Free Media and Democracy Crucial to Fight Corruption

Former Malaysian deputy prime minister Anwar Ibrahim praised Tuesday the progress of the anticorruption drive in Indonesia, while criticizing similar moves in his country.

Speaking to local journalists on the sidelines of a conference held by the Habibie Center and the London-based think tank AccountAbility, Anwar said that in spite of the middling results of the anticorruption drive, Indonesian leaders had at least shown their commitment to fighting graft.

He also said that nurturing democracy and promoting free media had positively affected the anti-graft campaign.

“Openness in a democracy makes possible the exposure of corruption cases by the media, something that is not happening in Malaysia now,” said Anwar, who is also the honorary president of AccountAbility, adding that such media freedom was not readily available in Malaysia.

Anwar spent six years in prison on sodomy and corruption charges, which were regarded as false by many and triggered widespread protests. In 2005, an appeals court reversed the sodomy conviction and he was released. He recently announced his intention to run for Malaysian prime minister in the 2008 elections.

He said that it took five years for the Malaysian media to uncover a multimillion-dollar corruption scandal that involved a well-connected political analyst.

“The scandal was exposed after five years and it was first covered up as a murder case,” Anwar said, referring to the grisly murder of Mongolian model Altantuya Shariibuu. The case later led to the revelation of the role of her alleged murderer, political commentator Abdul Razak Baginda, in securing a deal with a European submarine manufacturer.

Baginda is said to have received US$100 million as commission in the deal.

“The scandal was exposed only after five years and the government later said that the commission was legal. It just made me sick,” said Anwar.

Anwar also used the press conference to attack his former mentor Mahathir Muhammad, whom he accused of committing corruption.

He said that at the height of the Asian financial crisis, Mahathir “spun a tale” about American financial speculator George Soros being the mastermind behind the breakdown, while in fact the former prime minister was only trying to hide his own corrupt practices.

“But recently we learnt that Mahathir has said that Soros was not responsible for the crisis, something that I have believed for so long,” he said.


Will Currency Speculators Attack Malaysia Next?

The Malaysian ringgit hit its highest level against the dollar in nearly nine years today, Friday 22-Dec-2006, helped by this week's turmoil in Thai markets that has led some investors to switch funds to other Asian countries, according to dealers in Singapore.

According to Reuters data, the ringgit (MYR) rose as far as 3.5280 per dollar, a level last seen around March 1998. Malaysia ended the ringgit's peg to the U.S. currency in July 2005 under current Badawi administration who took over from Mahathir.

Despite rising in recent weeks, second Finance Minister Nor Mohamed Yakcop maintained that the authorities were not worried it was too strong against the dollar. I hope this minister knows and serious about what he said because according to dealers the currency was likely to head higher towards 3.5 per dollar in coming weeks.

Nor also said the Malaysian government has no intention to allow the ringgit to be traded offshore.

``There's no plan to internationalize the ringgit,'' he said. ``We are a small country. Why should we internationalize the ringgit like the euro.''


Ringgit May Appreciate To RM3.50 Against US Dollar
(By Christine Lim- Bernama)

The ringgit is forecast to appreciate to RM3.50 against the US dollar by end 2007, primarily driven by stronger yuan and the movement of the yen, economists said.

According to latest news reports, the yen has been staying weak, however, the overall bearish dollar on concerns over the slowing US economy could lift the yen in the long term.

TA Securities economist, Wong Lai Yee, said that the appreciation of the ringgit was due to the strengthening of Asian currencies mainly the yuan, coupled with Malaysia's strong economic fundamentals and heightened portfolio inflow into the country.

"The narrowing interest rate gap will also help to propel the appreciation of the local currency," Wong said, referring to TA Securities' expectation of a 25 basis points cut in US interest rates to five percent by first half of 2006, with no change in the domestic overnight policy rate of 3.5 per cent.

"With this, we expect the ringgit to touch RM3.50 against the dollar by end 2007," she told Bernama in an interview recently.

Alliance Banking Group's group chief executive officer Bridget Lai attributed the weak US dollar to the ringgit's strong performance this year.

"The greenback has been depreciating since mid-October as the US deficit continues to exert downward pressure on the currency.

"The US trade deficit hits an all-time high of US$69 billion in August while net foreign holdings of foreign investors slipped down to US$54 billion in September," she said.

The ringgit had risen to 3.54 against the US dollar on Dec 20, 2006 compared with 3.78 on Jan 3, 2006. It had risen to an eight-year high of 3.5460 on Dec 6.

Lai said the key risk to the ringgit upward movement to 3.50 against the US dollar next year could be regulatory authorities intervening in the market to prevent a too rapid escalation of the local currency which might erode the competitiveness of Malaysia's exports.

Malaysia, she said, needed a stable and not a strong ringgit as international investors, in particular, are concerned when there was a volatile movement in the currency.

"We believe the stability of the ringgit will contribute towards promoting the country's position as a hub in the financial industry with a niche in the Islamic segment," she said.

