Khamis, 8 September 2011

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A history lesson in the year 3000

Posted: 07 Sep 2011 07:02 PM PDT

Nevertheless, since Malaysia no longer exists and is now a small province of a bigger country called Indonesia, the Indonesian Government has classified Mat Indera as a national hero who was unjustly executed by the evil British Colonial Government for opposing Colonialism, in particular the British who illegally occupied North Borneo and gave the two states of Sabah and Sarawak to Malaysia instead of giving them back to Indonesia like they should have and as argued by Indonesia's Father of Independence, President Sukarno.

NO HOLDS BARRED

Raja Petra Kamarudin

Once upon a time, 1,000 years ago, in a country that used to be called Malaysia but no longer exists and is now a province of a bigger country called Indonesia, there raged a hot debate.

Malaysia, 1,000 years ago, was suffering from a serious problem of an influx of immigrants from its neighbouring countries that threatened to swamp the local population. If they allowed this indiscriminate and uncontrolled immigration policy to go on, the local population would soon be outnumbered and the foreign population, which was being given citizenship and was being issued with identity cards so that they could vote in the elections, would soon enough take over the country.

The British Colonial Government, 100 years before that, had already realised the dangers of an indiscriminate and uncontrolled immigration policy and the migration of foreign workers that started in 1850 was ended in 1920. A hundred years later, the independent Government of Malaysia re-launched the immigration policy that the British had earlier ended.

Nevertheless, the hot debate that was raging throughout the country was not about this in spite of the fact that the East Malaysian state of Sabah was already showing signs of a serious social problem of an increase in crime, drug addiction, homeless children, prostitution and whatnot because of this indiscriminate and uncontrolled immigration policy where the foreign population was given citizenship and issued with identity cards to enable them to vote in the elections.

But this was not what the hot debate was all about.

Once upon a time, 1,000 years ago, in a country that used to be called Malaysia but no longer exists and is now a province of a bigger country called Indonesia, there raged a hot debate.

Malaysia, 1,000 years ago, was suffering from a serious problem of corruption and abuse of the power and the country was being run into the ground, which would in no time at all reduce the country to the status of a failed state.

Those who fought against corruption and abuse of power were arrested and jailed while those who propagated corruption and abuse of power were revered and appointed as leaders of the country.

Those who threatened the establishment were murdered and all these murders went unsolved and the deaths were classified as 'sudden death' or death due to the stopping of breathing.

The country's resources were being plundered by all and sundry who walked in the corridors of power and these people were not shunned or treated as the pariahs of society but instead were honoured with titles such as Yang Berhormat, Yang Berbahagia, Datuk, Tan Sri, Tun, etc., and who would carry these titles in their names: for example, 'Yang Mulia Tun Tan Sri Datuk Seri Datuk Raja Petra al Haj Bin Raja Kamarudin al Haj Almarhum', which for short would be 'Pete'.

But this was not what the hot debate was all about.

Once upon a time, 1,000 years ago, in a country that used to be called Malaysia but no longer exists and is now a province of a bigger country called Indonesia, there raged a hot debate.

Malaysia, 1,000 years ago, was suffering from a serious problem of racism and of religion being used for political purposes. It came to a stage where Nazi Germany of WWII or England of the time of Henry VIII began to look tame by comparison and the official religion of that country, Islam, started to appear like a joke when Muslims did and said things allegedly in the name of Islam that gave an impression that these people were utterly brainless.

The racism and ridiculous deeds and statements in the name of religion frightened and disgusted many Malaysians and those with a good education and strong finances left the country to seek citizenship in other countries that were not so silly.

Malaysia eventually suffered from this brain drain and capital flight and every Malaysian with brains and/or money who left the country was replaced with foreigners who had no education and/or no money and this further sapped the resources of the country until it soon got reduced to a country with a population that had very little education and almost no money.

But this was not what the hot debate was all about.

The hot debate that tore the country into two was about a man named Mat Indera who died in 1950 and the two sides that debated this person who had died more than 60 years before that argued about whether he was a Communist or Islamist, whether he was a traitor or patriot, whether he was a terrorist or freedom fighter, whether he fought against the government or fought to free the country, whether he was a bad man or a good man.

And while the hot debate about a man whom 99% of Malaysians had never heard of before that, did not know about till then, and did not care about anyway, the country was brought to a standstill.

No one bothered any longer about the future of the country and where the country was heading for and where it would be 60 years hence. They only cared about what happened 60 years before that and about a man who had died 60 years earlier and who was of no significance to the future of the country anyway.

That was what the hot debate was all about and which tore the country into two. And because of that the country once known as Malaysia no longer exists and is now a small province of a country called Indonesia when all Malaysians with brains and money left the country and the immigrants with no education and no money were given citizenship and after some time outnumbered the local population and voted in favour of that country being given back to its true owners, Indonesia, like what the Japanese proposed back in WWII when they kicked out the British and took over the administration of that country.

Nevertheless, since Malaysia no longer exists and is now a small province of a bigger country called Indonesia, the Indonesian Government has classified Mat Indera as a national hero who was unjustly executed by the evil British Colonial Government for opposing Colonialism, in particular the British who illegally occupied North Borneo and gave the two states of Sabah and Sarawak to Malaysia instead of giving them back to Indonesia like they should have and as argued by Indonesia's Father of Independence, President Sukarno.

 

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WIKILEAKS: MALAYSIAN GOVERNMENT PROCUREMENT IN THE FTA

Posted: 08 Sep 2011 01:00 AM PDT

In one instance, Prime Minister Abdullah's sister-in-law arranged a $400 million contract to purchase military cargo aircraft from Airbus. The Prime Minister announced the purchase following his return from a visit to France. There had been no indication that the Malaysian military were in the market for a new cargo aircraft prior to this announcement. The U.S. executive asserted that PM Abdullah's brother told him this deal was "done for political or other reasons, such as commission." 

THE CORRIDORS OF POWER

Raja Petra Kamarudin

C O N F I D E N T I A L KUALA LUMPUR 001034

 

SIPDIS

STATE PASS USTR FOR B. WEISEL AND J. JENSEN

COMMERCE FOR 4430/MAC/EAP/BAKER

TREASURY FOR OASIA

 

E.O. 12958: DECL: 06/05/2016

TAGS: ETRD, EFIN, EINV, MY

SUBJECT: MALAYSIAN GOVERNMENT PROCUREMENT IN THE FTA

 

REF: A. KUALA LUMPUR 0930

B. KUALA LUMPUR 0797

 

Classified By: Charge' David B. Shear for reasons 1.5 (A & B).

 

1. (C) Summary:  Government procurement plays a large role in the Malaysian economy -- valued at an estimated 20% of GDP.  The Government of Malaysia has formal procurement rules and officials explain that they are designed to serve a variety of goals, including economic development and the improvement of ethnic Malay economic status. 

American firms operating in Malaysia complain that implementation of the rules lacks transparency; they suggest that corruption is a significant problem, particularly for larger contracts; and they find "bumiputera" set asides for ethnic Malays restrictive, if not prohibitive.  U.S. firms would like to see more discipline in the process so that procurement goes to tender through a definable, systematic and fair system.  They also would like greater market access, perhaps through a phase out of bumiputera preferences over an agreed timeframe.  Finally, they want a mechanism that would allow them to submit questions and complaints about tender awards and have them answered in a timely fashion.

2.  (C) Phasing out bumiputera preferences may not be feasible, but even achieving  transparent, rules based procurement would make a big difference to U.S. firms. Linking our goals to international "best practices" may make them more acceptable to Malaysian officials.  We also can point to Prime Minister Abdullah's public statements about the importance of improving public service delivery and defeating corruption as support for our position.  End Summary.

GOM Procurement - The Theory

3. (U) Government of Malaysia (GOM) procurement policies are consistent with the "bumiputera policy" that aims to advance the economic interests of ethnic Malays (REF A).  The government frankly acknowledges that it uses tenders and contracts to advance the development of a Malay business community.  Malaysian bidders are extended a preference that varies with the contract size, and bumiputera firms enjoy an additional preference factor. 

For example, the Ministry of Defense's general guidelines state that all tenders under RM 100,000 ($27,778) will be reserved for bumiputera companies.

International tenders will be offered only if the goods and services are not available locally.  Each ministry prepares the contract specifications and tender documents and advertises for bids. 

For international tenders, bidders have at least 56 days to submit bids and must furnish a tender deposit (195 days for defense tenders).  Bids are evaluated on technical and financial grounds.  The agency's tender board or the Ministry of Finance awards the contract.  The American Malaysian Chamber of Commerce (AMCHAM) estimates that government tenders accounted for about 20% of Malaysia's GDP in 2004.

4. (U) A ministry may directly purchase from known suppliers when procuring goods, services or works under RM 50,000 ($13,889).  For purchases of RM 50,000 ($13,889) to RM 200,000 ($55,556), a ministry must solicit quotations from at least five suppliers or contractors, each of whom must be registered with the government.  Companies must register with the Government Procurement Management Division at the Ministry of Finance and there is now a system of e-registration. 

Procurement of goods, services and works above the value of RM 200,000 ($55,556) must be considered and awarded by Tender Boards established at each federal ministry.  However, goods and services tenders over RM 30 million ($8.3 million) and works tenders over RM 50 million ($13.9 million) must be referred to the Ministry of Finance.

Its Government Procurement Management Division procures common-use items (e.g. office equipment and supplies, furniture and vehicles) via Federal Central Contracts usually made through open local tenders.  Federal and state agencies are required to purchase from these contracts.

Government-linked companies (GLCs) are not bound legally by the Government's procurement procedures.  In practice, some GLCs allow foreign companies to bid directly, others allow for no foreign competition, and still others seem to require companies to follow the basic Ministry of Finance guidelines.

5. (U) GOM rules state that all tenders must be advertised in at least one local newspaper in the Malay language. International tenders must be advertised in one Malay and one English newspaper.  Some procurement opportunities can also be accessed through Malaysia's myGovernmet website (www.gov.my/MYGOV/BI/MISC/GovernmentTender) or the respective ministries' homepages. 

There also are a number of private or quasi-private companies that offer websites purporting to list all government tenders.  Not all of the ministries advertise their tenders online, nor do all of them do so in English.  In any case, many of the tender announcements require the prospective bidder to buy tender documents from the ministry in person, which would only be possible after showing an original Ministry of Finance registration document.

6. (U) Malaysia has not signed on to the WTO Government Procurement Agreement (GPA), and has not entered negotiations or sought observer status.  It has declined to include government procurement in its bilateral FTA agreements to date.  Malaysia's lack of participation in GPA has a negative impact on U.S. companies in Malaysia because they are not allowed to participate in U.S. government procurement.  One example is Dell Computers, which maintains a special assembly line in the U.S. for USG sales, since cannot source from its factory in Malaysia.

