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Malaysia Today - Your Source of Independent News


New game in town: court of public opinion

Posted: 24 Jun 2011 06:46 PM PDT

The internet is a powerful weapon. 2008 showed us that. Developments in North Africa and the Middle East showed us that. And since 1998 the opposition has been king of the internet. So why do we not want to provide free state-wide wireless internet to the rakyat in the Pakatan Rakyat states when the internet is the best weapon against Barisan Nasional?

THE CORRIDORS OF POWER

Raja Petra Kamarudin

Clear proof of conspiracy to destroy Anwar, said N Surendran of PKR. The Bar Council says it is shocked with the screening of the sex video in court. It is up to the rakyat to decide if it is Anwar in the video, said Prime Minister Najib Tun Razak.

You can read all three news items below.

Aiyah, why are we grumbling, moaning, complaining, whining and bitching? Of course it is a conspiracy to destroy Anwar. And why should it NOT be a conspiracy to destroy Anwar? First of all, is that not what politics is all about, to destroy your enemy? Secondly, are we not also trying tooth and nail to bring Najib, Umno and Barisan Nasional down -- to destroy them?

Everything is fair in love and war, as they say. And this is love for our country and war against those who are slowly and systematically destroying our country. So there is no such thing as fair or unfair. It is about destroying the enemy of our country to save our country.

Sure they will fight dirty. They have been fighting dirty for more than 50 years. Why should they not fight dirty now? It is what they do. It is the nature of the beast to fight dirty.

Let us get one thing very clear here. Najib appears to be better-advised than the two prime ministers before him, Tun Dr Mahathir Mohamad and Tun Abdullah Ahmad Badawi. And I know one of those people who are advising him and I know how good he is (no, I will not mention who he is).

Of course, as I said in an earlier article, Najib also has many idiots surrounding him. But he is beginning to understand whom he should listen to and who not to listen to. And when it comes to playing the perception game there is one man who is advising him what to do and what not to do and Najib is taking that advise.

And this is the man I have to out-think and out-fox in this game of perception and psy-war. The rest of the idiots surrounding Najib are not significant. In fact, they help the cause because most times they shoot themselves in their own feet.

Najib has learned how we used the court of public opinion 13 years ago back in 1998. We knew we would never win in a court of law. Anwar is certainly going to be found guilty in the Sodomy 1 trial. So, we are going to lose in the court of law and will have to win our case in the court of public opinion.

And that was when the Free Anwar Campaign was launched. It was to make sure that while we may have lost the case in the court of law we will nevertheless win in the court of public opinion. We had to make sure that even if 20 judges pronounce Anwar guilty of sodomy the Malaysian public would still insist he is innocent.

That was the game plan. It was all about the perception game and psy-war. And we won in spite of what the court said.

I have said this many times before: politics is about perception. Most Malaysians no longer trust the government or Malaysia's judiciary. So it is not important any longer what the court says. Even if they can produce a smoking gun the people will still not trust the court. So you need to win in other ways.

The British realised this during the Malayan Emergency. The government cannot beat Communism with guns alone. Guns and violence only makes the resistance stronger. They need to win the hearts and minds of the people to beat Communism.

To the government, Anwar Ibrahim, today, is what Chin Peng was 50 or 60 years ago (minus the bombings and killings, of course). And to beat Anwar, today, you will have to use the same tactics you used to beat Chin Peng 50 or 60 years ago.

And that would be to win the hearts and minds of the people.

Umno thinks (and I stress the word 'thinks' because this may or may not be true) that to bring down Pakatan Rakyat you must first bring down Anwar Ibrahim. Destroy Anwar then Pakatan Rakyat is destroyed.

And that is why, as N Surendran of PKR said, they want to destroy Anwar. And would not you and I do the same if our objective were to destroy Pakatan Rakyat? Would we say it is not fair when the objective is to destroy our enemy at all costs?

What is so unfair about wanting to destroy our enemy through any means possible? Did not America drop two atom bombs on civilians just to end the war and save American lives? Is it fair and just to kill non-combatants in your enemy's country to save your own citizens? I did not hear anyone condemn America for that.

No, grumbling, moaning, complaining, whining and bitching are not the solution. What they did yesterday is typical of Umno. It is the nature of the beast. If you want to fight Umno then expect such tactics to be used against you (or else don't try to fight Umno). After all, many now in PKR, who were once in Umno, also used these same tactics before to destroy their enemies. Only now those same tactics you used to use are being used against you. So accept that.

Instead of grumbling, moaning, complaining, whining and bitching, think how to counter them and beat them at their own game. Pre-2008 we used to be very good at the perception game and psy-war. We used to run rings around Dr Mahathir and Pak Lah. We attacked from all sides and they never knew what hit them. Why do you think the opposition did so well in March 2008?

But post-March 2008 the opposition became complacent.

Three years ago we told Pakatan Rakyat to provide free state-wide wireless internet to the rakyat in all the states under their control. So far only Penang has done this -- and even then only in some parts of Penang, not yet the whole of Penang.

What happened to Selangor, Kedah and Kelantan? Selangor talked about it (yes, just talked about it) three years ago. But nothing has happened so far because of some hanky-panky a la Khir Toyo.

Yes, that's right, someone in the Selangor state government is trying to pull off a scam. So the free state-wide wireless internet has not taken off yet.

If I know all this why not I talk to Pakatan Rakyat? Why expose this publicly and shame Pakatan Rakyat? Why not talk to Pakatan Rakyat behind closed doors instead of washing dirty linen in public?

Well, for your information, I have talked to Pakatan Rakyat many times. YB Ronnie Liu can testify to this. I even spoke personally to Anwar Ibrahim some time back when I met him in London for breakfast. But still nothing has happened. And now it may be too late because we may be facing the 13th General Election very soon.

You want to know why I am so angry with Anwar Ibrahim? You want to know why I decided to whack him on TV3? Well, the free state-wide wireless internet which never happened because of one corrupt person from PKR in the Selangor state government is one of the many reasons.

I will not embarrass Anwar be revealing my entire list of grievances. Suffice that I just talk about the free state-wide wireless internet that never happened because someone from PKR who is in the state government is corrupt.

We grumble, moan, complain, whine and bitch about how unfair the government is and how they use the mainstream media and police and judiciary and AG Chambers and whatnot against the opposition. But what are we doing about it other than grumble, moan, complain, whine and bitch?

The internet is a powerful weapon. 2008 showed us that. Developments in North Africa and the Middle East showed us that. And since 1998 the opposition has been king of the internet. So why do we not want to provide free state-wide wireless internet to the rakyat in the Pakatan Rakyat states when the internet is the best weapon against Barisan Nasional?

I spoke to a Chinese friend yesterday who knows the story of this free wireless internet debacle and he too is puzzled as to why Pakatan Rakyat is dragging its feet on this matter. It is not that the state does not have the money to do it. In fact, they don't need money because the company providing the service is prepared to do it free-of-charge but with advertising rights.

I gave my theory. I told my Chinese friend that I suspect it is because Anwar has made a deal with Najib to give Selangor back to Barisan Nasional. Maybe that is one way the court is going to squash his Sodomy 2 trial.

My Chinese friend does not think so. He said he does not suspect there is anything dubious but only that Anwar is an incompetent administrator. Anwar is a good speaker but a poor administrator, said my Chinese friend. His poor performance in government, especially as Education Minister, has proven this, explained my friend.

I hope my friend is right. I hope it is just incompetence and not because Anwar is a Trojan Horse that the Pakatan Rakyat states, in particular Selangor, are refusing to implement its free state-wide wireless internet after more than three years. But I reserve judgement until I see the results of the next general election and it is proven that Selangor will remain under Pakatan Rakyat.

Until then I shall continue to whack Anwar Ibrahim if need be just to light a fire under his arse and get him to wake up DEMI UNTUK KEPENTINGAN RAKYAT.

**************************************

'Clear proof of conspiracy to destroy Anwar'

(Free Malaysia Today) - PKR claimed that the court proceeding of the 'Datuk T' trio yesterday was proof that there is high-level conspiracy to destroy Anwar Ibrahim's political career.

Yesterday, the trio, former Malacca chief minister Rahim Thamby Chik, former Perkasa treasurer Shuib Lazim and businessman Shazryl Eskay Abdullah pleaded guilty at the Kuala Lumpur magistrate court to screening a sex video to the public.

The trio screened a video allegedly showing the opposition leader engaged in illicit sex with a prostitute to several journalists at Carcosa Seri Negara in March.

In the proceeding yesterday, one of their defense attorney, Muhamad Shafee Abdullah told the court that forensic analysts from the US confirmed the man in the video was likely to be Anwar.

In a statement today, PKR vice president N Surendran said the alleged identity of the person in the video and it authenticity was completely irrelevant to the case yesterday.

"And by not being a party to the proceedings, Anwar had no opportunity to defend himself against the allegation," said Surendran.

**************************************

Bar Council Says 'Shocked' With Sex Video Screening In Court

(The Malaysian Insider) - The magistrate's court should not have screened the sex video allegedly featuring Datuk Seri Anwar Ibrahim yesterday because the "Datuk T" trio had already pleaded guilty to the crime, says the Bar Council.