On inflation, Lai said it was likely to ease to 3.1 per cent in 2007 from an average 3.7 per cent this year.

"As the 'cost' pressure has yet to subside, we may see another round of price revision in price-controlled items, although we are more confident that fuel prices will not undergo another price hike similar to the one in February this year," she said.

Wong of TA Securities said that on expectation of no hike in petrol prices and stabilisation of global crude oil prices within the US$60-65 per barrel, a lower inflation rate of 2.6 per cent was expected.

As for the outlook of the interest rates next year, she said no changes in the rates are likely with the overnight policy rate remaining at 3.50 per cent.

"Local interest rates have peaked. We believe Bank Negara Malaysia (BNM) will maintain a stable interest rates in 2007. Even if the US lowers its interest rates in 2007, history has shown that BNM has always lagged behind the curve by an average six months," Lai added.

Don’t Blame Thailand for This Mess
(AsiaSentinel.com)

Asia’s central bankers are having to deal with the consequences of global financial imbalances at the hands of the US, China and Japan

Although the Thai government spectacularly botched its effort to rein in the baht over the last two days, the fact that the government felt obliged to try to halt the currency’s appreciation says more about financial global imbalances than about Thailand and its military-appointed government.

Just as the 1997 Asia financial crisis was kicked off by a falling baht that led to the unraveling of foreign-debt-driven Asian economies, this year’s baht crisis could be the precursor of dramatic currency market turmoil throughout Asia as the consequences of the global dollar surfeit and grossly misaligned exchange rates hit home.

To find the real culprits for Thailand’s problems, which are not unique, it is necessary to look no further than the United States, which appears to assume that it can go on dumping dollars on the rest of the world. Then glance over at China and Japan, which both refuse to allow the major currency adjustments that economic fundamentals demand.

As a result, the pressure for currency realignment in Asia is falling most heavily on the small and medium-sized economies that have sought to do the right thing and not impose currency controls. Thailand is one of those, having seen the baht rise 20 percent against the US dollar in two years and 7 percent in three months. Korea is another, with a rise of nearly 30 percent against the dollar in three years. Calls for measures to halt currency appreciation have also been growing louder.

Instead of currency coordination around Asia, the region is witnessing widening gaps. On the one hand are the currencies of Thailand, Korea, Singapore, Philippines and Indonesia, which have all appreciated significantly over the past year or more. Others have had none (the yen) or very little – 5.5 percent in the case of China and 6 percent for Malaysia, while the Taiwan dollar is actually 1 percent lower than two years ago.

This makes no sense at all given the interdependence of the region’s export economies and the fact that every one of them has a large current-account surplus and in most cases vastly excessive foreign exchange reserves accumulated in the effort to keep currencies cheap.

Thailand has experienced a steep rise in its currency despite the relatively modest size of its current-account surplus because it has an open market and attractive interest rates. Ditto Korea. The stock answer from the world’s leading speculator banks, such as Goldman Sachs, is that countries should cut interest rates. In other words they should abandon sound money policies and anti-inflation measures and join the US/China push for cheap money to further inflate asset prices and keep Wall Street in the money-printing business.

The controls were not Thailand’s mistake but the fact they were do poorly, applying restrictions to all financial capital flows, not just flows into risk-free bonds and bank accounts. (Indeed, in the first instance Asia Sentinel was told that the controls only applied to the latter, not to equity investments).

This stupidity is surprising. The current finance minister was the central bank governor under deposed Prime Minister Thaksin Shinawatra and had a reputation both for caution and belief in the benefits of open markets.

Though Thailand has been forced into a partial backtracking to rescue its stock market, the episode will likely leave its mark on other countries. The likes of Malaysia and Taiwan are now even less likely to remove currency controls, whether formal or informal. This will further slow the process of exchange rate adjustment unless China is willing to drastically speed up yuan appreciation and Japan to raise interest rates to the point where the carry trade merchants are forced to cover themselves, hopefully enduring mega losses as the yen powers to100 or less to the dollar.

The yen is now at an all time low against the euro and has fallen more than 25 percent against the won over the past two years. No wonder the Koreans are unhappy. Won appreciation has not done them much damage in the US or European markets, but it certainly does not help them compete against rivals from Japan, Taiwan and China.

Likewise, Southeast Asia in general was already suffering from the gravitational pull of manufacturing investment towards China. Being in receipt of financial capital which has driven the region’s currencies is seen to have further reduced their competitive edge.

Fears of over-rapid appreciation can be overdone. New Zealand and Australia have for years lived with very volatile currencies without seeming to suffer. However, the Asian region, still scarred from the 1997 crisis, is naturally wary of the disruptive effect that fast inflows and outflows can have.

