2018 Country Review http://www.countrywatch.com
Table of Contents Chapter 1 1 Country Overview 1 Country Overview 2 Key Data 3 Malaysia 4 Middle East 5 Chapter 2 7 Political Overview 7 History 8 Political Conditions 9 Political Risk Index 50 Political Stability 65 Freedom Rankings 80 Human Rights 92 Government Functions 94 Government Structure 96 Principal Government Officials 102 Leader Biography 103 Leader Biography 103 Foreign Relations 107 National Security 131 Defense Forces 134 Chapter 3 136 Economic Overview 136 Economic Overview 137 Real GDP and GDP Per Capita 141 Nominal GDP and Components 145 Government Spending and Taxation 147 Money, Prices and Interest Rates 150 Trade and the Exchange Rate 152 The Balance of Payments 153 Energy Consumption and Production Standard Units 155 Energy Consumption and Production QUADS 159
World Energy Price Summary 164 CO2 Emissions 166 Agriculture Consumption and Production 168 World Agriculture Pricing Summary 176 Metals Consumption and Production 178 World Metals Pricing Summary 185 Economic Performance Index 188 Chapter 4 200 Investment Overview 200 Foreign Investment Climate 201 Foreign Investment Index 210 Corruption Perceptions Index 223 Competitiveness Ranking 235 Taxation 244 Stock Market 245 Partner Links 245 Chapter 5 246 Social Overview 246 People 247 Human Development Index 249 Life Satisfaction Index 253 Happy Planet Index 264 Status of Women 273 Global Gender Gap Index 276 Culture and Arts 286 Etiquette 286 Travel Information 288 Diseases/Health Data 297 Chapter 6 303 Environmental Overview 303 Environmental Issues 304 Environmental Policy 305 Greenhouse Gas Ranking 306 Global Environmental Snapshot 318 Global Environmental Concepts 329 International Environmental Agreements and Associations 343
Appendices 367 Bibliography 368
Chapter 1 Country Overview Page 1 of 380 pages
Country Overview MALAYSIA By the early 1900s, Britain was in control of present-day Malaysia and Singapore, which were occupied by Japan during World War II. After the war, the Federation of Malaya was formed in 1948 under British authority, but became independent in 1957. In 1963 the Federation of Malaysia was formed with Singapore, Sarawak and Sabah joining the federation. In August 1965, Singapore seceded from Malaysia because of its friction with the central government, and Singapore became an independent country. Under Mahathir Mohamad, Malaysia s Prime Minister between 1981 and 2003, the country was successful in diversifying its economy from dependence on exports of raw materials to expansion in manufacturing, services, and tourism. Malaysia today boasts one of Southeast Asia's most vibrant economies as a result of decades of rapid industrialization and political stability. Page 2 of 380 pages
Key Data Key Data Region: Asia Population: 31381992 Climate: Tropical, annual southwest (April to October) and northeast (October to February) monsoons Languages: Peninsular Malaysia: Malay (official), English, Chinese dialects, Tamil. Sabah: English, Malay, numerous tribal dialects, Chinese (Mandarin and Hakka dialects predominate). Sarawak: English, Malay, Mandarin, numerous tribal languages Currency: 1 ringgit (M$) = 100 sen Holiday: National Day is 31 August (1957) Area Total: 329750 Area Land: 328550 Coast Line: 4675 Page 3 of 380 pages
Malaysia Country Map Page 4 of 380 pages
Middle East Regional Map Page 5 of 380 pages
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Chapter 2 Political Overview Page 7 of 380 pages
History In the 1st century C.E., while searching alternative sources of gold and metals, Indian ships arrived in Southeast Asia, including the Malayan Peninsula. Malaysia's rich deposits in tin brought about its prosperity through trade with India and other countries in later years. During the next two centuries, small Malayan kingdoms appeared in the region, and Indian culture, religion, arts and politics were brought to the region through maritime trading. From the ninth to 13th centuries, the Srivijaya kingdom dominated much of the Malay Peninsula. In the 14th century, the Hindu kingdom of Majapahit controlled the peninsula. Hindu and Buddhist influences were widespread during this period. In the 15th century, a Muslim prince took power, resulting in the conversion of the Malays to Islam in the region. Attracted by the trade in Malacca, in 1511 the Portuguese came and controlled the region, thus starting the European expansion in Southeast Asia. In 1641, the Dutch drove out the Portuguese from Malacca. In 1786, the British occupied Penang, and they drove out the Dutch and became controller of the region in 1795. In 1826, Malacca, Penang and Singapore were combined to form the Colony of the Straits Settlements as a British colonial settlement of the region. In the 19th and early 20th centuries, the British established protectorates over the Malay sultanates on the peninsula, and four of them were consolidated in 1895 as the Federal Malay States. During this period, the public administration system was established in these states, and large-scale rubber and tin production was developed. During World War II, from 1942 to 1945, Japanese invaders occupied the region. The British returned to the region after the war, and they established the Federation of Malaya in 1948 to unify the territories. However, longing for independence was strong among the Malays during and after World War II. As a result, on Aug. 31, 1957, the Federation of Malaya obtained independence led by Tunku Abdul Rahman who became the first prime minister of the country. On Sept. 16, 1963, the Federation of Malaysia was formed with Singapore, Sarawak and Sabah joining the federation. In August 1965, Singapore seceded from Malaysia because of its friction with the central government, and Singapore became an independent country. Since the end of World War II, Malaysia had seen local communist insurgency within the region. A Page 8 of 380 pages
