Malaysia’s Prime Minister Najib is facing accusations of fraud with the 1MDB fiasco, and the murder of Mongolian model Altantuya Shaaribuu, while the economy is going into a ‘nosedive’.
After six and a half years in office, Premier Najib presides over a nation with contracting growth, rising inflation, growing unemployment, a Ringgit at a 20 year low against the US Dollar, significant capital flight, a massive debt problem, disappearing sources of income, and low consumer confidence.
Although some of these problems are the result of global factors such as declining oil and gas prices, low commodity prices, and sluggish growth of major trading partners, Malaysia’s problems also greatly exist today as the result of policy failures. Extremist policies have also led to social and ethnic tensions within the country. In addition, the depreciation of the Ringgit and introduction of the GST have put undue hardships on the people.
Malaysia is going through a very intense period of political infighting at the highest echelons of power within the dominant party within the Barisan Nasional (BN), UMNO. Premier Najib recently sacked his Deputy Muhyiddin Yassin, and other ministers and officials in desperation to maintain his grip on power, while the former PM Dr. Mahathir is leading a vanguard of senior UMNO stalwarts to remove Najib from office.
Within corporate Malaysia, there is now a deep realization about how fast Malaysia is falling behind the rest of the world. Many believe that the Prime Minister has not grappled with the real problems facing the nation. This thinking according to sources goes right to the board rooms of companies like Sime Darby and Petronas, some of the premier financial institutions of the land, as well as a number of Royal Households.
However there is a large split in thinking about how to solve the problem, as the Mahathir forces are still viewed with great suspicion by many sections of royalty. Thus any possibility of him being an immediate interim prime minister would never be considered. There is also a general distain for the weak and incompetent opposition in the country, which instead of showing leadership has allowed infighting to surface publicly and dissolve the Pakatan Rakyat.
Consequently, there is no planned takeover of power, coup, of method to remove Najib from office in existence. The prevailing view is one of being stunned and a feeling of impotence, as Premier Najib has managed to centralize most power in the country around the Prime Minister’s position.
The immediate task at hand for Premier Najib was to deliver a national budget. There has been massive revenue shrinkage due to falling oil revenue and a corresponding reduction of dividends paid by Petronas to government consolidated revenue. The unpopular GST will not make up the projected short falls over the coming years, which will increase the budget deficit, if government spending is not drastically reduced. This would be politically unpalatable, particularly at a time when Najib is so unpopular. Najib also has to contend with growing unemployment and will be pressured to maintain infrastructure spending, so lucrative contracts can continue to be given out to his supporters.
The flip side for Najib is that with the falling Ringgit, and rising debt, ratings agencies will be looking for fiscal responsibility in the budget. A fiscally irresponsible budget could increase capital flight which is already a major problem for Malaysia’s balance of payments.
Najib has tried to do all this. He has chosen the path to spur the economy through nine infrastructure projects, of which a high proportion are in rural areas, Sabah and Sarawak. In addition, a lot of ‘sweeteners’ have been added into the budget, which are no doubt aimed at shoring up his popular base. From this point of view, it could be construed as an election budget, giving Najib the option to call a snap election, if necessary. At the same time a number of reforms for the civil service have been announced as well as a projection of a lower budget deficit of 3.2% of GDP, down from 6.7% the year before, in an attempt to win support of ratings agencies.
It’s a budget that BN members of Parliament would find it difficult to vote against, due to the large numbers of specific programs benefitting their individual electorates.
The weak opposition has become Premier Najib’s great strength. PAS President Aman Hadi’s push for HUDUD laws eventually broke up the opposition alliance, Pakatan Rakyat. In addition Hadi’s indecisiveness on whether PAS would support any no confidence motion against Najib in parliament this week was seen by many in the opposition as treacherous.
The handling of the no confidence motion showed complete incompetence. The fact that DAP MP Hee Loy Sia filed a motion of no confidence before PKR leader Wan Azizah, has led to questions in the local media about whether the new alliance Pakatan Harapan actually wants to remove Najib from office. The opposition seemed to be more interested in who would make the motion of no confidence, rather than actually making this symbolic move in parliament, which would have failed anyway, due to lack of numbers of support the motion.
Others felt that the whole matter of a no confidence motion was just a waste of time, as there is no chance of and mass defection of Barisan MPs. UMNO backbenchers have shown no sign of wavering, as have Sabah and Sarawak MPs, along with Gerakan and MCA members.