GOM Procurement - In Practice

7. (SBU) In actual practice, many Malaysian government tenders do not follow the government's procurement rules.  In fact, even obtaining a copy of the Ministry of Finance circular detailing the rules can be a challenge. 

(Note: USTR requested a copy of Finance's procurement regulations at the first TIFA discussions with no success.  Econoff recently reiterated this request with the same results.  End Note.)

Malaysia's procurement process falls short in three key areas:  lack of transparency, outright corruption, and bumiputera requirements and preferences.

Lack of Transparency

8. (SBU) Members of the American-Malaysian Chamber of Commerce (AMCHAM) would like much greater transparency in how contracts are awarded, and have recommended a model similar to what exists in Singapore (i.e., the Ministry of Finance posts all tenders online, indicates which companies were chosen for the tenders, and the criteria which determined their selection).  While many U.S. firms chafe at Malaysia's policy of granting most government tenders to bumiputera firms, they acknowledge this practice is similar to some USG procurement, with certain projects earmarked for bids from qualified small and minority-owned businesses, or with those firms receiving additional "points" in the decision process. AMCHAM's general stance on the issue of bumiputera preferences is that it would like to see them reduced, and eventually removed, over time so this sector will be more open to competition.

9. (SBU) However, simply increasing transparency would benefit AMCHAM members.  If Malaysia were to clearly indicate which projects are earmarked for qualified bidders from particular groups, foreign bidders could plan accordingly. However, GOM agencies frequently award contracts without having gone through the established bidding process.  There also are instances of government agencies being directed to purchase products through designated local or bumiputera firms. 

Frequent Favouritism

10. (C) In some cases, a prime contractor is selected without a formally announced tender.  For example, the Chinese language daily Nanyang Siang Pau recently reported that a project from the Ninth Malaysia Plan (9MP) to develop the South Johor economic region (a contract worth RM 10.2 billion or $2.8 billion) has been directed to UEM World Berhad, apparently without tender.  UEM is owned by Khazanah, the GOM's development arm, and is the largest land owner in the south Johor region.  There are widespread rumors that projects from the Ninth Malaysia Plan (9MP) (REF B) are being handed out with no formal tendering process.

11. (C) A representative of a U.S. aerospace company complained about the basic unfairness of a system that does not follow a transparent procedure.  All too often, tenders never actually get to the bidding stage; an award is simply announced.  While his firm has had success in Malaysia, he observed he cannot plan when and where he should spend his resources to compete.  There is simply no way to know what is coming and when, especially in the military arena.

Malaysia's Ministry of Defense has a published reference book with basic policies and procedures, explaining registration requirements, but does not always follow these procedures. In any case, while his company may deal with different ministries on different tenders, he explained that:  "Finance controls it (procurement).  Regardless of the rules, they are in control."

12. (C) The government programs manager of a U.S. ICT firm complained about a similar lack of transparency in the decision-making process.  His firm once made the short-list for a tender with Malaysia Telecom (a government linked company), but lost to another company that did not even bid. While the winning company may have been qualified, Malaysia Telecom never explained its decision or why it had selected a contractor who had not expressed enough interest to participate in the tender process.

A Caveat on Transparency

13. (C) The U.S. aerospace executive observed, however, that sometimes U.S. firms have been able to work the system to their advantage.  He cautioned that one potential unintended consequence of the FTA negotiations might be an unraveling of various waivers and special arrangements obtained by U.S. companies currently operating in Malaysia.  Over time, the GOM has offered different incentives to different companies to attract their investments.  Should the FTA negotiations instill more discipline into the system, some of these preferences could be affected.  He also stressed that if old laws stay on the books, the GOM always has the option of simply reinstating them.  He noted that the capital controls Malaysia enacted during the 1997 Asian financial crisis were not new, but rather a case of the GOM enforcing laws that it had relaxed.

Corruption

14. (C) Corruption is a significant problem, particularly for larger contracts.  The U.S. aerospace firm has done fairly well on the commercial side of its business, but has not won a major defense contract in Malaysia in over a decade.  The U.S. executive described a variety of defense deals made over this period through shadowy agreements with no tendering process. 

In one instance, Prime Minister Abdullah's sister-in-law arranged a $400 million contract to purchase military cargo aircraft from Airbus.  The Prime Minister announced the purchase following his return from a visit to France.  There had been no indication that the Malaysian military were in the market for a new cargo aircraft prior to this announcement.  The U.S. executive asserted that PM Abdullah's brother told him this deal was "done for political or other reasons, such as commission." 

The executive described similar scenarios for procurement of T91 Polish tanks and SU-30 Russian Aircraft, alleging that the sellers, as well as Malaysian politicians, agents, civil servants and military personnel all received a 30% "commission."  Once, someone purporting to work for Deputy Prime Minister Najib approached him about a deal suggesting, "you will get a part of it."  He declined this offer.

15. (C) The ICT company manager agreed that "there is corruption.  Transparency is just a nice word for it."  He described how his firm must work through partners who file the tender, saying that he does not always know what is going on with the tendering process.  "After all, the Chairman could go to jail if he knows too much," he stated.  Malaysian political parties, including the ruling United Malay National Organization (UMNO), rely on "money politics" for much of their operating funds.  Projects or tenders often are awarded as political patronage, with a cut of the funds circulating back to the party through different channels. 

16. (C) Malaysian firms also are targets of corruption.  The ICT firm executive related the experience of a cousin, whose firm had bid on a government tender.  A ministry tender board informed her that she had won, but instructed her to double the amount of her bid.  Concerned about the suggested corruption, she withdrew her bid.  Our contact plans to discuss this case with another cousin at the Anti-Corruption Agency, but has no confidence that action wQl be taken.

Bumiputera Requirements and Preferences

17. (C) The U.S. aerospace firm has not found the system of bumiputera procurement to be an impediment and simply works through a Malay middleman.  The firm prefers to maintain 100% ownership of its local branch, rather than developing a local partnership that would permit it to bid directly.  The U.S. executive would, however, like to see the FTA confirm a commitment to open tendering throughout the GOM and its related GLCs.  He is concerned, for example, that Permodalan Nasional Berhad (or PNB, a Malaysian government investment trust), in its capacity as purchasing agent for Malaysian Airlines, will make decisions behind closed doors that could lock his firm out of the commercial aircraft market.

18. (C) The government accounts for 30% of the U.S. ICT firm's business in Malaysia.  Our contact at the firm believes agencies lack the freedom to select the best contractor due to the bumiputera preferences.  Our contact also admitted that his business plan requires partners in some areas and he would not bid on all contracts as a prime. But in areas such as services (consulting, designing, and maintenance and support, etc), he would like the customer to be able to approach his firm, or for his firm to be able to bid directly on government tenders, so it can bring its best practices to the table.  Also, our contact suggested that local companies often are poor project managers.  His firm must take on management of many contracts even though it is not the prime.  Lamenting his firm's inability to bid directly, he said:  "By not being flexible and open to foreign competition, it adds to costs.  The prime contractor adds their mark up.  Are they giving the best service?  Are they giving any service?  Sometimes yes and sometimes no."

19. (C) A senior manager at another U.S. ICT firm suggested the "rules are restrictive but not prohibitive."  He explained that his company does about 30% of its business in Malaysia with the government through various middleman companies or as a subcontractor on larger tenders.  He would also bid directly for some projects if the rules allowed. But he cautioned that many U.S. firms would still not want to bid on everything due to the heavy GOM regulations regarding bonding.  He said that while he is often comfortable with taking on specific risk as a subcontractor on a portion of a large tender, neither he nor his parent company would necessarily want to take on the bond for the whole tender. Without a significant change in the bonding rules and the requirements for contract completion, this executive would still choose carefully in responding to tenders.

20. (SBU) In its FTA submission, AMCHAM reported on a number of other cases that describe the impact of the bumiputera preferences and the lack of transparency in the system.  The most egregious and recent of these cases was the October 2005 Ministry of Finance Directive that government agencies may only procure roadway, decorative, and outdoor lighting from three bumiputera companies.  Any ministry that does not comply will be penalized and the unauthorized contractors could be blacklisted from future GOM tenders.

21. (SBU) The Ministry of Finance took eight months to respond to AMCHAM's request for a meeting to discuss this case.  In a May 2006 meeting, Finance Secretary General Sri Izzuddin bin Dali explained the Ministry had reviewed these companies and confirmed their qualifications.  He submitted that there would be a new circular posted on ministry's website that more clearly explained the matter and that the number of approved companies would be increased, most likely to six.  He did not respond to questions about tendering procedures and why foreign companies were not allowed to bid.

He clearly stated that only companies which are majority bumiputera-owned would be qualified to bid.

Government Procurement in the FTA

22. (C) The Malaysian government's high sensitivity concerning government procurement is suggested by the repeated efforts of GOM officials to try to remove this subject from the FTA agenda, despite clear statements from USG officials that it must be on the table.  The topic also has come under scrutiny in parliament and has been a target of public concern in the press.  No other issue has received such intense local attention.  Nevertheless, there are tactics with the potential to make this issue more amenable to negotiation. 

23. (C) Those goals involving transparency, responsiveness and simply getting the GOM to follow its own rules should be easier to tackle, although some Malaysian officials bristle at the suggestion that their system is not transparent.  Even though Malaysia is not a party to the GPA, couching our objectives in terms of "international best practices" may make them more acceptable.  We also can point to Prime Minister Abdullah's public statements about the importance of improving public service delivery and defeating corruption. Such linkages could be the "sugar" that helps Malaysian negotiators accept the "medicine" of procurement reform.

24. (C) As noted REF A, the bumiputera preferences will be the most difficult element of these negotiations. Eliminating them, even with a phase out period, would be an unrealistic objective.  A more feasible approach might be to seek a "de minimis" level below which bumiputera preferences would be allowed to remain, but above which contracts would be open to international competition.  Even this may be more than the Malaysian government could concede, but merely instilling discipline, transparency and responsiveness in the current system would make a big difference to U.S. firms.

SHEAR

 

WIKILEAKS: THE BUMIPUTERA POLICY: IMPLICATIONS FOR THE FTA

Posted: 06 Sep 2011 01:00 AM PDT

But however the data is massaged, it is clear that bumi share ownership remains significantly less than would be expected given their 66% share of the population (ethnic Malays alone account for about 54% of the total population). In addition, 9MP statistics indicate that bumiputeras experience much higher poverty rates than other population groups. The poverty rate for bumis in 2004 was 8.3%, compared to 0.6% for Malaysia's Chinese population and 2.3% for Malaysia's Indian population. Chinese incomes in 2004 averaged 64% higher than bumiputera incomes, while Indian incomes averaged 27% higher. 

