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Britain is distorting history Posted: 10 Sep 2011 09:06 PM PDT Tun Dr Mahathir Mohamad today said Malaysian history as currently taught in schools was inaccurate. National Professors' Council (MPN) has taken the debate further by claiming that Malaya, the precursor to Malaysia, was never colonised by the British Empire and had merely been a protectorate. Last week, Higher Education Minister Datuk Seri Mohd Khaled Nordin said the current History syllabus in schools was in need of review. NO HOLDS BARRED Raja Petra Kamarudin Dr M: History turning into fantasy Tun Dr Mahathir Mohamad today said Malaysian history as currently taught in schools was inaccurate, claiming that it failed to provide proper context of the country's fight for independence. "Many from the younger generation do not understand history and the origin of the nation, as there were attempts to alter historical facts into fantasy," the former prime minister was quoted as saying in a Bernama Online report today. The subject of local history became a hot topic after Umno-owned Utusan Malaysia alleged that PAS deputy president Mohamad Sabu had said on August 27 that the communists who attacked the Bukit Kepong police station during the pre-Merdeka insurgency were heroes. National Professors' Council (MPN) has taken the debate further by claiming that Malaya, the precursor to Malaysia, was never colonised by the British Empire and had merely been a protectorate. Today, Dr Mahathir urged the government ensure that historical accuracy be given priority over political expedience. "The government needs to focus on what really transpired so that writings on the country's history would not be influenced by current political interests... History is all about what had happened, and we cannot change that... whatever happened in the past, had happened," said Dr Mahathir. Last week, Higher Education Minister Datuk Seri Mohd Khaled Nordin said the current History syllabus in schools was in need of review. ****************************** Malaysia's First Lady, Rosmah Mansor, and the Deputy Prime Minister, Muhyiddin Yassin, are currently in London where it is believed they met the British government to discuss amendments to the British distortion of history. The documents in the National Archives in London talk about the British Colonial government of Malaya and refer to the Colonial Office. This gives the wrong impression that Malaya was a colony of Britain whereas this was not so, says Malaysia. Malaya was never colonised by Britain, argues Malaysia. Britain responded by pointing to the fact that 31st August every year since 1957 is celebrated as Merdeka Day. This proves that Malaya was never Merdeka or independent before 31st August 1957, which means it was a colony of Britain. If Malaysia will abolish the 31st August Merdeka Day celebration, then Britain will consider amending all the documents in the National Archives in London and will delete all references to the Colonial Office in these documents. Furthermore, the First Prime Minister of Malaysia, Tunku Abdul Rahman, is called Bapa Merdeka. If Malaya was never a colony of Britain then it could not have been granted Merdeka, which means Tunku Abdul Rahman can no longer be called Bapa Merdeka, Britain pointed out. A further problem that will be raised, Britain pointed out, would be whether the Malaysian Constitution would still be valid since it was a Merdeka Constitution. This would also affect the status of the Rulers who have all been reduced to the status of Constitutional Monarchies. Power would have to be given back to the Rulers who would rule as Absolute Monarchies. The First Lady and the Deputy Prime Minister told the media during a press conference that the matter will require further discussion and it may be in the long-term interest of the nation that Malaysia acknowledges that prior to 31st August 1957 it was a British colony after all. The Cabinet will receive the report on Wednesday and it is expected to issue a statement asking Malaysian historians to stop arguing that Malaysia was never colonised by Britain since this raised too many questions involving other issues.

And the facts are... Posted: 10 Sep 2011 07:26 PM PDT Prime Minister Najib Tun Razak says that we must not change historical facts. And one 'historical fact' is that UMNO fought for Merdeka. Well, let us go through this very brief history lesson about the fight for Merdeka and see what happened in the early years and how Merdeka for Malaya was eventually granted. NO HOLDS BARRED Raja Petra Kamarudin PM: Don't change historical facts Datuk Seri Najib Tun Razak has reminded the people not to change historical facts or to glorify the communist terrorists. He said the communist terrorists in the past era were certainly cruel and the people were in their grips as their ideology did not favour the people. They were anti-religion and despotic, he said. "That was why we opposed the communists at that time because they were behaving cruelly in this country," he said at the Malaysia Aidilfitri-Merdeka 2011 open house on Sunday. Najib said the communists at that time were different from the present communism because in the past, the communists did not give the people the right to be wealthy. "The present communism is different from the past. Previously, they wanted to control the country and spread the ideology which did not give the people their rights. "We are friendly with communist countries now because they have discarded their old ideology," he said. ******************************************* In 1915, Tan Cheng Lock launched the Straits Chinese British Association (SCBA) and became its first President. In 1923, he was appointed a member of the Legislative Council of the Straits Settlements. In 1926, Cheng Lock made history by delivering a speech to the Council about the ideals of a territorially and politically united Malaya.  Cheng Lock spent the war years in exile in India during WWII. In 1949, together with Tun Leong Yew Koh and Colonel H. S. Lee, he launched the Malayan Chinese Association (MCA). Under Cheng Lock's leadership, MCA engaged with senior Malay leaders from UMNO (which was formed earlier in 1946) such as Datuk Onn Jaafar and Tunku Abdul Rahman. Cheng Lock also joined the All-Malaya Council of Joint Action (AMCJA) and became its Chairman. Many informal meetings were held between Onn Jaafar, Cheng Lock, and E.E.C. Thuraisingham (who represented the Indians), which resulted in the formation of the Communities Liaison Committee (CLC). The CLC became the platform for hammering out proposals and compromises on a number of issues that included citizenship, education, democracy, and in resolving the deadlock on Ketuanan Melayu. It was eventually decided that an 'agreement' would be forged between the Malays and non-Malays. In return for giving up Ketuanan Melayu (the Malays' special position), the Malays would receive assistance from the non-Malays in closing the economic gap between the impoverished and overwhelmingly rural Malays with the substantially better off and urban non-Malays. Thuraisingham later said, "It is true. I and others believed that the backward Malays should be given a better deal. Malays should be assisted to attain parity with non-Malays to forge a united Malayan Nation of equals." In 1946, the British tried to implement the Malayan Union. That was when and the reason why UMNO was formed, to oppose the Malayan Union. That same year, the Malayan Democratic Union (MDU) sponsored a meeting in Singapore to "provide the machinery for the various communities, through their organisations and associations, to reach agreement on all points connected with the future constitution of Malaya, thus avoiding the dangers of separated and self-interested representation." Ahmad Boestamam and Musa Ahmad of the Malay Nationalist Party led the formation of Pusat Tenaga Ra'ayat (PUTERA), which later included the non-Malays to become the PUTERA-AMCJA. PUTERA-AMCJA was the first platform for the fight for Merdeka. In 1947, the Associated Chinese Chambers of Commerce (ACCC) together with PUTERA-AMCJA supported a nation-wide strike called the All Malaya Hartal with an aim to pressure the British into discussing Merdeka. The Hartal, modelled after the one organised by Gandhi in India, was very successful. UMNO, however, opposed the Hartal and organised counter demonstrations in many parts of Malaya. UMNO was basically pro-British. In 1948, the plan for the Malayan Union was replaced with the Federation of Malaya. The Communist Party of Malaya (CPM), who opposed the Federation and wanted self-rule or Merdeka, decided to launch an armed rebellion. With that ended the PUTERA-AMCJA and the Emergency was declared. The British realised that Merdeka was inevitable. But they refused to talk to the CPM, Malay Nationalist Party, Malayan Democratic Union or PUTERA-AMCJA. The British felt that British interests in Malaya (which contributed to about a third of Britain's economy) would be better protected with an UMNO-led government heading an independent Malaya. One important point to note is that the CPM insurrection was very costly for the British who were almost bankrupted by the war. This made it necessary for them to quickly resolve the issue of Merdeka. In that sense, the CPM helped accelerate Merdeka and it assisted UMNO in its negotiations with the British. Those who opposed UMNO were rounded up and detained by the British. Those, like Mustapha Hussein, who joined UMNO, were spared arrest. Tunku Abdul Rahman and Tun Razak Hussein, however, were not only not arrested but were allowed to tour the length and breadth of Malaya to speak at ceramahs in their fight for Merdeka. It was clear that the British were assisting UMNO in its fight for Merdeka. Datuk Andika, who died in Kuala Terengganu at the age of 100 a few years ago, was the Assistant District Officer of Dungun around that era. He formed UMNO in Terengganu soon after meeting Tunku Abdul Rahman and Tun Razak in Kuantan. Datuk Andika told me he was encouraged by the British to join UMNO and his boss, the District Officer, not only gave him leave to campaign for UMNO but he was also given financial support by the British.

