have been threatened with sedition or criminal libel. The opposition, led by Anwar’s Parti Keadilan Rakyat, is in disarray with one wing – the rural-based Parti Islam se-Malaysia, or PAS, having collapsed into two organizations, neither of which has much remaining clout.  The conservative wing has largely aligned itself with the government over religious issues.

Najib Running Scared?

But, according to Ambiga and other sources, the reason Najib may be running scared is Mahathir Mohamad, the 91-year-old former Prime Minister, Najib’s most implacable critic, who with other dissidents established Parti Pribumi Bersatu Malaysia, and set to woo away ethnic Malays from the United Malays National Organization.

Image result for Mahathir takes on NajibThe Malaysian Kantoi All Party Team

From the start, it seemed a lost cause. Mahathir has been attempting to dump Najib since before the 2013 General Election, with little effect. His son Mukhriz has been fired by Najib as Menteri Besar (Chief Minister) of the state of Kedah. Muhyiddin Yassin, the former Deputy Prime Minister and Deputy President of UMNO, was kicked out of the party. Others have been neutralized or driven out, while the remainder of UMNO chieftains have been bribed/bought to support Najib.

But, according to a political analyst, the key is the Federal Land Development Authority, or FELDA, which was founded to handle the resettlement of the rural poor, most of them ethnic Malays.

The government listed FELDA on the Malaysian stock exchange in 2012 and allowed the thousands of settlers – whose territory covers 54 of UMNO’s 86 seats in parliament – to invest in the shares. Because of a variety of missteps, the shares have fallen  in value steeply, impoverishing the settlers who bought into them. FELDA Global Ventures as the public vehicle is now known, may be forced to delist.

Mahathir and PPBM, which he calls Parti Bersatu against the wishes of the government, have capitalized on the discontent to the point where political analysts believe he will pull away a number of those UMNO seats, perhaps 10 or 11 – two of which are held by Najib’s lieutenants.

FELDA in Revolt

“Bersatu isn’t really viable, but he’s making inroads into the Malay areas,” said one knowledgeable source. “Two ministers – Ismail Shabri Yaacob in Pahang and Ahmad Shabery Cheek in Terengganu – could lose their seats. If they lose two ministers, Najib’s position is dicey.”

If the other opposition parties, including the Chinese-dominated Democratic Action Party and Anwar’s PKR, plus the shards of PAC – can do well, especially in the face of brutal gerrymandering by the government – perhaps they could pull 100 seats in the 222-member parliament.

That would mean the East Malaysia states of Sabah and Sarawak, whose representation in Parliament is outsized compared to their population, and which have been demanding a bigger share of oil revenues now flowing to the central government from their own areas, plus increased development, would be in a position to blackmail the government for more spoils.

Scorched-Earth Policy

New Round of Repression in Malaysia

 FELDA Settlers in Revolt–Costly to Najib Razak

Accordingly, according to Ambiga and sources who prefer not to be named, the government has embarked on a scorched-earth program to suppress dissent. The most troubling is the kidnapping or disappearance of five social activists, including the well-organized kidnapping and disappearance of a Chinese Christian pastor, Raymond Koh Keng Joo on Feb. 13 in the middle of Petaling Jaya, a suburb of Kuala Lumpur, whose car was rammed and who was driven away in broad daylight. As Asia Sentinel reported, “His disappearance and the lack of any news or ransom demand suggest he has likely been killed and his body disposed of.”

The others who have disappeared are social activists Peter Chong, Joshua and Ruth Hilmy and Amri Che Mat.

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In addition, Nalini Elumalai, the Malaysia representative of Article 19, an international human rights organization with a Malaysia chapter, said that “recent arrests, investigations and charges under the Multimedia & Communications Act 1998 (MCA) are becoming more and more frequent. This is no longer just a crackdown on public figures (i.e. activists, human rights defenders, opposition politicians or journalists), but the targeting of ordinary social media users, in what appears to be an exercise in clamping down on criticism.”

Article 19 in particular identified one individual who was arrested last week for carrying a placard and wearing a yellow T-shirt identifying him as a member of the election reform organization Bersih. His phone and other articles were seized.

“The arrest and confiscations represent a violation of the individual’s right to privacy and freedom of expression, as it targets him for expressing his opinion on government corruption.

Article 19 also specified the cases of the graphic artist Fahmi Reza, Malaysian cartoonist Zulkiflee Anwar Haque, known as Zunar, and Bersih Chairperson Maria Chin Abdullah under the Security Offences Special Measures Act (SOSMA), the organization said.

“There is grave concern about how SOSMA has been extended for another five years,” Ambiga said. “Maria [Chin’s] detention was a classic example of the abuse of security legislation. The detention under SOSMA of Maria was completely unacceptable. I anticipate a worsening situation for human rights in view of the elections. It’s going to be even dirtier than the last.”

1MDB Energy Assets to China–What’s the Quid Pro Co?


April 21, 2017

1MDB Energy Assets to China–What’s the Quid Pro Co?

by P.Gunasegaran@www.malaysiakini.com

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Thank You, King, for the Donation. but not enough that is why I have to sell 1MDB Energy Assets to China. The financial hole is too big. Sorry bro, no more from me since my Kingdom needs money for our own needs.

The signing of the power purchase agreement (PPA) last week between national power utility Tenaga Nasional Bhd and Edra Energy Sdn Bhd, formerly owned by Malaysia’s infamous 1MDB and now owned by China company CGN Group, puts Edra under public scrutiny yet again.

