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- WIKILEAKS: MALAYSIA ATTEMPTS TO REIN IN BLOGGERS
- WIKILEAKS: 9th Malaysia Plan: ambitious agenda and challenging implementation
- WIKILEAKS: The Americans foresaw Najib's threat to Pak Lah
- See what playing golf with Najib can do for you
- Malaysia Today’s 40% truth and 60% lies
| WIKILEAKS: MALAYSIA ATTEMPTS TO REIN IN BLOGGERS Posted: 12 Jul 2011 01:00 AM PDT
Raja Petra, not known for his subtlety, responded immediately to the UMNO Information Chief with a flaming article entitled, "See you in hell Muhammad son of Muhammad," which also recalled prior corruption charges against his detractor and highlighted Raja Petra's family ties to royalty. On July 25, police called in Raja Petra for 8 hours of questioning before releasing him. Raja Petra claimed that UMNO's police report and his questioning was part of "an agenda to clamp down on blogs before the coming general election in a move to black out news." 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 001218
SIPDIS STATE FOR EAP/MTS AND DRL -- SARAH BUCKLEY
E.O. 12958: DECL: 07/30/2017 TAGS: PGOV, PHUM, SOCI, KPAO, MY SUBJECT: VIRTUAL LIMITS: MALAYSIA ATTEMPTS TO REIN IN BLOGGERS REF: KUALA LUMPUR 1155 - POLICE DETAIN ANWAR AIDE
Classified By: Classified By: Political Section Chief Mark D. Clark for reasons 1.4 (b and d). Summary 1. (C) Bloggers fear the recent police actions against two prominent online political commentators, Nathaniel Tan and Raja Petra Kamarudin, presage a Government of Malaysia (GOM) crackdown on the freedoms of speech and the press in cyberspace. GOM leaders and officials from the dominant United Malays National Organization (UMNO) justified the moves as necessary to check irresponsible bloggers who incite racial and religious hatred. The GOM has announced its readiness to use the Internal Security Act, the Sedition Act, and Section 121b of the Penal Code against bloggers, and there is some discussion of introducing new legislation to plug legal loopholes. Prominent political leaders including the Prime Minister and Deputy Prime Minister are warning bloggers and cyber-activists they are not immune from the law, and will face prosecution for transgressions such as insulting Islam and the King, and inciting the population through "lies" on websites. Opposition leaders and human rights NGOs are condemning the police actions and public threats, stating these are politically motivated and meant to instill "a news blackout" and squelch dissent prior to the anticipated general elections. The Internet is Malaysia's last bastion of press freedom and the arena for incessant rumor-mongering among the country's elites. Opposition parties and government critics rely heavily on the Internet because the GOM controls access to traditional media outlets to favor UMNO and the ruling National Front (Barisan Nasional, BN). The GOM clearly has fired a warning shot into cyberspace in an effort to rein in outspoken critics. End Summary. First salvo fired against cyber-activists 2. (SBU) The GOM fired its opening salvo on Internet bloggers on July 13 when it arrested Nathaniel Tan, a People's Justice Party (PKR) webmaster and blogger, after corruption allegations against Deputy Internal Security Minister Johari Baharom were posted by a third party on Tan's website (reftel). When police detained Tan, they reportedly denied him access to his lawyer, the chance to inform his family of his arrest, and concealed his whereabouts while processing his arrest. P. Uthayakumar, a coordinator for the NGO Police Watch, spotted Mr. Tan when police took him before a magistrate and notified Mr. Tan's lawyer of his whereabouts. Tan, released on bail after four days, was held for suspicion of "wrongful communication of an official secret." While police reportedly questioned Tan regarding information on the Johari corruption story, Tan's lawyer, R. Sivarasa, stated, "I want to go on record (to say) this detention is politically motivated." 3. (U) Lim Kit Siang, Parliamentary Opposition Leader and member of the Democratic Action Party (DAP), condemned the "secretive circumstances in the first seven hours of Tan's arrest". He also called it "a scandal which speaks of a police which has yet to fully accept that the first principle of policing in a democratic system must be policing for the people and not policing to serve the government leaders of the day." Former Deputy Prime Minister Anwar Ibrahim, the human rights NGO Suaram, the Malaysian Bar Council, the Center for Independent Journalism, and the World Organization Against Torture (OMCT) all condemned Mr. Tan's arrest while The Sun newspaper described his arrest as "politically motivated." UMNO Takes On Cyber Gadfly 4. (U) UMNO Information Chief Muhammad Muhammad Taib filed a police report on July 23 (11 days after Mr. Tan's arrest) against the political website Malaysia Today and its outspoken webmaster Raja Petra. A cousin to the current Sultan of Selangor, Raja Petra set up his website in 2004 and it is now one of the most popular news websites in the country. About 30 UMNO leaders accompanied the Information Chief when he filed the police report. He claimed the postings and articles were disrespectful to the King and Islam, and had the potential to "create unrest in the country and strike fear in the people." The UMNO Information Chief urged the police to take swift action, and stated the portal's contents could undermine unity and corrupt young minds "to think that there are no rules and sensitivities governing articles and that anyone can write on any matter in the name of individual freedom." 5. (U) Several senators and defacto Law Minister Nazri Abdul Aziz joined the chorus in the subsequent days. Nazri stated the government would take legal action against bloggers who flagrantly belittle Islam or the King using three laws: the Internal Security Act (ISA), the Sedition Act, and Section 121b of the Penal Code (which relates to offenses against the King, Sultans, or Governors that entails life imprisonment if convicted). He cited as an example a blog entry belittling Islam in which the writer described the religion as, "a big lie fabricated by Arabs who had put a huge rock (the Kaabah) in the middle of the desert." The Minister claimed the comment was not only ill mannered but could provoke anger among Muslims. Nazri also stated the government was considering formulating new laws allowing it to monitor and act against offending bloggers, and closing any legal loopholes. He stressed that the proposed legislation's intent is not to strangle the freedom of the Internet but to put a stop to the "freedom to lie in the blogosphere." The Minister explained, "We want blogs to be clean, a place to obtain accurate information, a reference point for honest opinion, not a platform to abuse and slander people." 