Malaysia's future PM sees "tough" challenge ahead

Posted: 24 November 2008 1426 hrs


LIMA - Malaysia's future prime minister Najib Razak vowed to sharpen the country's competitive edge and regain the ruling party's two-thirds majority in parliament when he takes the helm, even as financial turmoil takes a toll on the resource-rich nation. The country faces lower revenues due to plummeting prices for its petroleum and palm oil as well as a drop in its overall exports and foreign investments that have been driving moderately high economic growth, said Najib, set to be in the saddle in March.

"It is going to be tough. I've got my hands full," the current deputy prime minister told AFP in an interview on the sidelines of the 21-member Asia-Pacific Economic Cooperation (APEC) summit which he attended.

"Malaysia has solid fundamentals but what is hurting us is in terms of our export market, commodity prices falling and the lack of FDIs (foreign direct investments) flowing in next year," Najib said. He said Malaysia had to compete hard for investments with countries such as China and India.

"So, we really have to make ourselves much, much more competitive and attractive and our best hope is to stimulate domestic demand by introducing our fiscal stimulus and implementing projects that are productive and have high multiplying effects," he added.

Malaysia has joined countries such as China and Japan in introducing programs to stimulate growth amid financial turmoil, allocating 7.0 billion ringgit (2.0 billion dollar) on "high-impact" projects including roads, schools and low-cost housing. The government has scaled down its growth target to 5.0 percent for 2008 and 3.5 percent next year although some experts believe the figure next year could be lower as the effects of the financial crisis take a bigger toll.

Asked whether he was confident Malaysia could avert recession, Najib said, "I still think so, provided our execution of these stimulus projects is on track." He did not expect any radical measures to contain a sliding Malaysian ringgit currency and also felt that any reduction of interest rates -- which have been unchanged at 3.5 percent for more than two years -- would not necessarily spur growth.

"The ringgit is sliding a bit but still reflects our fundamentals, so we don't envisage any drastic measures except to continue to operate on this present managed float basis," said Najib, who is also finance minister. Any immediate interest rate reduction "is not going to lead to too much impact" on growth, he said, while pointing out that he would be guided by a special central bank panel on the issue.

Najib said Malaysia had learned its lessons well from the 1997-98 East Asian financial turmoil, when the country plunged into political and economic chaos. "Our banks, for example, are very liquid, our NPL (non performing loans ratio) is below 2.5 percent, our capital adequacy ratio is below the international norm," he said. But as Malaysia steps up spending to prop up the economy amid sagging revenues, the government deficit is widening and expected to hit 4.8 percent of gross domestic product next year. Najib appeared unperturbed. "Historically, we went up to 5.6 (percent) but for as long as it is only for a one-year period, then the next year we can bring it down," he said.

The son of Malaysia's second prime minister Abdul Razak, Najib has won the leadership of the ruling United Malays National Organisation (UMNO) unopposed, clearing the way for him to be appointed prime minister next March. Prime Minister Abdullah Ahmad Badawi is being forced to step aside after the National Front coalition that has ruled Malaysia for 51 years recorded its worst ever election result in March, losing its two-thirds majority. Najib said UMNO would have to be strengthened by addressing "some of our internal shortcoming and weaknesses as evident during the last election.

“The party itself has to be rejuvenated in terms of our image and how the outside people perceive UMNO and BN (National Front)." Opposition leader Anwar Ibrahim has warned that he has enough support from defecting lawmakers to topple the ruling coalition. "Unless there is a mass defection which appears to be remote, we should be in power until the next general election when we have to face the public," Najib said. "We're determined to do well and try to recapture our two-third majority that traditionally we have enjoyed, God willing." - AFP

ATASI KRISIS EKONOMI DENGAN BIJAKSANA.

Presiden Aliran P Ramakirshnan, dalam satu mesej hari ini yang disasarkan kepada parti politik dan ahli politiknya, berkata mereka ‘boleh main politik dengan apa carapun’; namun dia memberi amaran kepada mereka agar mereka tidak memikirkan bahawa politik lapok ras, personaliti atau cita-cita rakus boleh membantu mereka menangani tsunami ekonomi yang akan melanda mereka.