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WIKILEAKS: GOVERNMENT-LINKED COMPANIES: UNRAVELING THE TANGLED WEB Posted: 11 Sep 2011 01:00 AM PDT High tariffs and bureaucratic impediments to importing a car -- including limits on the number of approvals and required signatures from three separate government ministries -- clearly were designed to benefit the government-owned automobile manufacturer Proton. On the other hand, Khazanah, the largest GLIC, recently bought back from Singapore a controlling share in Pantai, the company granted sole authority to issue Malaysian medical clearances for foreign workers.   THE CORRIDORS OF POWER Raja Petra Kamarudin 1.  (SBU) Summary:  The Malaysian government's ability to control market access through its holdings in government-linked companies (GLCs) is an important consideration in our ongoing FTA negotiations. Unraveling the tangled web of government holdings is difficult. Much information is publicly available, but tracing through the linkages between government and commercial entities requires close familiarity with the local market and major players.  Even then the results can be controversial, as demonstrated by a recent report that leaked from a local think tank.  One of our objectives in the FTA negotiations is for the Malaysian government to compile an annual report on GLCs -- as was done in the U.S.-Singapore FTA.  Even knowledgeable Malaysian officials will find this a daunting task, but they could be persuaded that it fits with the government's program for improved GLC performance.   End summary.  Big Players, Thin Skins 2.  (U) According to a Malaysian Government website, Government- Linked Companies (GLCs) -- commercial companies in which the GoM has a direct controlling stake) employ 5 per cent of the national workforce, account for approximately 36 per cent of the market capitalization of the Bursa Malaysia (the local stock exchange), and comprise 54 per cent of the benchmark Kuala Lumpur Composite Index.   The Government of Malaysia manages its holdings in the GLCs through seven investment holding companies, or Government-Linked Investment Corporations (GLICs).  The GLICs have differing mandates with varying roles and degrees of responsibility with regard to executing Government policies and initiatives, particularly regarding industrial policy and development initiatives.  While a number of Malaysia's GLCs have been loss makers for decades, some efforts are being made to improve their accountability and profitability (see reftel). 3. (U) The role of the GLCs in the Malaysian economy is a sensitive matter, as they are inextricably linked with the government's effort to advance the economic standing of Bumiputeras (ethnic Malays). Recently, a respected local think tank produced a report for the government that, i.a., included recommendations on the management of GLCs and their use as agents of the government's socioeconomic policy.  The report asserted that through the GLCs, Bumiputeras already hold sufficient corporate shares to have surpassed the government's headline goal of owning 30% of Malaysia's wealth (government statistics say Bumis only own 18.9%).  This claim caused such a stir that the president of the think tank publicly repudiated the study.  The chief researcher resigned in protest. (Comment:  We will report on this controversial study in more detail in a separate message.) One Hand Washes the Other 4.  (U)  Sometimes the government exerts itself to protect the GLCs, and sometimes it's the GLCs that serve the government. High tariffs and bureaucratic impediments to importing a car -- including limits on the number of approvals and required signatures from three separate government ministries -- clearly were designed to benefit the government-owned automobile manufacturer Proton.  On the other hand, Khazanah, the largest GLIC, recently bought back from Singapore a controlling share in Pantai, the company granted sole authority to issue Malaysian medical clearances for foreign workers.   One Khazanah employee commented to Econoff that the driving reason for the re-acquisition was not good business but rather, "national pride." There was an understanding that Khazanah would have a majority stake but decision-making would remain in the hands of the company. Through a Glass Darkly 5.  (U) The level of publicly available information about Malaysia's seven GLICs varies considerably.   Khazanah, the largest GLIC (owned by the Ministry of Finance), publishes its holdings in a flow chart posted on its website, www.khazanah.com.my.  Permodalan Nasional Berhad (PNB), a GLIC established specifically to promote the economic advancement of ethnic Malays (Bumiputeras), publishes financial data in its annual report available on its website, www.pnb.com.my.  Some of the other GLICs have websites, but offer differing amounts of information on their holdings and strategies. In addition, these figures continually change as fund managers buy and sell on an ongoing basis. 6.  (U)  Information on the ownership of publicly-traded GLCs can be found in their annual reports.  The Malaysian Securities Commission enforces requirements regarding publication of financial data on publicly-traded firms.   Most listed companies disclose their top 30 shareholders, listing the percentage ownership of each.  Summing up the percentages of shares held by the various GLICs among the top 30 is the first step to determining the share of government control.  However, it also is important to note which GLICs are major shareholders, as the different GLICs are charged with different objectives) some more politically driven than others. For example, the Employee Provident Fund (EPF) is charged with investing the retirement savings of Malaysian workers) a responsibility not as politically charged as Permodalan Nasional Berhad's (PNB) mandate to advance the economic interests of ethnic Malays. However, almost all the GLICs have at some point made sales or purchases of corporate shares in support of government objectives. You Can't Know the Players without a Score Card  7. (U)  When tallying up GLIC holdings familiarity with the local players, including the multiple layers of subsidiaries of the GLCs, is essential.  For example, Cement Industries of Malaysia (CIMA) lists only two GLICs in its top 30 shareholders with a combined holding of about 13%.  However, CIMA's top non-GLIC shareholder is UEM World, in which Khazanah holds a controlling interest. UEM World holds nearly 54% of CIMA.  At first glance, the government share appears to be 13 per cent, but tracing the linkages among GLIC subsidiaries it becomes clear that CIMA is effectively government controlled. 8. (U)  Some other companies provide this information more clearly. For example, Pharmaniaga Berhad, a pharmaceuticals manufacturer, includes in its annual report a list of indirect holdings following its list of direct holdings.  The list of the company's top thirty shareholders does not indicate a majority government stake, but the indirect holdings present quite a different picture:  non-GLIC shareholder Trinity Saga is held by UEM World, which is controlled by Khazanah. Add up all the pieces and in fact the government has a controlling interest in Pharmaniaga.  Without being familiar with the multiple layers of ownership, Trinity Saga's GLIC connections would be easy to miss. 9. (U)  Another example is Malaysian Airline System Berhad (MAS), which lists Penerbangan Malaysia Berhad with a 69.34 per cent holding.  The government created this company solely to purchase MAS planes and lease them back to the airline.  It is wholly owned by Khazanah.  Another 11 per cent of MAS is held by the Employees Provident Fund (EPF).  The third-largest shareholder is Amanah Raya Nominees.  This is a government-managed trust fund for ethnic Malays. 10. (U)  Publicly listed companies include the names of their Boards of Directors in their annual reports, often including bios and photos as well.  Sometimes the annual report lists Board Members as Independent or Non-Independent as well as Executive or Non-Executive.  Again, knowing the local players is essential to determining who has real decision making authority. Islamic Banks behind the Veil 11. (U)   Fundamental concepts underlying Islamic finance preclude Islamic banks from publishing lists of their shareholders. All depositors are considered shareholders and banks are reluctant to make available to the public a list of top depositors, complete with the size of their accounts.  Khazanah's website reports that Khazanah owns 30% of Bank Muamalat, a local Islamic Bank, but Bank Muamalat's annual report does not list its shareholders. Non-Traded Companies Face Some Disclosure 12. (U)  Non-listed companies are not regulated by the Securities Commission, but by the Commission of Companies in Malaysia (CCM).  Regulations require non-listed companies to send annual financial statements to the CCM, which will release the information for a nominal fee (currently less than USD 3.00).   Most of the larger companies submit financial data regularly; however, enforcement for some smaller companies has been inconsistent. A proposed merger of the SC and the CCM could lead to tighter scrutiny. Two Golden Shares 13. (U)  The government retains a Golden Share in two companies,  MAS and Telecom Malaysia, dating from the time when these companies were 100 per cent government-owned.  The Golden Share effectively gives the Government veto power on Board decisions.  Other corporations offer regular shares with one vote per share.  We are not aware of any companies besides these two with special voting rights. Untangling the Web 14.  (SBU) Comment:  In view of the role GLCs play in Malaysia's economy and the government's use of GLCs as policy agents, increasing the transparency of GLIC and GLC activities is an important goal in our FTA negotiations. But compiling the sort of annual report that Singapore is obliged to produce by our FTA with that country will be a major challenge for Malaysian officials.  Not only are the relationships between government and commercial entities more complex in Malaysia than they are in Singapore; the political sensitivities are far, far higher.  Malaysian officials will find reporting on GLCs a daunting task, but could be persuaded that this would support the government's agenda for improved GLC performance (reftel). End comment.  SHEAR (October 2006)