state of emergency was imposed in 1948 because of the insurgency but was lifted in 1960. There were also small bands of guerrillas along the border with southern Thailand, and they sometimes entered northern Malaysia. In December 1989, these guerrillas signed a peace agreement with the Malaysian government. Another peace accord was signed between the Malaysian government and the communist insurgents in Sarawak in October 1990. Note on History: In certain entries, open source content from the State Department Background Notes and Country Guides have been used. A full listing of sources is available in the Bibliography. Political Conditions Post-independence politics The principal force in Malaysia, from the struggle for independence until 1973, was the Alliance, a coalition of communally based parties, the United Malays National Organization, or UMNO; the Malaysian Chinese Association, or MCA; and the Malaysian Indian Congress, also known as the MIC. Several opposition parties also date from that period. During the transition to independence, the Alliance provided stable and effective government. This stability was threatened by the outbreak of riots in the capital, Kuala Lumpur, in 1969. This violence, primarily pitting Chinese against Malays, was fueled by underlying tensions that surfaced as the Chinese community grew increasingly discontented with their political subordination, and the Malays were dismayed to find that the Chinese-dominated opposition registered impressive gains at the polls. The riots resulted in the suspension of government and the creation of an interim governing body. Normal parliamentary government was restored in 1971. At the same time, Tunku Abdul Rahman stepped down as prime minister, and was replaced by Tun Abdul Razak. In 1973, the Alliance was replaced with a broader coalition, the Barisan Nasional, or BN, composed of 13 parties, most of which were (and continue to be) ethnically-based. In the 1974 elections, the BN received 70 percent of the popular vote, winning the majority of seats in the House of Representatives and capturing control of all the state assemblies. Prime Minister Tun Abdul Razak, in power since 1971, died in 1976 and was replaced by Hussein Page 9 of 380 pages
Onn. Onn continued the development programs begun by his predecessor. He eventually retired in 1981 and was replaced by his deputy, Datuk Seri Dr. Mahathir Mohamad. In 1982, the new prime minister called an election and the BN won by a landslide in both the lower house of parliament and the state assembly elections. In the next electoral test in August 1986, the BN also won the majority of parliamentary districts and retained control of all peninsular state assemblies. In April 1987, Malaysia's predominant political party (under the BN umbrella), the United Malays National Organization, or UMNO, held its internal party elections. There was a serious challenge for the presidency of UMNO, which had dominated the BN coalition. Of particular significance was the criticism of the Mahathir leadership from within UMNO, as well as from other parties. In conjunction with intensified ethnic tensions between the Chinese and the Malays, a sense of civil unrest prompted the suspension of rights and freedoms of the media, press, political parties and political rallying, as well as the detention of politicians and activists from all the parties. Nonetheless, Datuk Seri Dr. Mahathir Mohamad successfully defended both his position as prime minister and as UMNO president. In February 1988, however, the high court ruled that because of irregularities in the registration of a number of its branches, UMNO was not a legally registered party at the time of the party elections. A new party, UMNO Baru was formed under Mahathir, who remained prime minister. In October 1990, the BN turned back an unprecedented opposition challenge spearheaded by Tengku Razaleigh's new party, Semangat 46. Razaleigh had brought together a loose opposition front composed of ideologically diverse parties, including Parti Bersatu Sabah (PBS), which had bolted from the BN coalition on the eve of the elections. The BN won 127 out of the then-180 parliamentary districts, but lost control of two states. The Islamic opposition party, Parti Islam se Malaysia, or PAS, captured control of Kelantan, a predominantly Islamic state, while PBS retained control of Sabah. In March 1994, the PBS lost control of Sabah when its assemblymen defected to the BN. The party had won 26 out of the 48 state seats in the state election held in February 1994. On April 5, 1995, the prime minister dissolved parliament and scheduled elections for later that month. Polling for the newly expanded 192-seat House of Representatives was held simultaneously for the state legislative assemblies. There was a ban on mass election rallies; however, parties were allowed to organize "meet the people" sessions or similar strategies to reach voters. Prime Minister Mahathir pointed to positive records in both economic policy and on the issue of ethnic relations, and stated that the focus of the administration would be on continued development. Opposition leaders attacked both the limits on campaigning, which gave an unfair Page 10 of 380 pages
advantage to the UMNO and other BN parties, as well as the government's alleged corruption and undemocratic conduct. Nevertheless, the BN coalition was returned with an overwhelming majority in the 1995 general election, winning 162 out of 192 parliamentary seats. In October 1996, the opposition party Semangat 46 was dissolved, and its six parliamentarians joined UMNO. In the Senate, BNaffiliates won the majority as well. In 1998, Malaysia, like many other Asian countries, suffered the deleterious effects of massive financial crisis. These effects included a substantial drop in the value of the national currency, the ringgit, and a rapidly collapsing banking sector. Economic reforms were advocated, and some were implemented. On Nov. 1, 1999, the parliament was dissolved and legislative elections were held on Nov. 29, 1999. Despite a short time frame for campaigning, the elections enabled the Malaysian opposition to double the number of its seats in the "Dewan Rakyat" (House of Representatives). Nevertheless, the National Front coalition government, in power for the past 18 years, maintained its majority, winning 148 out of the 193 seats, while the opposition parties gained 23 seats, making their total number of seats 45. Politics from the late 1990s through the early 2000s From 1998, political unrest was unfolding in Malaysia triggered by charges against the former Deputy Prime Minister Anwar Ibrahim. The charges had been spurred by the publication of a pamplet titled "Fifty Reasons Why Anwar Ibrahim Cannot Be Prime Minister" in which allegations concerning corruption and Anwar's sexuality were detailed. In September 1998, Prime Minister Mahathir sacked Deputy Prime Minister Anwar Ibrahim, accusing him of immoral and corrupt conduct. Anwar said his ouster was actually politically motivated since he was the primary alternative candidate for prime minister in up-coming elections. As such, Anwar claimed that his opponents were seeking to destroy his political advancement. Indeed, the actions against him led to a series of demonstrations advocating political reforms. The government later detained Anwar and many of his supporters without trial under the Internal Security Act, or ISA. Anwar and his associates were later released from ISA detention, although Anwar remained imprisoned pending trial on four counts of corrupt practices (i.e. obstruction of justice). In April 1999, he was convicted on all four counts and sentenced to six years in jail in a trial viewed by domestic and international observers as unfair. Page 11 of 380 pages