Bar Council president Lim Chee Wee described that the court's decision in allowing the video to be shown as "shocking" and "extraordinary."

He stressed that there was no reason to do since those accused of screening the video had readily admitted to the crime.

"There is no need to because they have already pleaded guilty; I am surprised why the sex video was shown in court.

"This is an extraordinary procedure, I am shocked as to why it happened… if a person has already pleaded guilty there is no need to (reveal the evidence)," Lim told The Malaysian Insider.

The lawyer said the court's action was inconsistent with standard procedures in such cases, where evidence is only revealed during the course of a full trial and when the accused maintains his or her innocence.

"I have no problem with the punishment, it is just the sex video screening which is an issue," he added.

**************************************

Najib: Up to rakyat to decide if it's Anwar in video

(Malaysiakini) - Prime Minister Najib Abdul Razak today said that the rakyat will have to decide whether the person in the sex video produced in court today is opposition leader Anwar Ibrahim.

"This is something on which the rakyat will have to make a judgment."

"The most important thing is to find the authenticity and truth. We leave it to the rakyat to determine," he said after chairing the BN supreme council meeting tonight in Kuala Lumpur.

Although the BN chairperson chose not to rub salt into the wound of Anwar, he pointed out that two foreign experts had verified the authenticity of the video.

Shafee Abdullah, the counsel for Rahim Thamby Chik, one of the Datuk T trio, had said that according to the June 4 report by professors Hany Farid and Lorenzo Torresani from Dartmouth College in Hanover, New Hampshire, there is a 99.99 percent match of the male in the video clip to a known photo of Anwar based on facial recognition analysis.

 

WIKILEAKS: Update on the use of 'Allah' and the church attacks

Posted: 23 Jun 2011 01:00 AM PDT

As of January 11, there have been eleven attacks on churches, and one on a small mosque, in Malaysia since the first three attacks overnight on January 7 (ref A).  Over the January 9-10 weekend, eight more churches and a small mosque were attacked, raising the total to twelve. Unlike the first few attacks on January 8, which only took place in Kuala Lumpur and nearby Selangor, incidents over the weekend occurred in other parts of the country: in addition to one more in the KL area, there were three in Perak, one in Malacca, one in Penang, one in Negeri Sembilan, and one in Sarawak (on Malaysian Borneo). 

THE CORRIDORS OF POWER

Raja Petra Kamarudin

UNCLAS SECTION 01 OF 02 KUALA LUMPUR 000014

 

SIPDIS

SENSITIVE

 

FOR EAP/MTS AND INR

 

E.O. 12958: N/A

TAGS: PGOV, PHUM, PREL, MY

SUBJECT: MALAYSIA: UPDATE ON THE "ALLAH" ISSUE AND CHURCH ATTACKS

 

REF: A. KUALA LUMPUR 11 -- THREE CHURCHES ATTACKED OVERNIGHT

     B. KUALA LUMPUR 03 -- COURT RULING ON THE USE OF 'ALLAH'

 

SUMMARY

1. (SBU) Summary: Following three separate attacks on churches over the night of January 7-8 (ref A), unknown individuals made another nine attacks on churches and a mosque over the weekend, according to senior police officials at a special briefing for the diplomatic corps on January 11 at the Ministry of Home Affairs. 

Police briefers stressed that the incidents were sporadic and not planned, and that the Government was committed to protecting religious facilities across the country and to ensuring civil order.

The police and senior Home Affairs officials clarified the government's position in the 'Allah' case (ref B) and stressed how sensitive the issue is to ethnic Malays.  They indicated investigations into the attacks are ongoing but that no concrete leads have been developed.  They also provided details of the church attacks but stressed that the actual damage, except in the first attack, was relatively minor. 

Both the Prime Minister and Home Minister issued statements over the weekend committing the government to tough actions against perpetrators of these crimes.  The Prime Minister also promised assistance to rebuild and repair damaged churches, the Prime Minister's Department said interfaith dialogues would be held, and Muslim NGO groups offered help guarding churches.

While many weekend editorials expressed dismay at the attacks, some continued to defend the right of Muslims to demonstrate and express anger about the High Court's December 31 ruling that the GOM's prohibition on the Catholic Herald's use of the word 'Allah' was unconstitutional.  End Summary.

ATTACKS CONTINUE OVER THE WEEKEND

2. (SBU) As of January 11, there have been eleven attacks on churches, and one on a small mosque, in Malaysia since the first three attacks overnight on January 7 (ref A).  Over the January 9-10 weekend, eight more churches and a small mosque were attacked, raising the total to twelve. 

Unlike the first few attacks on January 8, which only took place in Kuala Lumpur and nearby Selangor, incidents over the weekend occurred in other parts of the country: in addition to one more in the KL area, there were three in Perak, one in Malacca, one in Penang, one in Negeri Sembilan, and one in Sarawak (on Malaysian Borneo). 

According to police, most of the attacks involved hit-and-run tactics, whereby the attackers would throw poorly made Molotov cocktails, bricks, or plastic bags full of paint on the churches.  None of the additional attacks caused damage valued at over 1,000 Malaysian Ringgit (RM) (approximately $300 USD), and only one person was lightly injured: a pastor, when confronting three attackers who stormed into his church, was pushed to the ground.

BRIEFING THE DIPLOMATIC CORPS

3. (SBU) Home Affairs Secretary General Mahmood Adam led a government briefing of the diplomatic corps on January 11 at the Home Ministry.  The DCM, Poloff, and RSO attended from the Mission.  SecGen Mahmood began by stressing that "things are under control", noting that no incidents had occurred over the last 12 hours. 

(Note: There was another attack that took place during the previous night, but news of the attack was not released until after the briefing.  End Note.

He emphasized the government's commitment to protect religious facilities.  Mahmood and the briefing team devoted a significant amount of time to laying out the background and government's position with regard to the 'Allah' case and its appeal to the Court.  Mahmood commented that the government's case was focused on "publication" of the word Allah by non-Muslim groups and not on the casual oral use of the word.

He asserted that this is a very sensitive issue among Muslim Malays that foreigners would find difficult to comprehend. He downplayed the damage of the attacks, noting that with the exception of the very first attack which gutted a church in Kuala Lumpur, none of the incidents resulted in damage greater than 1,000 RM ($300 USD). 

A police inspector provided details of each incident, noting that most of the attacks had no witnesses, and very little forensic evidence that was usable in identifying the perpetrators.  With one exception, the police think that all of the incidents were carried out by different parties, commenting "these attacks were not planned or organized.  There were no big groups involved.  They are expressions of dissatisfaction."

4. (SBU) Following the briefing, several questions were posed by members of the diplomatic corps.  Most notable was a query posed by the French Ambassador as to why use of the world "Allah" by non-Muslim groups in Malaysia was such a controversial issue, when in Indonesia and several Middle Eastern countries it is not. SecGen Mahmood replied that Malaysia was different and that "to be fair, you have to compare an apple with an apple."   

Mahmood went on to say that just like Christianity has different branches such as Catholicism, Protestants, etc., so does Islam, and that Malays follow "Ahli Sunnah wal Jamaah". 

(Comment: "Ahli Sunnah wal Jamaah," is simply the Arabic term for Sunni Islam, which is not different from Islam as practiced widely in the Middle East nor neighboring Indonesia.  End Comment.)

GOVERNMENT WORDS AND ACTIONS OVER THE WEEKEND

5. (SBU) Prime Minister Najib visited the site of the most serious church attack on January 8 and pledged RM 500,000 (about USD $130,000) in government funds to repair the affected churches.  A chorus of ministers joined Najib in condemning the attacks. 

Home Affairs Minister Hishamuddin Hussein (PM Najib's nephew) was quoted on the front page of the January 11 Malay-language Utusan Malaysia saying that he would not hesitate to implement the Internal Security Act (ISA), because if these incidents were left unchecked it "could disrupt peace and harmony" in Malaysia. 

(Comment: Hishamuddin also stressed that other laws -- arson, vandalism, etc. -- would be used to charge anyone involved with these attacks, implying that the Najib administration could selectively arrest people whose statements might otherwise provoke discontent.  His mention of the ISA is seen by some as a thinly-veiled warning to the opposition to cease accusing the ruling United Malays National Organization (UMNO) party of being the root of the problem.  End Comment.)

MEDIA RESPONSE

6. (SBU) Parallel with this law-and-order approach to the church attacks has been another narrative in the vernacular papers suggesting that Catholic/Christian use of the word 'Allah' is the root of the problem, and that the Catholic Herald and others -- mainly Christians in Sarawak and Sabah -- should gracefully stop using the word. 

The front page editorial cartoon in the January 11 edition of Utusan Malaysia (the ruling party's Malay language mouthpiece) cites a statement from the Christian head of the Sabah Development Institute, Clarence Bongkos, who suggested over the weekend that Christians voluntarily stop using Allah, which he said would be no problem.  "That would be the best solution," the cartoon's straight man concludes.  Other articles have made clear that the Allah controversy feeds into national politics. 

Opposition leader Anwar Ibrahim commented "Much of the blame for the recent attacks can be placed at the doorstep of the UMNO-led BN (National Front) ruling party. Its incessant racist propaganda over the Allah issue and the inflammatory rhetoric issued by government-controlled mainstream media, especially Utusan Malaysia, are reprehensible." 