There is also worry about the opposition’s policy proposals to solve the financial crisis. The opposition proposal to put 1MDB into administration in Wan Azizah’s budget speech would only lead to an asset fire sale. In addition, blocking TNB from taking over 1MDB assets is just sabotaging any initiatives to reduce debt.
There is no end game in sight.
It is rumoured that Najib’s mother and at least one brother has asked him to make a deal with Dr. Mahathir on safe passage out of Malaysia and immunity from prosecution. However, upon Najib’s wife, Rosnah’s insistence, he is taking up the fight to survive with a new and ruthless political secretary in charge. Such a deal anyhow would provide Najib with no guarantee, as Dr. Mahathir has no legal or political standing to make such a deal.
No doubt, Najib will pass through this session of parliament with the partisan speaker Pandikar Amin Mulia, and the UMNO AGM in December. In theory Najib can continue right up to 2018 as party president and prime minister. However, the pressure of a quickly deteriorating economy and a poor budget reception could change that timing, particularly is any other unforeseen event arises over the next few months.
The advantage to Najib is the extremely poorly coordinated opposition that has shown itself to be in disarray with the PAS/Parti Amanah Negara (PAN) split. Ironically, Dr. Mahathir looks and appears to be the only effective opposition leader in Malaysia today. Yet the Mahathir forces themselves are also impotent (something he admitted himself) against the Najib forces which control the powerful PM’s office, ministers, UMNO, and police.
Overall, Mahathir has been disappointing in his handling of Najib, which has only in reality showed up his impotence in standing up to his old protégé. He has failed to show the strength he once had as a leader and politician.
Muhyiddin and Tunku Razaleigh have primarily been on the side-lines, unwilling to take any lead.
Najib’s best action would be to go for an immediate snap election after the budget and catch the opposition ‘off guard’, and weaken them further. By placing his people in winnable seats, Najib could further his strength within UMNO and government, and even weaken the Mahathir forces mortally.
The recent poll stating the unpopularity of UMNO and its leader with the Malay electorate was urban biased, thus such a result would be expected. The general election is won or lost in the heartland, not the urban areas, so UMNO can still win.
However, there would be very little incentive to do this as parliament still has two years to run until an election is needed. Nevertheless, it could be tempting to wipe out PKR, PAS, and Harapan Baru all at once, as PAS is likely to stand candidates against PKR and DAP leading to three-cornered contests. The opposition also has a major credibility gap with the Malaysian public.
A new parliament after an election would most probably be dominated by UMNO and DAP, which is set to make massive gains.
Najib’s best and only option open to him at the moment is to stay in power to protect himself, and the interests of his family’s businesses, controlled by his brothers Nazir, Ahmad Johari, Mohamed Nizam, and Mohamed Nazin Razak. These business interests include a number of high profile corporate assets, entangled with a number of close associates including Tan Kay Hock, Shahril Shamsuddin, Mohamed Azman Yahya, Rohana Mahmood, Azman Mokhtar, Mohd. Nadzmi Mohd. Salleh, and others, who could stand to lose many of their assets should Najib no longer be prime minister.
Najib seems very hesitant to go the election track and may rely on police repression to maintain his grip on power for the time being. Najib’s new DPM Zaid is like a ‘pitball’ and his new political secretary Muhd Khairun Aseh Che Mat has shown himself to be a ruthless political operator. Attacks on dissenters and the arrests of those trying to expose Najib, like Khairuddin and Matthius Chang under the anti-terror SOSMA laws, shows what Malaysia may be install for in the near future.
This would leave the leadership crisis in stalemate, where Najib can choose his own time to step down, while the economy continues to deteriorate into the foreseeable future.
To this point in time, primarily due to the lack of incentive to unite, Najib’s detractors are powerless to make any decisive constitutional moves against him.
No one is able to convince to UMNO/BN politicians, except for the Najib forces, who are keeping a tight rein on them. So any move by former senior UMNO leaders to push for an interim government through the parliament and constitution is not a possibility.
Najib, who was once Dr. Mahathir’s protégé has proven himself to be more skilful and cunning than the master.
Yet the biggest tragedy for Malaysia is that the Najib regime has no vision for Malaysia, and thus the longer he stays, the more damage that will be done.
There is also little hope in any post-Najib era as well. The opposition is only coming out with ad hoc policy measures, which may even make worse some of the problems, and the Mahathir forces are totally silent about what they would do.