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• Najib mulls scrapping the ISA for polls momentum
• Taib Probe Opens In Germany – Breaking News!
• Zahid Urges Malays To Unite And Support BN In Next Election
• A message for fellow patriots
• WIKILEAKS: GOVERNMENT-LINKED COMPANIES: UNRAVELING THE TANGLED WEB
• Is This History or His Story?
• Britain is distorting history
• Dr Mahathir: History Subject in Schools Not Accurate
• And the facts are...
• Hasan stays out of Khalid’s case
• Malaysia’s Mahathir: 9/11 not work of Muslims
• Religious tensions simmer in Malaysia

Najib mulls scrapping the ISA for polls momentum Posted: 11 Sep 2011 12:16 PM PDT By Jahabar Sadiq, The Malaysian Insider KUALA LUMPUR, Sept 12 — Datuk Seri Najib Razak could dismantle the Internal Security Act (ISA) as early as this week as he seeks to get some new momentum ahead of a general election expected within a year. Najib came to power in April 2009 with the promise of reviewing the security law but the prime minister, whose reform credentials are seriously in question after flip flops, is considering going all the way and abolish the law that allows detention without trial. The Malaysian Insider understands there has been some push back from the Home Ministry and right-wing elements within Umno but given that Najib needs to win back middle Malaysia, his advisers think that he needs to make a drastic move. "His choice is limited and the ISA is a low-hanging fruit to harvest," a government source told The Malaysian Insider. "There is resistance to the idea but the PM is convinced that the law is unnecessary as there are other laws to deal with security," he said, referring to the Emergency Ordinance (EO) used recently to detain six Bersih 2.0 activists seeking free and fair elections. The six have been released but face other charges in court related to the Bersih rally that was held on July 9. The Najib administration's handling of the rally has been widely criticised although the police have been singled out as being at fault. "Najib wants to reclaim the centre after taking over the right fringe," another source said. The prime minister has been accused of pandering to the right but he has taken great pains to display his image as a reformer especially in economic matters under the ruling Barisan Nasional (BN). But the ISA review has also been a cornerstone of his return to power.   READ MORE HERE.

Taib Probe Opens In Germany – Breaking News! Posted: 11 Sep 2011 07:29 AM PDT SARAWAK REPORT The Federal Republic of Germany has become the latest country to announce that it is mounting corruption and money laundering investigations into Sarawak's Chief Minister, Abdul Taib Mahmud. The development places serious further international pressure on BN to deal with their corrupted State Minister, who was forced to promise he would soon resign during the recent elections, but now shows no sign of doing so. We can reveal that the decision was confirmed to the Swiss NGO, the Bruno Manser Foundation at the end of last week and that the investigations are already under way.  The move follows similar action in May by the Swiss Federation, which in turn finally prompted Malaysia's Anti-Corruption Commission (MACC) to initiate its own on-going enquiries into Taib, who has blatantly abused his political power in Sarawak to enrich himself over the past 30 years. The MACC announcement in June, as reported by The Star   Trouble for Deutsche Bank ! Deustche Bank HQ – facing tough questions over Taib The German announcement immediately places an embarrassing spotlight on one of country's most recognised  institutions, the global financial giant, Deutsche Bank. Sarawak Report has been reporting on Deutsche Bank's uncomfortable links with the Taib family assets for months and in June the Bruno Manser Foundation (BMF) led an official protest over the Bank's involvement in alleged profits from timber corruption. The NGO has now presented the German Finance Ministry with a dossier revealing further connections between Taib and Germany's largest bank. These latest concerns include the connections involving the multi-million ringgit investment banking operation K & N Kenanga Holdings Bhd, where Deutsche Asia Bank and Cahya Mata Sarawak (CMS), Taib's family company, are together by far the biggest shareholders. A merger in 2001 between K & N Kenanga, then 30% owned by Deutsche Asia Bank and the controversial finance subsidiary of CMS, Sarawak Securities Sdn Bhd, gained the combined company Universal Broker Status from the Securities Commission.  Separate questions have also been raised over an unusual bond issue brokered in 2005 by Deutsche Bank AG in Labuan on behalf of the State of Sarawak. The deal raised US$800 million through a private company, SGOS Capital Holdings Sdn Bhd, described as 100% owned by the State Secretary of Sarawak. The 10-year bond is backed by the State of Sarawak. Details of the investigation In an email to BMF (see below) Germany's Finance Ministry has now confirmed that it has authorised the German Federal Financial Supervisory Authority, BaFin, to launch a full enquiry into the connections between the country's leading financial institution and the Taib family. The email's explanation of BaFin's role leaves no doubt that the remit of that enquiry, will include money laundering: READ MORE HERE

Zahid Urges Malays To Unite And Support BN In Next Election Posted: 11 Sep 2011 05:26 AM PDT (Bernama) -- Umno vice- president Datuk Seri Dr Ahmad Zahid Hamidi has called on the Malays to unite to support Barisan Nasional (BN) candidates in the next general election, particularly those from Umno, to ensure their interests are taken care of. He added that although the position of the Malays and the Malay rulers were enshrined in the constitution, this could change if the opposition won the election. "We should therefore take steps to unite the Malays under the umbrella of Umno and BN; let's not harp on trivial issues which could undermine the unity which we have built all this while," he said. As an Umno leader, he said, he and other party leaders were ready to render assistance to Umno and BN at the state level in retaining existing seats and in winning back the seats won by the opposition in the last general election.

A message for fellow patriots Posted: 11 Sep 2011 05:17 AM PDT by Thomas Seng-Hock Lee  The hard time is fast descending upon us. Currently, many of us, especially senior citizens, are living from hand to mouth. After 35 years as a journalist, editor and socio-political analyst, I can't even have a regular income, and have to depend on ad hoc jobs to survive. If I had abandoned my principles, sold my soul to serve the political establishment when I was in the MSM (main stream media), I would not have ended up like this. But I do not regret it at all, as I have kept the faith, preserved my integrity, and can walk tall. "Better a poor man whose walk is blameless than a fool whose lips are perverse." (Proverb 19:1) The temptation to betray myself and my faith was there, seeing how even those I helped to train and groom as journalists and editors rise fast through political connections. However, thanks to the grace and strength of the Lord Jesus, I resisted the evil and corrupt way to a comfortable and prosperous life and lifestyle. I had stayed true to my principles, conviction, and mission to fight for truth, righteousness, justice, equality, accountability, transparency, and a Malaysian Malaysia. I joined the DAP as as life member in October 1986, and had never wavered from the party struggle all these years. I had never gained any financial benefit from the party, but had actually made much sacrifices by being denied promotions in my career as a journalist, and having employment doors closed to me. But it is worth it all, as I see the day coming when Malaysia will be born again as a just, equal and harmonious nation under the Pakatan Rakyat rule. Dear friends, despite the hardship, in fact, because of it, we should stand firm in our conviction as patriots to work for a new Malaysia where justice, equality and peaceful co-existence of the races are part and parcel of our life and thoughts. Let us give our utmost support to people like Lim Kit Siang, Karpal Singh, Lim Guan Eng, Nik Aziz, etc., in the Big Battle for Putrajaya, which has already begun and will climax in the impending 13th general election.