THE CORRIDORS OF POWER

Raja Petra Kamarudin

C O N F I D E N T I A L SECTION 01 OF 04 KUALA LUMPUR 000930

 

SIPDIS

 

STATE PASS USTR FOR B. WEISEL AND J. JENSEN

STATE PASS USDA/FAS FOR ITP/AAD

TREASURY FOR OASIA AND IRS

COMMERCE FOR 4430/MAC/EAP/BAKER

 

E.O. 12958: DECL: 05/21/2016

TAGS: ETRD, ECON, EINV, EFIN, MY

SUBJECT: THE BUMIPUTERA POLICY:  IMPLICATIONS FOR THE FTA

 

REF: A. KUALA LUMPUR 0797

     B. KUALA LUMPUR 0613

     C. KUALA LUMPUR 0331

     D. 2005 KUALA LUMPUR 4080

 

Classified By: Ambassador Christopher J. Lafleur for reasons 1.4 b & d.

 

1.  (C) Summary:  Malaysia's bumiputera policy provides  socioeconomic support for ethnic Malays and other indigenous groups with the goal of raising the "bumi" share of national equity ownership to 30% from the current official figure of around 19%.  Over the 35 years of its existence, the policy has evolved into a pervasive system of government interventions designed to tilt the playing field in favor of the bumis.  These interventions extend into practically every corner of the economy, from banking regulation to the ownership of individual restaurants.  The bumiputera policy targets persistent differences in racial income shares. 

Official figures indicate the poverty rate for bumis in 2004 was 8.3%, compared to 0.6% for Malaysia's Chinese population; and while many analysts believe the 19% figure substantially understates bumi share ownership, no one thinks their piece of the equity pie approaches their 66% percent share of the population.  The policy has fostered a propensity for government micromanagement and blurred the lines between official favoritism and illegal corruption.

2.  (C) The bumiputera policy will be a critical factor in our upcoming negotiations on a free trade agreement (FTA) with Malaysia.  The new Ninth Malaysian Plan (9MP) sets targets that will extend the policy through 2020, so formally dismantling the bumi preference system would not be a realistic goal. 

Malaysian officials recognize the need to improve the country's economic performance, both to meet national development goals and to keep pace with regional competitors.  However, it is not yet clear the extent to which the GOM will be willing to compromise on the Bumiputera Policy to obtain an FTA that would increase Malaysia's growth and competitiveness. 

The best approach for U.S. negotiators is not to tackle the policy head on, but to deal with the preferences it creates on a case-by-case basis. 

Disaggregating the bumi package, linking changes where possible to Malaysia's WTO obligations and pre-existing policy initiatives, and minimizing discussion of the bumiputera policy by name, will help produce a deal that meets U.S. negotiating objectives, but is salable in Malaysia

The New Economic Policy - Now 35 Years Old

3.  (U) In 1969, Malaysia experienced racial riots that became a watershed in the country's political and social development.  In 1971, in response to the riots and to shore up Malay support for his government, then-Prime Minister Tun Abdul Razak launched the New Economic Policy (NEP). 

The NEP set a national goal "to correct economic imbalances so as to reduce and eventually eliminate the identification of race with economic function."  More specifically, it established the objective that Malays would own and operate at least 30% of the commercial and industrial activities of the country by 1990. 

At that time, ownership as measured by share capital of private limited companies (the benchmark measurement chosen in the NEP and still used today) was divided as follows:  Malays 2%; non-Malays 37%; and foreigners 61%. 

The NEP set targets to reduce the foreign share to 30%, increase the non-Malay share to 40% and allocate the remaining 30% to Malays.  By 1990, the government could claim that it had succeeded in reducing the foreign share to the target level, but only thanks to government acquisition of foreign assets.

Private Malay ownership remained at a very low level.

4.  (U) An important characteristic of the NEP was that it was a government policy statement, not a piece of legislation.  The Second Malaysia Plan (1971-1975) and succeeding five-year Malaysia plans were the formal means of implementing the NEP, but numerous independent measures taken as the government pursued its economic, regulatory, education and other policies supplemented and expanded the program.

This pattern continues to this day.  The five-year Malaysia plans provide budget resources and set policy targets that put muscle on the bones of the bumiputera skeleton, while politicians and bureaucrats strengthen and expand bumi preferences in their individual areas of responsibility.

5.  (U) In 1991, the National Development Policy (NDP) replaced the NEP, and in 2000 the National Vision Policy (NVP; also known as Vision 2020) replaced the NDP. 

These new policy statements expanded on the goals of the NEP, and also expanded the beneficiary population to include all "bumiputera" or "sons of the soil."   This formally added the Orang Asli (indigenous peoples of the Malaysian Peninsula, who lived here before the Malay migration), and the Dyak, Iban, Dusun and other indigenous inhabitants of Sabah and Sarawak, as potential beneficiaries. 

In practice, Malays continued to receive preference above all because they controlled the levers of political and bureaucratic power.

6.  (SBU) Today at the beginning of the Ninth Malaysia Plan (9MP; see Ref A), the goals of the NEP remain unmet.

According to 9MP statistics, ownership of share capital in 2004 was:   bumiputera 18.9%; Chinese 39.0%; Indian 1.2%; and foreigners 32.5%.  The remaining 8.4% are held as nominee shares, with ownership unclear but deemed by the government to be non-bumiputera. 

Many analysts question whether these statistics provide a good picture of who owns the nation's wealth.  For example, they exclude shares held by Federal and state government entities (including a sizeable share held by Khazanah, the Federal investment agency). 

But however the data is massaged, it is clear that bumi share ownership remains significantly less than would be expected given their 66% share of the population (ethnic Malays alone account for about 54% of the total population).  In addition, 9MP statistics indicate that bumiputeras experience much higher poverty rates than other population groups. 

The poverty rate for bumis in 2004 was 8.3%, compared to 0.6% for Malaysia's Chinese population and 2.3% for Malaysia's Indian population. Chinese incomes in 2004 averaged 64% higher than bumiputera incomes, while Indian incomes averaged 27% higher. 

Many analysts also dispute these income statistics, noting in particular that the Indian community suffers from some of the most persistent poverty in the country.  Malaysian policymakers say they cannot ignore a situation in which the majority group is perceived to be at such an economic disadvantage, or fail to be seen to be taking steps to address these disparities.

The Not-So-New Ninth Malaysia Plan

7.  (SBU) Prime Minister Abdullah announced the new Ninth Malaysia Plan (9MP) at the end of March 2006.  As reported Ref A, 9MP largely carries forward existing socioeconomic programs, including those supporting the bumiputera policy.

Most significantly for U.S. economic interests, in particular the FTA, 9MP reaffirms the goal of increasing bumi share ownership to 30% with a target date of 2020.  This means the bumiputera policy probably will be in place for at least the next fifteen years. 

9MP also adds a target of increasing Indian share ownership to 3% and reaffirms the NEP doctrine "to correct the identification of race with economic function."  

In addition, 9MP plans a multitude of bumiputera support measures, from ensuring that privatized government entities are sold to bumi owners, to funding for R&D projects for bumi researchers, to a goal of creating 100 new bumiputera direct sales companies.

8.  (SBU) The third of the five "thrusts" of the Ninth Malaysia Plan is "to address persistent socio-economic inequalities constructively and productively."  While this 9MP element also addresses rural-urban disparities, its predominant aim is to support bumiputera advancement.  It sets specific targets for balancing income distribution, restructuring employment, and redistributing the ownership of the nation's wealth, and enjoins "all government agencies (to ensure that their policies and programs take into account the implications on (sic) distribution." 

This last requirement sets the stage for continued micromanagement of the economy to ensure the advancement of bumiputera policy goals.

The Business - As Usual

9.  (C) As noted in paragraph 4 above, much of the implementation of the bumiputera policy is carried out through the day-to-day work of Malaysian ministries and agencies in their individual areas of responsibility.  This has led to a wide variety of approaches in how it is applied.

Some bumi preferences are a matter of law, but others take the form of regulations, or informal guidelines.  Even the Ninth Malaysia Plan does not provide a comprehensive list, but following are examples from key sectors.

10. (C) For example, when Bank Negara Malaysia (BN; the central bank) audits foreign financial institutions in its role as a regulator, it checks employment rolls to see whether bumiputeras are receiving an appropriate share of the jobs at each level of the company. 

In conducting these audits, BN officials characterize their recommendations as "best practices."  We are not aware of any formal legal requirement for racial hiring quotas, but few firms would be willing to jeopardize their relationship with their regulator by ignoring its recommendations. 

Bank Negara also presses new university graduates on foreign financial firms, which are expected to hire a certain number and provide them with training and experience.  Many of these young professionals move on to jobs in domestic financial institutions after a few years, so foreign banks are forced to train up their local competition.  (See Ref B for more details on the financial services sector.)

11.  (C) On a broader level, when the Ministry of Domestic Trade and Consumer Affairs (MDTCA) drafted new regulations governing the distributive trade sector (note:  defined as activities that channel goods and services to intermediaries or to final buyers) it incorporated bumiputera support measures throughout the new guidelines. 

Its draft required hypermarkets to reserve 30% of their shelf space for bumiputera-made products and stipulated that 30% of all sales receipts must come from bumiputera products.  It required restaurateurs to increase their share capital to at least one million ringgit (about $275,000) and reserve 30% for a bumi partner. 

Initially, MDTCA planned to instruct manufacturers who maintained their own distribution division to spin it off as a separate company and allocate 30% of the equity to a bumi partner.  This idea caused such an uproar, however, that MDTCA appears to have dropped it.  (See Ref C for more details on the distributive trade guidelines.)

12.  (C) The effort to comprehensively implement bumiputera priorities has fostered government micromanagement that penetrates almost every nook and corner of the economy, increasing costs and discouraging entrepreneurship and investment.  As one private analyst observed to econoff, "Why would you want to do all the work of setting up a business in Malaysia only to have to turn 30% of it over to someone else?" 

It also blurs the line between official favoritism and illegal corruption.  The government designed Malaysia's "approved permit" system for the importation of foreign cars as a means to encourage the creation of bumiputera car dealerships.  But the program devolved into a "middleman" operation where influential individuals acquired the permits from the government and sold them to auto importers and dealers. 

The rampant corruption in the program became a public scandal, threatening the job of MITI Minister Rafidah and forcing the government to reform the national auto policy, which now calls for the elimination of the AP system for motor vehicles by 2010.  (Ref D reports on the government's framework for the planned new national automobile policy.  Septel will provide an update.  The special case of government procurement also will be covered septel.)

Exceptions Prove the Rule

13. (C) There are honest business people, including foreign investors, who are not discouraged by the need to deal with the bumiputera policy.  As the Malaysian head of a multinational consumer products company told econ counselor, "You can get anything you need here, so long as you do not require the government to be too obvious about it.  You need contacts, but if you have good ones you can always get an exception." 