This is a good time to note the enormous, potentially adverse implications that Edra has on our energy industry.

First, ever since independent power producers (IPPs) were introduced in the 90s, this is the first time that Tenaga is signing a deal with a 100 percent foreign-owned entity – all previous PPAs were signed with locally owned companies which have at least 30 percent bumiputera participation.

Second, the deal clearly shows that future development of IPPs were included in the sale price of RM9.83 billion paid by CGN to 1MDB, as pointed out by an article in The Sun newspaper.

This has major implications and may indicate that not sufficient account was taken of this in the sale price.

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According to the article, at the time of the announcement of the sale in 2015, 1MDB held two project awards that were yet to the developed, a 2,000MW combined cycle gas turbine venture and a 10x50MW utility scale solar power plant, which are also in the list of assets sold. At the time, no confirmation was made on whether the rights had been transferred to CGN.

1MDB agreed to sell Edra Global Energy to CGN Group for RM9.83 billion cash in November 2015 with the sale completed March 2016.

1MDB had paid a total of just over RM12 billion for the power assets earlier, all owned by Malaysian entities – RM8.5 billion from Ananda Krishnan’s Tanjong Energy Ventures renamed Powertek Energy Group, RM2.3 billion from the Genting group and RM1.23 billion for Jimah Energy Ventures.

Even so, analysts felt that CGN overpaid for the assets by about RM1 billion. However, with future power development ventures included, it looks like overpayment, if any, may have been a lot smaller.

But consider the implications of this – prime power assets, not just in Malaysia but in other countries as well, were sold off to a foreign company from China, basically switching ownership of these assets out of the country. 1MDB is fond of saying that it is a strategic development company owned by the government – how strategic is that?

Despite the overpayment, 1MDB’s only earning assets within its rather dubious acquisitions were the power assets under Edra.

It is telling that despite loans at one stage of RM42 billion in its books and few assets to show, it had to sell Edra to quash bank debts which were becoming fast due – clear evidence of major problems at 1MDB.

Some of the bond issues were taken to buy the energy assets but were diverted elsewhere.

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Najib Razak and his Kaki Bodeks

There is legitimate concern that this rescue of 1MDB by CGN is a quid pro quo for other China deals such as the RM55 billion East Coast Rail Line project and the RM40-80 billion KL-Singapore high-speed rail.

Under the latest PPA, Edra will construct, own, operate and maintain a gas-fired combined cycle electricity generating facility with a total nominal capacity of 2,242 megawatts to be located at Alor Gajah, Malacca.

It will consist of three generating blocks, and an expected commercial operation date of Jan 1, 2021 for the first generating block, March 1, 2021 for the second generating block and May 1, 2021 for the third generating block.

The PPA governs the obligations of the parties to sell and purchase the generating capacity and, to the extent dispatched, the electrical energy generated by the facility. The PPA will be for a period of 21 years from the commercial operation date of the first generating block.

However, the purchase price for electricity is not disclosed by Tenaga and it was not possible to obtain any figures from the Energy Commission website as well.

Scarcity of info on IPPs

From the time former Prime Minister Dr Mahathir Mohamad introduced IPPs in the 90s, there has been a scarcity of good information on IPPs and their deals – however one thing is clear, billions have been made by people who were essentially cronies of the PM and the ruling party then.

Over the years, the deals for IPPs have gotten progressively more in favour of Tenaga but Edra may jettison the progress made – there needs to be transparency to ensure that deals that are too favourable to IPPs are not signed as it was in the past.

For that, two quantities need to be disclosed – the purchase price for the electricity and the internal rate of return (IRR – the financially correct way of measuring returns) for the project.

The second needs to be audited by qualified people and their significance properly explained.Otherwise we are going to see a second round of masking of benefits, this time to foreigners.

Remember that Edra is no longer Malaysian but foreign owned – all 100 percent of it. And therefore it should no longer be entitled to the benefits that Malaysian companies get.

‘Malaysia first’ should be our slogan too. A Bernama article in April last year quotes Edra President and Executive Director Mark Ling who said the recent RM9.83 billion acquisition of Edra by CGN puts Malaysia in a strong position to develop ASEAN’s power sector. He of course got it wrong – it does not put Malaysia in that strong position but China.

He further said that Edra, backed by CGN’s capitalisation of US$60 billion, was now able to link through the Trans-ASEAN grids from the Philippines to Sabah, down to Sarawak and Sumatra.

“We are now able to immediately further enhance opportunities and commitments, opportunities which have been knocking at our door previously but which we were unable to entertain,” he said.

“And to actually have a Sarawakian lead Edra, it’s a great honour for us Sarawakians. We have to understand that we have got no barriers in convincing the rest of the world that we can do it. And I will be looking seriously into avenues of new energy businesses in Sarawak.”

Rather propaganda-ish! Well, if that’s the case, this means that this China-owned company is all set to get even more projects and that is extremely worrisome when you consider that Malaysian companies have the ability and the know-how to do the same – we never needed any help from China before.

Think Tenaga for instance. Why are we passing the baton on to a China company after spending so much effort to nurture and develop an indigenous power generation industry with international capability?

Is this yet another mysterious strategic development initiative followed upon by an earlier one by 1MDB? How much will we end up eventually paying for 1MDB’s transgressions in addition to the tens of billions of ringgit already lost and stolen?

P GUNASEGARAM says desperation and corruption are a potent combination for bad business. E-mail: t.p.guna@gmail.com.