Citing opposition leader Anwar Ibrahim's charge, an op-ed writer counterattacked in Utusan's weekend edition, saying that it was Anwar who was trying to "burn up the masses" by accusing UMNO of racism.  The ironies include the fact that in the 1980s Anwar was instrumental in forming one of the Malay student organizations, ABIM, that is now vocally asserting that non-Muslims may not use "Allah."

NO REPORTS OF INCIDENTS INVOLVING AMCITS

7. (SBU) As of January 11, 2010, American Citizen Services (ACS) has not received any reports of Americans who have been hurt or effected as a result of these religiously motivated attacks.

KEITH

 

Now you know why we need better governance

Posted: 22 Jun 2011 05:25 PM PDT

When Malaysia went through a recession, Thailand continued to see growth. The word 'recession' was not in the Thai vocabulary. When Bangkok suffered massive and disruptive demonstrations it was business as usual. The country's image and economy did not suffer. Malaysia is trying to tell us that the 9th July march is going to hurt the country's image, and therefore the economy. In that case it is because of Malaysia's bad governance if Thailand's image and economy can withstand demonstrations but Malaysia's can't.

THE CORRIDORS OF POWER

Raja Petra Kamarudin

Illegal assembly will tarnish Malaysia's good image - analysts

(Bernama) -- The organiser of the illegal assembly set for July 9, is hell-bent in tarnishing Malaysia's image as a nation blessed with peace, harmony and prosperity, according to several political analysts.

They said one of the hidden agendas of the organiser was to leave a black mark in the nation's history, apart from distracting the people's attention from the pending sodomy court case involving a leading Opposition political leader.

Non-government organisation 1Agenda chairman Zul Azhar Cha, who is also a blogger, said he had information that the organiser had invited the international media to give wide coverage to the illegal assembly.

He recently lodged a police report against the assembly.

Previously, similar illegal assemblies were held in 1998 and 2007, resulting in street demonstrations which in turn, causing inconvenience to the public and damage to public property, attracting bad publicity from the international media.

According to a lecturer in politics and international studies from Universiti Utara Malaysia, Kedah, Md Shukri Shuib, while the damage to the streets was bad, the bad publicity generated by international news agencies was worse.

He said, Malaysia then was portrayed as no longer a paradise for shoppers and tourists.

"Instead, it deemed as being in a chaotic state, with images and false and one-sided information fed by a certain 'reform' group," he told Bernama recently.

However, the lecturer believed that the majority of Malaysians were much wiser than to blindly let themselves be taken in by the 'wayang kulit' orchestrated by the organiser.

"What is one hundred thousand in numbers as compared to the millions of Malaysians who make up the silent majority...the ones who have been enjoying peace and stability, and quietly supporting the government for the future of their younger generations,?" he asked.

Businesswoman Zabedah Daud, a political observer in Shah Alam, said, not many would sympathise with a group which planned to put Malaysia in limbo for its own political gains when the current government had tackled almost every issue.

"How can they (organiser of illegal assembly) say they want a fair election when it is already fair as fair can be?"

"I think, if the Election Commission is not fair or more pro-Barisan Nasional government, would the opposition have won the five states in the last general election,?" asked the grandmother of 18 grandchildren.

Stressing that the future of a stable and peaceful Malaysia was of utmost importance to her, and for the sake of her grandchildren, Zabedah hoped wisdom would prevail.

She urged the organiser of the illegal rally to abandon the planned illegal gathering which would bring nothing positive to the country.

Admitting that she could make reasonable guess on the hidden agenda of the illegal rally, she asked:

"Is the ambition of one man to become the prime minister, more important than the future of 27 million Malaysians?"

*****************************************

Protests Not Expected to Hurt Thai Economy

(Time/CNN) - Thailand's economy was growing like gangbusters. On May 17, the central bank announced that the country had achieved its highest quarterly growth rate in 15 years, with figures showing a 12% year-on-year increase for the first three months of 2010. Two days later, soldiers used force to disperse antigovernment protesters who had paralyzed central Bangkok for weeks. Violence surrounding the two-month-long demonstrations left 86 dead and more than 1,000 wounded, sparking fears that this year's brief economic boom could dissolve into a bust.

Thailand's economy, however, is proving more resilient than expected. On Thursday, May 27, the Bank of Thailand predicted gross domestic product would still grow between 4.3% and 5.8% for the year, nearly as high as the 6.2% forecast by the World Bank before the violence began. Economic analysts and the business community expressed cautious optimism that the fallout from the civil unrest would be limited and the country would enjoy a year of strong growth. "We think the central bank's estimate is reasonably accurate, although we are pegging growth at between 4% and 5%," says Supavud Saicheua, an economist with Phatra Securities in Bangkok. "But our forecast is uncertain," he added, citing concerns about Thailand's political and security situation and external factors. (See photos of the protests in Bangkok.)

Thailand did not escape from its recent woes unscathed. The University of the Thai Chamber of Commerce estimated damages from the protests at roughly $4.6 billion and said they cost the country nearly 1.5% in growth. Those numbers could skyrocket if Thailand's political and social troubles aren't over, and it's not certain that they are.

But this week's positive forecasts are based on the growth driven by robust exports, which have not been seriously damaged by the country's political conflict. China's bottomless demand for Thai electronics, computer components, food products and raw materials has helped stoke its southern neighbor's economy; China now gobbles up 10% of all Thai goods shipped overseas. Exports now account for between 60% and 65% of the Thai economy — nearly double what they did in the late 1990s. The Thai sector suffering most severely from the unrest is tourism, which accounts for more than 6% of gross domestic product and is a key source of jobs and foreign-exchange earnings.

A small blessing is that the bloodshed took place during the low-tourism season. Industry executives hope that confidence in the country as a holiday destination can be restored before the start of the high season in October. "I'm pretty bullish on how Thailand will do economically this year. I believe we will have a relatively quick recovery — even in tourism," says William Heinecke, whose Thailand-based Minor Group owns 16 hotels around the country, along with fast-food and retail businesses. "Tourists were never in any danger, and there were no problems in many places tourists normally go, such as Phuket and Hua Hin." (Read about the end of Bangkok's siege.)

With anger over the government's crackdown still seething in some rural areas, warnings abound that Thailand could erupt into civil war. But Heinecke does not subscribe to that scenario. "Cool hearts will prevail," he says, claiming there hasn't been a single problem among his 25,000 employees around the country despite their differing political views.

Others, however, maintain that the situation is more precarious. While Thailand has shown great resilience during past troubles, "we should not simply think that every crisis will be overcome easily. The cycle of the recurrence of political breakdowns has become shorter and shorter," says Nandor von der Luehe, chairman of the Joint Foreign Chambers of Commerce of Thailand. The government needs to address the issues of economic inequality that helped spark the protests and ensure that a reconciliation process starts as soon as possible, he says. "If investors do not believe that the problem has been solved, then sooner or later investments will turn to more attractive places." (Watch a video of Bangkok before the surrender.)

Still, a lasting crisis in confidence has not yet come to pass. As head of Amata Corporation and owner of Thailand's largest industrial estates, Vikrom Kromadit depends on foreign and local investment to survive. While business was down during the two months of demonstrations, "industries that have already invested here are still looking to expand," he says. Investors who know the country well have not lost interest, but others may be more nervous, he adds.

While much of the public is looking to the government of Prime Minister Abhisit Vejjajiva to solve the issues of inequality and injustice that helped fuel the demonstrations, Heinecke says Thai businesses also have the power to effect positive change in society. "The business community will come together on this," he says. "People have said Thailand has changed and will never be the same. We can never return to what we were, but we can move on to something better."

 

Ever heard of the phrase ‘collateral damage’?

Posted: 21 Jun 2011 07:20 PM PDT

This is not about saving the three Datuks. It is not about slapping the three Datuks on the wrist and scolding them "naughty boys". It is about catching a big fish named Anwar Ibrahim and about convincing the 40% atas pagar that the man in the video is Anwar Ibrahim.

THE CORRIDORS OF POWER

Raja Petra Kamarudin

Anwar Ibrahim is not convinced that the 'Datuk T' trio will be charged this Friday. But then Anwar was also not convinced that Perak would fall back into the hands of Barisan Nasional and it did. That one episode alone makes me wary of Anwar's skills at strategic planning and thinking.

Okay, you can read what Anwar thinks in the Malaysian Digest news item below. Now let me tell you what I think.

First of all, you must put yourself in the other person's shoes. In other words, apply a bit of Sun Tze's teachings when you do strategic planning. And that means do not think what you would normally do but what the other person would do instead.

Now, if I were the 'other side' -- and the 'other side' is very brutal and manipulative mind you -- I would not hesitate to sacrifice the less important people. And let's accept it, the 'Datuk T' trio is not that important to the bigger scheme of things. So, turning them into 'collateral damage' is not a big deal.

So they get fined a few thousand ringgit or get sent to jail for a couple of months or both, what's the problem? If you agree to bank in RM20 million into my bank account I too would be prepared to return to Malaysia and spend 12 to 18 months in jail. After all, after deducting the one-third remission from my sentence, I would be out by my 63rd birthday, still young enough to enjoy the money.