Kepada wakil-wakil Parlimen dan dewan undangan negeri, beliau berkata, ‘Teruskan dengan antik dan sandiwara anda jika perlu, tetapi anda akan diadili berdasarkan sejauh mana dan sebaik mana anda merumuskan hal dasar, luluskan undang-undang dan memantau langkah-langkah kerajaan untuk mengatasi masalah yang akan ditimpa oleh orang ramai.’
Kepada kerajaan federal maupun negeri, beliau memberi amaran, ‘Kekalkan bangkangan anda jika perlu; rakyat akan mengadili anda berdasarkan bagaimana anda dapat ketepikan kepentingan-kepentingan sempit dan pertelingkahan kecil demi mencapai kerjasama federal-negeri untuk melayani kepentingan rakyat.’

Ramakrishnan membuat komen ini di mesyuarat agung tahunan ke32 yang berlangsung di Pulau Pinang hari ini. MAT itu juga secara sebulat suara menyusulkan bahawa kerajaan Malaysia mesti memansuhkan Akta Keselamatan Negeri (ISA) dan oleh itu memulihkan kembali keadilan dan ‘rule of law’. MAT juga menyeru semua rakyat Malaysia berganding bahu untuk menentang ISA dan undang-undang kejam yang lain.

Ramakrishnan telah dipilih semula sebagai presiden Persatuan Aliran Kesedaran Negara, bersama Dr Francis Loh sebagai setiausaha kehormat, Dr Mustafa K Anuar sebagai penolong setiausaha kehormat dan Anil Netto sabagai bendahari kehormat.

Selain itu, jawatankuasa baru terdiri daripada:

Dr Prema Devaraj
Leena Mohan
Dr Andrew Aeria
Dr Khoo Boo Teik
Dr Subramaniam Pillay
Dr Soon Chuan Yean
Andrew Wong
Amiruddin Ahmad
Ch’ng Teng Liang
Raphael Surin
Sarajun Hoda Abd Hassan

Ong Eu Soon dilantik sebagai juruodit kehormat.

Dr Francis Loh Setiausaha Kehormat

23 November 2008

Brace for economic tsunami, shed outdated politics, urges Aliran President
Aliran president P Ramakrishnan, in a message today aimed at political parties and their politicians, said they could “play politics, by all means”; but he warned them not to think that the outdated politics of race, personality or ruthless ambition would get them anywhere when the economic tsunami hits with full force.

To the elected representatives of Parliament and state legislative assemblies, he commented, “Continue your antics and theatrics if you must, but you will be judged by how well and how honestly you can debate policy directions, pass laws and oversee government measures to save the people from massive suffering.”To the federal and state governments, he cautioned, “Persist with your antagonisms if you must; the people will judge you by whether or how effectively you can set aside partisan concerns and petty quarrels in favour of federal-state cooperation to serve the rakyat’s interests.”

Ramakrishnan made these comments at Aliran’s 32nd annual general meeting held in Penang today. The AGM also unanimously resolved to call upon the government of Malaysia to abrogate the Internal Security Act and thereby restore justice and establish the rule of law. The AGM also urged all Malaysians to rally together to oppose the ISA and other oppressive laws. Ramakrishnan was re-elected as president of the social reform group, along with Dr Francis Loh as honorary secretary, Dr Mustafa Kamal Anuar as honorary assistant secretary, and Anil Netto as honorary treasurer. The new executive committee comprises:

Dr Prema Devaraj
Leena Mohan
Dr Andrew Aeria
Dr Khoo Boo Teik
Dr Subramaniam Pillay
Dr Soon Chuan Yean
Andrew Wong
Amiruddin Ahmad
Ch’ng Teng Liang
Raphael Surin
Sarajun Hoda Abd Hassan

Ong Eu Soon was elected as honorary auditor.

Dr Francis Loh Hon Secretary

23 November 2008

UMNO has stubborn staying power

By Ioannis Gatsiounis

KUALA LUMPUR - The opposition coalition's unprecedented electoral gains in Malaysia’s general elections in March, and its leader Anwar Ibrahim’s vow to bring down the government through parliamentary defections have led many to believe that the days of the ruling United Malays National Organization’s (UMNO) oppressive, race-based brand of politics are numbered. Yet since its stinging electoral setback, where the party lost its two-thirds parliamentary majority but still won the most votes, UMNO has brazenly clung to its old political ways, banning activist groups, jailing dissenters, stoking ethno-nationalism, and failing to tackle corruption within its ranks. Critical websites and