Ready for the Dry Years: Building Resilience to Drought in Southeast Asia
Authors: Armida Salsiah Alisjahbana and Lim Jock Hoi*
South-East Asia has long endured severe droughts, which occur on average every five years. The prolonged 2015 and 2018 droughts were the worst on record for two decades. They simultaneously affected more than 70 per cent of the land area, with over 325 million people exposed. No ASEAN member States was spared from the devastating impacts including the disruption to livelihoods and food security, as well as forest fires and haze.
The drivers of drought risk in South-East Asia are inherently complex, resulting in considerable year-to-year variations. Drought is heavily influenced by various climatic drivers, mainly the El Niño-Southern Oscillation (ENSO) and Indian Ocean Dipole (IOD). Yet, despite this complexity, clear trends point to an intensifying drought risk across the region.
New analysis of observed data and climate projections in the second edition of Ready for the Dry Years: Building Resilience to Drought in Southeast Asia, a joint report by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and Association of South-East Asian Nations (ASEAN) reveals a statistically significant increase in temperature from 1981-2020, that is expected to continue. This means that drought severity will increase as the climate gets warmer.
This urgency has been enhanced by the COVID-19 pandemic, which has converged with the climate crisis. Both disasters have simultaneously disrupted people’s health, livelihoods and supply chains across the region. These compounding impacts have led to severe economic stress and undermined the ability of the region to deal with current and future disaster risks. It is crucial that we understand how recurrent droughts and the current pandemic are interacting, to identify appropriate policies that can address these crises simultaneously.
ASEAN and ESCAP are working together to prevent the destructive impacts of droughts by promoting a paradigm shift towards more adaptive drought risk management and governance. This cooperation is anchored in a forward-looking, science-based approach to drought risks. The adaptive policy interventions must support the most vulnerable and those furthest behind in the region.
The latest evidence shows that 15 to 25 per cent of the region’s population lives in drought hotspots, with low levels of socio-economic development and high exposure to recurring droughts. Targeted policy interventions in these areas will be essential to prevent the cumulative impacts of recurring droughts, which over time, pose a serious threat to hard-won development gains, particularly the achievement of the Sustainable Development Goals. These interventions must follow three clear policy tracks to reduce and prevent droughts from occurring; prepare and respond to droughts when they happen; and restore and recover after a drought has passed. Accordingly, they should cover a wide range of policy areas, from the management of food, water and energy systems, to the implementation of early warning systems and drought risk financing.
Governments should capitalize on several opportunities to meet this challenge. Firstly, the cyclical and slow-onset nature of drought provides time for us to take risk-informed actions now, to prevent a drought hazard from becoming a crisis. Secondly, governments can benefit from ASEAN’s extensive experience and expertise through greater regional cooperation, driven by ASEAN’s agenda on drought and the newly adopted ASEAN Declaration on the Strengthening of the Adaptation to Drought. Thirdly, the COVID-19 pandemic offers an opportunity to act now to reduce the impacts of future droughts, by incorporating measures to build resilience into COVID-19 recovery stimulus packages.
The latest developments in science and technology will underpin the successful scale up of drought management interventions. ASEAN member States must take concrete steps now to strengthen national and regional drought monitoring and improve our understanding of the causes of drought. It is now more vital than ever for the region to build resilience to drought. By working together, we can mitigate the impact of future droughts and ensure that the entire ASEAN Community will be ready for the dry years ahead.
On this note, strong partnerships between the United Nations, ASEAN and national governments and other stakeholders are essential to deal with the increasingly complex and uncertain extreme weather and climate situations along with the impacts of transnational slow-onset disaster risks. ASEAN and the United Nations has enjoyed fruitful cooperation through implementation of the Comprehensive Partnership and the Plan of Action. This joint ASEAN-ESCAP work has reflected our cooperation and partnership for the benefit of our peoples.
*Lim Jock Hoi, Secretary-General of ASEAN
Cambodia’s Hun Sen, Asia’s longest-serving PM, continues to quell the Opposition
For the past 35 years, the former French colony of Cambodia is ruled by the 68-year-old Prime Minister Hun Sen, Asia’s longest serving head of the government. His policies are regarded as autocratic, aimed at forcibly limiting the scope for the Opposition to rise politically and come to the forefront of democratic activism.
The latest in line of such policies is the politically-motivated mass trials of more than a hundred members and supporters of the banned Cambodia National Rescue Party (CNRP).