Okay, what would I do if I were the 'other side'?

First, I would charge the three Datuks. Then they would plead not guilty and the trial would proceed. Whether the three are discharged without their defence being called, or are eventually acquitted after a trial, or are found guilty and get sent to jail for a couple of months, or are merely fined, is not important.

You see: you can't damage the government's image or the reputation of the three Datuks any more than it has already been damaged. As it is, the porn video issue has already backfired and you can't hurt those behind the video any more than they are already hurt. But you can damage Anwar. And that is the real target.

During the trial everything will surface -- how the video was recorded, where and when it was recorded, who were the people behind the recording, who are the people in the video, and much more.

So you see, the charge is for the crime of distributing porn material, in this case the video. But the trial would need to establish all those other 'facts'. And these 'facts' are what the 'other side' wants to reveal.

Now, note one thing. The pro-government supporters do not need convincing -- they are convinced that Anwar is the man in the video. The pro-opposition supporters also do not need convincing -- they are convinced that Anwar is not the man in the video. But those are not the targets. The target is the 40% or so 'undecided', the 'atas pagar' or 'fence sitters'. This is the group that the 'other side' wants to swing.

It is pointless to try to swing the 30% pro-government or 30% pro-opposition groups. They are steadfast in their views. It is the 40% neither-here-nor-there group that matters. This is the group that the 'other side' is trying to win over.

Note one more thing. The next general election is going to be won or lost within a mere 5% margin or so. So, 40% is a large margin to win over. And this 40% represents the 'atas pagar' or undecided group. Some of this 40% do not decide whom to vote for until the very morning of Polling Day. That is how crucial this 40% can be to the election result.

So, no, this is not a wayang kulit (shadow play) like what Anwar may think. This is for real. The three Datuks are collateral damage. They are going to be sacrificed in the interest of catching a bigger fish. And that bigger fish is Anwar Ibrahim. And the 'other side' would be prepared to sacrifice ten Datuks if need be just to get Anwar. So what are three has-been Datuks of no significance to the bigger scheme if things? 

If I were Anwar I would not be too cock-sure of myself. I would be very worried. I would smell a rat -- in fact, three rats. And these three rats are going to be hung as bait to lure Anwar into the trap that is going to strangle him.

This is not about saving the three Datuks. It is not about slapping the three Datuks on the wrist and scolding them "naughty boys". It is about catching a big fish named Anwar Ibrahim and about convincing the 40% atas pagar that the man in the video is Anwar Ibrahim.

Will they succeed? I really don't know. If the 'other side' handles this: maybe 'yes' and maybe 'no'. They are so stupid that they keep shooting themselves in their own feet. But if I were to handle this I would know exactly what to do and how to finish off Anwar for good.

But then I can't reveal what I would do if I were handling this lest I end up teaching the 'other side' a trick or two, which they may not know of yet.

*********************************************

Anwar Convinced Datuk T Won't Be Charged

by Haider Yutim, Malaysian Digest  

KUALA LUMPUR, 22 JUNE, 2011: Opposition leader Datuk Sri Anwar Ibrahim said he is not convinced that the 'Datuk T' trio would be charged this Friday.

When asked by Malaysian Digest to comment on the matter, he said this case has deferred for months which raised a lot of questions. According to him, the video is still widely distributed and he claimed that the action is encouraged by the government, the police and the Home Ministry.

"It is impossible for a pornographic material to be publicized and released by hundreds and thousands if not protected by the powers that be," said Anwar during a press conference at the parliamentary lobby today.

He said knowing the Attorney-General Tan Sri Ghani Patail and his track record, he sure that there will be a minimal charge imposed on the trio (Datuk Shazryl Eskay Abdullah, Datuk Shuaib Lazim and Tan Sri Rahim Tamby Chik) in order to appease the 'forces'.

"I'm sure they're (the authorities) going to do away (with the case) like the other political motivated charges except when it refers to the Opposition leaders or the normal rakyat," he said.

He also told not to take seriously of Ghani's charges.

When asked whether he thinks the trio will be off scot-free, Anwar said that this is very likely seeing that the trio is conduit of Umno that provides help for Umno leaders.

"Who are the other criminals complicit? Rahim Tamby Chik? Shuib Lazim? One is a 'great moralist' leader and one is one of the Perkasa chiefs.

"I mean you are going to say Umno seriously want to take action against these people? I'm not certainly convinced," said Anwar.

Datuk 'T' trio who are businessman Eskay, former Melaka Chief Minister Rahim  and former Perkasa treasurer Shuib is expected to be charged for showing the sex video allegedly featuring Anwar to several representatives of the media on March 21.

The matter was confirmed by Eskay himself when contacted by news portals.

 

WIKILEAKS: What is going on in Malaysia?

Posted: 21 Jun 2011 01:00 AM PDT

The Administration's unwillingness to stand clearly for freedom of religion and the forthright application of legitimate judicial power, even when it is less than palatable to UMNO, the ruling party, is of concern. That is particularly the case given the imminent trial of opposition leader Anwar Ibrahim set to begin on January 25. 

THE CORRIDORS OF POWER

Raja Petra Kamarudin

C O N F I D E N T I A L SECTION 01 OF 02 KUALA LUMPUR 000020

 

SIPDIS

 

FROM THE AMBASSADOR FOR EAP A/S CAMPBELL, ACTING A/S

DONOVAN, DAS MARCIEL AND DRL PDAS GLAZE

 

E.O. 12958: DECL: 01/12/2020

TAGS: MY, PGOV, PHUM, PREL

SUBJECT: WHAT IS GOING ON IN MALAYSIA?

 

REF: A. KUALA LUMPUR 014 UPDATE ON THE ALLAH ISSUE

     B. KUALA LUMPUR 011 OVERNIGHT ATTACKS ON THREE CHURCHES

     C. KUALA LUMPUR 03 GOM APPEALS KUALA LUMPUR HIGH COURT RULING

     D. 09 KUALA LUMPUR 716 CANING PUNISHMENT POSTPONED

 

Classified By: AMBASSADOR JAMES R. KEITH; REASONS 1.4 (B) AND (D).

 

1.  (C) Two fundamental issues arise in connection with the Malaysian authorities' handling of the "Allah" case in which a Malaysian court has ruled unconstitutional the Najib Administration's effort to ban the use of the word "Allah" by a Catholic newspaper, publishing in both English and Malaysian.

Freedom of Religion

2.  (C) Despite its extensive efforts to reassure expatriate and foreign audiences, the Malaysian Government has focused only on protection of property and persons, foregoing an opportunity to make a clear statement on the maintenance of freedom of religion in the country.

Rule of Law and the Independence of the Judiciary

3.  (C) The Najib Administration's intervention has not been solely to promote and protect order and social stability. The Government has underlined the tenuous nature of judicial independence in the country by intervening to arrange a stay of the judge's order that the Catholic publication was allowed to use the word "Allah" in its vernacular text.

Moreover, the Administration has arranged a series of public comments from figures of authority ranging from the King to the Sultan of Selangor conveying to Malaysian citizens the clear message that the authorities are opposed to the judge's decision and do not foresee a time when the Government would retreat from its ban of the use of the word "Allah" in Catholic or other Christian publications.

4.  (C) The Administration's unwillingness to stand clearly for freedom of religion and the forthright application of legitimate judicial power, even when it is less than palatable to UMNO, the ruling party, is of concern.  That is particularly the case given the imminent trial of opposition leader Anwar Ibrahim set to begin on January 25. 

There has long been conflict between the ruling party's commitment in principle to freedom of religion and toleration of diverse views in practice.  Christians and Hindus, especially, find it hard in some states at some times to build places of worship or keep them from being plowed under in the name of development. 

Chinese Buddhist temples are less problematic for the established federal and state powers.  Jewish places of worship are strictly forbidden.  Similarly, the Malaysian authorities do not respect in practice the independence of the judiciary, at least not on a consistent basis in which an opponent to the ruling party can depend on justice being served.

5.  (C) There remains a debate in Malaysia as to whether the Prime Minister genuinely intends to enact significant political reform or, alternatively, whether he is merely giving lip service to reform objectives so as to coax as many conservative Malay voters as possible back into warm embrace of the ruling party after mass defections in the March, 2008 elections. 

There is evidence that his Administration wishes to liberalize the economy and recognizes the concomitant requirement to achieve at least a minimal level of political reform.  He has spoken openly about the need to revise the New Economic Policy, which embodies affirmative action provisions for the majority Malays and is the target of opposition and popular criticism because it establishes the equivalent of second-class citizenship for the roughly one-third of Malaysia's population that is either ethnic Chinese or Indian. 

Najib has similarly taken small steps to open up the economy and is on record suggesting the country must change or perish.

6.  (C) But his failure thus far to record much in the way of tangible results, beyond more forward-looking and liberal rhetoric, leads to popular suspicion.  The conventional wisdom among most non-ruling coalition Chinese and Indians, for example, seems to be that the ruling party has orchestrated the "Allah" issue so as to increase support among Malay voters by fomenting division between Muslims on one side and Christians or secularists on the other in the opposition coalition. 