Asian governments should be wary of a world made to suit Wall Street investment bank cowboys with their multi million dollar pay packets and ever more highly leveraged positions. If you want to know why the financial world is on a precipice don’t look at Thailand’s troubles but consider instead the mega bonuses being paid out by Wall Street this year. US Treasury Secretary Henry Paulson’s old firm, Goldman Sachs, alone made a net profit of US$9.5 billion after paying an average bonus of $622,000 per employee and $54 million to the boss who succeeded Paulson only five months ago – a total of US$26 billion in remuneration. No wonder the world wants baht, not greenbacks.


Malaysai AAB Bank Negara Ringgit

Malaysia ' boleh ' !! clogged capital mulls traffic fees

Kuala Lumpur is mulling peak hour traffic fees and lanes reserved for shared cars to ease the jams which choke the city's roads, a report has said.

Kuala Lumpur's newly-appointed mayor, Abdul Hakim Borhan, said greater use of public transport would ease the congestion, which sees daily bumper-to-bumper peak hour traffic.

"We need to take effective measures before KL traffic worsens," Abdul Hakim, who started work Monday, was quoted as saying in the New Straits Times.

Besides introducing a fee on drivers in the city, Abdul Hakim said he was also considering of car pool lanes, which would allow vehicles with two or more drivers to escape the congestion fees.

"At present, most cars have one driver entering the city at peak hours. This creates congestion," said the mayor.

Peak hours are between 7.00am and 9.00am, and 5.00pm and 7.00pm on weekdays, when workers flood in and out of Kuala Lumpur, which has a concentration of offices at its centre.

Abdul Hakim said public transport into the city was already available and could be enhanced, the newspaper reported.

"We might need to adjust and improve the public transport system further," he said.

Cities which have introduced peak hour fees to reduce traffic include Singapore and London.


Our PM AAB has a better option to improve traffic dispersal systems and reduce the number of vehicles plying city roads - use river or sea instead !!

According to Rocky's Bru :

"Malaysian Prime Minister, Abdullah Ahmed Badawi arrived in Bodrum yesterday to see his boat which he ordered four months ago"

Badawi arrived in Bodrum at 1.30 am with a private jet that belongs to Malaysia Airlines.
The head official of Milas, Bahattin Atci, and Malaysian businessman Ananda Krishnan, who is the sixth richest man in Asia, welcomed Badawi. Kamil Sezgun, who is the director of Kobra Yachting and Tourism Ltd Co, was also present.
Badawi and his friend Krishan went to Gokova for fishing with a luxury motor yacht belonging to Kremala Holding, which was brought over here from Malta. The luxury yacht "Obsessions" is 40-meter long, made in the Netherlands and the captain of the yacht is Cavit Kabak. The yacht was anchored in Milta Marina.
Badawi said he loves Bodrum and south Aegean and the Mediterranean so much. It's a great pleasure for him to be here fishing and resting on the line (horizon) that connects blue and green (ocean and land).

The boat will cost 8 million !!! dollars

The boat is made of Akaju, Maun, Sipo and Brimanya's tree which is imported from South Africa. It is expected to be completed in 16 months. Some 60 people are involved in the construction of the boat. The boat will be delivered after 12 months (since he ordered it four months ago). The capacity of the boat is for 14 people and the length is 44 meters. The boat will cost 8 million US dollars.

By the way, who is paying for it?

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SUSAN LOONE's blog about the fishy Mongolian Murder Mystery.

There are several issues which strike me about the recent Dec 14 case, but after reading all news pertaining to it, my take is slightly different from the countless of comments and speculation flying around town(.News here and here.)

1. The prosecutor in the sensational murder case of a Mongolian model here has asked a High Court judge for an early trial date to quell rumours that persons other than the three accused men were involved (The Straits Times, Dec 14).

The DPP had said this after court was adjourned, but he wanted to make sure it is being reported as well, so he made sure he repeated the matter out of court. But why?

Why is the DPP concern about this when it is NOT his turf? This is the Court’s concern, and naturally, the defense lawyer’s worry. But if you think the DPP thinks like the defense lawyer and wants to protect the accused, then think again.

In insisting that he made himself clear - by repeating twice what he said, don’t you think he is insisting, without even a trial, that the ones accused, or whoever they represent, work for, or received instruction from,is GUILTY as charged?

2. They sat next to each other in the dock, with scant acknowledgement of each other.

It seem they do not know each other. Is it possible that one is a scapegoat, and the others follow someone’s instruction? But whose scapegoat, and whose instruction was followed?

3. The lawyer for Mr. Shariibuu, Mr Bayar Budragchaa, told reporters that besides wanting justice to be served, the priority of the victim’s family was to recover Ms Shaariibuu’s bone fragments which were still in the possession of the police. Prosecutor Salehuddin told the court yesterday the police needed to keep the remains for at least another week.

Why are they still keeping her bones?

If the DNA results were correct or reliable or enough, isn’t it time for the remains to return to the family’s side? Unless, if falling into the families hands, or if another test were to be done, different results would be proven? Wouldn’t this be something that would absolve the accused(s), or whoever they represent,of the charges against them?