WIKILEAKS: GOVERNMENT-LINKED COMPANIES: UNRAVELING THE TANGLED WEB Posted: 11 Sep 2011 01:00 AM PDT High tariffs and bureaucratic impediments to importing a car -- including limits on the number of approvals and required signatures from three separate government ministries -- clearly were designed to benefit the government-owned automobile manufacturer Proton. On the other hand, Khazanah, the largest GLIC, recently bought back from Singapore a controlling share in Pantai, the company granted sole authority to issue Malaysian medical clearances for foreign workers.   THE CORRIDORS OF POWER Raja Petra Kamarudin 1.  (SBU) Summary:  The Malaysian government's ability to control market access through its holdings in government-linked companies (GLCs) is an important consideration in our ongoing FTA negotiations. Unraveling the tangled web of government holdings is difficult. Much information is publicly available, but tracing through the linkages between government and commercial entities requires close familiarity with the local market and major players.  Even then the results can be controversial, as demonstrated by a recent report that leaked from a local think tank.  One of our objectives in the FTA negotiations is for the Malaysian government to compile an annual report on GLCs -- as was done in the U.S.-Singapore FTA.  Even knowledgeable Malaysian officials will find this a daunting task, but they could be persuaded that it fits with the government's program for improved GLC performance.   End summary.  Big Players, Thin Skins 2.  (U) According to a Malaysian Government website, Government- Linked Companies (GLCs) -- commercial companies in which the GoM has a direct controlling stake) employ 5 per cent of the national workforce, account for approximately 36 per cent of the market capitalization of the Bursa Malaysia (the local stock exchange), and comprise 54 per cent of the benchmark Kuala Lumpur Composite Index.   The Government of Malaysia manages its holdings in the GLCs through seven investment holding companies, or Government-Linked Investment Corporations (GLICs).  The GLICs have differing mandates with varying roles and degrees of responsibility with regard to executing Government policies and initiatives, particularly regarding industrial policy and development initiatives.  While a number of Malaysia's GLCs have been loss makers for decades, some efforts are being made to improve their accountability and profitability (see reftel). 3. (U) The role of the GLCs in the Malaysian economy is a sensitive matter, as they are inextricably linked with the government's effort to advance the economic standing of Bumiputeras (ethnic Malays). Recently, a respected local think tank produced a report for the government that, i.a., included recommendations on the management of GLCs and their use as agents of the government's socioeconomic policy.  The report asserted that through the GLCs, Bumiputeras already hold sufficient corporate shares to have surpassed the government's headline goal of owning 30% of Malaysia's wealth (government statistics say Bumis only own 18.9%).  This claim caused such a stir that the president of the think tank publicly repudiated the study.  The chief researcher resigned in protest. (Comment:  We will report on this controversial study in more detail in a separate message.) One Hand Washes the Other 4.  (U)  Sometimes the government exerts itself to protect the GLCs, and sometimes it's the GLCs that serve the government. High tariffs and bureaucratic impediments to importing a car -- including limits on the number of approvals and required signatures from three separate government ministries -- clearly were designed to benefit the government-owned automobile manufacturer Proton.  On the other hand, Khazanah, the largest GLIC, recently bought back from Singapore a controlling share in Pantai, the company granted sole authority to issue Malaysian medical clearances for foreign workers.   One Khazanah employee commented to Econoff that the driving reason for the re-acquisition was not good business but rather, "national pride." There was an understanding that Khazanah would have a majority stake but decision-making would remain in the hands of the company. Through a Glass Darkly 5.  (U) The level of publicly available information about Malaysia's seven GLICs varies considerably.   Khazanah, the largest GLIC (owned by the Ministry of Finance), publishes its holdings in a flow chart posted on its website, www.khazanah.com.my.  Permodalan Nasional Berhad (PNB), a GLIC established specifically to promote the economic advancement of ethnic Malays (Bumiputeras), publishes financial data in its annual report available on its website, www.pnb.com.my.  Some of the other GLICs have websites, but offer differing amounts of information on their holdings and strategies. In addition, these figures continually change as fund managers buy and sell on an ongoing basis. 6.  (U)  Information on the ownership of publicly-traded GLCs can be found in their annual reports.  The Malaysian Securities Commission enforces requirements regarding publication of financial data on publicly-traded firms.   Most listed companies disclose their top 30 shareholders, listing the percentage ownership of each.  Summing up the percentages of shares held by the various GLICs among the top 30 is the first step to determining the share of government control.  However, it also is important to note which GLICs are major shareholders, as the different GLICs are charged with different objectives) some more politically driven than others. For example, the Employee Provident Fund (EPF) is charged with investing the retirement savings of Malaysian workers) a responsibility not as politically charged as Permodalan Nasional Berhad's (PNB) mandate to advance the economic interests of ethnic Malays. However, almost all the GLICs have at some point made sales or purchases of corporate shares in support of government objectives. You Can't Know the Players without a Score Card  7. (U)  When tallying up GLIC holdings familiarity with the local players, including the multiple layers of subsidiaries of the GLCs, is essential.  For example, Cement Industries of Malaysia (CIMA) lists only two GLICs in its top 30 shareholders with a combined holding of about 13%.  However, CIMA's top non-GLIC shareholder is UEM World, in which Khazanah holds a controlling interest. UEM World holds nearly 54% of CIMA.  At first glance, the government share appears to be 13 per cent, but tracing the linkages among GLIC subsidiaries it becomes clear that CIMA is effectively government controlled. 8. (U)  Some other companies provide this information more clearly. For example, Pharmaniaga Berhad, a pharmaceuticals manufacturer, includes in its annual report a list of indirect holdings following its list of direct holdings.  The list of the company's top thirty shareholders does not indicate a majority government stake, but the indirect holdings present quite a different picture:  non-GLIC shareholder Trinity Saga is held by UEM World, which is controlled by Khazanah. Add up all the pieces and in fact the government has a controlling interest in Pharmaniaga.  Without being familiar with the multiple layers of ownership, Trinity Saga's GLIC connections would be easy to miss. 9. (U)  Another example is Malaysian Airline System Berhad (MAS), which lists Penerbangan Malaysia Berhad with a 69.34 per cent holding.  The government created this company solely to purchase MAS planes and lease them back to the airline.  It is wholly owned by Khazanah.  Another 11 per cent of MAS is held by the Employees Provident Fund (EPF).  The third-largest shareholder is Amanah Raya Nominees.  This is a government-managed trust fund for ethnic Malays. 10. (U)  Publicly listed companies include the names of their Boards of Directors in their annual reports, often including bios and photos as well.  Sometimes the annual report lists Board Members as Independent or Non-Independent as well as Executive or Non-Executive.  Again, knowing the local players is essential to determining who has real decision making authority. Islamic Banks behind the Veil 11. (U)   Fundamental concepts underlying Islamic finance preclude Islamic banks from publishing lists of their shareholders. All depositors are considered shareholders and banks are reluctant to make available to the public a list of top depositors, complete with the size of their accounts.  Khazanah's website reports that Khazanah owns 30% of Bank Muamalat, a local Islamic Bank, but Bank Muamalat's annual report does not list its shareholders. Non-Traded Companies Face Some Disclosure 12. (U)  Non-listed companies are not regulated by the Securities Commission, but by the Commission of Companies in Malaysia (CCM).  Regulations require non-listed companies to send annual financial statements to the CCM, which will release the information for a nominal fee (currently less than USD 3.00).   Most of the larger companies submit financial data regularly; however, enforcement for some smaller companies has been inconsistent. A proposed merger of the SC and the CCM could lead to tighter scrutiny. Two Golden Shares 13. (U)  The government retains a Golden Share in two companies,  MAS and Telecom Malaysia, dating from the time when these companies were 100 per cent government-owned.  The Golden Share effectively gives the Government veto power on Board decisions.  Other corporations offer regular shares with one vote per share.  We are not aware of any companies besides these two with special voting rights. Untangling the Web 14.  (SBU) Comment:  In view of the role GLCs play in Malaysia's economy and the government's use of GLCs as policy agents, increasing the transparency of GLIC and GLC activities is an important goal in our FTA negotiations. But compiling the sort of annual report that Singapore is obliged to produce by our FTA with that country will be a major challenge for Malaysian officials.  Not only are the relationships between government and commercial entities more complex in Malaysia than they are in Singapore; the political sensitivities are far, far higher.  Malaysian officials will find reporting on GLCs a daunting task, but could be persuaded that this would support the government's agenda for improved GLC performance (reftel). End comment.  SHEAR (October 2006)