Few in the opposition credit the Government with a sincere commitment to freedom of religion or the rule of law.  They may go too far in their distrust of the Government's motives and they may give the Government too much credit in its purported ability to organize conspiracies, but the popular view is widely and deeply held among non-Malay, non-Muslims that the Government is antagonistic toward other religions and is engaged in a long-term effort to expand Islam's primacy in Malaysian society.

7.  (C) Najib's public relations efforts to downplay differences among the races and religions and promote the concepts of toleration and moderation notwithstanding, he appears to have hardened popular views since the advent of his Administration given the steps hardliners in the ruling party have forced on their fellow UMNO members. 

The Kartika caning case and the cow-head incident (ref D), and a number of less prominent news events involving constraints on the practice of religious freedom have firmed up the views of those already in opposition. 

It is difficult to say at this point how this latest controversy will affect the ongoing priority on the ruling party's part to woo back ethnic Malays before another general election must be held by 2013.  But it is clear that there are limits as to how far Najib will go to earn the characterization of Malaysia as a moderate voice in the Muslim world. 

We should adjust expectations accordingly, and we will have to monitor closely the next likely test of Najib's political will, namely Anwar Ibrahim's January 25 trial.

KEITH

 

As I said, it’s all about perception

Posted: 20 Jun 2011 04:56 PM PDT

"DAP has no representative in MAIPP. Any decisions made by MAIPP regarding internal affairs of the mosque are solely decided by MAIPP. DAP has never been asked for an approval and were only informed by the press," said Penang Chief Minister Lim Guan Eng. But then read what the State EXCO member (equivalent of a State Minister) said. The perception created was that the State is behind this move.

THE CORRIDORS OF POWER

Raja Petra Kamarudin

DAP-Led Penang Govt Introduces Mosque Election

(Bernama) - The DAP-led Penang state government has decided to adopt the election system using ballot papers in the election of mosque committee members throughout the state.

Chairman of the State Committee on Religion, Domestic Trade and Consumerism Abdul Malik Kassim said the method that was introduced had been agreed upon by the various parties including the Islamic Religious Department, Penang Islamic Religious Council (MAIPP) and non-governmental organisations (NGOs).

"Through discussions with the various groups, it was agreed that a more transparent method of electing mosque committee members should be introduced instead of the existing system," he told reporters here today.

He said the selection through election aimed to give back the right to nominate and elect congregation leaders to members of the respective mosque congregation.

He said a guideline on methods of electing the mosque committee members for the 2012-2013 term had been distributed to all the mosques in the state.

***************************************

Penang to go ahead with planned mosque polls

(The Star) - The state government will proceed with the mosque committee election as the new system is more transparent and will benefit the Muslim community.

State Domestic Trade, Consumer Affairs and Religious Affairs Committee chairman Abdul Malik Abul Kassim said changes to the mosque election were still within the constitution.

"Some people claimed that the changes made regarding the election must have the green light from the Yang di-Pertuan Agong. However, the right to select the method of choosing the candidates still remains with the state government," he said.

"Yang di-Pertuan Agong still has the final say once the nominations are sent to him for approval."

Abdul Malik stressed that DAP had nothing to do with the decision which was made after discussions between the state government and the State Islamic Religious Council (MAINPP).

After the nomination closed on June 7, 193 mosques out of the total 200 in the state have sent in their nominations for the election starting June 18.

Abdul Malik said the numbers showed that the mosque qariah committees had no qualms about supporting the new and more transparent system.

Meanwhile, Penang Umno has submitted an appeal to Yang di-Pertuan Agong for the state mosque election to be postponed and reviewed for it to be in line with the Administration of the Religion of Islam (State of Penang) Enactment.

Its chief Datuk Zainal Abidin Osman said: "The Muslims are feeling uncomfortable as they have to go to the mosque to vote in their lea-ders. The appointment has always been carried out through meetings and consensus."

President of Penang Mosque Qariah Association Datuk Seri Mohd Yussof Latiff shares the opinion, saying he believes that the system needs improvement as "it is too liberal."

**************************************

Penang prepared to go to court over mosque elections

(Bernama) - The Penang government is prepared to face court challenges over its decision to have election of mosque committee members in the state on June 18, said State Religious Affairs, Domestic Trade and Consumer Affairs Committee chairman Abdul Malik Kassim.

He said the election of mosque committee members was provided for in Section 22 (4) of the Pulau Pinang Islamic Religious Council Enactment.

"A total of 4,485 people have offered themselves to fill the 4,530 vacancies in 151 of 200 mosques in six districts in the state, to enhance the preservation of the mosque institution," he said in a statement issued Friday.

He said 151 mosques will be holding the polls while the rest would be using alternative methods of selecting the committee members.

*************************************

Umno 'welcomed' to sue Penang on mosque polls

(Malaysiakini) - Penang state executive councillor for religious affairs Abdul Malik Abul Kassim has challenged groups protesting the elections to mosque committees in the state to sue the government.

Abdul Malik said the election would go on despite the fierce protests from Umno as the procedure was in compliance with Section 22(4) of the Penang Islamic Religious Council (MAIPP) enactment.

"So if anybody wants to challenge this, you are welcome," said Abdul Malik, the assemblyperson for Batu Maung.

"Those who cannot accept improvements that benefit the people and the Muslim community surely cannot accept this change," he added.

Several groups have shot down the new procedure under which mosque committee members would no longer be selected by the Penang Islamic Affairs Council (MAIPP) but elected directly by their congregations.

In the frontline of the protest is Umno, which has accused the DAP of interfering in the Islamic affairs of the state.

Umno also hit out at the state government for intending to split the Muslim community and allow politics to seep into the congregations.

MAIPP has also been strongly criticised for insulting the Yang di-Pertuan Agong, with Umno and Muslim NGOs insisting that His Majesty's approval of the new election system was necessary before implementation in the state.

However, Abdul Malik said NGOs aligned to Umno were trying to "exploit" the issue and by trying to drag the Agong into the matter, they hoped to make the Malays increasingly angry with the Pakatan Rakyat state government.

"Actually, only the selection format has changed," he said adding that previously, mosque committees were selected just by the raising of hands, but now it would be done through voting of candidates offering themselves to serve.

Mosque committee members were all along picked without the views of the mosque congregations considered, said Abdul Malik, "but this time we ask them to suggest names for their own committees to MAIPP, which will then be endorsed by the king".

No meddling from DAP

Abdul Malik said Umno had politicised the issue by slandering DAP, accusing the party of "interfering" in the administration of Muslim affairs.

He reiterated that the new procedure was solely the decision of MAIPP, without even an iota of meddling from any DAP leader.

"I am confident that the 4,485 people who offered themselves to fill 4,530 posts in 151 of the 200 mosques in the six districts of Penang intend to work together with the state government to uphold Islam," he said.

The 151 mosque congregations that agreed to hold the elections will vote in their committees at their annual general meetings, while the remaining 34 will not hold elections at their AGMs.

A total of 59 main posts were unchallenged while eight mosque congregations did not submit their nomination forms.

Abdul Malik said it was clear that Muslims in Penang were ready for a change that would benefit their community.

"The ones not ready for change are Umno and Malay rights pressure group Perkasa, which are anti-change, because they have always been very rigid in their thinking," he said.

"That is why they blindly protest against any change by anyone other than Umno... although at the end of the day, they will be copying the same thing," he added.

He gave the example of Umno protesting against the PAS-led Kelantan government for introducing the five-day work week.

Umno had then accused the state government of being lazy and for reducing work productivity, he said.

"But not long after that, the federal government too implemented the five-day work week," Abdul Malik added.

  

WIKILEAKS: In Iran they weigh and not count the cash

Posted: 19 Jun 2011 01:00 AM PDT

Radzi said that Petronas told MITI it does not have any investment in Iran now and that the private companies (SKS and Amona) claimed they had no financing sources for their projects in Iran. Radzi also described how Malaysian firms go to Iran with suitcases of money to purchase oil and gas concessions from the Iranians. He said that they bring too much cash to count the money, so they weigh it to determine if the amount is correct. Radzi did not offer why Malaysian firms would purchase an O&G concession from the Iranians for a project they are unable to finance.

THE CORRIDORS OF POWER

Raja Petra Kamarudin

C O N F I D E N T I A L SECTION 01 OF 02 KUALA LUMPUR 000037

 

SIPDIS

 

E.O. 12958: DECL: 01/19/2020

TAGS: ECON, EFIN, ENIV, ETRD, ETTC, IR, KNNP, MY

SUBJECT: MALAYSIA: ISA UPDATE - PETRONAS MOVING AWAY FROM IRAN INVESTMENT

 

REF: 09 STATE 121808

 

Classified By: Econ Counselor Matt Matthews for reasons 1.4(b) and (d)

 

1.  (C) Summary: Post approached the three Malaysian companies listed in Ref A that are reportedly doing business or contemplating doing business in Iran.  Petronas told us January 11 that it has no active investments in Iran, no commitment has been made to invest in South Pars Phase 11 and its contractual obligations in the Munir block are complete, with no further investment under consideration. 