Two months later Anwar went on trial again, this time charged with sodomy. It was alleged that Anwar and his adopted brother forcibly sodomized their family driver Azizan Abu Bakar in 1993. In August 2000, after a 14-month court battle, Anwar was found guilty of sodomy and sentenced to nine years in prison. This term would be added to the six-year prison sentence he was given in 1999 for corruption charges. The sentence put Anwar's political career to an end because, in addition to the 15 years he had to now spend in prison, Anwar has been prohibited from holding political office for another five years after he is released. Anwar described both charges as fabrications intended to remove him as a political rival to Prime Minister Mahathir Mohamad. Supporters of Anwar believed that the verdict had been delivered by a "political judiciary," in order to remove Anwar as well as the reformist policies he had advocated. There was also international criticism over the jailing of Anwar. Human rights groups joined the United States, Australia and other nations in condemning the verdict and jail term, questioning the fairness of the trial. Amnesty International, the human rights entity, regarded Anwar as a prisoner of conscience, because he had been put on trial for the challenge he posed to government leaders. In response, Malaysian Prime Minister Mahathir Mohamad defended the Anwar trial as a fair trial, saying that Anwar had been given every opportunity to defend himself. In late November 2000, Malaysia's opposition party Keadilan (National Justice Party), led by Wan Azizah Wan Ismail, wife of former Deputy Prime Minister Anwar Ibrahim, won the state byelection in the Lunas constituency in the northern state of Kedah. Keadilan candidate Saifuddin defeated the ruling BN candidate S. Anthonysamy and independent candidate N. Letchumanan and won the election with a majority of 530 votes. The by-election held a year after the general election in 1999 was seen as a popularity test, and also as a blow for Prime Minister Mahathir, since the seat was contested in his home state. However, members from parties in Prime Minister Mahathir's coalition said the election results should not be seen as a reflection of the ruling government's popularity because the opposition had exploited racism among the electorate. In December 2000, three opposition leaders, including leader of the Keadilan Party, were charged in the Magistrate's Court in Kulim in the northern state of Kedah with rioting. They were charged with rioting by taking part in an unlawful assembly and preventing busloads of government supporters from going to the ruling BN's headquarters during the Lunas state by-election in November. The opposition said these people were "phantom" voters bussed in from out of state to vote fraudulently. The political unrest aroused by the Anwar issue continued in Malaysia in 2001. There were demonstrations against the jailing of Anwar by the oppositions from time to time. Anwar himself also continued his fight against his conviction for corruption and sodomy. In August, Anwar's supporters gathered outside the prison where he is jailed to mark the third anniversary of his being sent to prison. In the meantime, Anwar called for the continuation of political reforms. Page 12 of 380 pages
In February 2002, Anwar was in the process of appealing his conviction for corruption. On April 14, 2003, Anwar Ibrahim completed his six-year jail sentence on the first corruption conviction. The Malaysian government, however, in June 2003 refused to grant him bail pending the outcome of his appeal against his second sodomy conviction and nine-year jail sentence. The year 2001 also marked Prime Minister Mahathir Mohamad's 20 th anniversary in power. During the years of his leadership, Malaysia saw unprecedented economic growth, transforming the country from being an exporter of rubber and tin into an Asian economic tiger. As well, his staunch determination to uphold Asian and Malaysian values also gained considerable public support. However, there was controversy surrounding his leadership as well. Prime Minister Mahathir was known for his single-mindedness and his commitment to the economic advancement of the majority ethnic Malay community. The privileges enjoyed by the ethnic Malays under the government's policy presented a source of conflicts between Malays and other ethnic groups in the country. Moreover, his critics said that the Mahathir government in recent years was sliding towards increasingly autocratic and corrupt rule. The UMNO party was also criticized for corruption, or money politics. In the past few decades, many members of UMNO have exploited the opportunities of patronage and commercial enrichment that the party's unchallenged grip on power enabled them to do so. During the 1980s and early 1990s when Malaysia was in a period of economic boom, such dirty politics was tolerated. But the Asian financial crisis that swept the region in the late 1990s made political corruption no longer tolerable. Since then, the opposition revitalized its attack on the ruling party and the government, and the results of the 1999 general election clearly indicated the ruling party's decreasing support from the public. In response to such a bleak situation, while addressing a meeting ahead of the party's general assembly in 2001, Malaysia's Deputy Prime Minister Abdullah Badawi warned the ruling UMNO party that it would