Similarly, the head of a high tech manufacturing facility explained that, unlike many foreign manufacturers, he has no problems getting labor permits for foreign engineers to work in his factory.  He has a former senior immigration official on his payroll, who arranges for as many labor permits as he needs.

14.  (SBU) It is significantly easier for export oriented and high tech firms to do business in Malaysia.  Export oriented manufacturers can work through the Malaysia Industrial Development Agency (MIDA), which exempts them from many restrictions and can help clear bottlenecks with other government agencies.  There also are other government programs such as the Multimedia Super Corridor (MSC) that provide a lighter system of regulation.  But even in the mainstream economy, many foreign investors are satisfied with the status quo, even though it is far from transparent.

Why Rock the Boat?

15.  (C) Given the over-riding political importance of the bumiputera policy, why would Malaysian leaders agree to enter into FTA negotiations, knowing they would lead to pressures for change? 

Responding to this question at a May 9 industry seminar on the FTA, MITI Deputy Secretary General Ooi Say Chuan said, "The NEP has an important role.  The government believes it has contributed to economic growth by developing a bumiputera middle class.  However, we need to consider Malaysia's global competitive position.  We believe the FTA will help us be competitive, but we look for flexibility from the U.S."

16.  (C) The Ninth Malaysia Plan also cites growing competitive pressures:  "The core NEP, NDP and NVP objectives remain.  However, the circumstances and environment in which the country operates have changed significantly. Malaysia is now an open trading economy participating in an extremely competitive and fast-moving global marketplace.

The opening up of China and India has changed the economic landscape dramatically for developed and developing countries alike."  Malaysia's leadership clearly recognizes the need to improve the country's economic performance, both to meet national development goals and to keep pace with regional competitors, but not if it means scrapping the bumiputera policy.  They suggest that it is essential to raise the productive capacity of bumiputeras, since they represent the majority of the population.  They also note that abandoning the bumiputera policy would be political suicide.

Let's Make A Deal

17.  (C) The bumiputera policy will be a critical and omnipresent factor in our upcoming negotiations on a free trade agreement with Malaysia.  The challenge for the U.S. team will be to devise solutions that meet our bottom line needs for improved market access, and greater fairness and transparency in decision making, while leaving the Malaysian government able to claim publicly that the final deal protects bumiputera interests.  This means avoiding attacks on the bumiputera policy head on and by name, and instead adopting case-by-case approach to clearing the obstacles it creates to trade and investment.

18.  (C) Bank Negara's racial hiring quotas in the financial services provide an example.  So long as the central bank continues to use its influence as a regulator to promote the government's bumi objectives, it will be difficult to put a complete stop to this type of practice.  It would be addressed to some extent by standard U.S. FTA language prohibiting restrictions on the nationality of senior management and boards of directors. 

An expansion of the scope of this language might be desirable to address the deeper penetration of Bank Negara's affirmative action policies.  However, given the central bank's strong desire to promote bumiputera advancement, it may only be possible to insulate the highest executive levels.  Even so, local financial firms would welcome our securing a more transparent and rules based approach to affirmative action in employment, as well as in other applications of Bank Negara's regulatory authority.

19.  (C) Where feasible, U.S. requests for changes should be linked to Malaysia's obligations under the WTO and other international agreements, as this will permit Malaysian officials to deflect criticism that they conceded to U.S. pressure.  Similarly, linking changes to existing Malaysian plans for liberalization, such as the Financial Sector Master Plan (Ref C), will make it easier for Malaysian negotiators to agree. 

Disaggregating the bumi preference package, linking necessary changes to Malaysia's international obligations and existing domestic plans, and minimizing discussion of the bumiputera policy by name, will help create the impression that the policy is not under attack.  This will help produce a deal that meets U.S. negotiating objectives, but is salable in Malaysia.

LAFLEUR

 

WIKILEAKS: MALAYSIA PRIME MINISTER VISITS ST. VINCENT

Posted: 04 Sep 2011 01:00 AM PDT

Considering, however, that the "working visit" was really a vacation, it does not appear that St. Vincent will necessarily benefit from its PM's previous globetrotting. As stated in reftel, the Government of St. Vincent cannot afford such trips by its PM, which must be paid by third parties. The question remains, what do these third parties stand to gain from financing the travels of the leader of a small Caribbean island-state?

THE CORRIDORS OF POWER

Raja Petra Kamarudin

UNCLAS SECTION 01 OF 02 BRIDGETOWN 000829

SENSITIVE

SIPDIS

SOUTHCOM ALSO FOR POLAD

 

E.O. 12958: N/A

TAGS: EINV, OVIP, PGOV, PINR, PREL, JM, MY, VC, XL

SUBJECT: MALAYSIA PRIME MINISTER VISITS ST. VINCENT

REF: BRIDGETOWN 609

 

1. (SBU) Summary:  Malaysia Prime Minister Datuk Seri Abdullah Ahmad Badawi visited St. Vincent and the Grenadines over the course of four days in April and May for what was touted by St. Vincent Prime Minister Ralph Gonsalves as a follow-up to his successful March visit to Malaysia and Singapore.  While in St. Vincent, the Malaysian leader addressed a session of Parliament, but spent most of his time vacationing in the Grenadine islands where St. Vincent's high-end resorts are located.  The lack of a concrete agenda or results from PM Abdullah's trip to St. Vincent does little to clear up the circumstances surrounding Gonsalves's earlier trip to Southeast Asia (reftel), the purpose and financing of which remain unclear.  End summary.

Malaysia PM Unwinds in St. Vincent

2. (U) Malaysia PM Abdullah visited St. Vincent and the Grenadines for four days, April 29 to May 2, for what was called a "working visit" in a press release provided by the Malaysia MFA.  From St. Vincent, the Malaysia PM went on to Jamaica for a two-day "official visit."  A reporter traveling with the PM wrote in the Malaysia Star that the Jamaica portion of the trip dealt with possible Malaysian investment in energy exploration and construction projects, while the PM was stopping in St. Vincent "mostly for a vacation and to unwind from the pressures of work."

St. Vincent Rolls Out the Red Carpet

3. (U) The Government of St. Vincent literally rolled out the red carpet for the Malaysia PM, who was greeted by the entire Cabinet and other dignitaries at St. Vincent's small airport when he arrived on April 29.  After meeting with St. Vincent PM Gonsalves, the Malaysian vacationed for a few days on the Grenadine islands Mustique and Canuoan.  He spent one of these days on a fishing trip accompanied by Gonsalves.  PM Abdullah returned to St. Vincent proper on May 2 and addressed Parliament before departing for Jamaica.

4. (U) Note:  Mustique is a private island containing over 75 private villas, many of which are owned by international celebrities.  Canuoan is the location of the high-end Raffles Resort and an opulent villa complex and golf course developed by Donald Trump.  The stylish environment of the Grenadines contrasts markedly with the somewhat squalid conditions encountered on the main island of St. Vincent.  End note.

Gonsalves to Visit Malaysia, Again

5. (U) Following the Malaysian PM's departure, the Governments of St. Vincent and Malaysia released a joint statement with standard diplomatic language expressing further interest in "enhancing cooperation" in a number of areas.  PM Gonsalves announced that he had accepted an invitation to make an official visit to Malaysia in June and would also see the Malaysian PM in September during the Non-Aligned Movement (NAM) meeting in Cuba.  St. Vincent formally joined the NAM at the organization's 2004 summit in Malaysia.

Comment

6. (SBU) When first announced, the Malaysian leader's St. Vincent trip appeared to suggest that PM Gonsalves had indeed accomplished something for his country by traveling to Southeast Asia earlier this year.  Considering, however, that the "working visit" was really a vacation, it does not appear that St. Vincent will necessarily benefit from its PM's previous globetrotting.  As stated in reftel, the Government of St. Vincent cannot afford such trips by its PM, which must be paid by third parties.  The question remains, what do these third parties stand to gain from financing the travels of the leader of a small Caribbean island-state?

GILROY

 

WIKILEAKS: CHIN REFUGEES STRUGGLE WHILE AWAITING UNHCR REGISTRATION AND RESETTLEMENT

Posted: 01 Sep 2011 01:00 AM PDT

In exchange for the refugee's freedom, the police take all money possessed by such individuals. According to the refugees, the police have not alerted immigration officials to the presence of the camp, as they do not want immigration officers to destroy the camp and thereby impede the police's extortion activities.

THE CORRIDORS OF POWER

Raja Petra Kamarudin

UNCLAS SECTION 01 OF 03 KUALA LUMPUR 002137

SENSITIVE

SIPDIS

E.O. 12958: N/A

TAGS: PHUM, PREF, SMIG, PREL, PGOV, UNHCR, MY

SUBJECT: CHIN REFUGEES STRUGGLE WHILE AWAITING UNHCR REGISTRATION AND RESETTLEMENT

 

REF: A. KUALA LUMPUR 1660

          B. KUALA LUMPUR 246

Summary

1. (SBU) In their primitive jungle camps and at a medical clinic they established in Kuala Lumpur, Burmese Chin refugees recently described to us their harassment by police and their perceptions of UNHCR indifference regarding their plight. 

Up to 1,000 Chins live in jungle camps abutting palm oil plantations within five miles of Malaysia's seat of government in Putrajaya. Approximately 60 percent of these and other Chin refugees remain unregistered by the UNHCR, largely due to the UNHCR's decision last year to cease new registrations of non-emergency refugee cases. 

Working on the plantations for little money and uncertain payment of wages, receiving access to medical care only in some emergency situations, and facing arrest and deportation if captured by Malaysian authorities, unregistered Chin refugees living in the jungle remain among the most vulnerable and exploited refugees in Malaysia. 

During our recent meetings with over 100 of these refugees, they conveyed their impatience to get UNHCR documentation, their desire for basic medical care and English language training, and their hope for resettlement to a third country as soon as possible.  End Summary.

Chin Refugees Struggling in Jungle Camps

2. (SBU) Together with two Burmese Chin refugees acting as guides and interpreters on November 15, poloff visited two jungle camps housing about 200 Chin refugees near the Malaysian administrative capital in Putrajaya.  The camps are located on the edges of palm oil plantations where some of the refugees find work as day laborers. 

The camps shared common physical characteristics.  In small clearings hacked out of the jungle, the Chins erected temporary shelters using wooden poles, plywood for elevated sleeping platforms, and fluttering sheets of plastic for roofing and walls. 

A sense of devotion to Christianity pervaded each camp.  Each camp contained a church structure (the largest and most well-maintained structure in each camp) and all of the approximately 100 square foot dwellings viewed by poloff prominently displayed crosses or pictures of Jesus. 