Petronas officials noted that Petronas is concerned about investing in Iran due to current political uncertainties there.  Amona told us via telephone they sold their oil and gas (O&G) business, including any interest in the redevelopment of the Resalat Oilfield. 

Post has made contact with representatives from SKS Ventures, which will be reported septel.  Ministry of Foreign Affairs (MFA) Principal Assistant Secretary and America Desk Officer Muhammad Radzi Jamaludin (Radzi) told post that the Ministry of International Trade and Investment (MITI) held a meeting with Petronas, Amona, and SKS Ventures and told them to cooperate with embassy inquiries on Iran investments.  End Summary.

2.  (C) Comment: Our meeting with Petronas was at a surprisingly high level and the information offered was unusually frank and forthcoming for such a sensitive topic. As a Petronas Board member, Azhar is well positioned to provide accurate information on Petronas' Iran investment plans.  Post will continue to press for additional details on Petronas South Pars Phase 11 activity.  End Comment.

Petronas

3.  (C) Deputy Econcouns Salin and econoff Williams met January 11 with Petronas Board of Directors Member and Corporate Secretary Mohd Azhar Osman Khairuddin (Azhar) and his assistant, Head of Legal Research, Planning and Issues Management, Abdul Rahim Mydin (Rahim) to query Petronas about existing and planned investments in Iran,s oil and gas sector (O&G) and awareness of the Iran Sanctions Act (ISA). Deputy Econcouns delivered ref A points and provided additional background on our information request.

4.  (C) Azhar said that Petronas does not have any investments in Iran at this time.  Azhar explained that Petronas aspires to be a global company and desires a positive relationship with the USG.  However, he related that Petronas was a relatively late entrant to the O&G business and was not competitive with international oil companies (IOCs) in most development areas. 

Petronas made the conscious decision in the mid 1990,s, with the blessing of the GOM, to compete in countries where Western sanctions precluded the largest IOCs from competing such as Iran, Sudan, Myanmar, and Mauritania, according to Azhar.  He claimed that in 1996 the Petronas president met with Clinton Administration officials informing the USG of Petronas, plans to invest in Iran and that Secretary Albright gave Total, Gazprom, and Petronas ISA exemptions on South Pars Phases 2 and 3. 

Azhar said that Petronas developed the Siri field without an exemption and that both of Petronas, prior Iran projects are now finished.  He mentioned that Petronas does have an ongoing trading relationship with Iran, exporting lubricants to Iran.

5.  (C) Azhar told us that Malaysian O&G reserves are not large and are running out soon.  (Note: Conoco Philips Malaysia confirmed that without new discoveries, Malaysian oil production will decline at approximately 10% per year, from 550,000 bpd in 2008 to roughly 490,000 bpd in 2009 and 450,000 bpd in 2010.) 

Azhar noted that revenues from Petronas accounted for 45% of the GOM budget last year and stated that the GOM is over-reliant on Petronas to fund its operations.  He said Petronas feels tremendous pressure to grow its business in order to maintain Malaysia's political status quo and added that Petronas wants to stay insulated from politics, but must comply with GOM policy. 

He acknowledged the large amount of liquid assets on Petronas, balance sheet and Petronas, concerns that those funds be invested in productive O&G assets to promote future profitability rather than be spent now on domestic programs for political gain.  He described Petronas as a stabilizing force in Malaysia and in ASEAN regionally and his desire that the USG recognize the important role Petronas plays in maintaining political stability in the region.

6.  (C) Azhar was not aware of press accounts of Petronas investment plans in the South Pars Phase 11 gas field and was noticeably irritated that Petronas gas subsidiary Carigali had not mentioned Phase 11 when it briefed Azhar on its Iran activities.  He was quite clear, from his position as a member of the Petronas Board of Directors, that no final investment decision had been made on any new project in Iran.

Azhar added that Petronas is closely following the political situation in Iran between President Ahmadinejad and the opposition and stated that Petronas is very concerned about investing in Iran at this point due to political uncertainties and the possibility of "disruptive changes."

7.  (C) (Note: In a follow-up telephone call January 14, Rahim told econoff that investment in South Pars Phase 11 is still under consideration, but that Petronas has not committed to the investment.  Econoff asked follow-up questions on the status, timing, and cost of due diligence, contract status with Iran/CNPC, and when a final decision could be reached.  Rahim asked econoff to forward the follow-up questions via email and that he would try to respond. End Note.)

8.  (C) Azhar was excited about Petronas successful bid with Shell to develop the Majnoon oilfield in Iraq.  He praised the open and transparent competitive bidding process and said that Iraq's opening is putting a lot of pressure on Iran. Petronas is bullish on the political situation in Iraq and plans to compete for additional business in Iraq, according to Azhar.

Amona Claims O&G Business Sold

9.  (C) Econoff and LES Tang Loon Lian contacted Amona December 9 via telephone regarding its announced investment in the Resalat Oilfield.  An Amona representative told us Amona had sold its entire oil and gas business to Oil Corp., a publicly traded Malaysian company. 

Local news databases did not report announcement of a sale.  A search of Bursa Malaysia publicly listed companies showed that Oil Corp. is losing significant amounts of money and appears near bankruptcy. 

Post will continue to check for additional details on the status of Malaysian participation in the Resalat transaction.

MFA and Trade Ministry Authorize Cooperation

10.  (C) During a January 12 meeting, Ministry of Foreign Affairs Principal Assistant Secretary and America Desk Officer Muhammad Radzi Jamaludin (Radzi) told econoff that he had recently attended a MITI-led meeting, in which MITI called in Petronas, SKS Ventures and Amona and told them to cooperate with the embassy in our ISA inquiry. 

Radzi said that Petronas told MITI it does not have any investment in Iran now and that the private companies (SKS and Amona) claimed they had no financing sources for their projects in Iran. 

Radzi also described how Malaysian firms go to Iran with suitcases of money to purchase oil and gas concessions from the Iranians.  He said that they bring too much cash to count the money, so they weigh it to determine if the amount is correct. 

Radzi did not offer why Malaysian firms would purchase an O&G concession from the Iranians for a project they are unable to finance.

KEITH

 

Here We Go Again

Posted: 16 Jun 2011 01:14 PM PDT

THE CORRIDORS OF POWER

Hakim Joe

Malaysia possesses submarines that cannot dive but are able to sail faster than a sampan going upstream. Likewise, we are also buying super expensive helicopters that can possibly out-fly and out-maneuver Superman in flight (in theory only).

Now we are looking at fighter jets to replace the ageing MIG-29N Fulcrum in 2015 and the budget could be in excess of RM6 billion.

Here we go again.

French aerospace company Dassault Aviation is planning to set up an office in Kuala Lumpur within the next few months with the intention of winning this lucrative contract from the Malaysian Government. On offer is their Multi Role Combat Aircraft (MRCA) Rafale at an estimated cost of 100 million Euro a pop (depending on who you ask). A squadron of a 12 aircrafts will cost in excess of 1.2 billion Euros (RM5.2 billion without optional extras like Krell Sound System, Liebherr fridge, Bosch reverse sensor or Prometheus dashboard cigar lighter).

Not to be out done, British defense company BAE Systems (who already has a large office in Kuala Lumpur) is offering a better deal. For an estimated RM5.5 billion, BAE Systems will sell to RMAF 10 units of their Tranche 3 Typhoon fighter/interceptor.

Now, how is this a better deal as compared to the Rafale? The Frenchies are offering 12 units whilst the Pommies are offering 10 units. The Frenchies deal cost RM5.2 billion whilst the Pommies deal cost RM5.5 billion. The Rafale is a MRCA whilst the Typhoon is NOT a MRCA.

What BAE Systems is also offering are another 20 units of Tranche 1 Typhoon FOC (gratis, as is basis) that the Royal Air Force is retiring from active service, kind of a "Buy 1 Free 2" offer. Technically, these aircrafts are not entirely free, as the RMAF will need to pay to fit specific items like the communication systems and other support items to be compatible to its existing ground control systems.

Boeing is also in the picture with its offer of the FA-18F Super Hornet (5th Generation) at USD57 million a piece. Cheap? Oops…the USD57 million is only for the chassis alone, not even the paint job. The real cost per unit after installation of the engine, avionics, pylons, radar, etc. approaches USD125 million a unit (without ordnance, training or support) minimum.

However, Boeing is the most optimistic that they are capable of securing this contract as RMAF is already using the FA-18E (4th Generation) and the Malaysian pilots are familiar with the aircraft (hence less training required) plus the important fact that they have appointed three (yes, three) Malaysian companies to do the lobbying for them - Composites Technology Research Malaysia Aero Composites (CTRM AC), SME Aerospace (SMEA), and Spirit AeroSystems. Likewise, of the four potential suppliers, only Boeing has made an official visit to Putrajaya this year to promote their latest aircraft to the former Defense Minister. The other three haven't even applied for their visas.

Composites Technology Research Malaysia Aero Composites is a wholly owned subsidiary of Composites Technology Research Malaysia Sdn Bhd. Based in Batu Berendam, Melaka, CTRM AC is a government-linked company with the Ministry of Finance Incorporated as its major shareholder.

SME Aerospace, based in Sungai Buloh, manufactures aircraft parts, components and assemblies for customers worldwide and is a wholly owned subsidiary of the National Aerospace & Defence Industries Berhad.

