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• WIKILEAKS: PAS LEADER FAVORS TAKING POWER THROUGH NEXT ELECTION; SNAP POLLS POSSIBLE
• WIKILEAKS: PM ADVISOR LIM ON REFORMS AND ABDULLAH'S EVENTUAL DEPARTURE
• WIKILEAKS: AMBASSADOR AND ATTORNEY GENERAL DISCUSS ISA, TERRORISM AND EXPORT CONTROLS
• WIKILEAKS: IMMIGRATION DETAINEES RIOT AFTER RELA BEATS PRISONERS
• WIKILEAKS: UMNO SETS PARTY ELECTION FOR DECEMBER, ABDULLAH LOSES TERENGGANU FIGHT
• WIKILEAKS: MALAYSIA'S NEW CABINET - STATUS QUO WITH ONLY HINTS OF REFORM
• WIKILEAKS: POST-ELECTION VIEWS FROM EAST MALAYSIA
• WIKILEAKS: MALAYSIA'S ELECTION: EMBASSY OBSERVATIONS IN BATTLEGROUND STATES
• WIKILEAKS: ELECTION AFTERMATH: ABDULLAH AND UMNO STOKE MALAY FEARS
• WIKILEAKS: AMBASSADOR'S DISCUSSION WITH MFA PERMSEC HO ON MALAYSIAN ELECTIONS

WIKILEAKS: PAS LEADER FAVORS TAKING POWER THROUGH NEXT ELECTION; SNAP POLLS POSSIBLE Posted: 03 Nov 2011 01:00 AM PDT Nasaruddin Mat Isa, Deputy President of the opposition Malaysian Islamic Party (PAS) and Member of Parliament, told us on May 21 that PAS was not very happy with talk of ruling National Front (BN) Members of Parliament crossing over to the opposition Peoples Alliance and thus bringing down the BN government. PAS leadership believed that the Alliance at this juncture should maintain the current political status quo and strengthen their administration in the five opposition-held states. THE CORRIDORS OF POWER Raja Petra Kamarudin Classified By: POLITICAL SECTION CHIEF MARK D. CLARK, REASON 1.4 (B AND D). Summary 1.  (C) Nasaruddin Mat Isa, Deputy President of the Islamist opposition party PAS, speaking with us on May 21, said the opposition should seek to take power through the next federal election, rather than through immediate defections by ruling coalition MPs, in part to reduce the risk of a harsh crackdown by the National Front government.  PAS leaders are geared up for possible snap national elections, but opposition parties would not rerun elections in the five states they control.  Nasaruddin linked Mahathir's surprise resignation from the UMNO party with the Cabinet's decision to release a prominent report on judicial corruption that implicates the former Prime Minister.  End Summary. Elections, Not Defections 2.  (C) Nasaruddin Mat Isa, Deputy President of the opposition Malaysian Islamic Party (PAS) and Member of Parliament, told us on May 21 that PAS was not very happy with talk of ruling National Front (BN) Members of Parliament crossing over to the opposition Peoples Alliance and thus bringing down the BN government (refs B and C).  PAS leadership believed that the Alliance at this juncture should maintain the current political status quo and strengthen their administration in the five opposition-held states. Once the opposition parties can demonstrate to the public that they can deliver, the people will support the Peoples Alliance and topple the BN government in the next election. Furthermore, even if enough BN MPs were to cross over to the Alliance, UMNO and BN leaders will not give up power easily. By virtue of his position, PM Abdullah is still very powerful, and "he still has the option of declaring emergency rule" or using the Internal Security Act (ISA) to detain UMNO's opponents, although Nasaruddin quickly added Abdullah "is no Mahathir" (i.e., not as likely to use authoritarian methods). Snap Polls Possible, But Not in Opposition States 3.  (C) PAS leaders were geared up for Prime Minister Abdullah calling a snap election if the current "political impasse persists in UMNO," Nasaruddin said.  He stressed, however, that if the PM dissolves Parliament, the Alliance will not follow suit in dissolving the state legislative assemblies of the five states under their control.  An MP from Anwar Ibrahim's Peoples Justice Party (PKR) who joined us, nodded in agreement.  (Note:  State governments need not follow the federal electoral cycle, though in recent history all states except Sarawak have held elections coinciding with the national polls.  End Note.) Mahathir's UMNO Resignation Linked to Judicial Probe 4.  (C) Nasaruddin pointed out proudly that it was a PAS member who "brought down" Mahathir by precipitating the former Prime Minister's decision to resign from UMNO (ref A). (Note:  At a public forum on May 19, Mahathir called on UMNO members to leave the party temporarily as the only way to bring down PM Abdullah.  Reportedly, one member of the audience who turned out to be a PAS member dared the former PM to lead the way in leaving the party, and Mahathir obliged on the spot.  End Note.) 5.  (C) In addition, Nasaruddin contended that Mahathir's shock May 19 announcement was influenced by the Cabinet's decision on May 16 to publish the Royal Commission report probing allegations of corruption in the judiciary (the Linggam inquiry).  The report concluded that six prominent government and judicial figures including Mahathir were involved in the manipulation of appointments of top judges for political purposes.  The PAS leader speculated that the publication of the photographs of six personalities in the front pages of newspapers even before the Attorney General Chambers started its investigation must have angered the former PM who felt that his legacy was crumbling.  In the rural areas, particularly in the Malay heartland, the six photographs are shown at evening rallies (ceramahs) associating them with a famous 1960s Malay movie "Enam Jahanam" (or "Doomed Six"). KEITH (May 2008)

WIKILEAKS: PM ADVISOR LIM ON REFORMS AND ABDULLAH'S EVENTUAL DEPARTURE Posted: 02 Nov 2011 01:00 AM PDT Lim described the current political scene as highly fluid but downplayed rumors that ruling coalition members from Sabah would switch sides to join the opposition in coming days. He said that it's in opposition leader Anwar Ibrahim's interest to keep "stirring the pot" by keeping maximum pressure on UMNO and its coalition partners but hinted that he believes it's a bluff. Echoing what we've heard from other UMNO quarters, Lim claimed the opposition will be unready to assume power until it settles the question of whether Malaysia should be an Islamic state. THE CORRIDORS OF POWER Raja Petra Kamarudin Classified By: AMBASSADOR JAMES R. KEITH, REASON 1.4 (B AND D) 1. (C) SUMMARY:  The Ambassador hosted Prime Ministerial Political Secretary Vincent Lim to dinner on the evening of May 14.  (Note:  This dinner occurred prior to former PM Mahathir's May 19 anouncement that he would quit the ruling party.  See reftel for Embassy reporting on Mahathir,' surprise announcement.)  The world-weary Lim appeared resigned to the Abdullah administration's eventual departure, although Lim seemed to think that it would be later rather than sooner.   He acknowledged that the PM had not been a strong leader.   The PM's announcement of judicial and other reforms, while important and far reaching, had come too late, and he conveyed the clear impression that the PM's program faced resistance within UMNO.  Lim volunteered that the Prime Minister was spending more time than ever in Parliament answering members' questions and that this was part of his  post-March 8 strategy of transparency but his tone  suggested that it may be as much to deter ruling coalition  members from joining the opposition.  Lim downplayed the chances of an opposition majority in parliament while at the same time lamenting that opposition leader Anwar Ibrahim could acquire excessive power depending on how he engineered a takeover.  Lim was confident that DPM Najib remained loyal to the PM, that the two had an understanding about how to effect the succession, and that all Najib had to do was wait patiently.  Lim sounded tired and dispirited, perhaps worn down by his PM's political vicissitudes, his inability to implement a thoroughgoing reform program, the political uncertainties after March 8, and the prospect of the PM's eventual departure from office. The DCM also attended the dinner.  END SUMMARY. The Prospects for Reform 2. (C) Lim said PM Abdullah did the right thing by supporting judicial reform and the establishment of an anti-corruption commission, but he had promised these when he came into office four years ago, and the move came too late.  On the future prospects for these reforms, Lim commented resignedly that the PM was having to walk a fine line between liberal cabinet members like Zaid Ibrahim, who strongly advocated the reforms, and UMNO conservatives who opposed reform like new Home Minister Syed Hamid.  He wondered aloud about the prospects for any successful economic reform in Malaysia, noting that the Chinese economy was growing rapidly while Malaysia seemed to be bogged down. The Prime Minister's Parliamentary Strategy 3. (C) Lim volunteered that the Prime Minister had remained in Parliament to respond to members' questions until 11 PM the night before and that this had become a pattern for the PM since the present session's opening.   He indicated that this was part of the PM's post-general election strategy of openness, in which he was requiring that his cabinet ministers, and not their deputies or their parliamentary secretaries be present during question time.  (Note:  Lim refused to be drawn out on another reason we had heard for the PM's attentiveness to parliament:  the need to ensure that Sabah BN members don't jump the aisle to join the opposition.)  Lim acknowledged that televising parliamentary sessions had been a public relations disaster at first, as members had lost discipline and played to the camera, but that floor debate had regained some of its  civility since the opening days, and he thought the cameras  would remain. A Fluid Political Scene 4. (C) Lim described the current political scene as highly fluid but downplayed rumors that ruling coalition members from Sabah would switch sides to join the opposition in coming days.  He said that it's in opposition leader Anwar Ibrahim's interest to keep "stirring the pot" by keeping maximum pressure on UMNO and its coalition partners but hinted that he believes it's a bluff.  Echoing what we've heard from other UMNO quarters, Lim claimed the opposition will be unready to assume power until it settles the question of whether Malaysia should be an Islamic state. This is a fundamental issue for PAS, Anwar's Islamist opposition partner, and it's not one that can be easily resolved.  The Democratic Action Party (DAP) will never agree to any formulation suggesting Malaysia is an Islamic state, Lim said.  (Comment:  DPM Najib's public remark in 2007 that Malaysia is already an Islamic state helped to further alienate non-Malay components of BN.  End Comment.) He added that he thought the opposition was temperamentally unready for rule because they had never thought they would garner as many votes as they had during the election.  The fact that Anwar's Keadilan party had won so many seats came as a shock to PAS and DAP, which had agreed among themselves on which seats they would contest and gave the leftovers to Keadilan.  