lose power unless it tried hard to root out bribery and corruption within its ranks. In early 2002, there were growing doubts from those within and outside the ruling party regarding Prime Minister Mahathir's ability to lead the country. There were even calls from some of his own party for him to step down before the next general election in 2004. The prime minister, however, showed no desire at the time to resign. Instead of offering any self-criticism during the annual assembly of the UMNO in June 2001, Prime Minister Mahathir defended the achievements of the ruling party, while also accusing his political opponents and foreign critics of attempting to disparage his leadership. Critics were quick to point out what they perceived as oppressive and exploitive measures by the ruling party to suppress political opposition, especially those parties associated with Islam. After the events of September 11, 2001, the Mahathir government quickly began publicly associating the Parti Se-Islam Malaysia (PAS) with international terrorist groups, including al-qaida. Several Page 13 of 380 pages
members of PAS who were accused of plotting against the state were held in detention under the Internal Security Act, or ISA. Under the ISA, these detainees could be held for two years without trail. Government advertisements have warned the public not to vote for Islamic political parties in upcoming elections, less Malaysia become another Afghanistan. PAS has repeatedly denied any involvement with militant Islamists. In a surprising move in June 2002, Prime Minister Mahathir announced plans to step down from office. He said that he would resign in October 2003, after the country played host to the summit meeting of the Organization of the Islamic Conference. Mahathir, the politician with the longest elected tenure in Asia, also announced that he would be succeeded by his Deputy Prime Minister Abdullah Ahmad Badawi. Reports suggest that there was no power struggle involved in the proposed transition of power. It was hoped that the gradual transition would help ensure political and economic stability, especially since Mahathir will retain the financial portfolio over the course of the next year until his resignation. Although some criticism was levied against him for repressive political and security strategies during the course of his leadership, Mahathir has consistently been viewed as a visionary leader who helped to modernize Malaysia. On Aug. 1, 2002, the Malaysian government enforced controversial new amendments to the Immigration Act, under which illegal immigrants in the country could be whipped, and fined up to 10,000 ringgit (US$2,631) or jailed between six months and five years. Before the introduction of the new act, about 380,000 illegal immigrants -- of which 70 percent were Indonesians -- were returned to the countries of their origin under a Malaysian amnesty plan. Malaysian Foreign Minister Syed Hamid Albar reiterated in late August that by deporting the illegal immigrants, Malaysia was only exercising its right as a sovereign nation to ensure that the country was free from illegal immigrants who were jobless or choose to get involved in criminal activities. "We have to take action because it has become a social burden to us. Some (are) involved in criminal activities, not to mention they may be exploited by unscrupulous employers," Albar was quoted as saying by Xinhua News Agency. Some 50 protesters reportedly torched pictures of Prime Minister Mahathir and burned a Malaysian national flag outside the Malaysian embassy in Manila over the alleged poor treatment of the illegal immigrants during the deportation process. By the start of 2003, the threat of terrorism was a key concern. Indeed, in late January 2003, Malaysian police arrested two men, including a member of the country's military, on suspicion of belonging to a militant Islamic group linked to al-qaida. The two were said to be members of a cell that helped recruit for paramilitary training in the southern Philippines. In early April 2003, Malaysia's own government accused its religious schools of teaching hate, not religion, and stopped their state subsidy. More than 125,000 children in Malaysia receive an Islamic Page 14 of 380 pages
education in such institutions. Education Minister Musa Mohamad said the schools "could stoke Islamic extremism" while Prime Minister Mahathir went as far as to accuse them of teaching hate. Later that month, Malaysia's official human rights commission called on the government to do away with the country's much criticized Internal Security Act. The commission's long awaited report on that specific law, which effectively allows for indefinite detention without charge or trial, said that it ignored basic rights. Malaysia's security laws date from 1960 -- a time when the country was locked in a bloody struggle with communist guerrillas. The laws allow for suspects to be held for up to two years if they are deemed to threaten national security. As well, police are not required to prove any wrongdoing. Detention orders can be extended indefinitely and are difficult to challenge. In late April 2003, Malaysia's Official Human Rights Commission - Suhakam - called for the Internal Security Act to be replaced with laws modeled on Western anti-terrorism legislation. It called for any new law to outline specific offenses, for detainees to be charged or released after three months, for detention orders to be subject to judicial review and for the law to require annual renewal. As it was initiated by a government body, this report represented one of the strongest challenges yet to the country's most controversial law. However, critics said it would be used by the government to lock up political opponents. Meanwhile, supporters of the act believed it to be an essential tool in dealing with the threat of terrorism. Indeed, more than 70 alleged Islamic militants have been detained under its provisions. Nevertheless, in early June 2003, the Malaysian government released three opposition activists who were detained for more than two years ago under the controversial Internal Security Act. The detainees were arrested in April 2001 and accused of plotting to overthrow the government, charges they all denied. International rights group Amnesty International had adopted the activists as prisoners of conscience, and lawmakers from several countries including Denmark, Britain and the Netherlands signed a petition asking for their release. Meanwhile, even though Malaysia has shared certain goals with the United States, such as cracking down on terrorism and religious extremism, solidarity was not extended on the matter of war in Iraq. As the United States pushed toward a war against Iraq in February 2003, Malaysian Prime Minister Mahathir denounced United States policy on the Gulf country, warning that a United States-led attack would be seen as a "war against Muslims." At that time, Malaysia was hosting a summit of developing nations in the Non-Aligned Movement (NAM), which was set to adopt a declaration condemning war with Iraq. Mahathir also accused the United States of double standards in its contrasting attitudes towards North Korea and Iraq. Transition of power and recent political developments Page 15 of 380 pages