Spirit AeroSystems Malaysia Sdn Bhd, based in Kuala Lumpur, is an indirect wholly owned subsidiary of Spirit AeroSystems Holdings Inc. [NYSE: SPR]

The fourth and final offer is from Sweden's SAAB with its JAS 39 Gripen MRCA aircraft at USD60 million a pop even though this offer is considered to be the least successful of the entire lot and the cheapest.

For those detractors that think that the purchase of military aircrafts is not viable due to Malaysia's economic outlook and that we are still financing the current fleet, think again. As of April 2011, a Request For Quotation (RFQ) has been issued to the four manufacturers.

But then again, when and what has economy and cost to do with the purchase of military hardware here in BolehLand? BTW, the submarines still refuse to submerge underwater.

WIKILEAKS: US concerns regarding Malaysian companies suspected of illegal transshipment activities

Posted: 16 Jun 2011 01:00 AM PDT

Following up on PM PDAS Countryman's January 14 meeting with the Malaysian Ambassador to Washington about the missing F-5 engines case (ref E), DCM reiterated to Zainol the seriousness with which we view this issue and that we look forward to a full report/accounting by the GOM. This was necessary to ensure the US has the "fullest confidence" in Malaysia's ability to handle and account for sensitive defense equipment. 

THE CORRIDORS OF POWER

Raja Petra Kamarudin

S E C R E T SECTION 01 OF 03 KUALA LUMPUR 000049

 

SIPDIS

 

FOR EAP/MTS, ISN, PM AND INR

 

E.O. 12958: DECL: 01/20/2030

TAGS: PREL, KNNP, PARM, IAEA, MNUC, PGOV, IR, MY

SUBJECT: MALAYSIA: MFA VIEWS ON NON-PRO, IAEA, AND EXPORT CONTROL LAW

 

REF: A. 09 STATE 126209 -- U.S. APPROACH TO NPT CONFERENCE

     B. 09 STATE 128736 -- NEXT STEPS WITH MALAYSIAN ON

        PROLIFERATION

     C. 09 KL 917 -- EINHORN MEETINGS IN KUALA LUMPUR

     D. 09 KL 977 -- GOM STATEMENT ON IAEA VOTE

     E. STATE 5003 -- PM A/S MEETING WITH MALAYSIAN

        AMBASSADOR

 

Classified By: Political Counselor Brian D. McFeeters for reasons 1.4 b and d.

 

Summary

1. (S) The DCM met with MFA Deputy Secretary General Zainol Abidin Omar on January 15 to convey Ref A talking points and to discuss a range of other counter-proliferation and export control-related issues (refs A and B).  Referencing special information that was provided to the GOM in early-November by S/SANAC Einhorn, Zainol said that the GOM was still looking into Malaysian companies suspected of illegal transshipment activities involving Iran, but otherwise no concrete actions had been taken. 

DCM urged the GOM to "redouble" its efforts in this area.  Zainol advised that his government was still deliberating internally the disposition of dual-use components and equipment that were seized by Malaysian authorities on December 25 from a Middle East-bound vessel.

Regarding a new Export Control law, Zainol said that it was now under near-final review at the Attorney General's office, but he offered no timeline on when the bill might be presented to parliament.  On the fate of their Ambassador (Arshad) to the IAEA, Zainol indicated that naming of a successor was a sensitive issue and that it may take several weeks (or longer) for a final decision. 

Zainol did state that, in the interim, Arshad was still Chairman of the IAEA Board of Governors.  DCM encouraged the GOM to move quickly on a replacement to clear up the "confusion" at the IAEA on Arshad's status. 

Zainol welcomed the Jan 28 visit by ISN acting Assistant Secretary Van Diepen and delegation.  He confirmed that the GOM would participate in EXBS-sponsored training in March and expressed interest in sending officials for additional export control-related training at the University of Georgia in April.  DCM briefly raised the missing F-5 engines case.  End Summary.

2. (C) DCM Rapson and Poloff Nathan met with Ambassador Zainol Abidin Omar, the Deputy Secretary General in charge of multilateral affairs at MFA on January 15. 

(Note: Zainol is the no. 5 ranking officer in the MFA after the Foreign Minister, two Deputy Ministers and the Secretary General. End Note). 

Also in attendance from the MFA were Under Secretary for non-proliferation Bala Chandra Tharman, Principal Assistant Secretary for non-proliferation Shazryll Zahiran, and Principal Assistant Secretary for United States affairs Muhammad Radzi bin Jamaluddin.  The discussion was cordial and went for an hour-plus.

3. (S) The DCM recalled Special Advisor for Non-Proliferation Einhorn's November 4 meeting with MFA Secretary General Rastam (ref C), during which Einhorn provided the MFA a special list of companies of concern that were engaging in transshipment activities with Iran, and asked for a status update on any GOM decisions or actions with respect to the listed companies. 

Zainol replied "We have requested security agencies to initiate their investigations," but added that, thus far, "the investigation has not been able to unearth any activities that are in contravention to UN resolutions."  The DCM emphasized that the U.S. has "strong concerns" about the companies listed and their activities, and urged the GOM to "redouble" its efforts in this area.  Zainol acknowledged this request and said the GOM would "welcome any additional information on those companies."  He noted that the Foreign Ministry has the inter-agency lead on non-proliferation issues, and that bilateral requests for cooperation and assistance on these types of issues should be "funneled through the MFA."

Update on the Christmas Day Seizure

4. (S) DCM thanked and briefly queried about the status of the shipment of dual-usage parts and equipment seized by the GOM from a middle east-bound vessel over the Christmas day holiday. 

Zainol replied that all the information they can share has been separately channeled to the relevant U.S. agencies.   Zainol did note that they (the GOM) are still conducting their internal investigation on whether or not the equipment and parts seized were of dual-use concern as the USG is alleging. 

(Comment: Zainol declined to offer any info on current disposition of the seized shipment, although his comments clearly implied that the consignment was still under GOM control.  Moreover, he provided no indication that the GOM would be reaching out to the UN Security Council for guidance on evaluation and analysis and handling of the seized shipment as had been indicated to us through liaison channels.  End comment.)

Export Control Law in Final Stages, but...

5. (C) Zainol confirmed that the GOM "is in the final stages" of drafting the export control law bill, and said that the draft is currently with the Attorney General's office.

Zainol did not want to speculate when the AG's office would finish its review and when the bill would be presented to parliament, given, he said, that there are a range of other "urgent" issues on the PM, AG's, and Parliament's plate such as review and revision of the  controversial Internal Security Act (ISA). 

Zainol opined that the process could "take some time" as the AG's office needs to consider how an export control law would tie into and affect existing laws. Zainol concluded by noting that once the proposed bill was finalized, it "would be introduced to parliament at the appropriate time." 

DCM thanked Zainol for this update and recalled the high priority both the PM and Foreign Minister placed late last year on early passage of the export control law.  He noted that the USG stands ready to assist the GOM, including through the provision of training and technical assistance (see para 8, below).

Van Diepen Delegation Visit

6. (SBU) The DCM previewed the January 28th visit of ISN acting Assistant Secretary Van Diepen and delegation, thanking Zainol for agreeing to meet with the A/S and for assembling an interagency team on the Malaysian side for that meeting at MFA.  The DCM confirmed that we are also seeking separate appointments for the delegation at MITI, the Attorney General's offices and the PM's office. Zainol said he look forward to the discussions with A/S Van Diepen and welcomed further engagement with the U.S. on non-proliferation and export control issues.

IAEA and the Status of Ambassador Arshad

7. (C) The DCM  asked Zainol for clarification on the status of Malaysia's Ambassador to the IAEA (and co-current Chairman of the IAEA Board of Governors) Arshad  (Ref D), noting that there have been some confusing signals of late emanating from various sources about his recall and the naming of a successor. 

Zainol was coy on providing a direct answer, and would only say that "at the moment, we are unable to say anything," other than that he (Arshad) "is still chair of the IAEA Board of Governors" until a new Ambassador is identified. 

Zainol explained that there is a delay because "the nomination of a new ambassador is very sensitive," adding that "the process takes a few weeks." The DCM recalled the Foreign Minister's public comments on this subject last month and recent senior level communications we have received from the GOM.

Training and Enhancing Engagement

8. (SBU) Zainol welcomed increased interaction and engagement between the USG and GOM on the non-proliferation front. He confirmed that the GOM planned to participate in an EXBS-sponsored non-proliferation workshop in March 2010, and was interested in sending two candidates to the University of Georgia within the next few months for more specialized and extensive export control-related training. 

Zainol commented that the MFA has been preparing for the Nuclear Security Summit in Washington this April, which PM Najib will attend. DCM Rapson noted USG interest in having Malaysia's Attorney General visit Washington for discussions on a range of bilateral issues, including the export control law.

Missing F-5 Engines

9. (C) Following up on PM PDAS Countryman's January 14 meeting with the Malaysian Ambassador to Washington about the missing F-5 engines case (ref E), DCM reiterated to Zainol the seriousness with which we view this issue and that we look forward to a full report/accounting by the GOM.  This was necessary to ensure the US has the "fullest confidence" in Malaysia's ability to handle and account for sensitive defense equipment. 