Is This History or His Story? Posted: 10 Sep 2011 09:56 PM PDT By Masterwordsmith Many historians would probably not only have turned in their graves, but would have miraculously risen from the dead had they read Tun Dr Mahathir Mohamad's statement here that said Malaysian history as currently taught in schools was inaccurate. The rationale he gave was that "it failed to provide proper context of the country's fight for independence". Having worked hard to achieve an A1 for my History @ MCE level, I feel deeply shocked that the former PM said: "Many from the younger generation do not understand history and the origin of the nation, as there were attempts to alter historical facts into fantasy." What??? Born on 10th July 1925, TDM was Malaysia's longest serving Prime Minister having served 22 years from 1981 to 2003. With a political career that spanned almost 40 years, he never said anything about this, especially since he was Minister of Education from 1974-1978. If he truly has the welfare of the nation and the perspective of the 'younger generation' at heart, why did he keep quiet when he had the political platform to do it then? Why is he making such a serious allegation that puts many into a quandary with regards to their credibility and expertise after EIGHT YEARS of retirement? Did he only JUST see the 'light'? Why now? Is TDM thus questioning the effectiveness of the Ministry of Education and all the past Ministers of Education including: TDM himself who was Minister of Education 1974-1978 (Read this) Y.B. Tan Sri Musa Bin Hitam (1978-1981) Y.B. Tan Sri Amar Dr.Sulaiman Bin Hj.Daud (1981-1984) Y.A.B. Dato Seri Abdullah Bin Hj.Ahmad Badawi (1984-1986) Y.B. Dato' Seri Anwar Bin Ibrahim (1986-1991) Y.B. Tan Sri Amar Dr.Sulaiman Bin Hj.Daud (1991-1995) Y.A.B Dato' Sri Mohd. Najib Bin Tun Abdul Razak (1995-1999) Y.B. Tan Sri Dato' Seri Musa Bin Mohammad (1999-2004) Y.B. Dato' Sri Hishamuddin bin Tun Hussein (2004-2009) Y.A.B Tan Sri Dato' Haji Muhyiddin bin Mohd Yassin (2009 - kini) (Source: This site) With his latest outburst, he has practically rewritten history that we have learnt. It is His Story! Does this mean famous historians, textbook writers, history majors in universities, teaching staff at universities/schools/colleges and higher institutions of learning including students, graduates etc have to UNLEARN everything that they have learnt/written or studied because this 'fantasy' was only highlighted NOW? And it has taken Dr Mahathir THIRTY-SEVEN YEARS to highlight this 'fantasy' issue. Who is the one living in a world of  'fantasy'  all this while? READ MORE HERE.

Britain is distorting history Posted: 10 Sep 2011 09:06 PM PDT Tun Dr Mahathir Mohamad today said Malaysian history as currently taught in schools was inaccurate. National Professors' Council (MPN) has taken the debate further by claiming that Malaya, the precursor to Malaysia, was never colonised by the British Empire and had merely been a protectorate. Last week, Higher Education Minister Datuk Seri Mohd Khaled Nordin said the current History syllabus in schools was in need of review. NO HOLDS BARRED Raja Petra Kamarudin Dr M: History turning into fantasy Tun Dr Mahathir Mohamad today said Malaysian history as currently taught in schools was inaccurate, claiming that it failed to provide proper context of the country's fight for independence. "Many from the younger generation do not understand history and the origin of the nation, as there were attempts to alter historical facts into fantasy," the former prime minister was quoted as saying in a Bernama Online report today. The subject of local history became a hot topic after Umno-owned Utusan Malaysia alleged that PAS deputy president Mohamad Sabu had said on August 27 that the communists who attacked the Bukit Kepong police station during the pre-Merdeka insurgency were heroes. National Professors' Council (MPN) has taken the debate further by claiming that Malaya, the precursor to Malaysia, was never colonised by the British Empire and had merely been a protectorate. Today, Dr Mahathir urged the government ensure that historical accuracy be given priority over political expedience. "The government needs to focus on what really transpired so that writings on the country's history would not be influenced by current political interests... History is all about what had happened, and we cannot change that... whatever happened in the past, had happened," said Dr Mahathir. Last week, Higher Education Minister Datuk Seri Mohd Khaled Nordin said the current History syllabus in schools was in need of review. ****************************** Malaysia's First Lady, Rosmah Mansor, and the Deputy Prime Minister, Muhyiddin Yassin, are currently in London where it is believed they met the British government to discuss amendments to the British distortion of history. The documents in the National Archives in London talk about the British Colonial government of Malaya and refer to the Colonial Office. This gives the wrong impression that Malaya was a colony of Britain whereas this was not so, says Malaysia. Malaya was never colonised by Britain, argues Malaysia. Britain responded by pointing to the fact that 31st August every year since 1957 is celebrated as Merdeka Day. This proves that Malaya was never Merdeka or independent before 31st August 1957, which means it was a colony of Britain. If Malaysia will abolish the 31st August Merdeka Day celebration, then Britain will consider amending all the documents in the National Archives in London and will delete all references to the Colonial Office in these documents. Furthermore, the First Prime Minister of Malaysia, Tunku Abdul Rahman, is called Bapa Merdeka. If Malaya was never a colony of Britain then it could not have been granted Merdeka, which means Tunku Abdul Rahman can no longer be called Bapa Merdeka, Britain pointed out. A further problem that will be raised, Britain pointed out, would be whether the Malaysian Constitution would still be valid since it was a Merdeka Constitution. This would also affect the status of the Rulers who have all been reduced to the status of Constitutional Monarchies. Power would have to be given back to the Rulers who would rule as Absolute Monarchies. The First Lady and the Deputy Prime Minister told the media during a press conference that the matter will require further discussion and it may be in the long-term interest of the nation that Malaysia acknowledges that prior to 31st August 1957 it was a British colony after all. The Cabinet will receive the report on Wednesday and it is expected to issue a statement asking Malaysian historians to stop arguing that Malaysia was never colonised by Britain since this raised too many questions involving other issues.

Dr Mahathir: History Subject in Schools Not Accurate Posted: 10 Sep 2011 07:55 PM PDT (Bernama) - The History subject taught in schools is not very accurate as it lacks background on the struggle for the country's independence. This is the view of former prime minister Tun Dr Mahathir Mohamad who said the subject was not so accurate because the role of the nation's first prime minister, Tunku Abdul Rahman, fighting for independence was not stated in depth in the subject syllabus.    "Many from the younger generation do not understand history and the origin of the nation, as there were attempts to alter historical facts into fantasy. "As a result, the government needs to focus on what really transpired so that writings on the country's history would not be influenced by current political interests. "It is not to review history but to return to what actually happened. History is all about what had happened, and we cannot change that...whatever happened in the past, had happened," he said when commenting on last Friday's  statement by Higher Education Minister Datuk Seri Mohd Khaled Nordin that the current history syllabus in schools needed to be reviewed. Mohd Khaled had said the review was imperative, following the discovery of several incomplete and conflicting facts, in lieu of the findings of national philosopher and theologist Tan Sri Prof Syed Muhammad Naquib Al-Attas in his latest book, 'Historical Facts and Fiction.' Dr Mahathir was speaking to reporters after the ground-breaking ceremony of the Centennial Hall of the Sultan Abdul Hamid College here today. The former prime minister said the younger generation considered the fight for independence as a common matter as they were born in a country that was already independent and prosperous. "As such, the younger generation considered it as just a process experienced by many nations. "However, if we were to visit other countries which achieved independence at the same time with us, we would find that they were not as developed as Malaysia," he said.