The opposition would not do nearly as well in the next election, Lim commented.   He nevertheless thought that there were two scenarios in which Anwar could gain power. One would be for him to convince enough BN members of parliament to cross the aisle and join the opposition to form a new majority.  A much better scenario from Anwar's point of view would be for a large number of UMNO members to come over to his side.   Without explaining what he meant, Lim intoned curiously that if Anwar gained power by the latter method he would have more power than Mahathir, he'd be unstoppable, and we'd all regret it. The UMNO Succession 5. (C) Turning to the question of political succession within UMNO, Lim indicated that Prime Minister Abdullah and Deputy Prime Minister had cut a deal.  Echoing what we've seen in the press on this subject, Lim said "it's a question of when and not whom."  "DPM Najib will be the PM's successor, and all he has to do is wait," he emphasized. Lim continued that Najib has been very careful and very loyal to the Prime Minister since the March 8 election, "and I've never seen them closer."  He turned philosophical, almost fatalistic about the PM's tenure in office.  "The PM is a decent, pious man with strong views about what's right," Lim explained, "but he doesn,t have  the drive that Mahathir had." COMMENT 6. (C) Lim struck us by turns as tired, dispirited, disappointed, and uncertain.  He appeared confident that the opposition will fail to take over parliament any time soon but at the same time he seemed disappointed with Abdullah's performance and ultimate departure from office.  Lim is one of the "fourth floor boys" -- the group of young political advisors that also includes Public Affairs Chief Kamal Khalid -- who manage day-to-day political operations for the Prime Minister.  He is close to Prime Ministerial son-in-law Khairy Jamaluddin, and appears to have shared in his political colleagues' initial image as enthusiastic reformers.  Reading between the lines, it seemed that Lim was trying to tell us that Abdullah's administration, along with his "fourth floor  boys" represented Malaysia's best chance for reform and  that neither an Anwar government nor Najib's succession would offer such an opportunity. KEITH (May 2008)

WIKILEAKS: AMBASSADOR AND ATTORNEY GENERAL DISCUSS ISA, TERRORISM AND EXPORT CONTROLS Posted: 01 Nov 2011 01:00 AM PDT Abdul Gani remarked that he was not fully comfortable with the current ISA system, and, speaking personally and confidentially, said he believed ISA advisory boards should be strengthened and ISA detention periods shortened. He also believed that some persons held under ISA on terrorism grounds were in fact not guilty. In addition, the police Special Branch was "jealous" of its primary counter-terrorism role and did not readily share information with the AGO or police investigators; even the Inspector General of Police (IGP) was not kept fully informed. THE CORRIDORS OF POWER Raja Petra Kamarudin Classified By: Political Section Chief Mark D. Clark for reasons 1.4 (b and d). Summary 1.  (S) The Ambassador called on Malaysia's Attorney General Abdul Gani Patail on May 13 and discussed prospects for prosecuting terrorists, the importance of passing an export control law, and factors affecting progress in the FTA talks. The Ambassador congratulated the AG on drafting of the 2007 anti-trafficking in persons (TIP) law and the recent announcement of the first TIP prosecution.  Abdul Gani described the importance of preventative action against terrorists using the Internal Security Act (ISA), noted that information on terrorists was often not available outside the police Special Branch, and said he would discuss the possibility of prosecutions with the Inspector General of Police.  Abdul Gani stated that his office recently had completed a new draft of the export control legislation.  In the FTA talks, he blamed some GOM agencies for their inability to define Malaysia's interests.  The Attorney General said that his office enjoyed good mutually supportive relations with U.S. law enforcement personnel, including the FBI.  End Summary. ISA and Prosecuting Terrorists 2.  (S) In the course of discussion during the May 13 meeting with Attorney General Abdul Gani, Ambassador Keith, accompanied by polchief and Legatt, urged the Malaysian government to give serious consideration to future prosecution of some terrorists suspects otherwise held for renewable two-year terms of detention under provisions of the Internal Security Act (ISA).  While Malaysia's firm preventative actions against terrorists using the ISA had helped Malaysia avoid any attacks, Malaysia's security interests would be served by convicting in a court of law some dangerous terrorists and sentencing them to long jail terms, rather than releasing them after two to six years of ISA detention and uncertain rehabilitation.  The Ambassador also noted that the political scene was shifting and there could be more domestic pressure to do away with the ISA in the future.  The Ambassador added that the U.S. differentiates between use of ISA against persons who present immediate danger to the public, and application of ISA detention for political reasons. 3.  (S) Abdul Gani said Malaysia continued to take strict measures and rely on the ISA to detain terrorists, like Jemaah Islamiyah members, before they could act.  Laws could not be used effectively to deter suicide bombers. Prosecution was difficult because the information available was often intelligence data, not the result of normal police investigation.  The AGO did not have investigative powers of its own but must rely on the police.  In addition, the police Special Branch was "jealous" of its primary counter-terrorism role and did not readily share information with the AGO or police investigators; even the Inspector General of Police (IGP) was not kept fully informed.  Nevertheless, "if we have a case I don't mind prosecuting," Abdul Gani remarked, noting he would take advantage of a previously scheduled meeting with the IGP later that day to raise this issue. 4.  (S) Abdul Gani argued that it was unfair to describe jailing under ISA as "detention without trial" because cases came before advisory boards for periodic hearings.  Detainees also could apply for writs of habeas corpus for which, however, the role of courts was limited to examining legal procedures rather than the merits of the case, leaving judgments about security to the government.  Abdul Gani remarked that he was not fully comfortable with the current ISA system, and, speaking personally and confidentially, said he believed ISA advisory boards should be strengthened and ISA detention periods shortened.  He also believed that some persons held under ISA on terrorism grounds were in fact not guilty.  On a separate matter, Abdul Gani took exception to the government's overly wide application of the Official Secrets Act. Export Controls 5.  (C) The Ambassador highlighted the importance to Malaysia of passing an export control law as a means of attracting high technology investment and bolstering its status as an international trading hub.  The Ambassador offered further U.S. technical assistance on export control laws, noting with regret that the Foreign Ministry had canceled a legal seminar scheduled for early May.  Over time, Malaysia's interest also would be served by supporting international structures, such as the Missile Control Technology Regime, the Ambassador added.  Abdul Gani replied that the AGO recently had completed a new draft of the export control legislation, and had just circulated this within the government for comment. The involvement of some 40 government agencies in export controls had complicated drafting tremendously. FTA 6. (C) Abdul Gani commented on Free Trade Agreement (FTA) talks, blaming the Malaysian government's lack of understanding of some issues for slow progress.  GOM agencies did not know or could not articulate Malaysia's long-terms interests, for example which commodities Malaysia hoped to export to the U.S. in years to come.  The GOM at times cannot formulate negotiating positions, because "we don't know what we want." Abdul Gani remarked that proposed Intellectual Property Rights (IPR) courts were "a joke," implying that Malaysia lacked requisite expert knowledge of IPR.  (Comment: IPR courts already exist in Malaysia and were established outside the context of the FTA negotiations.  Ironically, it is Abdul Gani who has cancelled expanded IPR training by AG officials with U.S. experts.  The fact is the GOM does have clear targets of interest, including textiles.  The problem is the GOM is unable to reach consensus on what it is willing to give up in return for its desired targeted gains.  End Comment.) MLAT, Trafficking in Persons 7.  (SBU) The Ambassador thanked the Attorney General for his role in concluding the 2006 U.S.-Malaysia Mutual Legal Assistance Treaty (MLAT), noting this was moving through the U.S. Senate now and stating that we wanted to put the MLAT to practical use.  The Ambassador congratulated the Attorney General for drafting the comprehensive anti-trafficking in persons law in 2007, pushing for the law's full enforcement as of March which allowed for the opening of shelters for victims, and for initiating the first criminal prosecution under the TIP law in early May (septel).  Abdul Gani commented on the difficulties in stopping human trafficking absent effective actions in originating countries. 8.  (SBU) The Attorney General said that over the past five years his office had enjoyed good mutually supportive relations with U.S. law enforcement personnel, including the FBI.  Abdul Gani spoke highly of his interaction with previous U.S. Attorney General Gonzales. 9.  (SBU) Abdul Gani requested Embassy support "to open doors" for qualified Malaysian officials to enter top U.S. university graduate programs in areas like international trade and finance law.  He also asked for the Embassy to look for ways to attract lecturers from prestigious U.S. universities to teach in Malaysia.  The Ambassador noted the Embassy would be willing to assist, but added that Malaysian government requirements for control over curriculum inhibited U.S. universities from operating in Malaysia. KEITH (May 2008)