As aforementioned, Prime Minister Mahathir had announced in June 2002 his decision to retire. Also as noted above, he set his retirement for October 2003 in order to ensure smooth transition of power. Then, on Oct. 31, 2003, Mahathir formally stepped down and appointed Deputy Prime Minister Abdullah Ahmad Badawi as his successor. Badawi had been in public service for more than 30 years and was instrumental in initiating some of Mahathir's most effective policy programs including the "Leadership by Example" campaign and the privatization policy. He was appointed to the position of deputy prime minister in January 1999. Mahathir had been in power for 22 years and was the longest-serving elected leader in the Southeast Asian region. He was viewed by many Malaysians as a national hero for pulling Malaysia out of British colonial rule and charting a course to become one of Southeast Asia's most modern and wealthiest countries. The long serving Malaysian leader received worldwide criticism, however, when he alleged that there was Jewish dominance across the global spectrum, and later compared Europe's past ill treatment of Jews to the way Israel treats Palestinians. Even on his last day in office, he delivered more critical remarks about Jewish people. During a news conference, he reportedly said: "They [Jews] must never claim they are the chosen people...they have taken land belonging to Muslims." These controversial remarks appeared to have tainted his legacy in some regards. In March 2004, Mahathir Mohamed's stamp on Malaysian politics came to a close when Malaysian Prime Minister Abdullah Ahmad Badawi won a landslide victory following the country's general election. The prime minister's ruling National Front coalition also won a two-thirds majority in parliament. Indeed, the ruling coalition won at least 167 seats in the 219-member parliament. The victory held significant symbolic value for Prime Minister Abdullah, who assumed power in October 2003 when Mahathir Mohamad retired, by legitimizing his political influence through the democratic process. The notable parliamentary victory meant that Prime Minister Abdullah, who advocated "modern and progressive" Islamic governance, would be able to push his package of reforms, including his anti-corruption proposals, through the parliament. In a surprise development, the ruling National Front coalition recaptured the state of Terengganu from the Islamic Party (Pas), which had been held by the Islamic opposition since 1999. The opposition Islamic leader, Abdul Hadi Awang, who also lost his parliamentary seat, conceded defeat. Meanwhile, the chairman and deputy of the non-religious Democratic Action Party regained the seats they lost in 1999. A very different fate was anticipated for the National Justice Party which suffered resounding losses. Following the election in May 2004, the issue of foreign relations were at the forefront of the political scene. First, in the aftermath of the gruesome beheading of an American in Iraq, Nick Berg, the Malaysian government said it would crack down on Islamic websites hosted by Internet providers in Malaysia. This decision was made after the discovery that a video showing the Page 16 of 380 pages
killing of Berg was on a website hosted by a Malaysian web hosting company. Also in May 2004, Prime Minister Badawi called on the United Nations to use its influence in regard to the Israeli-Palestinian conflict during a meeting of the Non-Aligned Movement. Badawi also note that this conflict between Israelis and Palestinians lay at the root of much Middle Eastern violence. He said that the United Nations should send a mission to the region to try to assuage tensions as well as peace monitors. In this way, Malaysia made clear that it was seeking to establish itself as a central player in the Islamic world, most particularly as regards the path toward peace in the Middle East. In early 2005, attention was on bilateral relations when Singapore and Malaysia settled a dispute over land reclamation in the area of their border waters. Then in March 2005, a four-month amnesty was followed by another mass round-up of illegal migrant workers. Domestic politics returned to the forefront of the political landscape when at the annual PAS party conference in early June 2005, the head of Malaysia's conservative Islamic Party, Abdul Hadi Awang, called on former Deputy Prime Minister Anwar Ibrahim to unite the country's opposition parties. Despite his endorsement of Anwar Ibrahim as the opposition leader, and even as he called for a unified opposition, Abdul Hadi Awang maintained his hard-line stance that there could be no compromise regarding the party's commitment to an Islamic state. It has been this very hard-line stance that splintered alliances within the opposition before.in the first place, more than 40 percent of Malaysians are not Muslim and as such, they have moved away from Pas and its allies as a result of the religious stance. Second, many Malaysians including Muslim Malaysians -- have cited jobs, poverty and corruption as being their priorities, rather than religion. As a result, even those willing to consider voting for the opposition have, in the past, chosen to reject Pas and its allies nonetheless. Abdul Hadi Awang may have been hoping that Anwar Ibrahim's charismatic persona might persuade such voting factions in future elections. However, due to a past conviction (discussed above), Anwar Ibrahim cannot run for office until 2008, and at that time, it is unknown as to whether the voting public will have recalibrated its priorities in keeping with that of PAS. In the backdrop of these developments has been the lackluster performance of the administration of Abdullah Badawi. By mid-2005, the government's reform program was stalled and there was little clarity on the matter of key policies and proposals. In August 2005, Malaysia's High Court awarded former Deputy Prime Minister Anwar Ibrahim $1.2 million in damages over the publication of a pamphlet (discussed above) titled, "Fifty Reasons Why Anwar Ibrahim Cannot Be Prime Minister." Ibrahim responded to the corruption and sodomy allegations by pursuing a libel suit, but the case took several years to make it into a court of law. In Page 17 of 380 pages