Isn’t it only right that the police return the remains, Altantuya’s bones to her family in one week’s time as promised? Else, can we suggest that her family take action against the police?

4. Think beyond the box

I guess we should think beyond the box. Often in a politically charged and controversial case, what you see is not what it seems.

Think of another high political controversial case - Anwar. Compare the differences and the similarities. You will see the light at the end of the tunnel.

Think about how at the end of the day, none of the accused were guilty. They were all scapegoats.

Think about how at the end of the day, who’s reputations and whose position went down the drain, and who remained at the top, despite all his weaknesses.

And never lose sight of the C4 explosives, how easily they were used, how easily evidence was left behind, how easily it made us suspect, who the killer was. How easily it led us all and sundry to think that the accused(s) and the one they represent are as guilty as charged.


malaysia Abdullah A Badawi yacht clogged capital Mongolian model's case

The Lesson For Malaysia

Malaysia's ex-deputy premier Anwar Ibrahim on Sunday said debates over Islam's role in the nation had become divisive and "worrying", in statements marking his full-time return to politics here.

The comments from Anwar, who also said he will contest the next elections, come amidst growing tensions between Malaysia's majority Muslim Malays and minority Chinese and Indians.

"The worrying thing is the Muslims feel their position and their power, including the religious courts, are being eroded," Anwar told reporters on the sidelines of a forum of Muslim scholars and activists.

"The non-Muslims feel that they are being marginalised and discriminated against," he said.

Malaysia is seen as a moderate Muslim-majority nation, but race relations have been strained by a series of controversial court cases involving the rights of Muslims and non-Muslims, and questions over which group takes precedence.

The government has banned activists from discussing religious rights and called on the media to stop highlighting race-related issues.

"We have come to the stage where it is considered to be unhealthy," Anwar said, asked about debates on the perceived Islamisation of Malaysia.

"The position by the prime minister and the government to deny the rights of non-Muslims ... or deny an open public discourse on the subjects ... have exacerbated the entire problem," he said.

Anwar, 59, has criss-crossed between Malaysia and overseas destinations since his release from prison in 2004 on sodomy and corruption charges, including the United States, where he was a professor with Georgetown University.

But Anwar, who returned permanently to Malaysia earlier this month, said he had finished his tenure and announced his full-time return to politics here.

Asked if he will contest elections to be a member of parliament in late 2008, he replied: "Of course. It's my right, which they used the courts to deny."

"The recent spat between former Malaysian Prime Minister Mahathir Mohamad and his successor, Abdullah Ahmad Badawi, is farcical to say the least. Dr. Mahathir has been whining like a wounded lion as he sees some of his policies reversed. But the irony is that Mr. Abdullah’s actions have so far been too weak and indecisive to constitute any serious challenge to his predecessor’s legacy......" read : Opinion: Malaysian Mudslinging - Anwar Ibrahim


The Amazing "Race" - Revisiting the 2006 UMNO General Assembly
(Shamsul Amri Baharuddin)

It was in mid-2006 when Mahathir fired his first salvo against Abdullah Badawi and his government, gaining front-page prominence in the widely circulating Malaysian daily, the New Straits Times. Since the paper is UMNO-controlled, Abdullah Badawi must have been aware of these criticisms and perhaps even gave the green-light for them to be published, in line with his "open-government" philosophy.

What shocked many within and without UMNO were not Mahathir's criticisms per se, but the vitriol and vehemence that accompanied them. Many ministers and the Barisan Nasional leaders responded by rallying around Abdullah.

Mahathir's unhappiness stemmed from the abandonment of the crooked bridge project, the future fate of the national car company that he inspired, Proton, of corruption in high places among UMNO members, but especially within Abdullah's family and over the general nature of affairs in Malaysia, which he described as a "police state".

With the UMNO General Assembly approaching and no indication that the Mahathir-Abdullah crisis would be resolved, Malaysia was bracing itself for open confrontation during the Assembly after Mahathir announced that he was attending too. Only a mild heart attack prevented him from doing so. Pleas from close friends and family to consider his national legacy against a concerted anti-Abdullah campaign also seem to have borne fruit, despite the ex-premier making it clear that his struggle would go on.

Abdullah dominated the stage at the UMNO General Assembly with his opening and closing speeches. For once, everyone present felt that he sounded authoritative and convincing. The Kuala Lumpur Stock Exchange also shared this new confidence, breaching the 1,000 mark for the first time since Abdullah became Prime Minister.

However, the overall mood and tenor of the debate during the General Assembly was decidedly negative, prompting a largely pessimistic reaction from the non-Malays, who opined the assembly was marked by too much chauvinistic drama epitomised by the image of the Malay dagger, or kris, and threats from some UMNO members to "run amok", if the social contract that has held Malaysia together since 1969 was fundamentally altered.

For the first time in Malaysia's history, the General Assembly was telecast live on ASTRO, the Malaysian cable channel, and UMNO TV on the web. Selected speeches were also telecast live on TV3, RTM1, NTV7, and TV9. It was estimated that around six million viewers watched this UMNO "reality show", including a large number of non-Malays.