WIKILEAKS: IMMIGRATION DETAINEES RIOT AFTER RELA BEATS PRISONERS Posted: 31 Oct 2011 01:00 AM PDT On April 20, after more cigarettes were found, Immigration officers beat an Indonesian and a Pakistani detainee. One refugee described how the officers struck the men on the soles of their feet and along their shins, and administered electric shocks. The Pakistani detainee reportedly cried out for help during his beating and, unable to walk, tried to crawl away until another detainee was ordered to drag the injured man back to the detention block.  THE CORRIDORS OF POWER Raja Petra Kamarudin Classified By: POLITICAL SECTION CHIEF MARK D. CLARK, REASON 1.4 (B AND D). Summary 1.  (C) Some 60 to 70 detained suspected illegal immigrants rioted at Lenggeng Immigration Detention Center (IDC) on April 21, setting fire to the temporary administration building according to press and firsthand accounts. Malaysia's Head of Immigration Enforcement claimed the riot started after the United Nations High Commissioner for Refugees (UNHCR) refused the refugees' applications for resettlement, an allegation denied by UNHCR.  Based on multiple witnesses' accounts, the riot's catalyst was the severe beatings of detainees by Immigration Officers and People's Volunteer Corps (RELA) members assigned as guards to Lenggeng.  The Malaysian Human Rights Commission (SUHAKAM) told us deplorable conditions, overcrowding and alleged abuses by RELA all contributed to the riot.  We continue to express concern to the GOM regarding RELA's increased authority over immigration enforcement.  End Summary. RELA Guards Overcrowded Facilities 2.  (SBU) Lenggeng IDC is one of 17 IDCs in Malaysia. Formerly operated by the Prisons Department, the IDCs are now responsibility of the Immigration Department, which lacks sufficient personnel and therefore uses RELA, a government-sponsored public security auxiliary force, to guard the facilities (ref A and B).  Besides providing security, RELA members also arrest suspected illegal immigrants for a bounty.  The Lenggeng facility is severely overcrowded.  Siva Subramaniam, a commissioner for SUHAKAM, informed poloffs the camp currently holds 1,090 prisoners, including seven children and about 280 women.  Building tensions between the detainees and their guards came to a head on April 21 when some 60 - 70 detainees rioted and set fire to a temporary administration building. Witnesses Tell Their Stories 3.  (SBU) Poloffs met with two Burmese refugees formerly detained at Lenggeng on May 6.  They related that on or about March 31, Immigration and RELA guards accused a group of Burmese and Indonesians of smoking in camp and allegedly punished the group with a beating.  On April 20, after more cigarettes were found, Immigration officers beat an Indonesian and a Pakistani detainee.  One refugee described how the officers struck the men on the soles of their feet and along their shins, and administered electric shocks.  The Pakistani detainee reportedly cried out for help during his beating and, unable to walk, tried to crawl away until another detainee was ordered to drag the injured man back to the detention block.  Other detainees became agitated and demanded to speak with the senior Immigration Officer. (Note:  A local NGO informed poloffs that officials took the man to Seremban Hospital for treatment.  End note.)  A RELA officer told detainees they could express their concerns the following morning. 4.  (C) According to the two Burmese refugees, the riot broke out the following morning after detainees realized they would not get to speak with the senior officer.  The initial disruption involved detainees from two blocks destroying the interiors of those facilities.  Both Immigration and RELA guards, totaling about 30-40 officers, fled and took up positions at the camp's perimeter.  After detainees broke through the blocks' doors, a group set fire to the temporary administration building.  Several detainees attempted to flee the compound, but guards at the outer gate stopped them. Police, fire, and other security teams regained control and quelled the fire.  A number of detainees (including six Indonesians, five Burmese, a Vietnamese, and a Cambodian) were taken to the Seremban police station for questioning. (Note:  This account tracks closely with accounts provided to the UNHCR and another local NGO from sources within the camp. End note.) Immigration Blames UNHCR 5.  (SBU) Ishak Mohamed, Head of Immigration Enforcement, quickly blamed the UNHCR for the riot.  He told international press that rioters "were disappointed" after hearing that UNHCR could not place them in a third country.  However, the UNHCR quickly denied this, issuing a statement that "no news was delivered to the refugees that their resettlement requests had been denied."  (Note:  UNHCR counted 75 refugees and asylum seekers detained at Lenggeng during the riot.  All but seven refugees are Chin-Burmese.  End note.)  Despite UNHCR's clarification, the government-influenced mainstream media continued to maintain that UNHCR's denial of resettlement provoked the riot.  (Note: On some other immigration matters, Ishak continues to be accessible and helpful to the U.S. Mission.  End Note.) SUHAKAM Commissioner Describes Lenggeng 6.  (C) Poloffs met with SUHAKAM Commissioner Siva Subramaniam on April 25, the day after he personally visited Lenggeng.  He described prisoners living in severely overcrowded and unsanitary conditions.  About 280 women are detained in an isolated section of the camp and do not receive adequate medical care, including provision of sanitary napkins.  He approached NGOs, such as Tenaganita, to obtain basic essentials for the women.  He told us conditions in other IDCs are similar to Lenggeng.  He believes overcrowding and harsh treatment by RELA contributed to the riot.  Siva also noted severe understaffing at the IDCs, adding that only about 40 of the authorized 208 officer slots at Lenggeng are manned.  Prior to the riot, Siva claims he warned Immigration officials that the IDCs were "powder kegs" needing urgent reforms to deal with the growing burden.  Siva wants to hold a roundtable with RELA, Home Ministry, Immigration, and the Prison Department to discuss possible solutions to the underlying problems, such as overcrowding, poor sanitation, and detained children.  Our May 6 interview with two former detainees at Lenggeng reinforced Siva's description of the IDC's harsh conditions. Comment 7.  (C) The riot occurred during the same week the Home Ministry proposed elevating RELA to a formal government agency.  Immigration and RELA detain suspected illegal immigrants at a rate that outstrips Malaysia's current willingness and ability to expeditiously process deportations.  Siva noted that some of the detainees have languished at Lenggeng for almost 1 1/2 years.  Post continues to express our concerns about RELA in contacts with government officials, including Immigration. KEITH (May 2008)

WIKILEAKS: UMNO SETS PARTY ELECTION FOR DECEMBER, ABDULLAH LOSES TERENGGANU FIGHT Posted: 30 Oct 2011 01:00 AM PDT Mahathir upped the ante in his tussle with PM Abdullah by launching corruption allegations against the First Family in an article appearing in the March 28 edition of the Sun, an English language daily owned by Mahathir crony Vincent Tan. Related to the conflict between the King and the Prime Minister in Terengganu, Mahathir suggested that contracts for mega projects in the state "all went to one person and (people) are suspicious that behind this person are members of the First Family." According to rumors, Mahathir wrote, "the Prime Minister might have influenced the (Chief Minister) into doing wrong things." Mahathir called for "foreign agencies" to launch an investigation. THE CORRIDORS OF POWER Raja Petra Kamarudin Classified By: POLITICAL SECTION CHIEF MARK D. CLARK, REASON 1.4 (B AND D).   Summary 1.  (C) The March 27 Supreme Council meeting of Prime Minister Abdullah Badawi's ruling United Malays National Organization (UMNO) decided the party's election will be held December 16-20, 2008.  The election is widely anticipated to feature a challenge to Abdullah's continued leadership.  The election process formally will kick off in July with local UMNO branch contests.  The Supreme Council also endorsed the King's choice for Chief Minister in Terengganu state rather than continue on with PM Abdullah's own candidate, an outcome one UMNO division leader described as a "major slap" to the Prime Minister.  Meanwhile, UMNO veteran Tengku Razaleigh, reportedly with the support of former Prime Minister Mahathir, gathered a small host of UMNO leaders to his home to press his own campaign for leadership change.  Mahathir, in an article published in the mainstream media on March 28, upped the ante by suggesting the Prime Minister and members of his family could be involved in corruption and called for an investigation.  The UMNO Supreme Council's announcement of a timetable for party elections this year may help to thwart calls within UMNO to move more quickly to reexamine Abdullah Badawi's leadership, but the Prime Minister's battle for survival is far from over.  End Summary. Party Election in December - UMNO Supreme Council 2.  (U) The UMNO Supreme Council at its March 27 meeting decided to hold the party election in late December.  This represented a compromise of sorts between calls for the election to be held as early as August, and those who favored postponing the poll until 2009.  At the end of a four-hour session, the UMNO Supreme Council announced that UMNO branch level elections would take place July 17 - August 24, divisional level elections October 9 - November 9, and the election for the party supreme council would coincide with the annual UMNO general assembly on December 16-20. 3.  (SBU) Comment:  As the UMNO election likely could feature an attempt to oust PM Abdullah, a later date is seen as favoring the politically wounded Prime Minister.  UMNO's constitution provides for party elections every three years, with the possibility of postponing the election by up to 18 months.  UMNO held its last election in September 2004, indicating that the party poll must take place by March 2009. End Comment. 4.  (SBU) Party Information Chief Muhammad Muhammad Taib had told reporters March 25 that several UMNO division and state leaders who had been meeting party President PM Abdullah had urged the President to defer the party polls to 2009 to avoid "havoc and disaster."  However, the UMNO management committee in a meeting one day before the Supreme Council, recommended the election be held this year.  The committee is led by Deputy President/Deputy Prime Minister Najib and includes UMNO Vice President Muhiyiddin Yassin, both possible successors to Abdullah. Terengganu Fiasco 5.   (SBU) In a major reversal for PM Abdullah, the UMNO Supreme Council meeting also endorsed the appointment of Ahmad Said as Terengganu Chief Minister, a man backed by the Sultan of Terengganu who currently holds Malaysia's rotating kingship.   PM Abdullah had endorsed outgoing Chief Minister Idris Jusoh to continue in the post, a decision ignored by the King in a exercise of royal prerogative not seen since the 1970's.   PM Abdullah on March 23 had declared it would be unconstitutional to appoint anyone but Idris.  