And the facts are... Posted: 10 Sep 2011 07:26 PM PDT Prime Minister Najib Tun Razak says that we must not change historical facts. And one 'historical fact' is that UMNO fought for Merdeka. Well, let us go through this very brief history lesson about the fight for Merdeka and see what happened in the early years and how Merdeka for Malaya was eventually granted. NO HOLDS BARRED Raja Petra Kamarudin PM: Don't change historical facts Datuk Seri Najib Tun Razak has reminded the people not to change historical facts or to glorify the communist terrorists. He said the communist terrorists in the past era were certainly cruel and the people were in their grips as their ideology did not favour the people. They were anti-religion and despotic, he said. "That was why we opposed the communists at that time because they were behaving cruelly in this country," he said at the Malaysia Aidilfitri-Merdeka 2011 open house on Sunday. Najib said the communists at that time were different from the present communism because in the past, the communists did not give the people the right to be wealthy. "The present communism is different from the past. Previously, they wanted to control the country and spread the ideology which did not give the people their rights. "We are friendly with communist countries now because they have discarded their old ideology," he said. ******************************************* In 1915, Tan Cheng Lock launched the Straits Chinese British Association (SCBA) and became its first President. In 1923, he was appointed a member of the Legislative Council of the Straits Settlements. In 1926, Cheng Lock made history by delivering a speech to the Council about the ideals of a territorially and politically united Malaya.  Cheng Lock spent the war years in exile in India during WWII. In 1949, together with Tun Leong Yew Koh and Colonel H. S. Lee, he launched the Malayan Chinese Association (MCA). Under Cheng Lock's leadership, MCA engaged with senior Malay leaders from UMNO (which was formed earlier in 1946) such as Datuk Onn Jaafar and Tunku Abdul Rahman. Cheng Lock also joined the All-Malaya Council of Joint Action (AMCJA) and became its Chairman. Many informal meetings were held between Onn Jaafar, Cheng Lock, and E.E.C. Thuraisingham (who represented the Indians), which resulted in the formation of the Communities Liaison Committee (CLC). The CLC became the platform for hammering out proposals and compromises on a number of issues that included citizenship, education, democracy, and in resolving the deadlock on Ketuanan Melayu. It was eventually decided that an 'agreement' would be forged between the Malays and non-Malays. In return for giving up Ketuanan Melayu (the Malays' special position), the Malays would receive assistance from the non-Malays in closing the economic gap between the impoverished and overwhelmingly rural Malays with the substantially better off and urban non-Malays. Thuraisingham later said, "It is true. I and others believed that the backward Malays should be given a better deal. Malays should be assisted to attain parity with non-Malays to forge a united Malayan Nation of equals." In 1946, the British tried to implement the Malayan Union. That was when and the reason why UMNO was formed, to oppose the Malayan Union. That same year, the Malayan Democratic Union (MDU) sponsored a meeting in Singapore to "provide the machinery for the various communities, through their organisations and associations, to reach agreement on all points connected with the future constitution of Malaya, thus avoiding the dangers of separated and self-interested representation." Ahmad Boestamam and Musa Ahmad of the Malay Nationalist Party led the formation of Pusat Tenaga Ra'ayat (PUTERA), which later included the non-Malays to become the PUTERA-AMCJA. PUTERA-AMCJA was the first platform for the fight for Merdeka. In 1947, the Associated Chinese Chambers of Commerce (ACCC) together with PUTERA-AMCJA supported a nation-wide strike called the All Malaya Hartal with an aim to pressure the British into discussing Merdeka. The Hartal, modelled after the one organised by Gandhi in India, was very successful. UMNO, however, opposed the Hartal and organised counter demonstrations in many parts of Malaya. UMNO was basically pro-British. In 1948, the plan for the Malayan Union was replaced with the Federation of Malaya. The Communist Party of Malaya (CPM), who opposed the Federation and wanted self-rule or Merdeka, decided to launch an armed rebellion. With that ended the PUTERA-AMCJA and the Emergency was declared. The British realised that Merdeka was inevitable. But they refused to talk to the CPM, Malay Nationalist Party, Malayan Democratic Union or PUTERA-AMCJA. The British felt that British interests in Malaya (which contributed to about a third of Britain's economy) would be better protected with an UMNO-led government heading an independent Malaya. One important point to note is that the CPM insurrection was very costly for the British who were almost bankrupted by the war. This made it necessary for them to quickly resolve the issue of Merdeka. In that sense, the CPM helped accelerate Merdeka and it assisted UMNO in its negotiations with the British. Those who opposed UMNO were rounded up and detained by the British. Those, like Mustapha Hussein, who joined UMNO, were spared arrest. Tunku Abdul Rahman and Tun Razak Hussein, however, were not only not arrested but were allowed to tour the length and breadth of Malaya to speak at ceramahs in their fight for Merdeka. It was clear that the British were assisting UMNO in its fight for Merdeka. Datuk Andika, who died in Kuala Terengganu at the age of 100 a few years ago, was the Assistant District Officer of Dungun around that era. He formed UMNO in Terengganu soon after meeting Tunku Abdul Rahman and Tun Razak in Kuantan. Datuk Andika told me he was encouraged by the British to join UMNO and his boss, the District Officer, not only gave him leave to campaign for UMNO but he was also given financial support by the British.

Hasan stays out of Khalid’s case Posted: 10 Sep 2011 05:59 PM PDT (The Star) - Selangor state exco member Datuk Dr Hasan Ali will not interfere in the Selangor Islamic Council's action against his fellow party member over the issue of preaching in mosques and surau without valid credentials. Hasan, who is a member of the council, said action was taken against Selangor PAS deputy commissioner Khalid Samad after getting enough evidence that the Shah Alam MP had violated the law. Khalid was charged with giving religious talk at a surau in Taman Seri Sementa in Kapar, Klang on Aug 16 without valid credentials from the Selangor Islamic Religious Department (Jais). His case under Section 119 of the Selangor Religious Administration Enactment will be heard in the Klang Syariah Court on Nov 24. However, Hasan pointed out that Khalid did not actually give a sermon as reported but instead gave a ceramah with religious undertones. On the issue of state PAS commissioner Dr Abdul Rani Osman's credentials being revoked, Hasan said he was not directly involved in the matter and only learnt about it from the news. "I was told by Jais that his credentials expired on Aug 28. It was not renewed because there were complaints about his previous ceramah," he said.

Malaysia’s Mahathir: 9/11 not work of Muslims Posted: 10 Sep 2011 01:46 PM PDT   By Inquirer.Net KUALA LUMPUR – The long-serving former Malaysian premier Mahathir Mohamad says Arab Muslims are incapable of carrying out the 9/11 attacks on the United States that killed nearly 3,000 people. The ageing firebrand, who was in power in Malaysia at the time of the attacks and stepped down in 2003 after 22 years in power, slammed former US president George W. Bush ahead of the 10-year anniversary Sunday of 9/11. Washington blames the attacks on Al-Qaeda. "Bush lied about Saddam's weapons of mass destruction… If they can lie so as to kill Iraqis, Afghans and American soldiers, it is not unthinkable for Bush & Co. to lie about who was responsible for 9/11," the 86-year-old wrote in his blog Friday. Listing out reasons in line with a conspiracy theory that the US government was behind the attacks, he wrote the Twin Towers in New York "came down nicely upon themselves". "I believe Arab Muslims are angry enough to sacrifice their lives and become suicide bombers. But they or their handlers do not strike me as capable of planning and strategizing such attacks so as to maximize the damage to the enemy," he said. Mahathir, a fierce critic of the West, is known for his anti-Jewish and anti-American statements in Muslim-majority Malaysia. Last year, he said if the US could make the 3D science fiction film Avatar, "they can make anything", adding there was strong evidence that the 9/11 attacks were staged. He has also condemned Bush and then-British prime minister Tony Blair as "child killers" and "war criminals", saying they should be put on trial for the military invasion of Iraq.