Zainol replied that "we are seriously concerned" and that the GOM "fully understands that this is an obligation we have to undertake," but also added that "my department is only concerned with nuclear non-proliferation" and that "we (MFA) are not the lead on the issue." 

When asked about those arrested for their alleged involvement with the F-5 engines, Zainol replied that the issue "is now before the court, so it's difficult to offer any further comment."

KEITH

 

WIKILEAKS: Syed Mokhtar al Bukhary's foray into Iran

Posted: 14 Jun 2011 01:00 AM PDT

SKS is small operation controlled by Syed Mokhtar al Bukhary, one of Malaysia's wealthiest industrialists with a Forbes Magazine estimated net worth of $2 billion. Much of Syed Mokhtar's personal wealth has been acquired in dealings with the GOM and GOM-linked corporations. He controls Malaysia Mining Corporation, DRB Hicom, Malakoff, and Gas Malaysia among other significant Malaysian operations.

THE CORRIDORS OF POWER

Raja Petra Kamarudin

C O N F I D E N T I A L SECTION 01 OF 03 KUALA LUMPUR 000059

 

SIPDIS

 

STATE FOR EEB/ESC THAMMANG

STATE FOR EEB/TFS CBACKEMEYER

STATE FOR NEA/IR RWADHWANI

 

E.O. 12958: DECL: 01/26/2020

TAGS: ECON, EFIN, ENIV, ENRG, EPET, ETTC, IR, KNNP, MY

SUBJECT: MALAYSIA: SKS VENTURES EXPLAINS ITS IRAN INVESTMENTS

 

REF: A. 09 STATE 121808

     B. KUALA LUMPUR 0037

 

Classified By: Econ Counselor Matt Matthews for reasons 1.4 (b) and (d)

 

1.  (C) Summary: SKS Ventures (SKS) CEO Abang Iskandar Muas (Iskandar) met with Econoff January 19 to discuss SKS plans to develop the Golshan and Ferdowsi gas fields (G&F) in Iran.

Iskandar said that the GOM had initially negotiated the deal with the GOI and handed the project to SKS just prior to signing.  Iskandar told us that development of the G&F fields is going slowly because sanctions impeded National Iranian Oil Company (NIOC) ability to perform basic due diligence functions.  He also stated that NIOC has been extremely difficult to work with and that the initial buyback service contract signed in Dec. 2007 is the only commercial agreement between SKS and NIOC. 

SKS's only investment over the past two years since the announcement was limited to staff time from their 15 employees and air tickets for meetings with a total value under $1 million, according to Iskandar.  He was pessimistic on prospects for the deal and said that SKS is considering pulling out altogether. 

However, he emphasized SKS would need GOM approval prior to exiting the transaction because Malaysian Trade Ministry and Foreign Ministry officials had encouraged SKS to enter into the deal in the first place and had reconfirmed GOM support for trade cooperation with Iran at a recent meeting. 

Iskandar also denied reports of SKS participation with NIOC in a refinery projects in Syria and Indonesia and downplayed its deal with NIOC which is under review in Malaysia.  End Summary.

2.  (C) Comment:  SKS is small operation controlled by Syed Mokhtar al Bukhary, one of Malaysia's wealthiest industrialists with a Forbes Magazine estimated net worth of $2 billion.  Much of Syed Mokhtar's personal wealth has been acquired in dealings with the GOM and GOM-linked corporations.  He controls Malaysia Mining Corporation, DRB Hicom, Malakoff, and Gas Malaysia among other significant Malaysian operations. 

Post believes Iskandar is a credible interlocutor that provided an important window on the GOM's role in the deal and SKS current thinking on the transaction. Iskandar seemed genuinely frustrated that the G&F deal turned out to be an empty business proposition due to NIOC incompetence and Iran sanctions.  Other oil and gas industry contacts have confirmed the small size and scope of the SKS operation.    End Comment.

SKS Ventures

3.  (C) Econoff met January 19 with SKS Ventures (SKS) CEO Abang Iskandar Muas (Iskandar) to discuss the SKS intentions to develop the Golshan and Ferdowsi gas fields (G&F) in Iran and implications under the Iran Sanctions Act (ISA).

Iskandar mentioned early in our conversation that Ministry of International Trade and Industry (MITI) Senior Director Wong had called him January 15 informing him that the embassy had been trying to contact him and he needed to meet with us. Econoff delivered ref A points and offered additional background on our information request. 

According to Iskandar, SKS has 15 full time employees and works on projects outside of Malaysia for Syed Mokhtar.  Iskandar is an experienced O&G industry professional, having worked for Shell Oil USA (based in Houston) for fifteen years in Sarawak, Saudi Arabia (where he was VP for Finance and Human Resources), and Kuala Lumpur prior to assuming his current position with SKS two and one half years ago. 

Iskandar fondly reminisced of his frequent travel to the U.S. for business and family vacations prior to assuming his position at SKS.

Golshan and Ferdowsi: G2G Agreement

4.  (C) Iskandar said the G&F deal grew out of government-to-government negotiations between Malaysia and Iran during 2007.  The GOM brought SKS to the table late in the negotiations, according to Iskandar, finalizing a buyback service contract between SKS and National Iranian Oil Company (NIOC) in December 2007. 

He added that SKS entered into the agreement based on the GOM's policy of expanding trade cooperation with Iran and the belief that the business climate for oil and gas (O&G) in Iran was improving during 2005-6. 

Iskandar said that the initial business strategy was for SKS to plan the project, NIOC to perform physical due diligence (appraisals, seismic analysis, feasibility studies, etc.), and, once the project was ready to start, sell controlling interest, at a profit, to an international oil company that could bring resources to develop the fields.

Iskandar commented, "We have no wells, no drilling rigs, no facilities, no experts, and no technology" to implement a project the size of G&F.  His explanation as to why the Iranians would enter in to a transaction the size of G&F with such a small entity was, "in order to be friendly to the government (of Malaysia)."

NIOC Difficulties

5.  (C) Working with NIOC, according to Iskandar had been "extremely difficult."  He added, "we should have taken a lesson from Petronas" claiming that Petronas will not deal with NIOC any longer because NIOC still owed a substantial amount of money to Petronas from its buyback service contract for South Pars Phases 2 and 3. 

Iskandar said that NIOC has made no progress on its due diligence obligations at G&F due to international contractors refusing to work in Iran because of sanctions.  He complained that SKS and NIOC also have not reached any commercial agreements on the project in the last two years. 

Iskandar stated, "We have no idea how we would be paid.  NIOC has not agreed to LNG and we have no interest in selling gas domestically.  Iran uses most of their gas to inject into their oil fields to get more oil or to produce heavily subsidized electricity." 

He listed numerous other problems plaguing the project related to Iran sanctions such as the inability to import LNG technology or hire expat expertise, a low likelihood that Iranian LNG could be consistently sold on the open market, and NIOC's lack of access to financing.

SKS Ready to Walk Away

6.  (C) Iskandar described the SKS agreement with NIOC on G&F as "barely hanging on" and that SKS is currently deciding whether to stay in or pull out, and added, "The decision will come sooner rather than later."  He viewed the buyback service contract as having "no commercial value" at this time. 

He noted though that Syed Mokhtar's close connections to the Malaysian government mean SKS will not move on a G&F decision without policy direction from the GOM.  "We do not want to be on the wrong side of the government and we have not heard from PM Najib", according to Iskandar.  However, he added that SKS has "no money in the ground" in Iran, because the firm did not pay an initial "signing bonus" as the buyback service contract did not carry any vested rights to the gas. 

He also stated that SKS management is aware of the change in the international political environment with regard to Iran and is "not entrenched," implying SKS would quickly drop the transaction if permitted by the GOM.

Another View of the MITI Meeting

7.  (C) Iskandar offered a different account of the recent meeting between MITI and Ministry of Foreign Affairs (MFA) officials and officers from the three Malaysian companies listed in ref A.  Iskandar said that after the companies answered MITI queries on their Iran investments, the companies, especially Petronas, pushed back at MITI and MFA asking "What is the government's stance on trade cooperation with Iran?" and "Should we adjust our investment strategies?"

MITI responded that the GOM still supports trade cooperation with Iran, according to Iskandar.  (Comment: The MFA account of the meeting (ref B) was similar to Iskandar's but omitted the companies' questions and MITI's response.  End Comment.)

Other Announcements Inaccurate

8.  (C) Toward the close of the meeting, Iskandar addressed recent Iranian and Malaysian press announcements of SKS participation in other transactions with NIOC.  He stated that the GOM asked SKS to commission a feasibility study on a project with NIOC. It involved a refinery project in Kedah with a pipeline across the Malaysian Peninsula to Terengganu.

Iskandar commented that the pipeline is economically unwarranted and an Iranian partner likely makes the refinery unfeasible.  He added that recent announcements of SKS participation in a refinery project in Syria with Iranian and Venezuelan partners and SKS participation in an Indonesian refinery project with Pertamina and NIOC are blatantly false.

He said that the first SKS had heard of either project was in press reports.  He explained that SKS never issued denials of participation in the deals in order to avoid embarrassment in case the government was involved.

KEITH

 

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