6. (SBU) Deputy Prime Minister Najib Razak, who has been savaged in Malaysia's blogs for corruption and alleged tie-ins to the Altantuya murder scandal, explained to the public June 23 that UMNO Information Chief's filing of the police report against Raja Petra did not signal the GOM made a "special decision" to clamp down on bloggers. He added, "everyone must be aware that there are laws in this country." However, the DPM's comments regarding bloggers were harsher later that night while speaking at the Malaysian Press Institute Press Awards. There, he noted the government was deeply troubled by the growth of "irresponsible" alternative media. He explained, "In the name of freedom, these websites allow the broadcast of slander, lies, and swearing, the use of harsh, degrading language and racial slurs without regard for the reader or those concerned." He stressed the government's tolerance of antigovernment positions and criticisms on the Internet, but "we are very concerned about statements that insult religion and reek of racism." He warned that webmasters and web journalists are not exempt from laws and the GOM "will not permit any party to disturb the nation's harmony and cause unease among the community." Police Summon Raja Petra 7. (U) Raja Petra, not known for his subtlety, responded immediately to the UMNO Information Chief with a flaming article entitled, "See you in hell Muhammad son of Muhammad," which also recalled prior corruption charges against his detractor and highlighted Raja Petra's family ties to royalty. On July 25, police called in Raja Petra for 8 hours of questioning before releasing him. Raja Petra claimed that UMNO's police report and his questioning was part of "an agenda to clamp down on blogs before the coming general election in a move to black out news." 8. (U) Many of the same opposition politicians and activists who rallied behind Nathanial Tan raised further alarm over Raja Petra's predicament. Opposition leader Lim Kit Siang stated the police report against Raja Petra was an attempt to clampdown on "criticism, dissent, and expose (sic) of abuses of power and corrupt practices in the run-up to the coming general election." He added that the government should not use criminal laws "to arrest, intimidate, and silence any one." Understandably, the blogging community immediately came out in support of Raja Petra. They claim the police report against Malaysia Today and Nathaniel Tan's earlier arrest represent a GOM attempt to intimidate other bloggers and clampdown on "press freedom in cyberspace." Dr. Toh Kim Win, a Penang Gerakan state cabinet minister, was the only prominent government leader to voice support for the blogging community. He said UMNO's police report (against Raja Petra) represents a "growing trend towards stifling dissent in our country." He added, "These trends, if not stopped, will further erode the democratic space, which is already limited, in our country." He urged the government to promote not only economic development, but also human rights. With no apparent sense of irony, former Prime Minister Mahathir, himself once a champion of muzzling the press, described the government's attempt to clampdown on bloggers as an exercise in futility, one that wouldn't stop information flowing over the Internet. PM Weighs In, Finds Himself Subject of Police Complaint 9. (SBU) Upon returning from his honeymoon travel, Prime Minister Abdullah Badawi weighed in, warning on July 29 that Malaysia's laws would not spare those who spread "lies" on the Internet. Abdullah added bloggers and Internet posters "do not have the freedom to do whatever they like." Responding to Raja Petra's claim police cannot charge him under Malaysian law because his site is registered overseas, the Prime Minister said, "It is not for them (bloggers) to claim that they are immune from the law simply because their websites are hosted overseas where they have the right to say anything." 10. (U) In an ironic tit-for-tat act, opposition DAP member Ronnie Liu Tian Khiew filed a police report regarding a "seditious posting" on the Prime Minister's official website, originally posted on November 14, 2005. The posting conveyed anti-Chinese sentiments. Raja Petra reported the filing on his website, adding he expected the police to respond to the filing and question the Prime Minister within two days, as they had done with him. The postings were removed on July 30 after they were made public and a police report filed. 11. (SBU) Until recently, the GOM generally has refrained from actively policing political content the Internet, in part out of a pledge made to foster development of the Multimedia Super Corridor (MSC) and the Internet market in Malaysia. Beginning in 2004, the GOM began making statements on the need to introduce "cyber laws to control the Internet," but it made little use of the regulatory authority over on-line speech vested in the Communications and Multimedia Commission. In December 2006, Kong Cho Ha, Deputy Minister of Science, Technology and Innovation, stated Malaysia may introduce tough Internet laws to control bloggers and prevent them from spreading "disharmony, chaos, seditious material and lies" on their websites. Early in 2007, some senior Embassy contacts alluded to internal GOM discussions on ways to rein in Internet news reporting and bloggers in particular. In January 2007, Prime Minister Abdullah Badawi said although government policy is not to censor the Internet, "bloggers are bound by laws on defamation, sedition, and other limits of speech." The Prime Minister's comment referred to the defamation lawsuit filed by the News Straits Times (NST), an English language newspaper owned by UMNO, against Jeff Ooi and Ahirudin Atan (aka Rocky), another prominent blogger, for their blogs and their readers' comments regarding the newspaper's editors' roles in misrepresenting facts, publishing a caricature of the Prophet Muhammad, and alleged plagiarism by its journalists. Given UMNO's control over the NST, the paper's lawsuit is seen by many as the GOM's first move against cyber-activists and bloggers. Comment 12. (C) With the mainstream media -- television, print and radio -- largely under the thumb of UMNO and the ruling National Front, and a number of important national topics ruled out of bounds, including most recently the "Islamic state" controversy, the Internet is the remaining bastion for wide ranging criticism of the government and discussion of otherwise taboo political subjects. The Internet is also the focus of incessant rumor-mongering among the country's elites, honed to a fine