Religious tensions simmer in Malaysia Posted: 10 Sep 2011 01:43 PM PDT   By Razak Ahmad KUALA LUMPUR (Reuters) - A raid on a church by Muslim authorities has raised religious tension in Malaysia and could cost Prime Minister Najib Razak votes in an election set for 2013 but which many expect to come much earlier. The raid has sparked an angry verbal battle between Christians and the majority Muslims, forcing Najib to seek what may be an elusive peace between the ethnic Malays and minorities, both of which believe the government isn't doing enough to safeguard their rights. Conservative Muslims want the government to crack down on what they say is growing boldness by Christians to try to convert Muslims, which is an offence in Malaysia, while ethnic minorities worry their rights are being eroded. Analysts say Najib is caught in a bind and will have to tread extremely carefully to avoid being seen as favouring either side in his efforts to mediate. "Najib is caught between wanting to secure a conservative Malay-Muslim electorate and a political reality where he is losing ground among minorities who are more mobilised and politically aware," said Bridget Welsh, a Malaysia specialist at Singapore Management University. The next general election is not due until 2013 but there is increasing speculation that it could take place by early 2012. Analysts see little chance of the ruling National Front coalition losing the next general election but caution that Najib needs to win a convincing two-thirds majority if he wants to avoid a revolt within his UMNO party, long accustomed to majorities by that margin. Race and religion have always been touchy subjects in a country split between ethnic Malays, Chinese and Indians but analysts say the latest quarrel is coming at a delicate time for Najib, whose popularity has been sliding since May 2010. "The religious discord will cause the ruling coalition to lose some Chinese majority seats while concerns over inflation may allow the opposition to hang on to the rest of their urban and suburban seats," said Ibrahim Suffian, director of the independent opinion polling outfit Merdeka Center. "All this will be on the back of a much strengthened and better-resourced opposition. So in short, it's not going to be easy for Najib." Islamic enforcement officers raided a Methodist church near the capital last month on suspicion that a meeting was being held to evangelise Muslims. The meeting's organisers, a non-governmental organization, denied the allegations and said the gathering was a charity affair. The authorities are still investigating the matter. DAMNED IF I DO, DAMNED IF I DON'T Traditionally, Malaysian leaders have trod a careful line in dealing with religious issues after violent race riots in 1969 redefined the Southeast Asian country's ethnic and economic landscape. Still, race and religion are often the strongest tools for politicians to win support on pledges to distribute economic opportunities along ethnic lines. Ethnic Malays, who are by birth Muslims in Malaysia, make up about 60 percent of the population of 28 million. Ethnic Chinese and Indians, many of whom are Buddhist, Christian and Hindu, account for most of the rest. Last month's church raid is the latest in a series of rows between the Malays and the minority Chinese and Indians. In recent years, a spate of church bombings, the government's seizure of a shipment of bibles, a legal battle by Catholics to use the word "Allah" and complaints of marginalisation by Indians have cast a cloud over the government's attempts to build racial harmony. Racial unity is a cornerstone of Najib's plans but many Malaysians have derided his efforts to create a "1Malaysia" that is not drawn along racial lines. Recently, Najib also extended an olive branch to unhappy Christians by establishing official ties with the Vatican but the gesture has been largely dismissed as no more than a symbolic measure. "In recent times, we have witnessed an increase in incidents where Christians have been singled out and targeted with unjustified accusations and prejudice," the Christian Federation of Malaysia, which represents 90 percent of churches in the country, said in a statement. A survey last month by the Merdeka Center polling outfit found the percentage of respondents agreeing that Malaysians of differing ethnic groups were growing closer to each other had fallen by nearly half to 36 percent compared to 64 percent in 2006.

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• Zahid Urges Malays To Unite And Support BN In Next Election
• Dr Mahathir: History Subject in Schools Not Accurate
• Hasan stays out of Khalid’s case
• Malaysia’s Mahathir: 9/11 not work of Muslims
• Religious tensions simmer in Malaysia
• Student denies praising PM's speech in Australia
• Umno attacks fuelled by fear of true history, says Mat Sabu

Zahid Urges Malays To Unite And Support BN In Next Election Posted: 11 Sep 2011 05:26 AM PDT (Bernama) -- Umno vice- president Datuk Seri Dr Ahmad Zahid Hamidi has called on the Malays to unite to support Barisan Nasional (BN) candidates in the next general election, particularly those from Umno, to ensure their interests are taken care of. He added that although the position of the Malays and the Malay rulers were enshrined in the constitution, this could change if the opposition won the election. "We should therefore take steps to unite the Malays under the umbrella of Umno and BN; let's not harp on trivial issues which could undermine the unity which we have built all this while," he said. As an Umno leader, he said, he and other party leaders were ready to render assistance to Umno and BN at the state level in retaining existing seats and in winning back the seats won by the opposition in the last general election.

Dr Mahathir: History Subject in Schools Not Accurate Posted: 10 Sep 2011 07:55 PM PDT (Bernama) - The History subject taught in schools is not very accurate as it lacks background on the struggle for the country's independence. This is the view of former prime minister Tun Dr Mahathir Mohamad who said the subject was not so accurate because the role of the nation's first prime minister, Tunku Abdul Rahman, fighting for independence was not stated in depth in the subject syllabus.    "Many from the younger generation do not understand history and the origin of the nation, as there were attempts to alter historical facts into fantasy. "As a result, the government needs to focus on what really transpired so that writings on the country's history would not be influenced by current political interests. "It is not to review history but to return to what actually happened. History is all about what had happened, and we cannot change that...whatever happened in the past, had happened," he said when commenting on last Friday's  statement by Higher Education Minister Datuk Seri Mohd Khaled Nordin that the current history syllabus in schools needed to be reviewed. Mohd Khaled had said the review was imperative, following the discovery of several incomplete and conflicting facts, in lieu of the findings of national philosopher and theologist Tan Sri Prof Syed Muhammad Naquib Al-Attas in his latest book, 'Historical Facts and Fiction.' Dr Mahathir was speaking to reporters after the ground-breaking ceremony of the Centennial Hall of the Sultan Abdul Hamid College here today. The former prime minister said the younger generation considered the fight for independence as a common matter as they were born in a country that was already independent and prosperous. "As such, the younger generation considered it as just a process experienced by many nations. "However, if we were to visit other countries which achieved independence at the same time with us, we would find that they were not as developed as Malaysia," he said.

Hasan stays out of Khalid’s case Posted: 10 Sep 2011 05:59 PM PDT (The Star) - Selangor state exco member Datuk Dr Hasan Ali will not interfere in the Selangor Islamic Council's action against his fellow party member over the issue of preaching in mosques and surau without valid credentials. Hasan, who is a member of the council, said action was taken against Selangor PAS deputy commissioner Khalid Samad after getting enough evidence that the Shah Alam MP had violated the law. Khalid was charged with giving religious talk at a surau in Taman Seri Sementa in Kapar, Klang on Aug 16 without valid credentials from the Selangor Islamic Religious Department (Jais). His case under Section 119 of the Selangor Religious Administration Enactment will be heard in the Klang Syariah Court on Nov 24. However, Hasan pointed out that Khalid did not actually give a sermon as reported but instead gave a ceramah with religious undertones. On the issue of state PAS commissioner Dr Abdul Rani Osman's credentials being revoked, Hasan said he was not directly involved in the matter and only learnt about it from the news. "I was told by Jais that his credentials expired on Aug 28. It was not renewed because there were complaints about his previous ceramah," he said.

Malaysia’s Mahathir: 9/11 not work of Muslims Posted: 10 Sep 2011 01:46 PM PDT   By Inquirer.Net KUALA LUMPUR – The long-serving former Malaysian premier Mahathir Mohamad says Arab Muslims are incapable of carrying out the 9/11 attacks on the United States that killed nearly 3,000 people. The ageing firebrand, who was in power in Malaysia at the time of the attacks and stepped down in 2003 after 22 years in power, slammed former US president George W. Bush ahead of the 10-year anniversary Sunday of 9/11. Washington blames the attacks on Al-Qaeda. "Bush lied about Saddam's weapons of mass destruction… If they can lie so as to kill Iraqis, Afghans and American soldiers, it is not unthinkable for Bush & Co. to lie about who was responsible for 9/11," the 86-year-old wrote in his blog Friday. Listing out reasons in line with a conspiracy theory that the US government was behind the attacks, he wrote the Twin Towers in New York "came down nicely upon themselves". "I believe Arab Muslims are angry enough to sacrifice their lives and become suicide bombers. But they or their handlers do not strike me as capable of planning and strategizing such attacks so as to maximize the damage to the enemy," he said. Mahathir, a fierce critic of the West, is known for his anti-Jewish and anti-American statements in Muslim-majority Malaysia. Last year, he said if the US could make the 3D science fiction film Avatar, "they can make anything", adding there was strong evidence that the 9/11 attacks were staged. He has also condemned Bush and then-British prime minister Tony Blair as "child killers" and "war criminals", saying they should be put on trial for the military invasion of Iraq.