the interim, Ibrahim's political opponents siezed upon to salacious nature of the allegations to launch a vicious political campaign against him at a time when he was being touted as a possible replacement to then-prime Minister Mohammed Mahathir. Indeed, as noted earlier, Ibrahim was eventually fired, prosecuted, and then imprisoned for six years on charges of corruption and sodomy. In 2004, he was released from jail. Now in 2005, the High Court of Malaysia ruled in his favor, awarding him damages in order to register the gravity of the crimes committed against the former deputy leader. Meanwhile, Khalid Jafri, the author of the pamphlet, was sentenced to one year in jail for composing the piece. Because he was suffering from an illness, bail was set so that he could be hospitalized. A year later, as the country holding the chairmanship position, Malaysia, played host to the ASEAN meeting of regional leaders. Just prior to the convening of the neeting, Malaysia appeared to signal a shift in its relations with Burma (Myanmar). Compared with other ASEAN countries, Malaysia's relationship with Burma (Myanmar) has been one of the closest. The two countries also maintained close economic relations, with Malaysia being the sixth largest investor in Burma (Myanmar). As well, Malaysia often took on the role of being Burma's (Myanmar's) champion on the international scene, when criticisms about its ruling military junta arose. But in July 2006, just prior to the scheduled ASEAN meeting, Malaysia's Foreign Minister Syed Hamid Albar criticized the military government of Burma (Myanmar) for being an obstacle to regional reform. The criticism also signaled a notable shift since, in the past, Malaysia had been a strong defender of Burma. But Foreign Minister Syed Hamid Albar said that his country could no longer defend Burma since it was not moving toward any kind of democratic reform. As such, the Malaysian cabinet minister said that Burma's lack of progress would, by extension, affect the rest of the region, which wanted to forge better ties with the West. It was unlikely that the remarks of the Malaysian foreign minister were made without some tacit consent from other South East Asian governments. As such, there was some speculation that Burma was at risk of being suspended from ASEAN for failing to move toward democracy. Also in July 2006, tragedy struck Malaysia's royal houses when Princess Kamaria Sultan Abu Bakar, the half-sister of the Sultan of Pahang, was murdered by her own son, while attempting to defend her husband. The princess' husband, Prince Ismal Sulaiman, a member of another of Malaysia's nine royal houses, was badly injured in the incident. The princess' son, Shahzan, was arrested by died subsequently. He appeared to have suffered a drug overdose. It was the second tragedy to afflict the Malaysian royal houses in recent years. In 2002, the royal family of Perak was at the center of a similar case when the [second] wife of a prince of that state was murdered. Page 18 of 380 pages
Environmental politics and regional ties took center stage in 2007 when Malaysia signed joint legislation with Indonesia and Brunei aimed at ecological conservation. At issue in the trilateral "Rainforest Declaration"(also known as "Heart of Borneo") was concurrence on the protection of a large region on the island of Borneo, where several rare species of animals, plant life and other forms of biodiversity are found. The success of the declaration would rest upon the governments' desire to enforce the legislation in the face of the commercial efforts of plantation and logging companies. Environmentalists have said commercial development and logging have bot contributed to devastating levels of deforestation in Borneo. Also in the first part of 2007, there were two key developments on the political front. First, controversial politician, former Deputy Prime Minister Anwar Ibrahim, attempted to return to the political scene in a by-election. The campaign was filled with vitriol and ultimately ended usuccessfully. In that by-election, the ruling National Front coalition managed to increase its parliamentary majority. The opposition People's Justice Party of Anwar Ibrahim reacted to the election outcome by saying that the election was fraudulent -- a charge rejected by the government. The second development involved the hospitalization of former Prime Minister Mahathir as a result of breathing problems. In June 2007, a potential diplomatic imbroglio was brewing when the top European diplomat in Malaysia made remarks deemed critical by the Malaysian government. At issue was the view expressed by the head of the European Commission delegation in Malaysia, Thierry Rommel, who described the country's pro-malay political spectrum as being discriminatory and its economic policies toward foreign entities as being protectionist. In response, the Malaysian Foreign Ministry called for a meeting with Rommell to discuss the matter, which drew the ire of many Malays in this ethnically-diverse country. After the meeting, Rommell noted that he had clarified his views. November 2007 saw tens of thousands of protestors take to the streets of the Malaysian capital city of Kuala Lumpur to call for electoral reform. Police said that protestors did not have a permit when they entered Merdeka Square and used tear gas and water cannons to disperse the crowds. However, protestors said that they had the right to express their views. The event had been orchestrated by a group called Bersih, composed of a mixture of non-governnmental entities as well as opposition parties. At issue was the demand for electoral reform, predominantly oriented toward the prevention of fraud. By the close of the month, tens of thousands of the country's ethnic Indian community carried out a massive anti-government street protest against ethnic discrimination. They drew attention to the country's long-standing preferential treatment of ethnic Malays and the fact that ethnic Indians have lived under poor socio-economic conditions. This second protest was regarded as the largest mass demonstration by ethnic Indians in decades and authorities used tear gas and water cannons to crackdown on the crowds. Page 19 of 380 pages