art by the likes of Raja Petra who kept the milling turning, often without any solid information to back up his sensational reports. Opposition figures, largely unable to access the mainstream press, rely heavily on the Internet to reach Malaysia's computer-savvy upper class, while realizing that this information does not readily penetrate down to the grassroots. The Internet has helped government critics fan corruption stories, aided Mahathir in his ill-fated challenge against PM Abdullah last year, and kept alive allegations of DPM Najib's links to the Altantuya murder case. 13. (C) The GOM clearly has fired a warning shot into cyberspace in an effort to rein in outspoken critics ahead of the impending elections; government pressure on the blogging community through complaints and police actions seems very much tied to the preparation of the election ground. Senior government officials and UMNO leaders have made clear that the sniping from cyberspace rankles deeply, and UMNO has a strong interest in weakening the opposition's electronic platform at this particular time. Even if this does not evolve into a real crackdown, the government warnings and criminal investigations of Tan and Raja Petra could send a chill through Malaysia's boisterous Internet community that will temper some voices. We doubt, however, that others will allow themselves to be silenced and the GOM, like other governments, will find the Internet difficult to constrain. The Embassy supports freedom of speech on the Internet through active and carefully calibrated public affairs programming, including through expert U.S. speakers and support to seminars, and we seek to engage government and opinion leaders behind the scenes to preserve Internet space for the broad range of Malaysian viewpoints. LAFLEUR
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| WIKILEAKS: 9th Malaysia Plan: ambitious agenda and challenging implementation Posted: 10 Jul 2011 01:00 AM PDT
Non-government economists support these goals publicly but deplore them in private. Some challenge the reliability of the government's data. For example, a significant amount of publicly listed shares are held under nominee accounts, many of which are bumiputera-owned, but the government considers all of them non-bumiputera. Others decry the added cost of business the NEP policies place on private investors and the disincentive they pose to FDI. THE CORRIDORS OF POWER Raja Petra Kamarudin
SUBJECT: 9TH MALAYSIA PLAN: AMBITIOUS AGENDA AND CHALLENGING IMPLEMENTATION
REF: 2005 KUALA LUMPUR 03692
Classified By: Economic Counselor Colin Helmer. Reasons: 1.4 (b) and (d).
SUMMARY 1. (C) Prime Minister Abdullah recently unveiled the Ninth Malaysia plan (9MP) which envisages spending RM 220 ($60 billion) of government and private development funds during 2006-2010 and targets an average economic growth rate of 6.0%. 9MP identifies five key areas, such as improving Malaysia's human capital, becoming a knowledge-based economy, and investing in key infrastructure, in which Malaysia must improve to achieve its goal of becoming a developed industrialized nation by 2020. Analysts are confident that the infrastructure projects, projected rate of economic growth, and some technology projects will unfold as planned, but deem projects in other areas, such as education and agriculture, to be unrealistic. While laudatory in their public comments, Malaysian economists we have spoken to in private are disappointed with the plan. They also question the GOM's ability to implement the reforms needed to attract a higher level of foreign direct investment. 9MP calls for Malaysia's private sector to take the lead in further developing the country, but our sources doubt Malaysian leaders will give private industry the freedom to transform the economy. Prime Minister Abdullah views 9MP as his top economic initiative, is aware of the challenge of implementation and is taking steps aimed at improving follow up. End Summary. Five Key Thrusts 2. (U) The 9MP lays out five broad goals that Malaysia is to meet by 2010 to keep on schedule for the "Vision 2020" goal of becoming an industrialized, developed nation by the end of the next decade. The economists with whom we met agree that these goals are well laid out, pragmatic, and correctly describe the path Malaysia needs to travel. They are: to move the economy up the value chain; to raise the capacity for knowledge and innovation and nurture a "First Class Mentality;" to address persistent socio-economic inequalities constructively and productively; to improve the standard and sustainability of quality of life; and to strengthen institutional and implementation capacity. Show Me the Money 3. (U) The 9MP will provide about RM 220 billion (US$60 billion at RM 3.65=$1) of government and private development spending during 2006-2010. Approximately 40% of this is allocated to what the GOM defines as economic programs, 40% to social programs, 12% to security and 8% to general administration. Funding for the subsectors that follow will come from either the social or economic segments of 9MP. Although the 9MP budget is 17.6% higher than the previous plan, 35% of 9MP's budget is earmarked for finishing up 8MP projects that were not completed during the last five year plan. 4. (SBU) About 23% of 9MP funding will be devoted to infrastructure and utilities development projects, an increase of 21.2% over the 8MP. As compared to Mahathir-era plans with their large infrastructure projects, PM Abdullah chose to cut the pie into many small projects so that more construction contractors might participate. According to Dr. Yeah Kim Leng, Managing Director and Chief Economist at RAM Consultants Group, the GOM conducted cost/benefit analyses to identify projects that would produce a higher return on investment. This apparently was not done in the past. 5. (U) Although human capital development has been one of Abdullah's stated priorities, and despite media reports suggesting education was one of the big winners in the plan, education and training will receive only about 20% of the total budget. This is about the same as in the preceding 5-year plan (8MP) developed by Abdullah's predecessor, Mahathir Mohamad. New initiatives include strengthening the national (public) schools so that they become the "School of Choice" for all races in Malaysia. 