Nevertheless, Abdullah told reporters after the UMNO Supreme Council meeting that endorsing Ahmad's appointment was "the best decision" based on the need to form the state government and also given Idris' willingness to accept whatever decision was made. 6.  (C) An UMNO divisional leader in Kuala Lumpur told us on March 28 that the PM realized after his March 26 meeting with the King that Abdullah would not succeed in getting Idris reappointed as Chief Minister.  Furthermore, an impasse in the formation of the Terengganu state government would further embarrass UMNO especially in the eyes of the UMNO grassroots and the Malays.  The Islamist opposition party PAS had begun to take advantage of the situation by charging UMNO with "derhaka" or treason for going against the King.  The divisional leader stated candidly, "this episode was a major slap for Abdullah." Razaleigh Continues Campaign 7.  (C) While the UMNO Supreme Council was having its meeting, veteran UMNO leader Tengku Razaleigh held court with some 10 UMNO division leaders and 100 other party officials at his "White House" styled mansion in Kuala Lumpur. Razaleigh has lobbied UMNO divisions to hold an extraordinary general meeting (EGM) on May 11, the anniversary of UMNO's formation, and he has traveled the country seeking UMNO grassroots support.  While ostensibly addressing the reasons for UMNO's set-back in the March 8 elections, the EGM is seen as a means to challenge Abdullah's position and also promote Razaleigh's own announced ambition to seek the UMNO presidency.  On March 25, a close associate of Mahathir told us the former Prime Minister backs Razaleigh's efforts as a means to depose Abdullah Badawi.  We identified a number of those attending Razaleigh's March 28 meeting as associates of former Prime Minister Mahathir. 8.  (U) According to press sources, the ten UMNO divisional leaders who attended the meeting pledged their support for Razaleigh to challenge Abdullah.  They also pledged to launch a campaign calling for the abolition or relaxation of UMNO rules that require a challenger for the presidency to obtain endorsements from 30 percent of UMNO divisions before his name can appear on the ballot.  In the 2004 party election, Razaleigh attempted to challenge Abdullah for the presidency, but only managed to secure one division's nomination. Mahathir Raises First Family Corruption Rumors 9.  (U) Mahathir upped the ante in his tussle with PM Abdullah by launching corruption allegations against the First Family in an article appearing in the March 28 edition of the Sun, an English language daily owned by Mahathir crony Vincent Tan.  Related to the conflict between the King and the Prime Minister in Terengganu, Mahathir suggested that contracts for mega projects in the state "all went to one person and (people) are suspicious that behind this person are members of the First Family."  According to rumors, Mahathir wrote, "the Prime Minister might have influenced the (Chief Minister) into doing wrong things."  Mahathir called for "foreign agencies" to launch an investigation. Comment 10.  (C) The UMNO Supreme Council's announcement of a timetable for party elections this year may help to thwart calls, such as those by Mahathir and Razaleigh, for UMNO to move more quickly to reexamine Abdullah Badawi's leadership, but Abdullah's battle for survival is far from over.  The establishment of the elections time frame will kick off maneuvering at the branch and division levels to line up the proper support for the December leadership contest, and money politics likely will play a major role.  Abdullah's political capital hit another low as the UMNO Supreme Council failed to produce a face-saving resolution for Terengganu and the Prime Minister lost his public tug-of-war with the King.  Prior to the March 8 election, it would have been unthinkable for the mainstream press to carry articles, such as Mahathir's, with corruption allegations that named the Prime Minister and his family; instead, such writings were confined to the unregulated Internet media.  As the publication of Mahathir's article suggests, Malaysians are still testing the limits in the post March 8 political environment and have yet to reach any firm boundary. KEITH (March 2008)

WIKILEAKS: MALAYSIA'S NEW CABINET - STATUS QUO WITH ONLY HINTS OF REFORM Posted: 29 Oct 2011 01:00 AM PDT Abdullah, who boasted of selecting only honorable, uncorrupted ministers, was forced at his live March 18 press conference to field pointed questions from the journalists regarding his reappointment of Najib as DPM. One reporter specifically asked Abdullah to explain Najib's re-appointment given the frequent allegations of wrongdoing in military contracts. Abdullah, initially taken aback by the question, responded that "there is no proof that Najib is involved in any corrupt activities. People can make all kinds of allegations, but what is important is that there is no evidence of that." THE CORRIDORS OF POWER Raja Petra Kamarudin Classified By: Political Section Chief Mark D. Clark for reasons 1.4 (b, d). Summary 1.  (C) Prime Minister Abdullah Badawi announced his new cabinet on March 18, retaining roughly half (17) of his ministers from the previous cabinet, but bringing in only a few politicians identifiable for their reform credentials. Abdullah remained Finance Minister I, but gave up his position as Internal Security Minister.  Najib Tun Razak remains Deputy Prime Minister and Defense Minister.  Other senior UMNO stalwarts continue to occupy the most important portfolios, including Internal Security/Home Affairs (now combined), Finance II, Agriculture, and International Trade/Industry.  Former Culture Minister Rais Yatim has been appointed the new Minister of Foreign Affairs.  Abdullah shed a number of prominent cabinet members including Rafidah Aziz and Samy Vellu, while Abdullah's son-in-law Khairy Jamaluddin did not make the cut.  Identifiable reformers or UMNO progressives include Zaid Ibrahim with the de facto justice portfolio, Shahrir Samad for Domestic Trade, and possibly Shabery Cheek as Information Minister. 2.  (C) The cabinet make-up reflects UMNO's dominance in the National Front (BN) coalition, with 23 positions, unchanged from the outgoing cabinet.  East Malaysia only received a total of four cabinet seats, also unchanged from the previous cabinet despite Sabah and Sarawak's contribution of roughly one-third of BN's parliament seats.  The cabinet does not appear to strengthen DPM Najib's hand and possibly weakens it with the removal of several long-time Mahathir cronies, suggesting Abdullah does not want to empower the man best poised to challenge him for UMNO leadership.  Following the election debacle, Prime Minister Abdullah stated that he understood Malaysians were not satisfied with his first administration, but he will have a difficult time presenting the new cabinet as a strong platform for change in response to many voters' desertion of the National Front.  Regardless, PM Abdullah is not likely to be able to remain in office beyond the next UMNO elections, and we believe most observers will view this cabinet as an interim line-up until UMNO has settled its leadership question.  End Summary. Abdullah restructures his cabinet 3. (SBU) Prime Minister Abdullah Ahmad Badawi announced his new cabinet in a noon press conference on March 18, just 10 days after his National Front (Barisan Nasional or BN) coalition emerged from a hotly contested snap election with a significantly decreased majority.  Malaysia's monarch, the Yang di-Pertuan Agong, is scheduled to swear in the new ministers on March 19 at the National Palace.  In announcing the cabinet, Abdullah reduced the number of ministries from 28 to 27 and retained roughly half (17) of his former ministers.  Abdullah merged the Ministry of Internal Security and the Ministry of Home Affairs, recreating a significant concentration of power.  He also merged the Office of National Unity (formerly a division in the PM's Department) with the Ministry of Culture, Arts and Heritage.  By eliminating all Parliamentary Secretaries, whose value to government efficiency appeared questionable, Abdullah further reduced the overall size of his cabinet from 90 to 68.  BN's reduced majority in the 12th Parliament and the corresponding increase in opposition parliamentarians mean Abdullah needs more back-benchers to regularly attend parliament sessions. A smaller cabinet will ensure BN controls sufficient seats in parliament on a daily basis to achieve their legislative objectives. Out with the old 4. (SBU) Conspicuously absent from the new line up are former Minister of International Trade and Industry, Rafidah Aziz; former Minister of Science and Technology, Dr. Jamaluddin Jarjis; former Minister of Home Affairs and current UMNO Secretary General, Radzi Ahmad; former Minister of Tourism, Tengku Adnan Tengku Mansor; former Minister of Human Resources, Dr. Fong Chan Onn; former Minister in the PM's Department, Dr. Abdullah Md Zin; and former Minister of Natural Resources, Azmi Khalid.  As previously announced, Abdullah did not nominate as senators and subsequently reappoint any previous cabinet member who failed to be reelected in the 2008 General Election, to include: former Minister of Rural and Regional Development Abdul Aziz Shamsuddin; former Minister of Public Works, S. Samy Vellu; and former Information Minister Zainuddin Maidin.  Former Minister of Housing and Local Government, MCA President Ong Ka Ting, declined to accept a new cabinet posting, and former ministers Chua Soi Lek (Health) and Dr. Lim Keng Yaik (Energy, Water and Communications) resigned before the 2008 elections.  Chan Kong Choy (Transportation) and Mohd Effendi Norwawi (PM's Department) did not seek re-election and were thus ineligible for reappointment. 5. (SBU) Former Women's Ministry Shahrizat Jalil became an exception to Abdullah's decision not to reappoint ministers who failed at the polls.  In a separate written announcement from the PM's office, Abdullah announced that Shahrizat, current deputy and possible heir apparent for UMNO's women's wing, has been appointed as a Special Advisor to the PM for women's issues, with the rank of minister. 6.  (C) We note that Abdullah's son-in-law Khairy Jamaluddin was absent from the new line up.  Prior to BN's shocking election set-back, Khairy was widely touted for a minister or deputy minister slot.  Many in UMNO appear to blame Khairy as an significant factor behind UMNO and BN's poor showing. In with the new 7.  (SBU) While several previous deputy ministers were promoted in the new cabinet, there were a number of new faces to Abdullah's administration.  