Most UMNO representatives did not realise they were being watched by millions. The assembly proceeded as usual, complete with philosophical speeches, pantuns and dirty jokes. Hishammudin, the UMNO Youth leader, yet again, did not forget to bring his kris along and kissed it in public - prompting some commentators to ask when he planned to use it. The assembly was also peppered with chauvinistic comments and gender slurs, while some raised totally petty and irrelevant personal matters, such as the "unIslamic dress" of one minister's wife.

The overall impact of the assembly was not really understood until the final day of the meeting, when Abdullah Badawi, in his summing-up speech, told the UMNO delegates that their speeches and behaviour during the meeting were closely watched and scrutinised by the Malaysian public - both Malay and non-Malay.

It was quite clear when Abdullah spoke that he had received reports that there were negative reactions to some chauvinistic speeches and Hishamuddin's kris-waving histrionics. The Prime Minister then spent about 30 minutes trying to pacify the Malaysian non-Malay public, stressing that UMNO leaders were both leaders of the ruling coalition, Barisan Nasional and all Malaysians. This effort was only partially successful it seems.

The first reaction emanated from the leaders of the Barisan Nasional constituent parties. They were clearly unhappy with what was said about them during the assembly and responded by publicly charging UMNO leaders of creating unnecessary ethnic tension in the country.

Then came an avalanche of public responses from different community leaders as well from the NGOs. Again, UMNO leaders were brunt of their attacks.

Suddenly, UMNO was under siege. Rather than raise a spirited defence of the party, to the surprise of many within the party, senior UMNO politicians warned some of the delegates who spoke during the general assembly that they could be charged in court under the Sedition Act of 1970 for making chauvinistic and ethnically-sensitive "public" speeches. "Public" simply because the General Assembly was telecast live. Needless to say, the 2006 General Assembly will probably be the first and last as far as live broadcast is concerned.

UMNO General Assemblies in the coming years are likely to take on a similar form if the assemblies of 2005 and 2006 are anything to go by. Abdullah, UMNO and their Barisan Nasional colleagues continue to be boxed in by the New Economic Policy (NEP) discourse, a debate that so far has not addressed a more basic issue that pertains to the Federal Constitution, in particular to Article 8 "on Equality" which "allows for 'special privileges' to the 'minority' (disabled, etc.), principally, as an exception" and Article 153 "on Special Privileges of the Natives".

Article 153 allows for "special privileges" for the majority, based on the historical agreement that it is a pre-condition to equality. This is supposed to help bumiputeras achieve economic parity with non-Malays. However, unlike in the NEP of 1970, no quantitative targets and no timetables were set in the 1957 Constitution.

Unless the Malaysian social contract, and by extension the constitution is "renegotiated" and Article 153 is made much clearer in terms of its objectives, quantitative targets and fixed time schedules, the New Economic Policy will be repackaged again and again, eventually living up to its more popular abbreviation, the Never Ending Policy. Only UMNO has the real power required to effect this renegotiation - until such a time, politics in Malaysia will simply be a rehash of issues previously raised.

Ultimately, UMNO has to rise above it all and consider what is good for Malaysia and UMNO, rather than just UMNO alone.

A B Shamsul is Director of the Institute of the Malay World and Civilisation (ATMA) and Professor at University Kebangsaan Malaysia (UKM) in Bangi, Malaysia.

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The Lesson For Malaysia
M. Bakri Musa

The office of the President of the United States is the most powerful. The power, prestige, and influence wielded by its occupant are unmatched. Yet there was the remarkable event recently of a bipartisan committee of ten distinguished Americans publicly telling their President in no uncertain terms that his policy in Iraq was fatally flawed.

To me, this again demonstrates the beauty and genius of the American system. It is remarkable that rest of the world (except for Iraq, of course) does not appreciate the significance of this singular event. While Malaysian media covered in some details the recent American midterm elections, they hardly had a word on the Iraq Study Group and its Report.

Yet there is an important lesson or two here for Malaysia. One, even the most powerful leader can be subjected to scrutiny by the citizens at any time, not just at elections. Two, such criticisms even during times of war do not in any way undermine the power or prestige of that office. No American, not even the President who is the prime target of the criticism, is accusing the committee of undermining the war efforts in Iraq by their criticisms. Nor Bush did question the loyalty of the committee members or his other critics.

In mark contrast, there was Prime Minister Abdullah Badawi in his usual self-righteousness manner accusing those who criticized him as engaging in fitnah. This is an especially sinister exercise as that derogatory term is replete with profound religious implications. It is particularly offensive coming as it was from a self-professed “religious scholar” and “ulama.”

There was another remarkable aspect to the Iraq Study Group. It presented its report directly to President Bush in a face-to-face meeting on December 6, 2006 at 7AM. Rest assured that everyone was wide eyed and awake, especially the President, at that early morning meeting. Please take note of this, Mr. Prime Minister!