6. (U) Agriculture, one of Abdullah's favored sectors, will receive about 6% of the funding -- a 70% boost over 8MP. However, 9MP sets a goal of transforming Malaysia into a net food exporter by 2010, which outside analysts believe is impossible given control over land use by the individual states and the higher returns from land uses other than food and livestock production. Biotechnology will get 1%, 2.5 times more than it received in 8MP. Ambitious Growth Targets 7. (U) In its last five-year plan, the GOM projected an average economic growth rate of 8%, but the actual rate during 2000-2005 was about 4.5%. In the background to the 9MP, government analysts place partial blame for the shortfall on the U.S.: "Global growth slowed due to a decelerating United States of America economy, and dampened electronics demand, exacerbated by the attacks of September 11, 2001. Overall economic performance remained sluggish until the second half of 2003, weighed down by the invasion of Iraq and the regional outbreak of Severe Acute Respiratory Syndrome." 8. (C) The government is targeting a more modest average annual growth rate of 6% during 9MP. The economists that we interviewed (a mixture of academics, investment advisors, consultants, and think tank researchers) voiced a variety of opinions about that target, with Yeah of RAM asserting, "this is eminently achievable." Dr. Mohamed Ariff of the Malaysia Institute of Economic Research presented a study to the GOM where he argued for a 5-6% growth rate as opposed to the 7-8% that many ministers supported. He maintains that it is better to aim lower than to fail to meet the target. The chief economist at CIMB agrees that 6% is within Malaysia's grasp. Wong Chee Seng, chief economist at ECM Libra Securities, is much more negative, saying "The government will not meet its targets. It moves too slow." University Malaya professor Andrew Sheng (formerly chairman of the Hong Kong Securities Commission and Bank Negara Assistant Governor) disagrees. Looking at regional growth estimates from the International Monetary Fund, he wonders why the GOM did not set the growth bar higher. He believes that Malaysia should link its growth to China and India by exploiting complementary business opportunities. Seeking Private Help 9. (C) The 9MP calls for the private sector to lead growth, aided by the public sector in its role as facilitator and regulator. Our economic contacts agree with this idea, but observe that it will require a significant increase in private investment, both domestic and FDI. Under 9MP, the GOM projects private investment to grow at an annual rate of 11.2% and public sector investment at 5% -- rates that are inconsistent with recent trends. Under the 8MP, private investment actually contracted about 1% each year. Changing this situation would require the GOM to give the private sector more freedom from regulation and control than its socioeconomic objectives for the bumiputera (ethnic Malay) community currently allow. For example, the current requirement that 30% of equity and employment be reserved for bumiputeras is a significant investment disincentive. As Yeah put it, "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?" 10. (SBU) One of PM Abdullah's signal economic achievements has been to shrink the government's budget deficit, now down to 3.8% of GDP. 9MP appears likely to slow further progress on deficit reduction. According to Wong, Abdullah concluded that too many people depend on government contracts to keep applying the screws to expenditures. At the end of the 9MP, the overall federal government fiscal deficit is forecast to be RM 107.6 billion, or 3.4% of GDP, assuming the government can meet its growth targets. The majority of our contacts are not overly concerned with this change in fiscal stance. Sheng argues that it is reasonable for a developing country such as Malaysia to pursue deficit spending on infrastructure projects that will generate growth. The difficulty in the past, he says, has been large public projects that do not offer a good return on investment. Ambitious Development Goals 11. (U) Some examples of the sort of investment that University Malaya's Sheng sees as positive are biotechnology research, ICT infrastructure (such as high-speed internet and more training in schools), and development spending on tourism. Sheng sees these as high-growth projects with the potential to leverage more investment and business for Malaysia in the future. Pointing to India and its back-office outsourcing, Sheng asks, "Why shouldn't Malaysia be able to offer similar services at a competitive price? We have the education, English language, and with this type of incremental investment, we can do business with New York via the internet." He is similarly enthusiastic about the plan to promote the tourism sector, which in 2005 drew 16.4 million tourists and generated RM 32.4 billion (US$ 8.8 billion) -- 80% more than export earnings from palm oil, six times more than rubber, and only 30% less than the oil and gas industry. 12. (C) Some of 9MP's ambitious goals are so lofty as to appear unachievable in five years. For example, the plan calls for Malaysia to increase the percentage of university professors with PhDs to 60% from the current level of 20%. Time and resource constraints, coupled with the fact that highly educated workers can do better elsewhere, make achieving this goal unlikely. As Wong of ECM Libra noted bluntly, "I tell my children to stay in New Zealand. What opportunity does a Malaysian educated abroad have here?" 13. (C) Some of the agriculture goals seem equally unrealistic. For example, the government proposes to increase rice production by approximately 50% by 2010. According to Ministry of Agriculture Deputy Secretary General Zulkifli Idris, the prime minister pushed for sharp production increases to benefit Malay farmers in the politically sensitive northern states. Traditionally, Malaysia has grown about two-thirds of the rice it consumes domestically, importing the remainder from low-cost producers like Thailand and Vietnam. Although the cheap imports allow the GOM to maintain low fixed retail prices for urban and rural consumers, the government loses money on every ton of rice produced domestically: it pays direct subsidies to farmers while Bernas (the government-linked monopoly rice importer and the main marketer of domestically produced rice) buys locally produced rice at a higher price and sells it at low, government-fixed retail price. Working-level contacts indicate that the sharp rice production increase in 9MP is unrealistic, and Zulkifli admitted as much in his statements. Nonetheless, the planned investment in such areas as improved irrigation, mechanization, and farmer organizations in the northern states will likely have a political payoff for Abdullah. NEP Rides Again 14. (U) With the publication of the 9MP, Prime Minister Abdullah also went firmly on record in support of maintaining the National Economic Policy (NEP). The NEP was introduced in 1970 with the goal of transferring at least 30% of Malaysia's equity and wealth to bumiputeras through affirmative action policies favoring the Malay majority's participation in the economy. The NEP was initially intended to have been completed in 1990, but when the target was not met the government replaced the NEP with the National Development Policy (NDP). With 9MP, Abdullah has pledged to continue these policies through 2020 with the hope of finally achieving the 30% goal. 15. (U) The 9MP will try to raise the bumiputera equity stake to 20-25% in 2010 from 18.9% in 2005. The plan also seeks to narrow the income gap between bumiputeras and ethnic Chinese from a ratio of 1:1.64 in 2004 to 1:1.50 in 2010, and between bumiputeras and ethnic Indians from 1:1.27 in 2004 to 1:1.15 in 2010. It also sets a target of halving the country's overall poverty rate from 5.7% in 2004 to 2.8% in 2010, and completely eliminating "hardcore poverty" in 2010. 