Most notable of the new additions are attorney and former parliamentarian Zaid Ibrahim; former President of the BN Backbenchers' Club Shahrir Samad; former Parliamentary Secretary in the MFA, Ahmad Shabery Cheek; and former Chief Minister of Selangor and current UMNO Information Chief Muhammad Muhammad Taib. Zaid has been appointed a Minister in the PM's Department and charged with overseeing reforms in the judiciary. Shahrir Samad, who also served as the outgoing chairman of Parliament's Public Accounts Committee, has been appointed as the new Minister of Domestic Trade and Consumer Affairs. Shabery Cheek is a relatively young and seemingly progressive parliamentarian who could bring a new approach to the Ministry of Information.  Muhammad, a long-term UMNO insider and power player, has returned to federal politics as the Minister of Rural Development. Party, Race and Gender 8. (SBU) Although the new cabinet saw the number of ministries reduced by one to 27, the number of cabinet ministers remained unchanged at 32, with UMNO Malay ministers not only occupying the large majority of the seats but also the key cabinet portfolios.  Out of the 32 member cabinet, UMNO holds 23 positions, followed by MCA with 4, and MIC, Sabah's PBS and UPKO, and Sarawak's SUPP and PBB each with one.  Old-time UMNO stalwarts continue to hold the most important portfolios of Finance I and II (PM Abdullah and Nor Yakcop), Defense (DPM Najib), Internal Security/Home Affairs (former FM Syed Hamid Albar), Agriculture (Mustapha Mohamad), and International Trade/Industry (UMNO VP Muhyiddin).  Former Culture Minister Rais Yatim, not known for his dynamism, has been appointed the new Minister of Foreign Affairs. 9.  (SBU) The racial breakdown of the cabinet includes 23 Malays (those of UMNO), five Chinese, and one each from the Indian, Kadazan-Dusun and Iban-Dayak Communities.  The number of cabinet positions represented by Sabah (non-UMNO) and Sarawak Members of Parliament remain unchanged with two cabinet portfolios from each state, despite East Malaysia's contribution of one-third of BN's seats in parliament.  From Sabah, both the non-UMNO cabinet positions are held by leaders from the indigenous Kadazan-Dusun community, while from Sarawak, one is held by a Chinese Sarawakian and the other by a leader from the indigenous Iban-Dayak community. Except for Melaka and Perlis, all other states had representatives in the cabinet with Johor having the largest representation with seven ministers, followed by Pahang and Selangor with four each. 10.  (SBU) There are only two women in the cabinet-- one each from UMNO and MCA.  This compares to three women in Abdullah's previous cabinet. Whither support for Najib? 11.  (C) Prior to the cabinet announcement, observers speculated about the involvement of Deputy Prime Minister Najib in the cabinet making, but at first glance the new cabinet does not appear to strengthen Najib's hand.  The cabinet removes some long-time Mahathir cronies, notably Jamaluddin Jarjis and Tengku Adnan Mansor, and consequently two close allies of Najib, given Mahathir's backing of Najib over Abdullah.  Of course, Najib retains the key Defense portfolio, and another important member of his camp, Education Minister and UMNO Youth chief Hishammuddin, remains in place.  We have not identified other Najib supporters newly included in the cabinet.  Speculation has already begun in opposition circles that Abdullah has resisted efforts to strengthen Najib ahead of the UMNO leadership elections. 12.  (C) Abdullah, who boasted of selecting only honorable, uncorrupted ministers, was forced at his live March 18 press conference to field pointed questions from the journalists regarding his reappointment of Najib as DPM.  One reporter specifically asked Abdullah to explain Najib's re-appointment given the frequent allegations of wrongdoing in military contracts (ref E). Abdullah, initially taken aback by the question, responded that "there is no proof that Najib is involved in any corrupt activities.  People can make all kinds of allegations, but what is important is that there is no evidence of that."  (Comment: Abdullah's reappointment of Najib as DPM was a foregone conclusion, given Najib's position as Deputy President of UMNO.  Najib faces public and private criticism for allegedly profiting greatly from the Sukhoi jet and Scorpene submarine purchases, and for rumored ties to the Razak Baginda murder case.  End Comment). Comment 13.  (C) After the election debacle, Prime Minister Abdullah stated that he understood many Malaysians were not satisfied with his first administration.  Abdullah, however, will have a difficult time presenting the new cabinet as a platform for change in response to voters' desertion of the National Front.  Despite the appointment of Zaid Ibrahim and Shahrir Samad, two noted reformists, and possibly Shabery Cheek, there is little other initial indication that Abdullah has broken the status quo.  The majority of appointees are long-time UMNO insiders who have benefitted from the system, not challenged it.  The states of Sabah and Sarawak have not gained any significant influence in the cabinet, despite their critical role in voting in roughly one-third of BN's parliamentary seats.  De facto opposition leader Anwar Ibrahim has already spoken publicly of his desire to woo BN's East Malaysia partners into the opposition, and thus remove BN from power, and the cabinet line-up does not appear to cement East Malaysia's allegiance to Abdullah's National Front.  We still assess that PM Abdullah is not likely to be able to remain in office beyond the next UMNO elections (septel), and as challenges to Abdullah's authority continue so do rumors of plans to remove him even sooner than the UMNO vote.  This cabinet is best viewed as an interim line-up until UMNO has settled its looming leadership question.  End Comment. New Cabinet Line-Up 14.  (U) The new cabinet is presented below.  Septel provides more detail about changes in the portfolios.   Prime Minister: Abdullah Ahmad Badawi Deputy Prime Minister: Najib Tun Razak   Ministers in the Prime Minister's Department: Bernard Dompok Nazri Aziz Ahmad Zahid Hamidi Mohd Zaid Ibrahim Amirsham Abdul Aziz   Deputy Ministers in the Prime Minister's Department: Johari Baharom Dr Mashitah Ibrahim K. Devamany Hassan Malik   Finance Minister - Abdullah Ahmad Badawi Second Finance Minister - Nor Mohamed Yakcop Deputies - Ahmad Husni Hanadzlah, Kong Cho Ha   Defense Minister - Najib Tun Razak Deputy - Abu Seman Yusop   Internal Security and Home Affairs Minister - Syed Hamid Albar Deputies - Chor Chee Heong, Senator Wan Ahmad Farid Wan Salleh   Housing and Local Government Minister - Ong Ka Chuan Deputies - Robert Lau , Hamzah Zainuddin   Works Minister - Mohd Zin Mohamad Deputy- Yong Khoon Seng   Energy, Water and Communications Minister - Shaziman Abu Mansor Deputy- Joseph Salang Gandum   Agriculture and Agro-based Industry Minister - Mustapa Mohamed Deputy - Rohani Abdul Karim   International Trade and Industry Minister - Muhyiddin Yassin Deputies- Loh Wei Keong, Jacob Dungau Sagan   Foreign Affairs Minister - Dr. Rais Yatim Deputy- Tunku Azlan Abu Bakar   Education Minister - Hishammuddin Hussein Deputies - Wee Ka Siong, Razali Ismail   Higher Education Minister - Khaled Nordin Deputies - Khoo Kok Choong, Idris Harun   Transport Minister - Ong Tee Keat Deputy - Anifah Aman   Human Resources Minister - S. Subramaniam Deputy- Noraini Ahmad   Women, Family and Community Development Minister- Dr Ng Yen Yen Deputy- Noriah Kasnon   National Unity, Culture, Arts and Heritage Minister- Shafie Apdal Deputy- Teng Boon Soon   Science, Technology and Innovation Minister- Dr Maximus Ongkili Deputy- Fadilah Yusof   Entrepreneurial and Cooperative Development Minister - Noh Omar Deputy- Saiffuddin Abdullah   Natural Resources and Environment Minister - Douglas Unggah Embas Deputy - Abu Ghapur Salleh   Rural and Regional Development Minister - Muhammad Muhd Taib Deputy- Joseph Kurup   Domestic Trade and Consumer Affairs Minister - Shahrir Samad Deputy - Jelaing Mersat   Plantation Industries and Commodities Minister - Peter Chin Fah Kui Deputy- Senator A. Kohilan   Youth and Sports Minister - Ismail Sabri Yaacob Deputy - Wee Jack Seng   Health Minister - Liow Tiong Lai Deputy- Dr. Abdul Latiff Ahmad   Information Minister - Ahmad Shabery Cheek Deputy- Tan Lian Hoe   Tourism Minister - Azalina Othman Deputy - Sulaiman Abdul Rahman Abu Taib   Federal Territories Minister - Zulhasnan Rafique Deputy- M. Saravanan SHEAR (March 2008)

WIKILEAKS: POST-ELECTION VIEWS FROM EAST MALAYSIA Posted: 28 Oct 2011 05:42 PM PDT Dominic told us Anwar must win the trust of Sabahans through action and not words. The burden is on Anwar to show he is no longer a Muslim fundamentalist. Sabahans mistrust peninsular-based parties because of their experience with the United Malay National Organization (UMNO) after the party gained entry into Sabah. Sabahans voted on the merits of individual opposition candidates and not for their parties. Sarawakians accepted DAP, which focuses on political issues. However, they distrust both Anwar's People's Justice Party (PKR) and the Malaysian Islamic Party (PAS). THE CORRIDORS OF POWER Raja Petra Kamarudin Classified By: Classified By: POLITICAL SECTION CHIEF MARK D. CLARK, RE ASON 1.4 (B AND D). Summary 1. (C)  East Malaysians, whose support in the March 8 election provided Prime Minister Abdullah with the necessary majority to form the new government, are closely watching what opposition parties do with their newly won states, especially Penang, according to our contacts in Sabah and Sarawak on March 14. If they are successful, the opposition parties could make significant gains in East Malaysia during the next election.  A journalist speculated that East Malaysia would have voted for the opposition if it had known how well the opposition would fare on the peninsula.  The fact that East Malaysian parliamentary seats are now essential for Abdullah's National Front government has generated high expectations in Sabah and Sarawak of stronger representation in the Prime Minister's cabinet.  Given the ruling National Front's (BN) vulnerabilities on the peninsula, the Prime Minister cannot afford political missteps in Sabah and Sarawak as he struggles to remain in power.  End Summary. View from Sabah 2.  (C) We spoke on March 14 with contacts in the East Malaysia states of Sabah and Sarawak to find out what people are saying about the election.  Jaswendar Kaur, a journalist for the government-influenced New Strait Times (NST), told poloff that if Sabah's general election were held 3-4 days after the peninsula's and its strong opposition showing, Sabah would have gone with the opposition.  She said people, especially from rural communities, remember when Sabah voted against BN in the early 1990s.  Afterwards, the federal government froze Sabah out of federal funding until the next general election as punishment.  Not willing to be the lone voice, Sabahans voted BN.  However when combined, opposition candidates won the popular vote.  Within Sabah, the opposition parties lacked the cooperation achieved in West Malaysia.  