Before submitting its unanimous report, the Group had earlier “interviewed” (grilled is the more accurate word) the President and senior members of his team. The Group released its full report to the public on the day it was presented to the President. There was no hiding behind concerns on “national security” or “sensitive issue.”

The Relevant Lessons

Like many, I feel strongly that Malaysia is headed in the wrong direction. Our society is increasingly fragmented along racial, religious, and regional lines while our institutions are losing their integrity and effectiveness through the twin blights of corruption and incompetence.

Malaysians increasingly view themselves as “us” versus “them.” The “us” could be Malays and the “them,” non-Malays. For Malays, the “us” could be those who subscribe to the “pure” form of Islam, and the “them,” the misled. For the Chinese, the “us” could be those who have adapted to the Malaysian reality and proudly display their Tan Sris and Datuks, while the “them” are those who feel that the very survival of the great Chinese culture and language rests on their shoulders. For the Indians, the “us” could be those who have forsaken their “anak lelaki” or “anak perempuan” of their birth certificates for a “bin” or “binte” respectively, acquire an affected Kedah accent, and voila, suddenly become ardent defenders of Malay special privileges! The “them” are the rest.

Our national schools no longer attract a significant portion of our citizens, and our universities have failed to provide the necessary skilled manpower. Thousands of our graduates are unemployed, or more correctly, unemployable.

Economically, Malaysia no longer attracts foreign investments. Investors, local and foreign, perceive the nation as being increasingly corrupt. The recent demands by civil servants for a 40 percent pay hike reflect the increasing cost and declining standard of living.

Instead of being the engine that would propel our progress, the civil service is a major impediment. The only difference between lawbreakers and law enforcers is that the latter is on the government payroll. Otherwise they both extort and terrorize the public. As these public institutions are essentially Malay, they also bring shame and dishonor to our race.

Those are the realities, but we would not know that from the official pronouncements. That is to be expected; those in power do not willingly expose their mistakes and inadequacies.

The Surprising Elegant Silence of Many

What is surprising is the “elegant silence” of others. As I look at the roster of distinguished Malaysians now retired from academia, the professions, and public service, I am humbled by their integrity, intelligence, and contributions. I wonder how they feel seeing their fine legacies now being dismantled, and in many cases defiled.

Their silence is puzzling. If they feel that the nation is headed in the right direction and their legacies in good hands, they should voice their support. That would encourage the leaders to do more of the same. If they disagree, then they owe it to their fellow citizens to voice those concerns.

The only luminary who has spoken out is Tun Mahathir. The way the establishment has been treating him reveals volumes of its rigid “group think” and insular mindset. That Mahathir was defeated as a party delegate from his old constituency was a humiliation not for him but for those party members. If pearls had been cast unto them, they would have paved them onto their driveway of their palatial mansions, unable to discern those pearls from pebbles.

Regardless of the ultimate consequence of his criticisms, Mahathir has already made a seminal contribution. He effectively shattered the Malaysian taboo of criticizing the leaders. That can only be good for the nation. I am on record as being one of Mahathir’s severest critics even at the height of his popularity, but I salute him for this singular contribution. It is even more significant that he made it after he retired. For many, retirement means no longer contributing.

Loyalty means loyalty to the rule of law and to our institutions, not to individuals, no matter how high a position they occupy. Those ten distinguished Americans of the Iraq Study Group epitomize this fine tradition. Its Report is widely discussed and President Bush has already taking steps to respond on those recommendations.

The chief architect of the flawed Iraq policy has already resigned. We may disagree with Secretary Rumsfeld’s policies but there is no denying his personal integrity in resigning and taking responsibility. Contrast that to the behaviors of his Malaysian counterparts. Rafidah Aziz is still holding tight despite the Approved Permits scandal; like wise Sammy Vellu with the Highway Bypass collapse, and Syed Hamid over the imbroglio of the crooked bridge.

I look forward to similar contributions from our own corp of distinguished retired Malaysians along the lines of the Iraq Study Group. I am of course counting on the few who are not consumed with indulging their grandchildren, idling their time on the golf courses, or regaling their fellow mosque attendees.

M Bakri Misa : 'The original version was posted on Malaysia-Today.net on December 17, 2006. I have expanded on that piece'.


Malaysia Abdillah A Badawi Anwar Islam Bangsa Malaysia UMNO

The old man and AAB

Prime Minister, Datuk Seri Abdullah Ahmad Badawi’s interview with Bangkok Post.

Interview with Malaysian PM: "Surayud govt 'more diplomatic'and on right track, but 'will take time' for change to be embraced"

On peace, tolerance and development

Thailand has a new interim government and they have changed their policy regarding the three southernmost provinces. How do you view these changes, with regard to the future of resolving the violence?

I think the policy of the current prime minister is more diplomatic. He likes to engage the people. He likes to talk to them, to listen to their problems. And, of course, he will offer his ideas of what he thinks _ of what they should do and how they should behave as Thai citizens. I think that is good.