16. (C) Non-government economists support these goals publicly but deplore them in private. Some challenge the reliability of the government's data. For example, a significant amount of publicly listed shares are held under nominee accounts, many of which are bumiputera-owned, but the government considers all of them non-bumiputera. Others decry the added cost of business the NEP policies place on private investors and the disincentive they pose to FDI. Implementation - GOM versus Private Industry 17. (U) Since the 9MP roll-out, the government has generated a steady media buzz about the importance of effective implementation of the plan. Abdullah has publicly promised to fire any civil servants who get in the way. But the GOM and industry have different ideas of what constitutes good implementation. The GOM has announced that 9MP will feature better governance, world class project management, increased due diligence, less corruption, and speedy disbursement of funds. In a recent speech, Effendi Norwawi, Minister in the Prime Minister's Department for Economic Planning and Abdullah's point man for the 9MP, explained that the GOM wants to work in partnership with the private sector. He emphasized Abdullah's personal commitment and noted the creation of a new agency, the National Implementation Action Body (NIAB) to monitor the performance of agencies implementing major projects under the 9MP. Abdullah will head the organization, with Deputy Prime Minister Najib Razak as deputy chairman and ministers with specific 9MP authority sitting on the council. It will meet every two weeks and, according to Effendi, Abdullah will be demanding progress reports. 18. (C) The prime minister's own office is set to receive a large allocation under the 9MP. Although there is no detail as to how the funding will be spent, 9MP sets aside RM 26.5 billion (13.2% of the total) for Abdullah's department - a threefold increase over 8MP (RM 7.3 billion and 4.3%). The public spin on these figures is that the resources will enable the prime minister to focus on his key goals and move the process along. In private, however, economists voice concern over the potential for abuse of funds. 19. (C) When the private sector talks about good implementation, they hope the GOM will remove the mass of government red tape and regulation that increases costs and scares away investment, both local and foreign. Minister Effendi himself related a story about a hotel venture that required 73 different licenses before it could open. Some took so long to obtain that the operator needed to repeat the application process because they only lasted for a year. Yeah detailed a similar process in Penang, saying "at least at the international level, there is MIDA to be one-stop shopping for the licenses. A Malaysian investor must deal with both state and local regulations and the government needs to move to change this quickly." But few economists believe that the GOM will move decisively to cut red tape and reduce its economic meddling. Sheng compared Malaysia to China: "In Shanghai, they were trying to take some business from Hong Kong and the manufacturer asked if they could move his product from China to the distribution point, including customs, in 24 hours. Shanghai's mayor was able to make this happen. Would that be the case in Malaysia?" Economists Not Overly Optimistic 20. (C) Comment: Successful implementation of the 9MP is Abdullah's top economic priority, but the economists we surveyed are not optimistic that he will be able to achieveall his goals for the plan. While they see some good initiatives, they do not see bold steps that would lift Malaysia back up to the growth rates of the late 1980s. There is a sense of urgency in both the senior levels of the government and among senior economists that Malaysia is at a crossroads. Wong suggested that, "there are two camps in the government, the ones who see that if we do not make changes that we will settle into second class and the others who are happy with the way things are." Sheng, in a presentation to senior business leaders, government managers and economists, argued that Malaysia was in a similar situation as the U.K. and Japan in the early 1980s. The U.K. was not doing well and opted to open its financial sector to bring in FDI and investment. Japan, in contrast, tried to hold onto its manufacturing lead and did not open to foreign investment. He suggested that Malaysia might want to examine how the two nations are faring today and consider its options. End Comment. LAFLEUR
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| WIKILEAKS: The Americans foresaw Najib's threat to Pak Lah Posted: 07 Jul 2011 01:00 AM PDT
Prime Minister Abdullah Badawi is a breath of fresh air after the long-serving and vituperative Mahathir Mohamad, who retired in late 2003. Abdullah promotes a tolerant, progressive approach to religion that he calls "Islam Hadhari" (civilizational Islam). He is publicly committed to fighting corruption and reining in costly mega-projects, though his government's follow-through has been disappointing. His mild-mannered and cautious approach has also led critics to question his leadership and effectiveness, but his ruling coalition remains secure. Abdullah's chief potential rival, Deputy Prime Minister (and Defense Minister) Najib Razak, plays the role of a loyal bulwark. After two years in power, Abdullah has appealed to the public for patience in delivering reform. As long as the economy continues to grow healthily, the public will grant him that. THE CORRIDORS OF POWER Raja Petra Kamarudin
C O N F I D E N T I A L KUALA LUMPUR 000705
SIPDIS
E.O. 12958: DECL: 04/18/2016 TAGS: PREL, MASS, MARR, PTER, ECON, MY SUBJECT: SCENESETTER FOR UNDER SECRETARY OF THE AIR FORCE DR. RONALD SEGA
Classified By: DCM David B. Shear for reasons 1.4 b and d.