As a result, many of the election races had multiple candidates vying against a BN opponent.  As in prior elections, allegations of vote rigging in key races were widespread, including allegations that some election officials were complicit in the rigging.  Sabahans are watching how the opposition will run the key state of Penang to measure the opposition's effectiveness. 3. (C) Dominic Lim, Coordinator for the Catholic Diocese's Human Development Committee told poloff that if the opposition successfully runs Penang, BN "will lose" its hold on Sabah.  However, Sabahans are slow to embrace Anwar Ibrahim.  He is widely remembered in Sabah from his days as Minister of Finance and Deputy Prime Minister, when he spoke disparagingly about Sabah.  Dominic told us Anwar must win the trust of Sabahans through action and not words.  The burden is on Anwar to show he is no longer a Muslim fundamentalist.  Sabahans mistrust peninsular-based parties because of their experience with the United Malay National Organization (UMNO) after the party gained entry into Sabah. Sabahans voted on the merits of individual opposition candidates and not for their parties.  A Sabah-based opposition party could expect to find strong support, but as contacts noted, Sabah lacks a strong leader capable of uniting Sabahans across ethnicities (Kadazan, Chinese, and Malay).  The key issues dominating Sabah's local politics during the election continued to be the status of thousands of illegal aliens residing in Sabah and land being seized by businesses, sometimes in violation of indigenous customary law. View from Sarawak 4.  (C) According to Father Simon Poh, Chancellor to Catholic Archbishop John Ha, Sarawak's voters split mostly along urban and rural lines.  Urban voters leaned towards the opposition Democratic Action Party (DAP) and rural voters, dependent upon federal government funding for development, voted BN. However, a common consensus of our contacts is that the people want change.  If the opposition could cooperate in Sarawak, they could make significant gains in future elections.  Sarawakians accepted DAP, which focuses on political issues.  However, they distrust both Anwar's People's Justice Party (PKR) and the Malaysian Islamic Party (PAS).  Sarawakians perceive both parties using religion for political gain and fear they will bring an Islamic agenda to Sarawak.  (Note: PAS does not have a presence in Sarawak and DAP and PKR are not on good terms with each other in the state.  End Note.)  The Catholic Church, while publicly neutral, privately favors a change from BN and advised parishioners to "vote their conscience."  Sarawakians, like Sabahans, are closely watching how the opposition will run their newly controlled states. 5.  (C) Nancy Nais (protect), journalist for NST, told poloff that vote buying was widespread in the rural areas, with alleged payments ranging from about USD30-130 (50-200 Malaysian Ringgit).  She also described how during the campaign period, UMNO sent censors to the editorial offices for NST, and other government-influenced mainstream press. The teams were empowered to edit or stop publication of all articles.  After the election and because of the opposition's strong gains, the NST's senior editors distributed a memorandum informing all NST offices they "must now provide balanced reporting" of the opposition. Comment 6.  (C) The people in East Malaysia are awakening to their new political leverage, holding 51 of BN's 138 parliamentary seats.  East Malaysia's consequently anticipate a greater number and more important cabinet positions.  Just as important as the number of cabinet positions will be who fills them.  Sabahans and Sarawakians will fill cheated once more by the peninsula if ethnic Malays, a minority in Malaysian Borneo, dominate the Cabinet appointments allocated to East Malaysia.  Given BN's vulnerabilities on the peninsula, the Prime Minister cannot afford political missteps in Sabah and Sarawak as he struggles to remain in power. KEITH (March 2008)

WIKILEAKS: MALAYSIA'S ELECTION: EMBASSY OBSERVATIONS IN BATTLEGROUND STATES Posted: 27 Oct 2011 01:00 AM PDT On March 6, we went to a DAP ceramah that drew some 50,000 people. In contrast, we attended a BN ceramah in Jelutong for Gerakan candidate Thor Teong Gee. There were only about 100 people in attendance, and they milled around and chatted while he spoke. The crowd was completely ethnic Malay and Dr. Thor spoke Bahasa. BN provided food and drinks, but still there were many empty chairs. Dr. Thor was not very animated, and after he finished his 30-minute speech he left immediately. THE CORRIDORS OF POWER Raja Petra Kamarudin Summary 1. (SBU) Embassy KL positioned election observers in six hotly contested states during the final days of Malaysia's campaign period and on the March 8 polling day.  In addition to our previous reporting on campaigns in the capital city areas of Kuala Lumpur and Selangor, this message provides first hand observations from Perak, Terengganu, Penang, Kedah, Kelantan and Sabah.  We observed common patterns in many of these states which highlight some factors that may have brought about the unprecedented opposition gains (ref A).  Despite the prevalence of signs, banners and flags around the country for Prime Minister Abdullah's National Front (Barisan Nasional or BN) coalition, and despite the coalition's heavy dominance of the mainstream media, the BN was out-campaigned in many areas.  The opposition parties' ceramahs, or street rallies, dwarfed BN's efforts, and the coalition's decision to limit most campaigning to small groups and "walk-a-bouts" failed to draw the large number of votes to which it was accustomed.  Issues of corruption, crime, good governance, fair elections and racial equality resonated loudly in the communities that eventually fell to the opposition, and many voters chose "anyone but BN." Finally, on the peninsula we also saw a general lack of confidence among both BN volunteers and candidates in constituencies that the eventually fell to the opposition. The opposition's energetic campaigns contrasted with lackluster BN efforts, foreshadowing the serious political setback suffered by Prime Minister Abdullah and BN in the March 8 polls.  End Summary. Perak 2. (SBU) In our early visits around Perak's capital of Ipoh we heard many conclude that the Malaysian Chinese Association (MCA) would have a tough time beating DAP.  The MCA ceramahs were far from a success and turn outs were minimal.  Staffers of the BN-MCA candidates went around the tables, shook hands and handed out brochures, hand fans and CDs.  We attended a typical ceramah that had a maximum of 500 people in attendance with about 30 per cent of the crowd being children.  They were there primarily to watch the Lion Dance (which the party paid RM 8000 for a 10 minute performance). When the performance ended the people began leaving.  By the time the 3 late-teens girls act finished singing and the politicians started talking, the crowd was less than 200 and most were ignoring the speakers.  People were just not interested.  Looking for other BN activities, we walked into the United Malays National Organization (UMNO) building, but it was sparsely staffed and looked like a ghost town.  We were told they were not holding any ceramahs, only going door-to-door. 3. (SBU) We also attended parliamentary opposition leader Lim Kit Siang's last ceramah in Perak.  It was raining heavily up until the start of the event.  When we arrived the rain had just stopped and there were almost 2000 people, with umbrellas.  There were no performances or gimmicks to attract the crowd, only speakers.  The people came in droves and by 11:30pm there were about 20,000 people mostly of Chinese and Indian descent, at the event.  Speakers worked up the crowd mentioning the brandishing of the ceremonial Malay kris at the UMNO conventions. They emphasized that Chinese born in Malaysia are also true Malaysians; and touched on religious cases of Lina Joy, and other conversion cases; and on education and the number of Chinese schools allocated in the last 10 years.  Speakers also complained of the Altantuya murder case and called it the "MongolianNajib" case, in reference to Deputy Prime Minister Najib Abdul Razak's alleged connections to the case.  Making fun of Prime Minister Abdullah's reputation of sleeping through meetings, one speaker commented that the Royal Malaysian Customs close "one eye" to matters but the Prime Minister closes "both eyes".  Speakers frequently referenced the rising crime rates and linked the crimes with corruption and poor governance. Speakers made reference to the Anti-Corruption Agency (ACA) and renamed it "Another Collection Agency," and highlighted the endemic corruption that was apparent in the VK Lingam case. 4. (SBU) Election day was uneventful.  Embassy observers traveled around Ipoh to different polling sites.  At each site the people were coming in a steady trickle.  Volunteer civil-defense personnel (RELA) or police were at all the polls, with a BN booth (locally called a "pondok panas") set-up near-by to help voters verify their registrations. Observers did not see any buses or other overt forms of possible voting irregularities. Terengganu 5.  (SBU) We observed the election in three districts - Marang, Kuala Terengganu, and Kuala Nerus. Kuala Terengganu was awash with banners and posters of both parties.  However, both the Islamic Party of Malaysia (PAS) and UMNO did not hold any mass ceramahs two days prior to polling, but instead focused on smaller neighborhood ceramahs door-to-door campaigning and the distribution of political pamphlets and CDs. In Kuala Nerus, it was a similar situation as in Kuala Terengganu.  However, in the PAS stronghold of Marang and the state constituencies within the district, it was obvious that there were many more PAS posters and banners compared to BN. 6. (SBU) In PAS ceramahs, we noted that speakers were focusing on two issues - Islamic values and the "kain kapan" (or funeral shrouds). The speakers were emphasizing the importance of Islam and the afterlife. They told the people that they should vote for the "right candidate" but reminded everyone that it is sinful to vote for a candidate or party who is corrupt.  The rationale being, since all BN candidates are corrupt, the vote should go to PAS. In one small ceramah at Kuala Terengganu, a local PAS leader campaigning for PAS Vice President Mohamed Sabu, also stated that although they hated Mahathir, they could still tolerate him but not PM Abdullah whom they claim was "stupid."  PAS also accused BN of stealing the people's money and added that Terengganu does not need any more development that only benefits the rich. 7. (SBU) BN supporters on the other hand were generally happy with the PM and developments in Terengganu.  