But it appears that although he has made this approach; that the government is more conciliatory and is prepared to discuss solutions, yet the violence and the killings continue.

I think that it will take a little bit more [time] for the people to understand him. It is not easy that after a fairly long period of time, and there was so much distrust and suspicion between these people and the Thai leaders, it is not easy to get them to suddenly embrace a new leader. I think they need to be assured of his feelings, [about] his attitude and his approach, to be more comfortable and acceptable. I am making these observations based on my conversation with him.


Recently there was a report by Al-Jazeera, quoting a rebel leader that the al-Qaeda's regional terror network, the Jemaah Islamiyah (JI), has infiltrated southern Thailand and that there is now a younger generation of insurgents who are willing to compromise, who are really behind the violence. What is Malaysia's take on the situation. Is JI involved in the southern unrest?

Let me put it this way. There may be people who are influenced by JI, their philosophy and their agenda. There are people who are inclined to believe in that sort of thing. We have to act very fast because we know once that happens... as in our case. We must engage them, we must talk to these people: 'What is wrong with us that you must adopt somebody else's agenda, to pursue something you want to have in the future?' That's not right, so we have to talk.


From Malaysia's point of view, do you see a potential change of tactic (from what is happening now) to one of targetting Thai tourism destinations, suicide bombings or targetting western establishments?

We are concerned about what happens in southern Thailand. It is in our neighbourhood. My belief is, what I would like to see is, a neighbourhood that is peaceful. If our neighbour is doing well that would be very comfortable for us. A neighbourhood on fire is not good for us.


You are a proponent of Islam Hadari. I understand it is a philosophy of governance based on moderate Muslim tenets. Could you elaborate on this, and whether this could be used in the three southernmost provinces of Thailand?

Islam Hadari is a guideline, actually. A guideline to help Muslims to develop, to work for progress. It conveys the true teachings of Islam. An Islam that wants peace. Muslims must live in peace. Islam Hadari emphasises that Islam is not against modernity. It is not against progress. Islam teaches Muslims not just to be concerned with the life hereafter but they must be equally concerned about the life that they are leading today.

Islam opposes poverty. Islam emphasises or makes it compulsory for Muslims to seek knowledge. It is compulsory. So in a Muslim society there should not be illiteracy. There should not be poverty. We are enjoined by our religion to eradicate poverty. Islam wants us to pursue the strategy of comprehensive development. That's what Islam Hadari is.

It is happening here in Malaysia, although the Islamic opposition parties are not comfortable with this. In the past our party was only reacting to whatever the Pan-Islamic Party was doing, whatever statement they were giving. I cannot be reacting. I said I want to take a stand [in the 2004 elections].

This is what Islam is and this is the teaching of Islam that we will follow. It is consistent with modernity. It is not encouraging us to seek the road of confrontation with non-Muslims. We are citizens of Malaysia. We have a common destiny and all of us want peace. And we want progress. We want to see economic development. So that's what we want to emphasise. And non-Muslims support that kind of strategy. They are not opposed to that.

Islam also promotes good governance. Our number 2 and number 3 principles stress that our government, the leadership of the government, must be trustworthy. And must ensure that whatever it does, it must be fair to all. The Koran says that you must be fair to all, not just to Muslims but to all mankind. So this is the kind of teaching, the guidelines based on the teachings of Islam, that we want to promote.


Perhaps it is a guideline that could be used in the South of Thailand?

Just straightaway say you must be loyal to your King and Country, and to your God. You must be trustworthy, you must be honest, you must be fair, that you must plan for comprehensive development and that education is compulsory and the environment must be protected. The minority and non-Muslims must also be protected. We must support women's progress. You must also stress the importance of having a good quality of life.


In April 2004, you won a landslide election earning your government a mandate of reform for Malaysia. Two years have passed since then. What is your assessment of your achievements? Are you satisfied, and if not, in which areas?

Well, taking into consideration the time factor, also the problems that I have faced and the deficit that I had to reduce, what I have achieved today in the third year as prime minister, I have reason to be happy. It was not easy what I had to go through. I tabled the Ninth Economic Plan and the National Mission only on the 31st of March. And it was only in the end of May that the lower and upper houses endorsed the plan.

It took time to plan the Ninth Plan. It is not something I could think of off the top of my head. I had to think very, very hard. This plan must be able to take us to Vision 2020, especially the National Mission. I must aim for 2020. We must view the three five-year plans that provide continuity, one after another, for this period of 15 years is the National Mission.


Which areas do you think need more effort?

Human capital development. It is very difficult. There are different types of training you can do. You have to look at the curriculum from primary to tertiary education.

You can re-train those who are already working and in need of value-adding themselves by acquiring additional knowledge, especially in areas which are most relevant.

And the next step is providing immediately for some of those students who have finished their schooling, to be ready for the workplace. Human capital to me, in terms of people, they must be mentally, physically and spiritually morally strong. I believe in that.

