PM Najib was buffeted last year by allegations of graft and mismanagement at the debt-laden state fund 1Malaysia Development Berhad (1MDB) and by a revelation that about $681 million was deposited into his personal bank account. On January 26, Malaysia's attorney-general Mohamed Apandi Ali cleared Premier Najib Razak of any criminal offences or corruption, closing investigations into a murky multi-million-dollar funding scandal that his opponents had hoped would bring him down.
It is learnt that the money transferred to Najib’s account by the Saudis was a donation meant to help him combat the “rising threat” of the Muslim Brotherhood, which is a part of the Pakatan Rakyat opposition coalition in the 2013 election. Even if the Brotherhood was defeated in 2013, this has not stopped similar organizations from crawling out of the woodwork. Most formidable of these is ISIS, which has recently issued threats against the Malaysian government and extended the call to jihad to the country’s Muslim populace.
Attorney general said the huge sum of $681m transferred into Najib Razak’s personal bank account was a gift from Saudi royal family and not linked to troubled state fund 1MDB and as such there were no criminal offences or corruption involved in relation to three investigations submitted by Malaysia’s anti-graft agency and that no further action would be taken.
The involvement of the Saudi royal family is an unexpected twist in a scandal over the mysterious funds transfer and the troubles of indebted state fund 1Malaysia Development Berhad (1MDB), whose advisory board Najib chairs.
The Malaysian anti-corruption commission (MACC) had earlier said the funds were a political donation from an unidentified Middle Eastern benefactor. The attorney general said he would return to the MACC papers pertaining to the three separate investigations with instructions to close all three cases.
Najib, who has weathered months of calls from opposition leaders and establishment figures to resign, has denied any wrongdoing and says he did not take any money for personal gain.
Najib, who denied any wrongdoing and said he did not take any money for personal gain, welcomed the attorney general's statement. "The findings followed a thorough investigation by the relevant institutions, and he has confirmed what I have maintained all along: that no crime was committed," Najib said in a statement.
Although there still be a lot of people who may still be skeptical and critical of the government. Attorney general Apandi told a news conference no criminal offence had been committed by Najib in relation to three investigations submitted by Malaysia's anti-graft agency. "I am satisfied with the findings that the funds were not a form of graft or bribery," he said. There was no reason given as to why the donation was made to PM Najib that is between him and the Saudi family," he said. The corruption issue has been an unnecessary distraction for the country. Now that the matter has been comprehensively put to rest, it is time for us to unite and move on.
Malaysian opposition parliamentarian Tony Pua told the Guardian the “basis to absolve the prime minister of any wrongdoing is utterly without merit because the ‘personal affair’ does not preclude corrupt motives or transactions”. He added: “The attorney general has provided no new or convincing information or arguments on whether the massive funds were bona fide, which leads to the question whether the newly appointed attorney general is merely covering up for the prime minister.”
However, opposition party leaders denounced the finding, saying the appointment of the attorney-general by the prime minister in the midst of the crisis suggested a conflict of interest. But analysts said it was a victory for Najib that would allow him to focus on winning the next election in 2018.
In July last year, Najib sacked the country’s previous attorney general, who had led the investigation into the scandal, for “health reasons” in a government reshuffle that also saw the dismissal of several officials critical of the premier.
The involvement of the Saudi royal family is an unexpected twist in the saga over the funds transfer and the troubles of 1MDB, whose advisory board Najib chairs. The scandal has shaken investors in south-east Asia’s third-biggest economy and rocked public confidence in the coalition led by Najib’s United Malays National Organisation (UMNO) party, which has held power since independence in 1957.
The Barisan Nasional coalition currently consists of the United Malays National Organisation (UMNO), Malaysian Chinese Association (MCA), Malaysian Indian Congress (MIC) and 11 other political parties. The opposition is made up of the People's Justice Party (PKR), Democratic Action Party (DAP) and National Trust Party (AMANAH) and some smaller parties.
In the March 2004 general election, Dato' Seri Abdullah Ahmad Badawi led Barisan Nasional to a landslide victory, in which Barisan Nasional recaptured the state of Terengganu. The coalition controlled 92% of the seats in Parliament. The current Prime Minister is Dato' Seri Mohd. Najib bin Tun Haji Abdul Razak. He took office following the retirement of Dato' Seri Abdullah Ahmad Badawi (colloquially known as "Pak Lah") on April 2009.
Najib still enjoys the backing of most of UMNO’s powerful division chiefs. Even his fiercest internal critics, such as influential former Prime Minister Mahathir Mohamad, accept that he cannot be unseated.
Although Malaysian politics has been relatively stable, critics allege that the government, ruling party, and government are intertwined with few countervailing forces. However, since the 8 March 2008 General Election, the media's coverage on the country's politics has noticeably increased with a little interference from the government. Judiciary is relatively free and independent.
The Malaysian government intensified efforts on 6 March 2008 to portray opposition figure Anwar Ibrahim as a political turncoat, days ahead of the Malaysian general election, because he posed a legitimate threat to the ruling coalition. Malaysians voted 8 March 2008 in parliamentary elections. Election results showed that the ruling government suffered a setback when it failed to obtain two-thirds majority in parliament.