Neither camp had been visited by UNHCR representatives during at least the past two years, according to the Chins.  Poloff's guides said the Chins have established as many as five other jungle camps in the vicinity of the Putrajaya palm oil plantations.  Collectively, the camps may contain up to 1,000 Chin refugees within five miles of the Prime Minister's office.

Living in Fear of Extortion, Raids and Deportation

3. (SBU) The first camp we visited was only 500 meters from a paved road.  It iswell-known to local police.  During discussions with four men living in the camp, they said local police visited the camp regularly in search of refugees who have not yet been registered with the UNHCR. 

In exchange for the refugee's freedom, the police take all money possessed by such individuals.  According to the refugees, the police have not alerted immigration officials to the presence of the camp, as they do not want immigration officers to destroy the camp and thereby impede the police's extortion activities.

Refugees in this camp told us police recently asked them to dismantle their church structure.  The police said the church's presence could force government officials to burn and raze the camp, as local Muslim villagers have complained about the "unregistered" church's existence in the jungle near their homes. 

This is not an empty threat.  A similar camp was destroyed earlier this year, following complaints about the camp's church by local residents.  The camp and church have been recently rebuilt, with the church disguised as a meeting hall during the week.

Hard Work for Uncertain Payment

4. (SBU) The refugees said they are paid about RM25 ($6.75) for a full day's work on the plantations, but that the work is sporadic and their wage payments are often delayed and sometimes completely withheld. 

One of the men said he had not been paid in over a month.  He continued working, despite the probability of receiving less than full payment, as he needed to feed his three children, aged 4-10, who lived with his sister in another nearby camp.  He said his 33 year-old wife recently died suddenly of heat exhaustion while working at one of the plantations. 

Non-payment of wages and other forms of labor exploitation at plantations, construction sites and restaurants continue to plague the approximately 20,000 Chin refugees currently living in Malaysia, according to our sources.

Frustration With the UNHCR

5. (SBU) Following a 30 minute hike, we arrived at a second, much more remote camp.  This camp was situated in a ravine and accessible only through a winding, narrow path.  Camp residents claimed its existence is unknown to police and immigration officials, and the camp has never been raided.

Approximately 100 camp residents, including 20 women and children, greeted poloff outside the camp's church and answered questions about their living conditions and relationship with the UNHCR.  Most of the refugees have lived in the camp for 1-2 years, although one man claimed to have lived there four years.  All were Zomi Chin refugees. 

About 20% were registered with the UNHCR, prior to the UNHCR's temporary suspension of most new refugee registrations last year.  The refugees complained about the UNHCR's perceived unwillingness to register "non-emergency" refugee cases such as theirs, as UNHCR documentation is their only form of protection from deportation. 

(Note: As of July 1, 2006 the UNHCR had provided its formal recognition to 7,805 Chin "persons of concern" in Malaysia, up moderately from 6,566 at year-end 2005.)

6. (U) They all hoped for resettlement into a third country as soon as possible. They wished to leave the jungle, and they described conditions in the camp as "dangerous and unhealthy."  Of the camp's total population of about 125 persons, two were killed and 18 injured by lightning during 2006. 

One resident told poloff's translator, "We would rather die here than go back to Burma."  They remained unaware that the United States planned to resettle thousands of Chin refugees from Malaysia. 

Poloff informed them that the USG and UNHCR are gearing up to "significantly increase" resettlement of Chin refugees into the United States starting next year.  They were pleased to hear this, although they remained skeptical of how the UNHCR registration process will proceed.  The prospect of resettlement didn't terribly excite them, probably because the concept seemed much closer to theory than reality, and their day-to-day survival currently demands their full attention.

Chin Medical Care on Ad Hoc Basis

7. (U) On November 9, poloff visited a refugee medical clinic organized by the Alliance of Chin Refugees (ACR), one of the two largest entities representing the interests of Chins in Malaysia.

(Note: the other large organization is the Chin Refugee Committee (CRC), which claims to have about 17,400 members here.). 

Located in Kuala Lumpur in a non-descript two-storey walkup, the clinic is staffed by two French doctors, one French nurse and a Burmese doctor (all volunteers).  The clinic treats 30-40 persons during its once weekly operating hours for a charge of RM10 (about $2.75) per patient. 

The clinic is funded solely by donations from Chin and other refugees and has only limited medical instruments and medicine supplies. 

One of the French doctors commented that tuberculosis is common among the refugees and that few of the approximately 800 Chin children in Malaysia have received basic immunizations.  She was aware of the Chin's jungle camps near Kuala Lumpur and expressed frustration that no one had yet funded a medical outreach program to treat sick individuals in those camps.  She said the Chin community also needed money for treatment of psychological trauma, as well as pre-natal care and medical facilities to ensure proper delivery of the increasing number of Chin babies born in Malaysia.

Comment

8. (SBU) The ARC and CRC have performed admirably in their attempts to organize and care for their own people, but institutional funding is needed to provide basic medical treatment and English language training for both children and working adults. 

Given our pending resettlement of thousands of Chin refugees from Malaysia, modest investments in immunizations, medical care and English language training in Malaysia's relatively low cost environment would yield substantial benefits for both the Chin refugees and the United States. 

Post looks forward to working with PRM, UNHCR, IOM, DHS, the Overseas Processing Entity and the Department's regional refugee affairs office in Bangkok to resettle large numbers of these refugees as quickly and smoothly as possible.  We will remain actively engaged in that process, while also coordinating with PRM and the UNHCR to ensure timely provision of additional PRM funding this fiscal year for basic medical and education needs of the Chins and other refugee communities.

LAFLEUR

 

The art of wayang kulit

Posted: 31 Aug 2011 08:13 PM PDT

Berikutan isu orang Melayu terus terpinggir di Pulau Pinang, Pergerakan Pemuda UMNO Malaysia mencadangkan Perbadanan Pembangunan Pulau Pinang (PDC) diletakkan di bawah kuasa Timbalan Ketua Menteri, Datuk Abdul Rashid Abdullah.

THE CORRIDORS OF POWER

Raja Petra Kamarudin

Wayang kulit is a popular Malay shadow play, especially in the East Coast of West Malaysia. The Malays are very good at this. Well, actually, the Malaysian Chinese too are very good at this.

I suppose, as they say, the dog understands its master, especially when it licks its master's ass every day. So, with so much ass-licking going on, the Chinese running dogs of the Malay lembus ape their masters very well indeed.

Hmm…dog, ape, lembu, ass -- quite an animal kingdom we have out there.

Anyway, the wayang kuilit that the Chinese dogs and the Malay lembus are playing is with regards to the DAP-led Pakatan Rakyat state government of Penang.

MCA, the Chinese running dog, is alleging that since the DAP-led Pakatan Rakyat government took over Penang in March 2008, the Chinese have been sidelined.

The Umno lembu, in turn, alleges that since the DAP-led Pakatan Rakyat government took over Penang in March 2008, the Malays have been sidelined.

Hmm…come to think of it, this is the same allegation by the Indians. Hindraf alleges that since the DAP-led Pakatan Rakyat government took over Penang in March 2008, the Indians have been sidelined.

Hold on, if ALL the Malays, Chinese and Indians have been sidelined since the DAP-led Pakatan Rakyat government took over Penang in March 2008, then who the fuck is benefiting?

Okay, now I see it. Since the DAP-led Pakatan Rakyat government took over Penang in March 2008, the Malays, Chinese and Indians have ALL been sidelined. The ones benefiting are the Mamaks.

Okay, guys and gals, time to boycott the Mamak shops and nasi kandar. They are already getting too rich since the DAP-led Pakatan Rakyat government took over Penang in March 2008. They don't need your money. The Penang state government is already making them super-rich.

This is a demonstration of what I mean by wayang kulit.

The Chinese politicians will tell the Chinese that they are being sidelined since the DAP-led Pakatan Rakyat government took over Penang in March 2008.

The Malay politicians will tell the Malays that they are being sidelined since the DAP-led Pakatan Rakyat government took over Penang in March 2008.

And the Indians, not wanting to be left out, will jump onto the bandwagon -- or, as the Malays would say, tumpang semangkuk (May I Come or MIC) -- and also allege that the Indians are being sidelined.

I suppose wayang kulit can work and people can be easily fooled by it when 90% of Malaysians and 50% of Malaysia Today's readers are stupid.

Or are 50% of Malaysia Today's readers stupid enough to believe this?

Well, let's see come the next election.

Anyway, the statistics below can shed some light as to whether the Malays in Penang are really being sidelined. Even Umno Malays are getting contracts in Penang.

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

Isu Melayu Terpinggir 

(Pemuda Umno Malaysia) -- Berikutan isu orang Melayu terus terpinggir di Pulau Pinang, Pergerakan Pemuda UMNO Malaysia mencadangkan Perbadanan Pembangunan Pulau Pinang (PDC) diletakkan di bawah kuasa Timbalan Ketua Menteri, Datuk Abdul Rashid Abdullah.

Pengerusi Biro Ekonominya, Reezal Marican Naina Marican berkata, langkah itu akan dapat memastikan misi nasional iaitu usaha merapatkan jurang antara orang Melayu dan bukan Melayu khususnya di bandar tercapai.

Jelas beliau lagi cadangan tersebut juga bagi memastikan tumpuan dapat diberikan bagi membela nasib orang Melayu di negeri itu.

"Ketua Menteri, Tan Sri Dr Koh Tsu Koon mempunyai banyak tanggungjawab besar terhadap pembangunan Pulau Pinang seperti agenda perindustrian dan pelaburan dan tidak dapat memberi tumpuan sepenuhnya kepada isu mikro.

"Oleh itu, adalah wajar jika tugas itu diserahkan kepada Timbalan Ketua Menteri yang juga wakil UMNO di Kerajaan Negeri," katanya dalam satu kenyataan di sini, hari ini.

Beliau menambah tindakan itu juga selaras dengan konsep perkongsian kuasa yang diamalkan Barisan Nasional (BN).

â€Å“Keresahan orang Melayu yang melihat diri mereka terpinggir di Pulau Pinang dan dibangkitkan Pemuda UMNO negeri baru-baru ini sebenarnya tertumpu kepada masalah penempatan di bandar selain isu kemiskinan.

"Keresahan orang Melayu sememangnya berasas dan diakui sendiri Perdana Menteri, Datuk Seri Abdullah Ahmad Badawi dan Koh Tsu Koon," ujarnya.

Justeru, beliau berkata, PDC sebagai anak syarikat Perbadanan Kemajuan Ekonomi Negeri yang bertanggungjawab dalam pembangunan hartanah di negeri itu, adalah jentera yang sesuai untuk menangani keresahan itu.