Together, the two anti-government protests presented political challenges for the government of Prime Minister Abdullah Ahmad Badawi, sparking speculation that he could call snap elections as early as 2008 -- a year ahead of scheduled elections. Recent Developments: In February 2008, Malaysian Prime Minister Abdullah Ahmad Badawi announced that he was dissolving parliament in anticipation of snap elections. Badawi said that the King and the Election Commission had given consent to the dissolution of parliament and that the date for the general elections would soon be set. Parliament, which was dominated by the ruling Barisan Nasional (BN) coalition, was set to expire on May 16, 2009. The ruling party, which enjoyed a landslide victory in the 2004 polls, was looking to repeat that performance. To that end, the prime minister said, "I am confident of winning, and I hope that we will retain our two-thirds majority." Soon thereafter, it was announced that the elections would be held on March 8, 2008. The main issues of the elections were expected to include national unity and ethnic tensions, rising crime and economic concerns. In February 2008, Malaysian Prime Minister Abdullah Ahmad Badawi announced that he was dissolving parliament in anticipation of snap elections. Badawi said that the King and the Election Commission had given consent to the dissolution of parliament and that the date for the general elections would soon be set. Parliament, which was dominated by the ruling Barisan Nasional (BN) coalition, was set to expire on May 16, 2009. The ruling party, which enjoyed a landslide victory in the 2004 polls, was looking to repeat that performance. To that end, the prime minister said, "I am confident of winning, and I hope that we will retain our two-thirds majority." Soon thereafter, it was announced that the elections would be held on March 8, 2008. The main issues of the elections were expected to include national unity and ethnic tensions, rising crime and economic concerns. On March 8, 2008, Malaysians went to the polls to determine if the ruling BN would hold on to its grip on power. While voting was postponed until the next day in Sarawak in East Malaysia, because the ferry carrying ballot boxed capsized, and even though some polling stations in Sarawak were closed due to flooding, the outcome of the election was nonetheless determined by March 9, 2008. The country's Election Commission said that the BN won a simply majority in the country's 222- seat lower house of the parliament, and was thus positioned to form a new government. However, the BN lost its super majority while the opposition took an unprecedented number of seats -- more than 80. Among the opposition forces enjoying a good performance was the opposition Justice Party, led by Anwar Ibrahim. Also of significance was the fact that three "component" party Page 20 of 380 pages
leaders (within BN) failed to secure seats in parliament; these leaders included Malaysian Indian Congress President Samy Vellu and People's Movement Party Acting President Koh Tsu Koon, The depressed BN turnout was blamed on the government's lack of leadership in dealing with ethnic tensions, ultimately leading Malaysian Indians and Chinese to informally boycott the polls. Meanwhile, there were rising calls for Prime Minister Abdullah Ahmad Badawi to step down from office following the less than optimal performance of his party at the polls. In May 2008, former Malaysian Prime Minister Mahathir Mohamad announced that he was ending his association with the country's main party, the United Malays National Organization, or UMNO. The UMNO has been part of Malaysia's ruling coalition, the BN. Mahathir said that he was leaving the party for two main reasons. Primarily, he said that he had lost confidence in the party's leadership. Additionally, he deemed the party leadership to be incapable of protecting the interests of the Malay people. Moreoever, the former Malaysian leader said that he would only return to the UMNO fold if the current prime minister and party president, Abdullah Ahmad Badawi resigned from office. When asked if he was taking this hard line stance to place pressure on Prime Minister Abdullah Ahmad Badawi, Mahathir responded by saying, "I don't know about pressure because this man doesn't seem to understand anything." In June 2008, Malaysian Prime Minister Abdullah Ahmad Badawi attempted to end speculation about his political fate by denying that he had plans to resign from office. Instead, he said he would seek re-election as the leader of the country's governing party, the United Malays National Organization, or UMNO. This announcement appeared to contradict earlier reports that he would hand over some duties to Deputy Prime Minister Najib Razak. Badawi has been under pressure to step down from office since his governing coalition suffered marked losses in the general election held in March 2008. The growing chorus for his resignation reached new heights as the country was faced with public outrage over the high price of fuel and overall inflation. In the background of these issues were other concerns, such as the rising ethnic tensions in Malaysia, along with anxieties over the increased rate of crime. Together, these matters contributed to a sharp drop in public approval for Prime Minister Badawi whose popularity was measured in opinion polls to be a low 30 percent. In late June 2008, Malaysian opposition leader, Anwar Ibrahim, sought refuge at the Turkish embassy in the Malaysian capital city of Kuala Lumpur, in the wake of allegations that he committed sodomy. Anwar said that he had sought sanctuary at the Turkish embassy due to fears of arrest or assault. In an interview with British media, he said that he was seeking personal protection, "because of my fear of my personal safety in case they arrest [me], and I don't want to repeat the assault and near death under custody of the... Malaysian police." He also denied the allegation of sodomy that had been issued by one of his own staff members. Anwar accused the accuser of trying to create problems as his political influence was on the rise. Page 21 of 380 pages