1. (C) SUMMARY: Malaysian-American relations are good and improving; on March 8 we notified Congress of our intention to conclude a Free Trade Agreement with Malaysia. This moderate Muslim-majority state is our tenth-largest trading partner worldwide, and we have robust military-military cooperation. While moving slowly away from the anti-Western rhetoric of former Prime Minister Mahathir Mohamad, Malaysia continues to oppose us on some key international issues. Counterterrorism cooperation is largely good, but we remain concerned about the release of certain suspects and the level of surveillance of those suspects. Malaysia and its neighbors increasingly realize the importance of maritime security, but enforcement efforts are hampered by sovereignty concerns and a lack of resources. A new Malaysian coast guard is slowly getting its sea legs. Malaysia supports the Mindanao peace talks but has differed sharply with Thailand over separatist violence. The Malaysian government is making progress in implementing a non-proliferation regime, but is no closer to signing an Article 98 agreement with the U.S. End Summary. Political Landscape 2. (C) While Malaysia has plenty of warts, it remains a rare example of an Islamic-majority country that is stable, civilian-led and prosperous. Malaysia has also maintained a largely tolerant social system and a tightly managed democracy, with the same multi-racial coalition in power since independence in 1957. While we continue to urge the government of Malaysia to improve its own governance, we also recognize the constructive role Malaysia can play in the Islamic world and have encouraged Malaysians to increase support for moderation and progress in the Middle East. 3. (C) Prime Minister Abdullah Badawi is a breath of fresh air after the long-serving and vituperative Mahathir Mohamad, who retired in late 2003. Abdullah promotes a tolerant, progressive approach to religion that he calls "Islam Hadhari" (civilizational Islam). He is publicly committed to fighting corruption and reining in costly mega-projects, though his government's follow-through has been disappointing. His mild-mannered and cautious approach has also led critics to question his leadership and effectiveness, but his ruling coalition remains secure. Abdullah's chief potential rival, Deputy Prime Minister (and Defense Minister) Najib Razak, plays the role of a loyal bulwark. After two years in power, Abdullah has appealed to the public for patience in delivering reform. As long as the economy continues to grow healthily, the public will grant him that. Economic Situation 4. (C) In his early days, PM Abdullah made rural development and control of government spending, partly as a means to encourage private sector led growth, his top economic priorities. So far, only his reduction of the government's deficit -- now down to 3.8 percent of GDP -- can be chalked up as a clear success. Abdullah's partisans say that the Ninth Malaysia Plan (9MP; a five year plan for economic policy and development spending) will be the vehicle for advancing his other economic goals, but the 9MP, unveiled on March 31, contained little in the way of drama or new initiatives. Abdullah has emphasized the need for fast implementation of 9MP (a tacit acknowledgement of the perceptions weak follow through by his government) and created a new government agency to focus on the problem. 5. (C) Meanwhile cuts in government subsidies for gasoline and diesel fuel -- one of the tools used to rein in the deficit -- have proved highly unpopular, and raised concerns about inflation. Increases in prices of other government-managed commodities, such as electricity, may be in the works. For now, the economy is in reasonably good shape, with projected growth of around 5.0 percent in 2005 and official inflation of around 3.8 percent (although private analysts believe the real rate of price increases is much higher). However, the government may be facing a tough choice in the coming year between stimulating the economy to get back on a higher growth track, or raising interest rates to control inflation. Malaysia's International Posture 6. (C) Malaysia currently is the chair of the Non-Aligned Movement (NAM), the Organization of the Islamic Conference (OIC) and of ASEAN. Malaysia hosted the ASEAN Summit and the East Asia Summit last December, and will host the ASEAN Regional Forum ministerial this summer. Secretary of State Rice has told the ASEAN foreign ministers of her plans to attend the ARF meetings in July. Malaysia backs the six-party DPRK nuclear talks and supports Iraqi reconstruction efforts, but has been overeager to embrace Hamas and defend the Iranian nuclear program. The foreign ministry seems to be moving slowly away from some of Mahathir's anti-Western rhetoric and policies, but retains friendships with troublesome states like Cuba, Zimbabwe, Sudan, Syria and Uzbekistan. The Malaysian government is publicly supportive of China's "peaceful rise" and recently signed a defense cooperation MOU with China, despite lingering suspicions among senior Malaysian military officials of China's long-term intentions. Malaysia has actively supported peace efforts in the southern Philippines and Aceh in Indonesia. Counterterrorism 7. (C) Malaysia has generally been a reliable and constructive partner on counterterrorism. In 2003, Malaysia established the Southeast Asia Regional Center for Counterterrorism (SEARCCT), which now runs a full schedule of multilateral training courses, many conducted with U.S. support. Early round-ups in 2001 and 2002 of scores of Jemaah Islamiyah (JI) suspects crippled that organization's activities in Malaysia. Over 70 suspected terrorists remain in custody under the Internal Security Act (ISA), a "preventive" measure that has also been used to jail political opponents of the government in the past. To our knowledge, prosecutions and trials of the terrorist suspects are not planned. Drawing on their experience in defeating a communist insurgency, the Malaysians take a "rehabilitative" approach for some terrorists, keeping them under police supervision in "restricted residence." Several leading figures (such as JI financier Wan Min) have been released from ISA detention without warning. We remain concerned that surveillance of released terrorist suspects may be inadequate and their "rehabilitation" may be incomplete or insincere. JI, while weakened, still has the capability to strike here, and the Malaysians need to remain vigilant. 8. (C) While the Malaysian leadership firmly opposes terrorist organizations at home, it is deeply uncomfortable with any association of Islam with terrorism, and frequently lectures us on the need to eschew terms such as "Islamic terrorists" or "jihadists." Reflecting the broad support for the Palestinian cause among the majority here, the Malaysian government has no relations with Israel and often argues for the need to address the "root causes" of terrorism in the Middle East. In February, negotiators from the United States succeeded in reaching an agreement here on a text for a bilateral Mutual Legal Assistance Treaty (MLAT). We are hoping the treaty will be ready for signature in time for the Secretary of State's July visit. The treaty will be a good tool in fighting terrorism and other forms of transnational crime. Maritime Security 9. (C) In July 2005, the insurer Lloyd's of London designated the Strait of Malacca (SOM) as a "war-risk zone," raising premiums for shippers transiting these waters. This prompted a flurry of public cooperation among the littoral states -- Malaysia, Singapore and Indonesia, plus neighboring Thailand -- including conferences of foreign ministers and military chiefs. On September 13, 2005, the three littoral countries launched an "Eyes in the Sky" (EiS) program to conduct international aerial surveillance of the Strait. EiS currently comprises separate flights by Malaysia and Singapore (Indonesia has "temporarily" dropped out for operational capacity reasons), with crews that use binoculars to survey shipping traffic and make non-secure radio transmissions to shore and ship facilities of the three littoral states. Malaysia has also committed a single Beechcraft B-200 with infrared capability, to enable some night-time surveillance. Talks on establishing an EiS standard operating procedure continue, with a view towards reactivating Indonesian participation and bringing Thailand into the program. 