There are very many people who are clever people but who are cheats. Who are rogues. Who abuse power. Who are corrupt. I don't want that. If you are clever, you must be a good man. If you are clever but your are a weakling you are not good enough. If you are strong mentally, physically and spiritually, then you can make a difference.

Another thing that I am trying to do is to reduce the gaps. There are certain areas in Malaysia which are not doing as well. For example the Klang Valley, it's the most progressive. It is as good as Singapore. But what about the areas in the North, or in the East in Kelantan and Trengganu?

There is a certain lopsidedness in development in both human and physical infrastructure. This includes the opportunities. I always believe in quality opportunity. If you are giving any kind of opportunity, you are only giving lip-service. If you say you are giving them a school, you say where is the school? But when you say where are the books and you get the answer there's not enough books...

And if this is what you say by giving people an opportunity to go to school, then what the hell are you talking about? I don't believe in that. If you give people education, then give them quality education. The quality of education you give to children in the rural areas must be the same as that you give to those in the urban areas. The school, physically speaking, may not be as big, but there have to be trained teachers there. They must have books.

If you are talking about internet penetration, you must include them. I cannot achieve our 2020 vision if we have this lopsided development. We have ethnic gaps, regional gaps, occupational gaps. People in industrial areas are getting better income, and those in agriculture are not. There are so many gaps.


You mentioned earlier about how people should be mentally, physically and spiritually morally strong. What about corruption, what are you doing there?

I have not forgotten about this. We have already increased by 300 new officers for a special investigative unit. They do not wait for police to provide a report before they act. If they themselves receive reports or if they believe something is not right somewhere, they will go in.


How many cases have come to light? How many ongoing investigations? How many cases have been concluded?

I am not going into specific cases but there are more than 100 now. I have told them to be very careful. To an executive, to an owner of a company, they know that if these officials walk into their room, their rating goes down. Immediately people will suspect that something is wrong. But we must make sure that before you take that person to court and charge him, that you can get a conviction. If you don't get the conviction, don't [step in]. You must be 80% sure that you can get a conviction.

Otherwise that man will be finished for the rest of his life. No one will want to make a deal with him, especially when people suspect that he gets away free, then people will say there's interference from our side. If he get done in, then it's considered as a frame up (by the government). The Opposition talks like that. You are never right in their eyes. So I don't want people to be caught in this situation.

But it is very difficult to get evidence, they are very clever. They have money all over the place. If you go to a Swiss bank it is very difficult to get information. But we are working in the preventive area. The inculcation of good values, of integrity. I have set up this Institute of Integrity Malaysia. They have done a lot of courses and workshops. Preventively, you can spread the message.


There have been allegations, accusations of nepotism against you. Is this because in your leadership style you have allowed others to comment and criticise?

I know, I know. I have given more space for democratic debate and discussion, in the media.


But, with respect, there are still accusations about your son [Kamaluddin Abdullah] and your son-in-law [Khairy Jamaluddin] regarding nepotism. How do you feel about this?

l think the accusations of nepotism against a leader is one way of bringing him down, of eroding his credibility. They will do anything. My son [Kamaluddin] is a lawyer, he knows everything, that his father is the prime minister. He was in oil and gas. He worked overseas. He's got 35 locations overseas. He got some contracts with Petronas through open, international tender. And he offers the best terms. That's what he does. And he bought some companies which he wanted because of their engineering capabilities, machine-tooling capabilities. He does not build the company organically, he goes for mergers and acquisitions. That's his style of business. Although many people have come and asked him to go into joint ventures with government-linked companies, he says 'No, I have enough money, I am rich'.


But your style of leadership, of allowing more debate, opens you to a lot of criticism, doesn't this get you down?

Of course, of course. I do get very sad. I did mention that the old man practically smashed Khairy's pot of rice. That's something about which I am very sad. He has sold his interest in ECM Libra (a merchant bank). Sold it at a loss. Now he has some debts to settle.

Khairy studied economic philosophy at Oxford. He was going to work in Hong Kong but it was too far away. Then he decided to go to Singapore. By that time he was already in UMNO Youth.

I posed him a question: 'Are you going into politics or are you going into business?' You cannot do both together, especially if you are going to operate in Singapore. That was the time when he was offered to join ECM Libra. That was the time they made all sorts of news about him. I thought, what the hell are you talking about? They made all sorts of noise so as to disqualify him. To make him scared. As a merchant banker his company was doing well. People were asking him to do all sorts of things. It is very unkind.

I mean, you have freedom to speak. But not freedom to rubbish them, attack them. Not to tell lies. Not to slander people. That's not freedom of speech. You want to speak the truth, by all means, I have no problem. You want to tell me something's wrong somewhere, tell me. Tell the leadership the truth. I am happy for people to help me see things that are not doing well.


Malaysia Abdullah Ahmad Badawi Mahathir Khairy