Religious tensions simmer in Malaysia Posted: 10 Sep 2011 01:43 PM PDT   By Razak Ahmad KUALA LUMPUR (Reuters) - A raid on a church by Muslim authorities has raised religious tension in Malaysia and could cost Prime Minister Najib Razak votes in an election set for 2013 but which many expect to come much earlier. The raid has sparked an angry verbal battle between Christians and the majority Muslims, forcing Najib to seek what may be an elusive peace between the ethnic Malays and minorities, both of which believe the government isn't doing enough to safeguard their rights. Conservative Muslims want the government to crack down on what they say is growing boldness by Christians to try to convert Muslims, which is an offence in Malaysia, while ethnic minorities worry their rights are being eroded. Analysts say Najib is caught in a bind and will have to tread extremely carefully to avoid being seen as favouring either side in his efforts to mediate. "Najib is caught between wanting to secure a conservative Malay-Muslim electorate and a political reality where he is losing ground among minorities who are more mobilised and politically aware," said Bridget Welsh, a Malaysia specialist at Singapore Management University. The next general election is not due until 2013 but there is increasing speculation that it could take place by early 2012. Analysts see little chance of the ruling National Front coalition losing the next general election but caution that Najib needs to win a convincing two-thirds majority if he wants to avoid a revolt within his UMNO party, long accustomed to majorities by that margin. Race and religion have always been touchy subjects in a country split between ethnic Malays, Chinese and Indians but analysts say the latest quarrel is coming at a delicate time for Najib, whose popularity has been sliding since May 2010. "The religious discord will cause the ruling coalition to lose some Chinese majority seats while concerns over inflation may allow the opposition to hang on to the rest of their urban and suburban seats," said Ibrahim Suffian, director of the independent opinion polling outfit Merdeka Center. "All this will be on the back of a much strengthened and better-resourced opposition. So in short, it's not going to be easy for Najib." Islamic enforcement officers raided a Methodist church near the capital last month on suspicion that a meeting was being held to evangelise Muslims. The meeting's organisers, a non-governmental organization, denied the allegations and said the gathering was a charity affair. The authorities are still investigating the matter. DAMNED IF I DO, DAMNED IF I DON'T Traditionally, Malaysian leaders have trod a careful line in dealing with religious issues after violent race riots in 1969 redefined the Southeast Asian country's ethnic and economic landscape. Still, race and religion are often the strongest tools for politicians to win support on pledges to distribute economic opportunities along ethnic lines. Ethnic Malays, who are by birth Muslims in Malaysia, make up about 60 percent of the population of 28 million. Ethnic Chinese and Indians, many of whom are Buddhist, Christian and Hindu, account for most of the rest. Last month's church raid is the latest in a series of rows between the Malays and the minority Chinese and Indians. In recent years, a spate of church bombings, the government's seizure of a shipment of bibles, a legal battle by Catholics to use the word "Allah" and complaints of marginalisation by Indians have cast a cloud over the government's attempts to build racial harmony. Racial unity is a cornerstone of Najib's plans but many Malaysians have derided his efforts to create a "1Malaysia" that is not drawn along racial lines. Recently, Najib also extended an olive branch to unhappy Christians by establishing official ties with the Vatican but the gesture has been largely dismissed as no more than a symbolic measure. "In recent times, we have witnessed an increase in incidents where Christians have been singled out and targeted with unjustified accusations and prejudice," the Christian Federation of Malaysia, which represents 90 percent of churches in the country, said in a statement. A survey last month by the Merdeka Center polling outfit found the percentage of respondents agreeing that Malaysians of differing ethnic groups were growing closer to each other had fallen by nearly half to 36 percent compared to 64 percent in 2006.

Student denies praising PM's speech in Australia Posted: 10 Sep 2011 12:45 PM PDT A Malaysian student, who was at a dinner held for Najib Abdul Razak in Perth, has denied praising the premier's speech, as reported by national news agency Bernama. Malaysiakini managed to track down the student through a social networking website, and found that he had already posted a complaint that the report had distorted his words. When contacted, he expressed surprise over the report, as he had made the comments prior to Najib's speech. Requesting anonymity as he is a government scholar, the student expressed genuine excitement about meeting the prime minister but did not praise the speech as he had not listened to it yet. "They totally changed and added stuff that we never said. And the whole thing was done before the speech ... I feel it is rather silly and unnecessary," he said. "They... put in quotes that we actually did not say and altered our words. We did not say anything bad so I don't see why they needed to do that." Malaysiakini learnt that the students were asked to write their comments on a piece of paper prior to the speech, which was subsequently used to process the Bernama report. Asked what the student had really thought of the speech, he described it as it as "formal" and "nothing special". "It was a formal event, there was nothing special and the speech was pretty much formulated, promoting 1Malaysia. It was the usual speech," he said. Another of the nine students quoted in the report, when contacted through the social networking website, also confirmed that additions were made to the quotes in a tone that praised the speech, but she declined to elaborate. The dinner, announced via the Malaysian Students' Council of Australia's Facebook page, was held at the Pan Pacific Hotel in Perth last Saturday. According to MASCA's Facebook invitation, the dinner was open to students sponsored by the Public Service Department, Mara and Petronas. Also present at the event was Najib's wife, Rosmah Mansor, and officials from the Malaysian mission.

Umno attacks fuelled by fear of true history, says Mat Sabu Posted: 10 Sep 2011 09:43 AM PDT By Shazwan Mustafa Kamal, The Malaysian Insider KUALA LUMPUR, Sept 11 — Umno's attacks on PAS for allegedly backing communists are fuelled by fear their version of history will need to be rewritten once the truth surfaces, Mohamad Sabu charged last night. The PAS deputy president said Umno's smear campaign against him through Utusan Malaysia — by accusing him of supporting communists was aimed at preserving Barisan Nasional's (BN) own version of history and how Malaysia achieved its independence. "They (Umno) are worried that history will need to be rewritten if we push matters further," Mohamad told a ceramah in Gombak near here last night. The PAS leader, popularly known as Mat Sabu, lamented how other leaders who fought for independence were not properly recognised for their efforts, and reiterated his support for Mat Indera, a Malay leader who was part of the infamous attack on Bukit Kepong police station in the 1950s. "When I said Merdeka celebrations, it is always an Umno celebration of Merdeka in Malaysia... if it's not Tunku Abdul Rahman, or Tun Hussein Onn, what about other leaders like Ishak Haji Muhammad (Pak Sako) or Dr Burhanuddin Al-Helmi? "When Merdeka comes, it is only Umno leaders who are featured," said the PAS deputy chief. He claimed that Malaysians no longer celebrated Merdeka, and that proof of this was the lack of the display of national flags in homes or vehicles. Mohamad also moved to deny claims of him supporting communism, and stressed that he practiced and embraced Islamic principles and loved his country "very much." "I push for Islamic principles, not support communism. These allegations are not new, our leaders have faced all sorts of allegations before. "I love our country very much," he said. Mohamad reiterated his intention to have a debate on the Bukit Kepong incident with Umno deputy president Tan Sri Muhyiddin Yassin, and said that he would not debate the party's youth chief Khairy Jamaludddin because the latter had not attacked him publicly. "Khairy is a good boy, he has the potential to become a future PAS leader...I'm serious. Why should I debate him when the one who has been attacking me is the Umno deputy president," Mohamad said to squeals of laughter from the audience. Utusan had quoted Mohamad on August 27 as saying that the communists who attacked the Bukit Kepong police station during the communist insurgency were heroes. READ MORE HERE.

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