10. (C) EiS represents an important symbolic step forward for the littoral states' cooperation on SOM security, but could be difficult to sustain without international support. DPM Najib has told the media on several occasions that Malaysia would welcome international involvement in Eyes in the Sky. Our working-level contacts remain vague, however, on what sort of American assistance might be accepted in this sovereignty-conscious region. Malaysia will host a meeting this summer sponsored by the International Maritime Organization (IMO) in which the littoral states are to identify and prioritize their needs for assistance in enhancing SOM security. On February 15-17, the USG hosted a meeting of key SOM user states at Coast Guard Island, Alameda, California, to discuss the possible range and scope of such assistance. 11. (C) Meanwhile, the Sulu Sea remains an under-monitored passageway for terrorist elements in transit between Indonesia and Mindanao. Terror groups have also carried out a number of kidnappings for ransom in the area. While the region has little value for international shipping compared to the Malacca Strait, it is tremendously important to the travel and fundraising operations of groups like JI and Abu Sayyaf. Together with Embassies Jakarta and Manila, we have focused on this region as a specific theater for building capacity and cooperation between the governments of Malaysia, Indonesia and the Philippines. Significant new resources, which we are in the process of identifying and prioritizing, will be required to make these efforts successful. New Coast Guard 12. (C) Malaysia's new coast guard began limited operations on November 30, 2005. The government's goal is to reduce overlap and turf battles among the 11 Malaysian agencies tasked with patrolling the country's seas and waterways. The coast guard, officially named the Malaysian Maritime Enforcement Agency (MMEA), will possess 72 vessels transferred from the navy, marine police, marine department, and fisheries department, and has recruited about 1,000 personnel from these and other existing agencies. The navy vessels will transfer with their crews intact. MMEA hopes to fill its 4,000 approved positions within a year. Mindanao Peace Talks, JI Presence 13. (C) Malaysia has facilitated peace talks between the Philippine government and the Moro Islamic Liberation Front (MILF), and the negotiations have had some success with the sticky issue of "ancestral domain." The talks are hosted by the Malaysian External Intelligence Organization, which in the past covertly supported separatist activities in Mindanao. JI presence at MILF training camps remains a concern, though the MILF has publicly disavowed any connection to JI. We continue to press the Malaysians to make clear to the MILF that it must sever its connections to JI and Abu Sayyaf. Southern Thailand Strains Relations 14. (C) Separatist violence in southern Thailand has killed over 1,000 people since January 2004, and attacks continue almost daily. The Malaysian government has repeatedly denied Thai accusations that it supports the separatist groups, though the people on both sides of the porous border share Malay ethnicity and the Muslim religion. Families and business interests straddle the border as well. In August 2005 Malaysia offered temporary refuge to 131 Thai citizens who said they were fleeing their government's crackdown in the south. The issue, which has also involved the UN refugee agency, rubbed raw nerves in Kuala Lumpur and Bangkok, as government officials abandoned the usual neighborly ASEAN rhetoric for sharp verbal attacks on each other. The rhetoric toned down somewhat after the Malaysians returned one of the 131 asylum seekers, who was wanted on criminal charges in Thailand. Slow Progress on Non-proliferation and PSI ... 15. (C) In 2003, a private Malaysian company (partly owned by PM Abdullah's son) was found to have manufactured and shipped nuclear centrifuge parts to Libya. The company pleaded ignorance, but the case underscored the need for Malaysia to adopt effective export controls. The government is moving ahead with plans to adopt such controls, including the conclusion of an Additional Protocol (AP) with the International Atomic Energy Agency (IAEA) on November 22, 2005. The AP provides a sound policy framework for the implementation of nuclear-related export controls. 16. (C) We continue to urge Malaysia to participate in Proliferation Security Initiative (PSI) meetings and exercises. Malaysia sent two observers in August 2005 to a PSI exercise in Singapore, and three observers in April 2006 to a PSI exercise in Australia. The government has said it supports PSI "in principle," and that it would take part in PSI operations on a case-by-case basis. We have been told that the government is considering an endorsement of the PSI Statement of Interdiction Principles, which would allow full participation in PSI events. However, elements within the foreign ministry remain adamantly opposed, perceiving that the PSI is targeted against "friends" of Malaysia, like Iran, Pakistan and China. 17. (C) As the chair of the Non-Aligned Movement (NAM), Malaysia has been too supportive of Iranian claims that its nuclear program is a peaceful one. More recently, the GOM has moved somewhat away from behavior that bordered on "coaching" the Iranians. The EU-3 made considerable efforts to get Malaysia to exert a restraining influence on Iran. While it appears the Malaysians have privately counseled Iran to exercise restraint, it does not seem these words had much influence on the Iranians. Malaysia failed to condemn Ahmadinejad's threat to "wipe Israel off the map" and gave President Ahmedinejad a red carpet welcome in Kuala Lumpur as the IAEA was referring his repeated violations to the United Nations Security Council. ... But No Progress on Article 98 18. (C) Malaysia has steadfastly rebuffed our efforts to conclude an Article 98 agreement, citing unspecified "policy reasons." Though Malaysia is "studying" the Rome Treaty that created the International Criminal Court (ICC), we believe they are unlikely to sign the treaty because of their own concerns over sovereignty. The Malaysians have told us that since they are not party to the Rome Treaty, they see little reason to conclude an Article 98 agreement with us. LAFLEUR
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| See what playing golf with Najib can do for you Posted: 06 Jul 2011 06:53 PM PDT
Tan Kay Hock is the chairman of Johan Holdings Berhad and George Kent (M) Berhad. Tan Kay Hock, who is Prime Minister Najib Tun Razak's golfing buddy, is also a member of the Iskandar Regional Development Authority (IRDA). He owns 49.59% of George Kent. Malayan United Industries Berhad, controlled by Khoo Kay Peng, owns a 9.3% stake in George Kent and 7% of Johan Holdings.