A MCA party worker told us that the people should give the PM at least two terms before judging his administration but "the uneducated folks in Terengganu want to see results in a day." Another BN supporter shared her experience on how PAS supporters had openly questioned her at the local market for supporting the BN and gave her a "religious lecture" on why she should be supporting PAS.  Due to these incidents, BN supporters told us that they would normally pretend to agree with PAS whenever they are approached by the Opposition party to avoid a lecture, and because of "the fear of a mishap from Allah" (as PAS supporters would claim if someone did not support the party). Penang 8. (SBU) On March 6, two days before the election, we met DAP candidate Liew Chin Tong and asked if he felt confident.  He replied that he felt confident in himself, but still not sure if the voters would turn out.  Nevertheless, the DAP headquarters and PKR operations center we visited were buzzing with people and activity.  Groups of people were chatting outside, and seemed charged up and excited. A steady stream of people were coming and going, while candidates Liew Chin Tong and Jason Ong Khan Lee (PKR) were among the group of workers greeting people and handing out literature. 9.  (SBU) On March 7, at the People's Movement Party (Gerakan) headquarters, a volunteer told us that he felt like it was hopeless, and that he felt very discouraged. We visited Barisan Nasional's MCA headquarters and Gerakan headquarters and both were relatively quiet and empty.  In fact MCA's office was so quiet that we initially thought it was closed.  We tried calling one of the Gerakan election centers for directions to a ceramah, and no one answered. When we inquired about ceramahs at the MCA headquarters, a volunteer suggested that we attend the DAP ceramah instead. Issues of importance to Penang voters 10. (SBU) From Chinese and Indians, most comments were about the economy, high prices, and declining standard of living. Several Chinese mentioned that huge schools are being built for Malays in areas where there are few Malays, and the Chinese are packed into tiny schools.  There is anger on this point and on other race-related inequities. They said that they cannot demand higher wages from the multi-nationals or the companies will be driven out of Malaysia.  People are fed up that the government is not keeping costs down.  Many Chinese and Indians said that they are poor, and the government does not help them. 11. (SBU) We attended several ceramahs in the state, but without exception, only DAP and PKR were able to draw a crowd.  On March 6, we went to a DAP ceramah that drew some 50,000 people. Speakers included Karpal Singh, Lim Guan Eng, and Lim Kit Siang among others.  They spoke a mix of Hokkien, Mandarin, English, and Malay; all speakers using at least two languages and some using four.  The crowd's reaction to Lim Guan Eng stood out the most. He first approached while someone else was speaking.  The crowd which had been sitting on the grass stood and chanted his name, cheering wildly.  He didn't come up on stage then, but came back later.  Again the crowd stood, with deafening chanting and cheering greeted his entrance.  When he finally spoke, he was given a rock-star reception, again with deafening cheers to his words. Although others received enthusiastic receptions, the standing, cheering and roaring applause were reserved for Lim Guan Eng. 12. (SBU) In contrast, we attended a BN ceramah in Jelutong for Gerakan candidate Thor Teong Gee.  There were only about 100 people in attendance, and they milled around and chatted while he spoke.  The crowd was completely ethnic Malay and Dr. Thor spoke Bahasa.  BN provided food and drinks, but still there were many empty chairs.  Dr. Thor was not very animated, and after he finished his 30-minute speech he left immediately.  BN later hosted several other speakers, and though the crowd fluctuated in size, there were at most only 200 people at its height. Kedah 13. (SBU) Upon arriving in Alor Star, the capital of Kedah, we stopped at the UMNO headquarters and spoke with a worker. The office was empty except for him and one other, and they were entirely at a loss when asked about ceramah schedules. They said another office took care of that, and searched for the phone number of someone to call.  When we called, we only got an error message.  With little support from the party we decided to speak with locals about the campaign.  We spoke with a Chinese Malaysian vendor at a printing shop with large a Gerakan banner posted above the entrance.  He said that a large number of BN banners around Alor Star were not necessarily representative of widespread support, and estimated the town at 60-40 pro-BN.  He himself was not sure whom he would vote for and seemed to weigh some of the same things that media had been harping on -- making votes "count" by voting for BN vs. voting for the opposition as a way to signal displeasure at the current government. 14. (SBU) As we drove through the rural areas of the state we saw considerably more PAS banners, which increased markedly as we made our way into the small town centers. The owner of a local shop confirmed that PAS would be holding 22 ceramahs across the state every night of the campaign.  When talking about his own district of Pendang, he said the race was "hot" between PAS and UMNO but guessed it 50-50 that either side would win.  Not surprisingly for this conservative area, very few women were seen to be involved in the political process, and the people we spoke to seemed generally suspicious and uncomfortable when an American woman asked questions about the elections.  Although it was considered a "hot" race, there was little outward political activity to suggest active mobilization or participation on either side.  In general, it was very quiet for 2 days before polling, and we surmised that most voters had long since made up their minds about which party to vote for. 15.  (SBU) On the last day of campaigning we happened upon one of the campaign offices of PKR candidate Gobalakrishnan (a recent Embassy IVP alumnus) in Padang Serai.  One of the campaign's biggest concerns was about polling-day shenanigans, including phantom voters.  The indelible ink issue was brought up constantly, as evidence that the government was intent on ensuring that voting would not be fair while at the same time blaming others for it. Gobal described how the local Indians were very angry with Malaysian Indian Congress (MIC) President Sammy Vellu, so much so that when Samy came to the town last week to support the BN candidate he did not inform the Indian community. When word got out, according to Gobal, there was a spontaneous protest demonstration by 10,000 people that clogged roads and brought out the police.  Police arrested the PKR candidate's son, claiming his stereo speakers were too loud, then told Gobal they would release him if Gobal told the crowd to disperse.  Gobal proudly said that he told them to keep his son locked up.  The campaign figured their chances of success were about 50-50, but in the end won by almost 12,000 votes and the opposition took the state. Kelantan 16. (SBU) In the battle of banners, Kelantan was the Maginot Line of Malaysia where the green banners of PAS buttressed the navy blue of Barisan Nasional at every corner.  Yet despite the constant flag warfare, and despite repeated visits earlier in the campaign by the Prime Minister and Deputy Prime Minister, little else was observed that would indicate BN was truly prepared to fight.  In the final days of the campaign, while PAS held street rallies (ceramahs) and mass prayers at the local stadium in Kota Bahru, BN candidates quietly visited their neighbors and limited their campaigns to "walk-a-bouts."  On March 6, just two nights before the election, we were informed by a sparsely staffed campaign headquarters that UMNO would not be holding any ceramahs or public events before the elections. 17. (SBU) Nevertheless, PAS candidates continued to campaign hard throughout the state and in the capital city.  Former State Assembly Speaker and parliamentary candidate Wan Rahim Wan Abdullah invited us to attend a PAS ceramah in a Chinese village on the outskirts of Kota Bahru, "to get a real feeling for the issues facing Kelantan."  Upon arriving, we quickly noticed that the only Muslims at the ceramah were the candidate and his family. Yet, a crowd of some 200 Chinese voters bought food from local hawkers and listened for hours as Hokkien speakers explained why even non-Muslims should support PAS over Barisan Nasional.  The crowd laughed and cheered as the speakers disparaged the BN national government.  As one attendee explained, "PAS cleaned up our state.  So you want to gamble or go to a night club. . .go to Thailand.  It's not far.  Some of us go, but we don't need he problems those things bring us here." 18. (SBU) We spent the final day of campaigning in Bachok, the hotly contested seat of Deputy Finance Minister Dr. Awang Adek Hussin and his challenger PAS Deputy President Nasharuddin Mat Isa.  BN supporters confirmed that the coalition had taken the same approach throughout the campaign and limited most of their campaigning to small group meetings, door-to-door encounters, and relied heavily on the personal reputation of the candidate.  We met briefly with Awang, and he expressed optimism of retaining his parliamentary seat, but less confident of winning the state seat which would designate him the coalition's choice for Chief Minister.  PAS supporters remained confident of sweeping the parliamentary and state assembly elections in the district and held ceramahs nightly even to the last day of campaigning. 19. (SBU) Election Day in Kota Bahru remained calm and voters flowed to the polls in steady streams throughout the day. There was a true feeling of excitement in the air as both PAS and BN "pondok panas" workers greeted arriving voters with enthusiasm and attention.  But by the end of the day, BN workers confided that they had hoped for a better turn out. They estimated that turn-out was around 70 percent, and they had hoped for 80 percent to ensure a BN victory.  In the end they were right, and PAS and PKR candidates handily defeated BN in both state and parliamentary elections across Kelantan. Sabah 20. (SBU) Prior to election day in Sabah, there was sentiment expressed both in news articles and even by some supporters within the BN's Sabah People's Progressive Party (SAPP)  that some Barisan seats were likely to be lost in the general election, with the Democratic Action Party (DAP) expected to reap the benefit of any BN losses.  Journalists speculated in the run-up to Election Day that the areas with Chinese voter majorities were being targeted by opposition parties such as the People's Justice Party (PKR) and DAP. 21.  (SBU) When the voting was done and the ballots were counted, DAP managed wins only in the Kota Kinabalu and Sri Tanjung districts.  Just days before the election, however, many BN candidates confided that they were not sure how well the BN would perform in urban areas, and that they expected to lose more seats.  Still, one BN party activist we interviewed made the interesting comment that Chinese voters in Sabah become anxious when they see demonstrations leading to crackdowns such as those taking place in the peninsula where Bersih and Hindraf demonstrations came to grief.  He noted that Chinese in East Malaysia would, in order to avoid strife, rather stay away from supporting parties like PKR in the elections and prefer instead to support moderate mainline groups like the SAPP who are already aligned to folks in power. 22. (SBU) During the period of observations, we saw no buses being used to transport potential voters.  However, at one site we could overhear an UMNO worker on his cell phone requesting that transportation (including buses) be provided to bring voters to the station.  We observed an interesting situation when a youthful voter exited from the polling area and asked one of the uniformed UMNO party workers what he should do now.  Paraphrasing, she told him "not now" but to "come to the office tomorrow." KEITH (March 2008)