Sebelum ini hampir semua Pergerakan Pemuda UMNO bahagian di Pulau Pinang membangkitkan cadangan penggiliran itu pada mesyuarat mereka yang sedang berlangsung ketika ini, sebagai tidak puas hati berhubung kegagalan kerajaan negeri membantu menjaga kepentingan orang Melayu. 

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

MCA Mengutuk Kerajaan Negeri

Tiada Kontrak untuk Kontraktor Cina bagi Projek Pengairan & Saliran Di Pulau Pinang

(Bernama) -- Ketua Wanita MCA Tan Cheng Liang mengutuk bahawa selepas Pakatan Rakyat mengambil alih kerajaan negeri,tiada satu pun kontraktor Cina mendapat kontrak di kelima-lima daerah di negeri ini.                                                       

Tan berkata, Lim Guan Eng tidak boleh menafikan peranannya sebagai Ketua Menteri. Tindakannya ini telah membuktikan parti DAP telah menggunakan taktik" cina bertentang cina (Chinese against Chinese)" sekali gus mengugatkan hak kaum Cina selepas menjadi mereka dipilih memerintah kerajaan. 

"Saya tahu DAP tidak boleh menerima hakikat bahawa mereka tidak boleh bergantung kepada orang Cina untuk mengukuhkan kuasa politik. Saya berharap hak orang bukan Melayu tidak akan terkorban semata- mata untuk mengambil hati orang Melayu menjelang pilihanraya umum."

Tan juga berkata, DAP yang menggunakan slogan "Ubah" telah berjaya menewaskan kebanyakan wakil SUPP di Sarawak, tetapi ini tidak membawa sebarang perubahan tetapi  sebaliknya telah melemahkan perwakilan Cina dalam kerajaan.

Semalam, Lim Guan Eng mengumumkan bahawa kontraktor yang terlibat dalam projek pengairan dan saliran semuanya orang Melayu, Bumiputera dan India Muslim. Daripada keseluruhan, 20 peratus terdiri daripada kontraktor wanita. 

Tan bertanya "Saya tidak faham kenapa negeri Pulau Pinang yang kebanyakan penduduknya kaum Cina, kontraktor Cina satu kontrak pun tidak dapat, jangan kata semua kontraktor Cina tidak tahu maklumat tender terbuka untuk projek pengairan dan saliran yang sedang dijalankan? Ataupun permohonan mereka tidak pernah dipedulikan? "

Dia berkata, Lim Guan Eng selaku Ketua Menteri dan ADUN, haruslah memberi maklumat terperinci mengenai projek tersebut kepada semua rakyat. Ini bukan sahaja sahaja untuk memastikan persaingan adil antara kontraktor pelbagai kaum, tetapi juga untuk memastikan projek dapat dijalankan dengan lancarnya supaya kualiti projek terjamin dan membawa manfaat kepada semua.

 

Yes, Najib, let’s not forget my family’s contribution to Merdeka

Posted: 30 Aug 2011 07:38 PM PDT

I have a legitimate right to say my piece and comment on what is wrong with Malaysia. After all, my grandfather was one of the founding fathers of an independent Malaya. Malaysia would not be what it is today if not for my family as well. And if Malaysia has deviated from what the founding fathers had planned for the country, then it is my duty to speak up and oppose this deviation. 

THE CORRIDORS OF POWER

Raja Petra Kamarudin

PM: Don't forget sacrifices of past leaders 

Their sacrifices in freeing Malaysia from the colonialists must be remembered, says Najib.

(Bernama) -- Prime Minister Najib Tun Razak today reminded the people not to forget the sacrifices of past leaders in freeing Malaysia from the colonialists.

He said that while Muslims were celebrating Aidilfitri, which entered its second day today, they should never forget the achievements of leaders who won the nation its independence.

"In the joy of Aidilfitri, I hope we do not forget the struggles of our forefathers in fighting for the country's independence. Happy 54th Merdeka Day," he said in a Twitter feed.

This year's National Day, carrying the slogan "1Malaysia: Successful Transformation, Prosperous People", is slightly different in that it will be celebrated simultaneously with Malaysia Day on Sept 16.

Yesterday, at the Aidilfitri open house of the prime minister and cabinet ministers at Seri Perdana in Putrajaya, Najib cut a cake in a symbolic gesture to mark National Day.

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

Najib Tun Razak and the Umno leaders always talk about how Umno 'struggled' and 'sacrificed' to gain independence for Malaysia. On this day, Merdeka Day, they want us to remember those people who sacrificed and struggled for their country.

Actually, the Umno people were not the only ones who made Malaysia into what it is today. Many non-Umno people also contributed. In fact, they led the struggle for Merdeka. They were at the frontline of the fight for Merdeka.

My grandfather, Raja Sir Tun Uda, was one such man of many.

I have a legitimate right to say my piece and comment on what is wrong with Malaysia. After all, my grandfather was one of the founding fathers of an independent Malaya. Malaysia would not be what it is today if not for my family as well. And if Malaysia has deviated from what the founding fathers had planned for the country, then it is my duty to speak up and oppose this deviation. 

I am not a treasonous Malaysian, as what Umno accuses me to be. I am a loyal Malaysian, maybe even a patriot. I am just continuing the tradition established by my family in ensuring that Malaysia remains a just country that respects the equality and freedom of its citizens. 

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

This is what Wikipedia said about Raja Sir Tun Uda:

Raja Uda was a member of the Selangor royal family, being a distant cousin of Sultan Hisamuddin Alam Shah and a direct descendant of the first Sultan of Selangor. He married Sultan Hisamuddin's sister, Tengku Badariah binti Sultan Alaeddin Sulaiman Shah.

Raja Uda joined the colonial government service in 1910 at age 16. In 1939, he was appointed the Secretary to the British Resident of Selangor. He was Menteri Besar of Selangor twice, from 1949 to 1953, and again from 1954 to 1955. In between, Raja Uda served as Malayan High Commissioner in the United Kingdom.

Raja Uda was involved in negotiations with the British to establish the Member System (see note 1 below) in the 1950s.

In 1951, Raja Uda was appointed a CMG and appointed a Knight Commander of the Most Excellent Order of the British Empire in 1953, entitling him to the style "Sir," since the Federation of Malaya was then a realm of the British Empire. Following the first ever general election in 1955, Raja Uda was appointed Speaker of the Federal Legislative Council (see note 2 below).

On August 31, 1957, the day of independence, Raja Uda was appointed the first Governor of the state of Penang and served for ten years.

The Federal Legislative Council (also known simply as the Legislative Council) was the legislative body of the Federation of Malaya and the predecessor of the Malaysian Parliament. It was formed in 1948 after the abolition of the Malayan Union and the formation of the Federation, as part of the United Kingdom's promise to grant self-rule to the Malayans. The council convened in Kuala Lumpur.

The council was composed of representatives from the Malay, the Chinese and the Indian communities. Initially, all representatives were appointed by the British High Commissioner for Malaya.

In 1955, a general election was held for the first time. 52 seats were contested, with the majority party earning the right to appoint seven more. In the election, the Alliance Party contested all 52 seats and won 51, while the Pan-Malayan Islamic Party won the remaining seat.

NOTES: 

(1) The Member System, modeled on the cabinet system, was created by British authorities in Malaysia to provide self-governance. Like the Communities Liaison Committee, it drew on members of different communities, and was later described as setting a precedent for the power-sharing multiracial Malayan and Malaysian cabinets post-independence. 

(2) The Federal Legislative Council passed the Malayan Constitution (later, the Malaysian Constitution) on August 15, 1957. Malaya gained independence on August 31, 1957.

Raja Sir Tun Uda was the Menteri Besar of Selangor from 1949 to 1953 and again from 1954 to 1955. In between that he was the Malayan High Commissioner to the UK. He was never an Umno member (or even a politician) and his appointment as MB was not a political appointment.

Raja Sir Tun Uda, the First Governor of Penang, and his family (my uncles and aunty).

 

WIKILEAKS: AMBASSADOR'S JANUARY 29 MEETING WITH EDUCATION MINISTER HISHAMMUDDIN

Posted: 30 Aug 2011 01:00 AM PDT

The country's "racial splits are now more pronounced," and Malays still do not feel on par with other races. At times, the Malay youth became overly emotional regarding matters of race and religion, and needed to "release pressure," as they did during the November 2006 UMNO General Assembly (which featured heated racial rhetoric that was broadcast on national television).

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 000209

SIPDIS

E.O. 12958: DECL: 02/05/2017

TAGS: PREL, PGOV, KISL, KPAO, MY

SUBJECT: AMBASSADOR'S JANUARY 29 MEETING WITH EDUCATION MINISTER HISHAMMUDDIN

 

Classified By: Ambassador Christopher J. LaFleur for reasons 1.4 (b and d).

Summary

1.  (C) Education Minister and UMNO Youth chief Hishammuddin responded favorably to the Ambassador's call to expand dialogue between the Embassy and Muslim Malay youth during their January 29 meeting. 

Hishammuddin described the Malaysian political scene as "volatile" due to the increased racial divide and Malay insecurity over their relative economic status and the role of Islam.  Malay youth would continue to vent their emotions publicly, as they did during the 2006 UMNO General Assembly, but those on the receiving end, whether ethnic Chinese or the U.S. Government, should look beyond the rhetoric to the bigger and longer term picture. 

In any event, the Malaysian Government would never allow anti-U.S. sentiment to get out of hand.  Hishammuddin strongly endorsed the U.S. English language assistant program and hoped that this could be expanded nationwide.  End Summary.

2.  (C) The Ambassador, accompanied by polchief, called on Hishammuddin Tun Hussein, Malaysia's Education Minister and head of the UMNO party's youth wing, on January 29 and explored opportunities for expanded dialogue with the influential UMNO Youth. 

The Ambassador explained our interest in conveying the U.S. perspective on issues of common concern, while acknowledging that U.S. and Muslim Malay views will differ on some important topics, like aspects of Middle East policy.  UMNO constituents and the U.S.-Malaysia relationship would benefit from direct information from the U.S. Embassy, rather than relying on sometimes inaccurate media reports. 

Hishammuddin, accompanied by UMNO Youth Secretary General Abdul Rahman

Datuk Hj. Dahlan and his personal Ministry senior staff, welcomed the Ambassador's call for expanded dialogue.  The Embassy and UMNO Youth would need to determine appropriate topics to address given UMNO Youth's sensitivity and "immaturity," avoiding, for example, the Middle East, but perhaps addressing the subject of Islam in some fashion.

3.  (C) Hishammuddin described the Malaysian political scene as "volatile beneath the surface."  The Minister, assuming a friendly and frank manner, went on to explain, "this is a difficult period for the psyche of the Malays, particularly because there is uncertainty about the role of Islam."  In the context of rapid development, the Malays had doubts about the foundation of their own country. 