opposition politicians contend that UMNO is a senescent party, crumbling under the weight of its own arrogance and myopia. But UMNO’s reform credentials are not the best indication of whether the long-ruling party can sustain its grip on power. In recent months UMNO has in fact been met with less resistance than one might expect from a nation that is supposedly going through a socio-political paradigm shift towards more democracy and government accountability. Online media have become a resonant sounding board for the disgruntled and may sway voters at the next general election, as Prime Minister Abdullah Badawi publicly admitted it had to UMNO’s detriment this past March. But in reality calls to resistance have not moved much beyond the Internet, although at least one prominent and critical blogger, Jeff Ooi, was elected to office under an opposition banner. More broadly, online dissent has not generated a formidable people movement like those seen in neighboring Indonesia and Thailand, which ultimately brought the seemingly indestructible Suharto and Thaksin Shinawatra governments to their knees.

There is a growing sense that the typically apolitical public here has become self-satisfied after having voted against the ruling government in March - as if reform is a one-off affair. This would put the job of reform primarily in the hands of Malaysia's tiny pre-existing activist community and the loose coalition of opposition parties known as Pakatan Rakyat (PR). Activist groups in Malaysia have had only limited success in checking official abuse over the years. And to date the PR has yet to put forth clear and comprehensive reform proposals to match its calls for greater plurality, democracy and competitiveness. Even if it did, the opposition coalition still has a limited capacity to counter the Barisan Nasional (BN) coalition, which through its parliamentary simple majority maintains the power to pass and preserve legislation.

That sense of weakness was seen in Anwar's so far failed ambition to entice 30 parliamentarians to defect from the BN, which would have allowed him to form a new government. He had earlier vowed to deliver that takeover by September 16 and has since said he is "not in a terrible hurry" to topple the government. Status quo defenderHis takeover dreams may prove even harder to execute now that the embattled Abdullah has agreed to cede power to his deputy Najib Razak by March 2009. Najib recently earned the UMNO presidency uncontested, showing signs that he may have what it takes to unify the fractured party. UMNO stalwarts may have also felt the need to unify due to fears that an opposition takeover would open the books on the party’s legacy of corruption. Despite low public support due to suspicions that he is a Machiavellian protector of the status quo and his alleged involvement in a number of scandals, most Malaysians have thus far grudgingly accepted Najib’s de facto appointment to the premiership.

Many Malaysians are under the impression that Najib couldn't possibly govern worse than Abdullah and that he might spur a new surge of economic development that would woo lost voters back into the BN fold. There is also a sense among the majority Malays that he is a staunch defender of the race, which could move them to look past some of the controversies that surround his character, including questions about his alleged association with the brutal murder of a Mongolian interpreter in 2006. Others argue that race-based politics that favor ethnic Malays over minority Chinese and Indians have lost their past cachet, as it becomes clearer to a growing number of Malaysians the practice has stunted economic and social development. UMNO under Najib is likely to test that theory and the veteran politician would be wise to do so. Beneath Malaysians' calls for a more multiracial approach, racial resentments still run deep.

That is, UMNO's race-based approach may not be as moribund as some have supposed. And UMNO has historically played the race card effectively through its firm control of the media, judiciary and finances. To be sure, greater oppositional representation in parliament means that grip is being tested. But as the recent arrests under the Internal Security Act of an opposition politician, journalist and prominent oppositional blogger attest, UMNO-led Malaysia is still under repressive rule. And it's a nation still very much split along racial lines - more so in fact than any time in recent memory, with ethnic Malays fearing how the multicultural approach now championed by Anwar's People's Justice Party will impact their livelihoods and the other races more loudly objecting to entrenched inequality.

The government's ban on the Hindu Rights Action Force in October was met with very little backlash from the opposition, even though the hardline activist group played a pivotal role in the opposition’s success among ethnic Indian voters in March. An UMNO representative, by contrast, walked away with a mere slap on the wrist after being quoted in the press calling Malaysia’s ethnic-Chinese community power hungry "squatters". See Sinophobia smolders in Malaysia[Oct 1].

UMNO's hunger to maintain power has led the party in recent months to other desperate measures, including, among other things, accusing Anwar of sodomizing one of his former aides. Such antics could cost the party, as many have predicted, or rather demonstrate that UMNO still has the power to get away with such heavy-handedness. Much will depend on whether the opposition and its supporters move past merely proclaiming and through actions demonstrate that the March elections signified an imminent socio-political power shift.

Ioannis Gatsiounis' book on the pivotal events before and following Malaysia's March elections, Beyond the Veneer, was recently published by Monsoon Books.