In 1998, the former deputy prime minister had been placed in prison on grounds of sodomy and corruption. The sodomy charge was later overturned in court and Anwar was eventually released from jail in 2004. As before, Anwar said that the current situation was clearly politically motivated. Now that he was eligible to contest public office once again, he believed that the new allegations were being brought against him to prevent his participation in the political process. To that end, Anwar said, "I'm now eligible to contest the elections, so they have to fabricate the same script being repeated in my earlier case in 1998, 1999." In mid-july 2008, Anwar was arrested and held for questioning over the aforementioned allegations of sodomy. He was later released on bail. As he has before, Anwar dismissed the charges saying, "They [the authorities] have no case against me." He has said that the government has been pursuing the case for political reasons, largely because his increasing political cachet has been simultaneous with the devolving approval ratings of Prime Minister Badawi. On the other side of the equation, Prime Minister Abdullah Badawi denied that his government was behind any fabricated case being brought against Anwar. However, Anwar had successfully led the opposition in the last general election (March 2008) in which it made significant parliamentary gains at a time when the tide has appeared to turn against Badawi. In fact, the country's former Prime Minister Mahathir Mohamad ended his association with the ruling party to register his displeasure with the unpopular Badawi. Amidst this climate, Anwar had said that he was working on gaining parliamentary support, aimed at bringing down Badawi's government. Analysts thusly have observed that no one had more to gain from the new allegations against Anwar than Badawi. At the start of September 2008, Malaysian opposition leader, Anwar Ibrahim, enjoyed an overwhelming victory in a by-election and was sworn into office as a member of parliament, after an absence from the political scene of close to ten years. Anwar's absence, though, had been largely a result of legal problems and challenges -- from charges of corruption to sodomy -- that he has maintained were all politically-motivated. Nevertheless, after re-entering parliament, he declared, "I feel vindicated. I feel great that I am back." Anwar Ibrahim was also vindicated at the polls some months earlier when his People's Justice Party enjoyed a strong performance at the polls. Since then, he has been viewed by the incumbent leadership of the Barisan Nasional coalition as a political threat. No single politician has been more threatened by Anwar Ibrahim's return to the political scene than unpopular Prime Minister Abdullah Badawi, who has been plagued with demands for his resignation since the March 2008 elections when the opposition gained substantial ground. For his part, Anwar Ibrahim has vowed to force Prime Minister Abdullah Badawi from office. Page 22 of 380 pages
The opposition leader was reported to be trying to attract support from various factions in parliament for the purpose of bringing down the government by mid-september 2008. Such an objective would not be easily realized since the governing coalition had control over 140 seats in the 222-seat parliament, while his party and three allied parties, held 82 seats. As such, he was tasked with making the case for change persuasively to 30 parliamentarians. He may well have been successful since he called for a special session of parliament to be convened by the third week of September 2008, presumably with a confidence vote in mind. Meanwhile, the government of unpopular Prime Minister Abdullah Badawi was carrying out a crackdown on dissent. At issue were the arrests of opposition bloggers expressing political dissent. In one case, a blogger was arrested under the aegis of the Sedition Act for reportedly displaying the Malaysian flag upside down on his website. In another case, a blogger criticized members of government on his website and was arrested under the aegis of the country's Internal Security Act, which provides for detention without trial. An opposition politician and a reporter were also arrested for what human rights groups said was the mere expression of freedom of speech. To that end, the Legal Affairs Minister, Zaid Ibrahim, resigned in protest of the repressive actions of the government to which he belonged. Update -- Embattled Malaysian Prime Minister Datuk Seri Abdullah Ahmad Badawi submitted his resignation to Malaysia's monarch, Yang di-pertuan Agong Tuanku Mizan Zainal Abidin, on April 2, 2009. Yet to be determined was the matter of whether or not Malaysia's Supreme Head would accept the resignation or the designation of the deputy prime minister as the new head of government. One day after Abdullah Badawi resignation from office, those questions were answered. Malaysian Deputy Prime Minister Najib Tun Razak was sworn into office as the country's new prime minister. In attendance at the somber inauguration ceremony were Abdullah Ahmad Badawi, former Prime Minister Mahathir Mohamad and other senior ministers. In office from 2003 until 2009, Prime Minister Abdullah Badawi was plagued by ever-devolving popularity, manifest by his party's poor performance at the polls in March 2008 and an upsurge for the opposition. Since that time, Prime Minister Abdullah Badawi's increasingly autocratic stances and efforts to repress the political opposition have only served to weaken him politically. Indeed, he even lost support of the former President Mahathir Mohamad. In 2010, religious tensions were on full display in Malaysia when a court ruled that non-muslims would be allowed to use the word, "Allah," to denote God. The matter spurred debate in this mutli-religious country where the majority Malay ethnic group tend to be Muslim, but where several other ethnic and religions define the complex social frabric of Malaysia. Page 23 of 380 pages