Malaysia is a major Muslim nation and hence the enemies of Islam target this nation to get it destabilized, people killed as well. Unlike elsewhere in the world, the minorities in the country, especially Chinese and Indians have a major say in the government policies.
Malaysia has had a multi-party system since the first direct election of the Federal Legislative Council of the Malaya in 1955 on a first-past-the-post basis. The ruling party since then had always been the Alliance Party (Malay: Parti Perikatan) coalition and from 1973 onwards, its successor, the Barisan Nasional (National Front) coalition.
Human rights violations were reported but now the situation has improved considerably. In 2007 the Malaysian government briefly detained de facto opposition leader Anwar Ibrahim and arrested a human rights lawyer and about a dozen opposition leaders, amid growing complaints that the government was cracking down on dissent. In fact as the government charged the opposition leader Ibrahim with corruption and other serious charges, these media outlets began searching for opinion makers to malign the government.
Najib’s acquittal has certainly brought a lot of relief in the PM office at Kuala Lumpur, finally.
Malaysia is a rapidly developing economy in Asia. Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. The Government of Malaysia is continuing efforts to boost domestic demand to wean the economy off of its dependence on exports. Nevertheless, exports - particularly of electronics - remain a significant driver of the economy.
Oil remains a crucial source of revenue in Malaysia, contributing almost 30 per cent of government revenue.
The Gross Domestic Product (GDP) in Malaysia expanded 0.70 percent in the third quarter of 2015 over the previous quarter. GDP Growth Rate in Malaysia averaged 1.29 percent from 2000 until 2015.
Economy has been the chief focus of Malaysian government. Security issues aside, Najib’s greatest concerns over the coming year most probably relate to the domestic economy.
On 2 May 2009, Prime Minister Najib Tun Razak announced the government's plan to develop a new economic model that will speed Malaysia's transition to a high income country. The plan will emphasize ways to increase the income and productivity of workers by encouraging knowledge industries and increasing investment from overseas. At the time of the plan's unveiling in 2010, per capita annual income in Malaysia stood at 23,100 Malaysian ringgit, approximately $7,000 in US currency; under the plan that figure would more than double to RM49,500 (US$15,000).
Malaysia has implemented measures to attract and maintain foreign investment, including a moderation of preferences designed to benefit ethnic Malays. Specifically, these reforms include allowing foreign investors to hold majority stakes in most enterprises excluding "strategic" industries such as banking, telecommunications, and energy, easing insurance regulation, curtailing powers of the Foreign Investment Committee and lowering the minimum quota for Malay ownership in publicly traded companies from 30 percent to 12.5 percent.
By being party to organizations such as ASEAN and the Trans Pacific Partnership (TPP), that Najib’s government will be able to achieve its Vision 2020 aims. Although the Vision 2020 is in place to help Malaysia achieve increased incomes, the outlook for 2016 remains uncertain, chiefly due to slowing economic growth in China, affecting South East Asia where Malaysia being the second-largest oil and natural gas producer. The recent slump in global oil prices certainly has its impact on its economy.
The Malaysian economy is stable and among the contributing factors is the implementation of the Goods and Services Tax (GST). Najib, who is also the Finance Minister, said the Customs Department had collected more than RM51bil in revenue since the implementation of the GST, compared with a collection of RM37.2bil in 2014 without the GST. He described the additional collection as extraordinary as and higher than the original projection, which enabled the government to face the economic uncertainty in the world economy currently. GST does not burden the people, on the contrary the GST is savior of the people. With the drop of crude oil to around US30 per barrel, Malaysia is still able to maintain all economic commitments.
The introduction of this tax could not have been better timed. It has helped raise revenues and has saved the government from an otherwise difficult position due to the massive decline in oil prices.
It has been a rather challenging year for the Malaysian economy. Political disruptions and economic shocks have rocked the nation. Prime Minister Najib Razak has been strenuously committed to undertaking fiscal reform. He has repeatedly stressed the importance of reducing fiscal deficits.
China, Malaysia’s top trade partner, is almost surely going to disappoint Malaysia with its slow growth figures. There are estimates that the Chinese economy may grow at about 6.2 per cent next year, much lower than recent trends. If the US economy does prove to be the one bright star globally, it will only bring darkness to the Malaysian economy as a US economic recovery is likely to be followed by interest rate hikes in the USA.
A country that once experienced consecutive years of high growth will have to be content with more moderate rates. In 2000, Malaysia’s growth rate was 8.9 per cent. In 2016 it is more likely to be around 4.5 per cent. Despite this, Prime Minister Najib is valiantly soldiering ahead.
A revised budget has just been released which aims to accommodate this short term change of fortunes due to low oil prices, attempting to optimize operational expenditure to maintain both long term strategy as well as the welfare of the nation’s populace. With the government being cash-strapped, the fiscal reform process is likely to pick up speed. This indeed is a big challenge.
In the face of depleting government revenues caused by sinking oil prices, there may be no choice but to raise taxes and reduce subsidies. The populace has little time to adjust to price increases and rising costs of living.