THE CORRIDORS OF POWER Raja Petra Kamarudin
From left: Tan Sri Tan Kay Hock, George Kent managing director Lee Pui Leng, senior manager of finance Choong Wye Lin and director Datuk Zaidan Othman George Kent Confident of Bid for Ampang-Line LRT Extension Project (Malaysian Digest) - George Kent (M) Berhad, an engineering group, is confident of winning the Ampang-Line Light Railway Transit (LRT)'s extension mega infrastructure project worth RM1.5 billion. The chances of getting the project is very good, its Chairman, Tan Sri Tan Kay Hock told reporters after the company's annual general meeting here today. He said the company's bid for the project was strengthened by George Kent's previous experience of handling government contracts and its achievements. "We are about to hand over the RM97.75 million Kuala Lipis Hospital in Pahang (Najib's home state) to the Ministry of Health, and I guess this is one of the very few hospitals delivered on time." "George Kent only tenders for projects that we think we can do, thus, we don't see any negative points for not winning the tender," he said. Prasarana Bhd is expected to announce the winner of the Ampang LRT extension project by September this year. Tan also said the company, which also produces water meters and the casing for the meters, has embarked on a RM50 million plan to upgrade its manufacturing facilities in Puchong, Selangor to accommodate higher sales in the meter and Original Equipment Manufacturing businesses. He said the present plant was already producing at a maximum capacity. With the expansion, George Kent aims to double its production capacity to two million completed meters and two million pieces of non-meter brass parts per annum. George Kent's pre-tax profit for the first quarter ended Apr 30, 2011 jumped to RM4.8 million from RM3.9 million in the same quarter last year. Its revenue, however, slipped to RM30.7 million from RM32.5 million previously. Tan said the demand for meters from Hong Kong, Macau, Middle East, Puerto Rico and Colombia remained strong. "The company has also penetrated Vietnam and Laos, where we expect good returns," he said, adding that the company expects to sustain its growth as the year progresses. |
| Malaysia Today’s 40% truth and 60% lies Posted: 05 Jul 2011 04:43 PM PDT
The Inquiry into the death of Customs officer Ahmad Sarbaini Mohamed has just kicked off and already there are revelations of 'unexplained mysteries'. Last month, Malaysia Today ran a four-part series on the matter but we stopped at part 4 and said that part 5 will only be published if they try to whitewash the Inquiry and sweep everything under the carpet. That time has not come yet but in the meantime let me refresh you on the matter. THE CORRIDORS OF POWER Raja Petra Kamarudin
This is where we stopped in the final series (part 4) of Ahmad Sarbani's death: the lies and deceptions by the MACC: They need to nail Ahmad Sarbani real bad and they will go to great lengths in achieving this. And note that these are Muslims who pray five times a day, fast during the month of Ramadhan and go to Mekah, mind you! Yet they would not hesitate to do a deed most foul -- framing a dead man. But the Police and Customs officers are fighting back. They are not going to allow the MACC to frame Ahmad Sarbani. They want the world to know he is clean and that he did not commit suicide. And they want us to know how the MACC is tying to suggest otherwise. And to do that they have enlisted the help of Malaysia Today. In the next part, part 5, we will disclose who killed Ahmad Sarbani -- but only if we need to. We will hold back part 5 pending the official statement by the government as to how Ahmad Sarbani died. Since the AG has announced that there will be an Inquest, let us give the Police an opportunity to reveal the real evidence at this Inquest and let us hope that they get it right this time. If the MACC, AG Gani Patail and the Police repeat what they did in trying to cover up Teoh Beng Hock's death, then Malaysia Today will reveal the full investigation report on who killed Ahmad Sarbani. And if they want to call our bluff and play poker, thinking that we will not do it, then they do not know Malaysia Today well enough yet. We just love challenges and will rise to any challenge. So don't force us to do this. But we will if we have to just to clear the name of an innocent dead man who did not commit suicide but was murdered. So, till next time, part 5, if circumstances force us to come out with a part 5, take care and keep the fight for change going. You can read the full thing in the ADDENDUM links below (parts 1 to 4). Now read this: Ahmad Sarbaini's death: CCTV recordings tampered with, court hears (http://www.malaysia-today.net/mtcolumns/newscommentaries/41729-ahmad-sarbainis-death-cctv-recordings-tampered-with-court-hears) The CCTV recordings at the Malaysian Anti-Corruption Commission (MACC) building had been tampered with around the time of Ahmad Sarbaini Mohamed's death, the Coroner's court was told Wednesday. Audio-video analyst ASP Fauziah Che Mat, who is with the police forensic lab in Cheras, told the court that she believed that the "CCTV recordings had been tampered with by someone who was skilled". In her analysis of three hard drives taken from the MACC building, two containing recordings of inside the building had two interruptions, one of which was a 22-hour gap. ADDENDUM Ahmad Sarbani's death: the lies and deceptions by the MACC (part 1) Ahmad Sarbani's death: the lies and deceptions by the MACC (part 2) Ahmad Sarbani's death: the lies and deceptions by the MACC (part 3) Ahmad Sarbani's death: the lies and deceptions by the MACC (part 4) |
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