WIKILEAKS: ELECTION AFTERMATH: ABDULLAH AND UMNO STOKE MALAY FEARS Posted: 26 Oct 2011 01:00 AM PDT UMNO leaders publicly warn the Penang government not to foment unrest, but UMNO's media campaign itself seems intent on stoking the fires. Were demonstrations for Malay rights to break out (or be staged) in Penang, UMNO and BN would have grounds to discredit the fledgling opposition authorities or, in a more extreme scenario, to invoke Article 150 of the Constitution to declare a state of emergency.  THE CORRIDORS OF POWER Raja Petra Kamarudin Classified By: POLITICAL SECTION CHIEF MARK D. CLARK, REASON 1.4 (B AND D). 1.  (C) Summary:  Prime Minister Abdullah Badawi and senior officials from his UMNO party seemingly are using the media to stoke ethnic Malay fears over opposition Chinese political gains at the expense of Malays, using the new Chinese-led opposition government in Penang as the lightening rod. UMNO's coordinated media offensive appears intended to rally ethnic Malays back to UMNO while undermining the Penang state government, and represents the first counter-attack against the opposition that fared so well in the March 8 polls.  End Summary. 2.  (C) In the aftermath of the shocking March 8 election set-back (reftel), Prime Minister Abdullah Badawi and senior officials from his United Malays National Organization (UMNO) party seemingly are using the media to stoke ethnic Malay fears over opposition Chinese political gains at the expense of Malays, using opposition-held Penang as the lightening rod.  In bold initial statements, newly-installed Penang Chief Minister Lim Guan Eng of the opposition Democratic Action Party (DAP) announced that his state government would stop implementation of measures under the New Economic Policy (NEP), which provides for Malay preferences in contracting, hiring and other areas.  Abdullah and UMNO leaders quickly seized upon this assault on the NEP, a long-held centerpiece of Malay politics, to launch their own offensive against the opposition. 3.  (U) Since March 11, a day after the King swore in Abdullah for a new term as Prime Minister, the government-dominated Malay-language media, both television and print, have carried strong warnings by the Prime Minister and other senior UMNO leaders against actions that disadvantage Malays and thus fuel racial tensions.  In statements carried on Malay television news broadcasts on March 12, Abdullah publicly warned, "the (Penang) state government must not try to create an atmosphere which can cause racial tension...."  UMNO Vice President Muhyuddin Yassin told reporters, "I'm not sure if the rights and fate of the Malays will be taken care of...," while a second UMNO Vice President, Ali Rustam, said Penang's decision victimizes Malays.  Former de facto Law Minister Nazri Aziz called Malays who voted for the opposition "traitors" and veteran UMNO leader Tan Sri Abdul Aziz said such Malays lacked patriotism. 4.  (U) The UMNO-owned Utusan, the largest circulation Malay language hard news daily, has led the way in the print media, exemplified by its March 13 front-page headline, "Warning to Guan Eng - Don't Take Actions that Fuel Racial Tensions." Political columnists cautioned that Penang could break away "like Singapore" and letters from unnamed contributors attracted headlines like "Malays' Survival Threatened." State news agency Bernama carried similar articles, including one on March 13 under the headline "DAP's Arrogance Can Stoke Racial Tension," quoting former deputy Information Minister Ahmad Zahid Hamidi. 5.  (U) Lim Guan Eng and senior leaders of his Democratic Action Party (DAP) tried to refute publicly the UMNO attacks and assure ethnic Malays.  The Penang Chief Minister told reporters on March 13 that Malays in his state would not be marginalized and he clarified that doing away with the NEP meant a transparent tender process for government contracts. Lim accused Utusan and the Bernama news agency of inaccurate reporting, and said unnamed parties were spreading tension-building rumors, for example that the Chinese-led Penang government had ordered mosques to turn down the volume in the call for prayers.  Lim said, "It is easy to play up this kind of sentiment.  If the BN (UMNO's National Front coalition) has any dignity, it should do things according to the facts and not just create issues and they whack us." 6.  (C) Comment:  Lim Guan Eng's bold announcement of the end of NEP provided UMNO with a convenient opportunity to play the Malay race card.  Charges of marginalization of the Malays at the hands of ethnic Chinese and rumored challenges to the practice of Islam are highly emotive issues in Malaysian politics and invoke memories of the 1969 race riots that followed gains by the Chinese political opposition. UMNO's coordinated public attack on the new Chinese-led government in Penang, carried out primarily in the Malay media, appears intended in part to rally ethnic Malays back to UMNO, following its electoral set-back which saw a swing in Malay votes in support of the opposition.  Additionally, UMNO's campaign serves to undermine the legitimacy of the Penang state government and represents UMNO's first counter-attack against the opposition that fared so well in the March 8 polls. 7.  (C) UMNO leaders publicly warn the Penang government not to foment unrest, but UMNO's media campaign itself seems intent on stoking the fires.  Were demonstrations for Malay rights to break out (or be staged) in Penang, UMNO and BN would have grounds to discredit the fledgling opposition authorities or, in a more extreme scenario, to invoke Article 150 of the Constitution to declare a state of emergency.  The intense UMNO media campaign is reminiscent of government tactics used to set the stage for Abdullah's decision in December 2007 to jail ethnic Indian rights activists on national security grounds. KEITH (March 2008)

WIKILEAKS: AMBASSADOR'S DISCUSSION WITH MFA PERMSEC HO ON MALAYSIAN ELECTIONS Posted: 25 Oct 2011 01:00 AM PDT Ho said that on the ruling National Front (BN) side, PM Abdullah Badawi is probably done for politically, despite having been sworn in again as PM on March 10. Former PM Mahathir Mohamad will keep throwing stones at Abdullah. The political knives will be out for Abdullah's son-in-law UMNO politician Khairy Jamaluddin, whom nobody likes because he got where he is through family ties. As for Deputy Prime Minister Najib Razak, he is an opportunist. Although he has not been critical of Singapore, he will not hesitate to go in that direction if it is expedient for him to do so. Najib's political fortunes continue to be haunted by the Mongolian murder scandal. THE CORRIDORS OF POWER Raja Petra Kamarudin Classified By: Ambassador Patricia L. Herbold for reasons 1.4 (b, d). 1.  (C) The Ambassador and MFA Permanent Secretary Peter Ho met over lunch on March 12, discussing issues including Singapore's perceptions of the elections in Malaysia (reftel.)  Ho said that in Singapore "everybody was shocked" by the extraordinarily strong showing by the opposition in Malaysia.  People knew that change was coming, perhaps one election down the road, but did not anticipate that change could come this fast. 2.  (C) Ho said that on the ruling National Front (BN) side, PM Abdullah Badawi is probably done for politically, despite having been sworn in again as PM on March 10.  Former PM Mahathir Mohamad will keep throwing stones at Abdullah.  The political knives will be out for Abdullah's son-in-law UMNO politician Khairy Jamaluddin, whom nobody likes because he got where he is through family ties.  As for Deputy Prime Minister Najib Razak, he is an opportunist.  Although he has not been critical of Singapore, he will not hesitate to go in that direction if it is expedient for him to do so.  Najib's political fortunes continue to be haunted by the Mongolian murder scandal.  (Note: The scandal involves the ongoing trial of Najib's former political adviser Abdul Razak Baginda for abetting the 2006 murder of the Mongolian woman who had been Abdul Razak's ex-lover; two policemen from Najib's protective detail also are on trial for carrying out the murder.  End Note.)  The MIC's Samy Vellu bears a large share of the responsibility for the BN's poor showing in the elections.  The Indian community's unhappiness, which helped create the current political dynamic in Malaysia, reflects the fact that Samy Vellu neglected the interests of the Indian community, even when its temples were being destroyed, focusing instead on his business activities in India, Ho said. 3.  (C) Ho stated that on the opposition side, former Deputy Prime Minister Anwar Ibrahim came out of the elections in a strong position, as shown by the electoral victories by his wife (whom Ho commented he has met and finds very impressive) and his daughter.  The Islamic PAS will be pushed in a more pragmatic, less radical direction by its increased proximity to real political power.  Within the ruling coalition, UMNO could find itself pulled in the opposite direction as it comes under increasing pressure to compete with PAS, Ho said. 4.  (C) Ho expressed pessimism about Malaysia's future prospects.  Malaysians from the Chinese and Indian minority communities keep leaving the country.  The relative size of the Malay Muslim majority keeps increasing.  As a result, more Malaysian students are studying in religious schools and fewer are studying in more rigorous secular schools.  This is harming Malaysia's international competitiveness, Ho said. Visit Embassy Singapore's Classified website: http://www.state.sgov.gov/p/eap/singapore/ind ex.cfm HERBOLD (March 2008)

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