The country's "racial splits are now more pronounced," and Malays still do not feel on par with other races.  At times, the Malay youth became overly emotional regarding matters of race and religion, and needed to "release pressure," as they did during the November 2006 UMNO General Assembly (which featured heated racial rhetoric that was broadcast on national television).

Naturally, there would be a reaction to such venting.  In the case of the UMNO General Assembly, it was a shame, Hishammuddin added, that the Malaysian Chinese Association (MCA, UMNO's partner in the coalition government) had not been strong enough to manage the reaction. 

As a result, Hishammuddin admitted that UMNO still would not allow him to carry out public activities in ethnic Chinese areas.  The Minister confided that, in the wake of the controversial UMNO General Assembly, Prime Minister Abdullah had acknowledged his decision to allow a live, national television broadcast of the event as his worst decision in 2006.

4.  (C)  Hishammuddin argued that MCA and other non-Malay political partners needed to understand the emotional background behind Malay frustration and look beyond the heated words.  The Malay relationship with the U.S. featured "the same dynamic," and from time to time the U.S. would be the object of emotional public criticism. 

"This will never get out of hand, the government will not allow it," Hishammuddin assured the Ambassador, but the U.S. would need to adopt a long-term view similar to that of UMNO's national coalition partners.

5.  (C) On the subject of Islam, Hishammuddin said, "the moderates don't speak out" and described Prime Minister Abdullah's "Islam Hadari" concept as an attempt to provide a useful platform for moderates.  While most Malays were not extreme in their views of Islam, "if you push us, we have no other choice," and the younger generation will begin to look to "tyrants" like Saddam Hussein as role models.

6.  (U) The Ambassador raised the U.S. English Language Assistant program, now in its second year with some 13 American assistants and one English Teaching Fellow deployed in the state of Terrangganu.  The Education Minister applauded this program and said he would like to expand it into a national effort, coordinated through his office. 

The focus should remain on assistance and training of Malaysian English language teachers.  Hishammuddin said he fully supported increased exchanges between Malaysians and Americans at all levels, and he particularly valued the International Visitor Program.

7.  (C) COMMENT:  Hishammuddin, the son of Malaysia's third Prime Minister, Hussein Onn, has the pedigree as well as the personal standing to be a future prime minister. He is now punching important tickets on the way to that goal by holding down the Education and UMNO Youth jobs.

Hishammuddin is reported to be a strong Abdullah supporter and a key political ally of the Prime Minister's son-in-law and Deputy Youth Chief, Khairy Jamaluddin.  If and how Hishamuddin and Khairy will reconcile their prime ministerial ambitions remains to be seen.

We welcome the opportunity to interact more with UMNO Youth, which continues to brandish the banner of Malay nationalism and remains highly critical of the U.S. We intend to follow-up strongly on the English teaching program.  We welcomed the opportunity to meet with Hishammuddin, who, like his other cabinet colleagues, is not always easy to pin down.

LAFLEUR

 

The honeymoon period is the best time

Posted: 29 Aug 2011 07:39 PM PDT

The Malaysian voters are a very generous lot during the honeymoon period (like 1955, 1964, 1974, 1978 and 1982) but will punish the ruling party when there is internal strife (like 1969, 1990 and 1999). So, when Malaya saw independence, when Malaysia was formed, when Malaysia had a new Prime Minister and the Prime Minister was still in his honeymoon period, etc., the ruling party would do well. When the ruling party is facing internal strife or the honeymoon was over, it suffers. 

THE CORRIDORS OF POWER

Raja Petra Kamarudin

In 1955, during the first municipal elections to be held in Malaya, the Alliance Party won all but one of the 52 seats contested. This was due to the Merdeka euphoria.

In 1957, Malaya gained independence or Merdeka.

In 1959, two years AFTER Merdeka, during the first parliamentary elections to be held in Malaya, the Alliance Party won only 74 of the 104 seats and 52% of the popular votes. The ruling party lost 30 seats whereas two years BEFORE Merdeka it lost only one.

In 1963, Malaysia was formed, and in 1964 the Alliance Party recovered. The ruling party won 89 of the 104 seats contested and almost 59% of the popular votes.

In 1969, the Alliance managed only 95 of the 144 seats. The popular votes also dropped to below 50%. The Prime Minister, Tunku Abdul Rahman, was forced to resign soon after that.

In 1974, soon after Barisan Nasional was formed, the ruling party won 135 of the 154 seats. The popular votes also increased to almost 61%. But this time it was under a new Prime Minister, Tun Abdul Razak -- the second Prime Minister of Malaysia.

In 1978, the ruling party won only 130 of the 154 seats contested. The popular votes dropped to almost 57%. This was under the third Prime Minister, Tun Hussein Onn, who had taken over more than a year earlier (he waited too long to hold the election).

In 1982, the ruling party won 132 of the 154 seats and almost 61% of the popular votes. This was also under a new Prime Minister, Tun Dr Mahathir Mohamad -- the Fourth Prime Minister of Malaysia, who took over only a few months before the elections.

In 1986, the ruling party's performance declined slightly. It won only 148 of the 177 contested and less than 56% of the votes.

In 1990, the election held after the Umno crisis -- that resulted in the split into Umno Baru and Semangat 46 -- the ruling party's performance declined further to 127 of the 180 seats and about 53% of the popular votes.

In 1995, the ruling party recovered and won 162 of the 192 seats and almost 65% of the popular votes, partly because the opposition was in chaos. Semangat 46 closed down soon after that and most of its leaders/members rejoined Umno.

In 1999 (due to another split in Umno and the formation of Parti Keadilan Nasional) the ruling party's performance declined to 148 of the 193 seats and only 56% of the popular votes.

In 2004, the ruling party recovered and won 198 of the 219 seats and more than 64% of the popular votes. This was under a new Prime Minister, Tun Abdullah Ahmad Badawi, who took over only a few months before the election.

In 2008, the ruling party won only 140 of the 222 seats and only 52% of the popular votes. Tun Abdullah was forced to resign soon after that.

The Malaysian voters are very a generous lot during the honeymoon period (like 1955, 1964, 1974, 1978 and 1982) but will punish the ruling party when there is internal strife (like 1969, 1990 and 1999). So, when Malaya saw independence, when Malaysia was formed, when Malaysia had a new Prime Minister and the Prime Minister was still in his honeymoon period, etc., the ruling party would do well. When the ruling party is facing internal strife or the honeymoon was over, it suffers.

Najib Tun Razak took over in 2009, more than two years ago. He should have called for a general election while he was still enjoying his honeymoon like what Tun Razak Hussein, Tun Hussein Onn, Tun Dr Mahathir Mohamad and Tun Abdullah Ahmad Badawi did.

Now, the honeymoon is over. People do not love Najib as much as they did when he first took over as Prime Minister back in 2009. And, as the statistics above have shown, once the honeymoon is over, you no longer get the peoples' support.

Najib would have done better if he had called for the 13th General Election back in 2010. If he waits till 2012 or 2013, he is going to suffer (by then he would have been PM for three or four years respectively). And the longer he waits the worse it will be for him.

For the opposition, it is better that the general election is called later rather than sooner. In fact, if the election is held now, it will be a 50:50 situation. Both the opposition and the ruling party will face an uphill task.

Back in 2010, the opposition would not have performed so well. The ruling party would have been able to regain some ground it lost in 2008. In 2012 or 2013, the opposition will be able to perform better.

So, time is on the side of the opposition and the longer the time, the better. Time is not in Najib's favour and the longer the time, the worse it is for him.

That is what the statistics show and statistics do not lie.

 ** Sabah and Sarawak not part of the Federation yet

 *** The last column is the seats the opposition won

 

WIKILEAKS: SARAWAK: OPPOSITION ADRIFT; INDIGENOUS PEOPLE LACK SERVICES; POLICE REJECT CRITICISM

Posted: 28 Aug 2011 01:00 AM PDT

They said Sarawak's Chief Minister Taib Mahmud ensured the construction contract was awarded to Cahaya Mata, a large holding company that is majority-owned by Taib's family. Upon being awarded the construction contract for RM300 million, Cahaya Mata hired a subcontracting firm to complete the construction for RM220 million; Cahaya Mata (and the Taib family) pocketed the RM80 million ($22 million) difference. 

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 001935

 

SIPDIS

DEPT FOR EAP/MTS AND DS/IP/ITA

 

E.O. 12958: DECL: 10/11/2016

TAGS: PHUM, PGOV, PREL, KDEM, KISL, MY

SUBJECT: SARAWAK: OPPOSITION ADRIFT; INDIGENOUS PEOPLE LACK SERVICES; POLICE REJECT CRITICISM

 

REF: A. KUALA LUMPUR 942

B. 05 KUALA LUMPUR 1955

 

Classified By: Political Section Chief Mark D. Clark for reasons 1.4 b, d.

 

Summary

1. (C) We met with political opposition leaders, human rights advocates and police during an October 2 visit to Sarawak's state capitol of Kuching.  While the nationally active ethnic Chinese opposition party DAP performed well in the May 20 state assembly election, we found the party has not yet articulated its political priorities or legislative goals in Sarawak. 

Through a combination of the governing coalition's media ownership and control, political and financial patronage, and the DAP's apparent lack of a coherent political agenda, the Barisan Nasional-affiliated governing coalition will likely remain in firm control of Sarawak.

With regard to protecting the rights of the state's most vulnerable citizens, one of the 16 commissioners from Malaysia's government-funded national human rights commission (Suhakam) condemned the state's "insufficient support" for impoverished, rural, indigenous persons.  Echoing comments we have heard from other Suhakam commissioners, he said the government largely ignores Suhakam's recommendations. 

The state's second highest ranking cop told us that police leaders remain vehemently opposed to the contents of last year's police commission report, and they see no need for establishment of an independent oversight body.  He said the government has heavily criticized the police without providing the funding necessary to build a more effective police force.  End Summary.

The Drifting Chinese Opposition 

2. (C) In Sarawak's May 20 state assembly election, the ethnic Chinese party DAP increased its representation from one seat to six, thereby establishing itself as the main opposition party in the state's 71 seat assembly (ref A).  We met with two of those DAP representatives, lawyers Chong Chieng Jen and Violet Yong. 

Chong and Yong stated that during the run-up to the May 20 election, while the English-language media acted almost entirely as a mouthpiece for the state's long-governing National Front constituent parties, the Chinese-language media "provided a surprising amount of coverage" for opposition candidates. 

They claimed the primary campaign issue among their constituents was "corruption by Chief Minister Taib and his cronies."  Chong said over 1,500 postal votes were recorded in his district by military men posted outside Sarawak, and he claimed "about 99% of them voted against me." 