The 2012-founded CNRP’s unexpected success in the polls of 2013 and 2017 was seen by Hun Sen and his ruling Cambodian People’s Party with trepidation. The democratic opposition party’s performance came amid sustained pressures of intimidation and electoral malpractice.
The CNRP was the only opposition represented in the country’s National Assembly or lower house of the parliament, with 55 out of 123 seats, until November 2017 when the pro-Sen Supreme Court ruled to dissolve the party, ending its five years of existence.
ASEAN Parliamentarians for Human Rights referred to this arbitrary move as the final nail in the coffin for Cambodian democracy. Also, CNRP’s leader Kem Sokha was arrested on fake charges of treason, accusing him of conspiring with the US to overthrow the prime minister and his government, a claim which Washington has categorically rejected.
Strikingly, these moves came ahead of the 2018 election. In the absence of an effective Opposition, Hun Sen’s CPP unsurprisingly won 100% of parliamentary seats in the last elections held in July 2018.
Meanwhile, Sen’s biggest political rival during his three-and-a-half decade rule, Sam Rainsy, has been living in exile in Paris for the past fifteen years. Last year, he was planning to return to Cambodia along with other senior opposition figures via Thailand, but was denied boarding on the Thai flight due to Cambodian threats to the airlines.
However, to Sen and the CPP’s dismay, in January 2020, some former members of the CNRP and other democratic activists announced the formation of a new party named the Cambodian Nation Love Party (CNLP) to continue the CNRP’s legacy and participate in future elections.
The Cambodian people’s undying quest for democratic reforms was exemplified with the formation of a new democratic party. Sen’s previous attempt to prevent the erstwhile CNRP from reconstituting itself under another name, by banning more than 100 of its leading members from politics for a period of five years thus failed to reap sustainable gains.
As the suppression of democratic expression continues for a long time now, relations with the West have deteriorated in the past few years, pushing the ASEAN country further into Beijing’s orbit. The US is also watching the trial closely. Meanwhile, the European Union, a key export destination for Cambodia, has withdrawn special trade privileges given earlier.
Now, the recent summoning of 140 ex-CNRP members and supporters, for charges of conspiracy and attempting to overthrow the government, is the latest political drama in the long set of desperate moves from Hun Sen to cling on to power.
Among those who showed up in court include former opposition senator Thach Setha and Cambodian-American human rights lawyer, Theary Seng. But, there are many who fled into exile believing that they would not be given a fair trial.
Cambodia, bearing the painful memory of a genocide that happened under Pol Pot’s notorious Khmer Rouge regime in the late 1970s killing 2 million people, saw the country slipping into the hands of another would-be autocratic leader, Hun Sen, in 1985.
The interventions by the United Nations and other human rights-oriented organisations appear to be failing in the Southeast Asian nation as long-established democratic processes drift away and elections are held for namesake, adding up to the political drama. With Sen unwilling to forfeit power, the future prospects for Cambodia seem to be a dreary continuation of the past.
The 2020 Myanmar Election and China: Push and Pull factor in ‘Paukphaw’ friendship
National Democratic League (NLD), the ruling party of Myanmar under Daw Aung San Suu Kyi had a landslide victory in the election, which led the party to continue in power for another five years. While Myanmar still struggling with the civil war crisis and without any solution-oriented approach the crisis in Rohingya is nowhere near to end since the breakout of the severe crisis in 2017.
The pre-election and post-election international media coverage and scholarly discussion on Myanmar bring back the China factor in the Myanmar election and general China’s undeniable ties with Myanmar. It’s been argued that a vote for Aung San Suu Kyi would mean the continuation of the unprecedented expansion of China in the country and a vote for multi-ethnic parties would mean resistance to China-backed infrastructure and other projects.
While the backlashes against China among multi-ethnic parties and towards China-led infrastructure projects are omnipresent in Myanmar, however, China has not loosed its heart to engage in the Myanmar peace process. It is also to be noted that China does not only have good relation with NLD but it also keeps its relationship with the military-backed Union Solidarity and Development Party (USDP). It also frequently engages itself in discussion with ethnic groups. What China likes to call itself is a “neutral player”. Thus, the election results would not have a significant impact on the China-Myanmar relationship.