When asked why the National Front coalition didn't simply increase the number of postal voters to ensure victory for its candidate, he stated, "They only have a limited total number of postal votes to apportion to the various electoral districts, and they simply misallocated."

3. (C) Chong and Yong said the Sarawak state assembly meets for only 16 days per year.  They questioned the state government's ongoing RM300 million ($82 million) construction project to build a 27-storey state assembly building.  The new structure will remain largely empty during the 349 days when the assembly is not in session.

They said Sarawak's Chief Minister Taib Mahmud ensured the construction contract was awarded to Cahaya Mata, a large holding company that is majority-owned by Taib's family.  Upon being awarded the construction contract for RM300 million, Cahaya Mata hired a subcontracting firm to complete the construction for RM220 million; Cahaya Mata (and the Taib family) pocketed the RM80 million ($22 million) difference. 

The DAP politicians told us Taib, whose liver cancer was reportedly brought into remission earlier in 2006, "will likely die in office."

While the DAP representatives described election fraud in great detail and articulated their opposition to government corruption, they could not (or would not) tell us of their political agenda.  Although we asked them several times to define their political goals, we left the meeting with the impression that the DAP has no legislative plans or detailed political priorities - other than maintenance of their seats in the next state election.

Enfeebled Suhakam Fights Losing Battle

4. (C) Dr. Mohammad Herman Ritom Abdullah, Suhakam Commissioner for the state of Sarawak, told us that most of Suhakam's work in the state focuses on the rights of indigenous persons.  He said no specific state ministry looks after their affairs, and state assistance is provided on an "irregular, ad hoc basis." 

He described a recent visit to villages of the Penan tribe near Brunei.  Abdullah stated that approximately 15,000 Penan tribe members there lack electricity, water treatment and schools.  He criticized the federal and state governments for not fulfilling their promises to provide access to primary education for all citizens. 

For many Penan children, Abdullah said the nearest school is more than two hours away by foot or boat.  To provide basic services on a centralized, more efficient basis for the Penan and other indigenous peoples, the government has established several "service centers" that attempt to draw rural indigenous families from remote villages.

Abdullah criticized these efforts as ineffective, saying the service centers "are not vibrant and self-supporting."  He said, "All the young people end up leaving, as there are no jobs, and only elderly residents remain."

5. (C) Indigenous persons account for over half of Sarawak's population, but they lack political power.  Abdullah explained, "There are plenty of indigenous leaders in the state government, but they can't do anything without the consent of the Chief Minister."  He said Taib appoints "compliant local leaders" from various tribes into "financially rewarding" government positions as a means to stifle potential opposition. 

Taib belongs to the Melanau indigenous tribe and has been in power for the past 25 years.

Embassy sources outside the government uniformly characterize him as highly corrupt.  Abdullah said Taib has done little to assist the state's indigenous peoples as they attempt to establish legal ownership of their ancestral lands and defend themselves against encroachment by logging companies. 

Taib and his relatives are widely thought to extract a percentage from most major commercial contracts - including those for logging - awarded in the state. 

Abdullah's efforts to represent the concerns of Sabah's impoverished indigenous peoples have fallen on deaf ears.  He stated flatly, "The government doesn't listen to us or act on our advice."

All Stick and No Carrot for Police

6. (C) Sarawak's Deputy Police Commissioner, Kuik Alias Harris, told us on October 2 in Kuching that the federal government "has done little for us other than to criticize our work."  We discussed the government-sponsored police commission report published in May 2005 that was highly critical of police corruption, incompetence and prisoner abuse (ref B). 

Waving his finger in the air and leaning forward for emphasis, he said police leaders "are 101 percent against (the report's) findings." 

National police leaders have been highly critical, both privately and publicly, of efforts to establish an Independent Police Complaints and Misconduct Commission (IPCMC) that would investigate reports of police abuse, use of deadly force during apprehension of suspects, deaths in police custody and the generally high level of corruption that pervades the force. 

While Harris welcomed public comments by government officials that salaries, living quarters and equipment for police must be improved, he said little had been done thus far by the government in these areas.

7. (C) The head of Sarawak's Special Branch, Khariri Jaafar, added, "The country's police stations are falling apart."  He criticized the lack of funding for police facilities and equipment, calling the situation "demoralizing."  He told us to visit the police station in Dang Wangi that handles the center of Kuala Lumpur.  He said, "I wouldn't spend one day working there."  Harris concluded, "It's hard for us to do our jobs.  The current situation is frustrating."

Comment

8. (C) Comments from the DAP politicians and Suhakam reinforce what we have heard from other Sarawak state leaders and national politicians.  By these accounts, the Sarawak state government remains highly corrupt and firmly in the hands of its chief minister.  The $82 million state assembly building now under construction serves as perhaps the most obvious and extreme example of the self-enrichment of the state's chief minister and other senior government officials.

Through a combination of financial and political patronage, media ownership and control, and a seemingly unfocused opposition party, no serious challenge exists to the governing coalition's longstanding grip on political power in the state. 

The deputy police commissioner's strong negative reaction to the police commission report mirrors comments from the national police leadership in Kuala Lumpur.  Despite the prime minister's earlier publicly stated support for an independent oversight body, the police have thus far won the stand-off.

SHEAR

 

I would hold the election after Raya

Posted: 27 Aug 2011 06:58 AM PDT

Yes, if I were Najib, I would hold the general election after Hari Raya. If not, then this would be the last Hari Raya with him as Prime Minister. If not, then next Hari Raya we would be visiting either Anwar or Muhyiddin Yassin at Putrajaya.

THE CORRIDORS OF POWER

Raja Petra Kamarudin

Anwar Ibrahim's Sodomy 2 trial is going just like Sodomy 1.

Anwar's team of lawyers are smarter than the prosecutors. They have managed to turn the trial into political grandstanding.

The issue is no longer whether Anwar did or did not commit the act of sodomy. The issue is whether the prosecution can prove that he did so. So they are fighting on technicalities. And the technicalities appear focused on the matter of fabrication of evidence.

That was what happened in the Sodomy 1 trial. And that is what is also happening in the Sodomy 2 trial.

If Najib Tun Razak hopes to convict Anwar and send him to jail, that will happen, of course. That happened in Sodomy 1 and it will happen in Sodomy 2 as well. However, just like what happened in Sodomy 1, the people will not believe that Anwar received a fair trial.

So, if Najib plans to hold the general election after they convict Anwar and send him to jail, in the hope that Anwar would be discredited and Pakatan Rakyat would lose the moral high ground, that is not going to happen. Instead, Anwar's credibility would be enhanced and Pakatan Rakyat would gain more ground.

So, it is no point in holding the general election after they convict Anwar and send him to jail. Pakatan Rakyat would, in fact, benefit from that. Najib would be doing Pakatan Rakyat a favour by sending Anwar to jail on what most would consider a sham trial on trumped-up charges and fabricated evidence.

Yes, things are not going well for Najib. Anwar's team has skilfully refocused attention not to the whether Anwar did or did not commit sodomy but to whether he is or is not getting a fair trial. The bungling fools in the prosecution are convincing everyone that the evidence is being fabricated to gain a conviction.

Anwar is going to jail. But he is not going to jail as a disgraced criminal. He is not going to jail because he committed sodomy. He is going to jail because they are giving him a sham jail.

Never mind whether Anwar is really guilty of sodomy. It matters not whether he did or did not commit the crime. What does matter is they can't prove it and they fabricated the evidence to justify sending him to jail.

Things are indeed not going well for Najib. The Sodomy 2 trial is a foregone conclusion. But it is going to hurt Najib more than it is going to hurt Anwar. It is going to damage Barisan Nasional more than it is going to damage Pakatan Rakyat.

So, holding the general election after they send Anwar to jail will do more harm than good to Barisan Nasional. So they had better hold the election now, after Hari Raya.

The economy is not doing well. The UK and the US are bracing themselves for a crash landing.

In October, Najib will be presenting his budget for 2012. It was supposed to be an election budget. But no amount of window-dressing is going to convince anyone that everything is peachy rosy and honky dory.

Najib's budget is going to be torn to pieces. They will strip it naked and it will be seen for what it is: rhetoric with no substance. So, holding the election after the budget, which means after Anwar's trial as well, is going to be a double whammy for Barisan Nasional.

Umno is imploding. Najib is going to face what Dr Mahathir Mohamad faced in mid-2002. In 2002, Umno closed in on Dr Mahathir and forced his hand. In an emotional moment of weakness, Dr Mahathir announced his resignation and handed power to Abdullah Ahmad Badawi on 1 November 2003.

Najib is fighting on three fronts. On one front is Anwar. On the second front is the doomed economy. More importantly, however, on the third front is Umno that wants Najib's head on a silver platter.

Rosmah Mansor has been very silent of late. She has been told that a Prime Minister's wife must be seen, not heard. In Rosmah's case, it is better that she is not seen as well.

Rosmah is Najib's Khairy. She is to Najib what Khairy was to Abdullah Badawi. And for that same reason Najib has Dr Mahathir breathing down his neck.

Yes, the world is crumbling around Najib. Time is ticking away and is getting shorter. Time is not on Najib's side. Time is a luxury he can't afford.

Najib must call for the general election after Hari Raya if he wants to make it till Christmas. If not, he would go down in history as Malaysia's Prime Minister who ruled the shortest.

Yes, if I were Najib, I would hold the general election after Hari Raya. If not, then this would be the last Hari Raya with him as Prime Minister. If not, then next Hari Raya we would be visiting either Anwar or Muhyiddin Yassin at Putrajaya.

That is what I would do if I were Najib. I would hold the general election after Hari Raya. Then I would catch Pakatan Rakyat unprepared.

Pakatan Rakyat is not yet ready for the elections. They still have not sorted out the seat allocations. In fact, they have not even started talking yet. And they are far from even sorting out the list of candidates.

Pakatan Rakyat is still sleeping. If the general election is held after Hari Raya, Pakatan Rakyat will be caught with its pants down. Pakatan Rakyat will be like the Americans at Pearl Harbour. They would be bombed and sunk just like at Pearl Harbour.

Yes, call the election after Hari Raya and watch Pakatan Rakyat scramble like cockroaches when the light is switched on. That is what will happen if the election is called after Hari Raya.

If I were Najib, I would hold the general election after Hari Raya and solve all my problems. It then matters not what type of trial Anwar is subjected to. It then matters not what happens to the economy. It then matters not what Umno is trying to do to me.

By the time it does matter the general election would be over and I would be installed as the legitimate Prime Minister. Then that would give me five years to solve all my problems. And in five years all my problems today would no longer be problems.

That is why I would hold the general election after Hari Raya if I were Najib. But then I am not Najib. And that is why Najib will fall, because he is not me and he would not do what I would do if I were him.

 

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