The irk of Western countries towards Myanmar, who initially supported Myanmar’s democratic transition only intensified with the 2020 election as the Myanmar election commission only allowed election in 8 townships in Rohingya state, and denied election in 9 other townships. A joint statement was issued under the leadership of the UK and the US regarding the inclusion of left out Rohingyas into the election along with urging Myanmar to be more serious regarding the global ceasefire and confidence-building steps that include lifting restrictions on access to health, education, and basic services, lifting restrictions on freedom of movement. China’s as under the principle of non-interference abstained from commenting on the exclusion of nine districts in Rohingya state from the election. Chinese government since 2017 has blocked draft resolutions at UNSC regarding international intervention in the crisis in Myanmar. China, however bilaterally posited itself as a mediator between Myanmar and Bangladesh on the repatriation of Rohingyas. A role, China now often seems to play in conflict-ridden countries, for example in the Afghan peace process China plays a similar mediator role.
Myanmar’s foreign policy after 2015 and China
After the first democratic election in Myanmar in 2015, and NLD’s new manifesto was focused on upholding ‘an active and independent foreign policy’. Under the AngSyu Ki leadership, the foreign policy of Myanmar was considered to be hedging towards a neutralist foreign policy to work together for the benefit of the region on issues relating to regional organizations and programs. Another important pledge in Myanmar’s 2015 foreign policy manifesto was to “to identify and cooperate with other countries on joint economic enterprises of mutual benefit. In particular, to work together for the benefit of the region on issues relating to regional organizations and programs.” Which, as mentioned by Moe Thuzar of Singapore’s ISEAS-YusofIshak Institute is missing in the 2020 Manifesto. The reason for missing the important article from the 2020 manifesto could be Myanmar’s subtle attempt to balance China’s unprecedented presence in the region. As, it also aligns with some of the recent activities of other international actors in Myanmar. Such as high-level delegation visits by India, in October 2020, Myanmar’s growing interest in business engagement with Hong Kong, and eagerness to expand its economic co-operation with other Asian countries such as South Korea and Singapore. All this renewed interest within a span of two months from September to October 2020, before the election in Myanmar also could be an attempt to recover the focus in Myanmar’s democratic transition as opposed to growing clout over claiming Myanmar as an authoritarian regime, especially after 2017.
In terms of Myanmar’s policy towards China, Myanmar could not be seen as prey to China’s economic interest. As, even though the China-Myanmar Economic Corridor is kicking off, Myanmar is still apprehensive regarding embracing all of the Chinese lead projects. According to Irrawaddy times, from China’s originally proposed 40 projects, only nine projects were tentatively agreed to implement from both sides under China Myanmar Economic Corridor (CMEC).
AyungSyu Ki’s diplomatic shrewdness is evident in Myanmar’s China policy. The country despite using China as a shield to defend itself from international intervention, China has not completely able to unlock all economic leverages. China’s patience with Myanmar also relates to the fact of ensuring security in its border province.
Yang Jiechi, the head of the Central Foreign Affairs Commission of the Chinese Communist Party’s short September visit to Myanmar was an indication that China does not take Myanmar for granted to materialize the economic projects, it has started in the country under the banner of BRI, Especially after the 2017 launch of China Myanmar Economic Corridor. Before NLD came into power in 2015, the anti-Chinese sentiments in Myanmar were more prominent, as it has led to President Thein Sein to halt the Myitsone Dam in 2011. Scholars have argued that Myanmar’s skepticism over Chinese led projects between 2011-2012 could be seen as a reaction to its proximity with the West, as Western sanctions were slowly lifted for a brief period (Ganesan, 2017). Thus, as the Western sanctions grew after 2017, Myanmar hedged towards China. Even though, Myanmar is always dubious about China’s economic diplomacy in Myanmar.
However, Myanmar does return the favor to China diplomatically by recognizing the ‘one-China principle’. Myanmar’s President U Win Myint during the visit of Chinese President Xi Jinping in January 2020, states Myanmar’s firm adherence to the One China principle, respects the “one country, two systems” policy China has implemented in Hong Kong and Macao and has always recognized Taiwan as an inalienable part of China’s territory.
Myanmar is also one of the 53 countries that supported the Hong Kong National Security Law.
China’s multifaceted engagement in Myanmar
The question arises can Myanmar altogether keep China aside, especially from its peace process? As China’s border is at the stake, China is pretty much invested in Myanmar’s peace process. In the third Union Peace Conference, China played important role in pressurizing ethnic armed organizations (EAOs) to attend the peace conference. For China’s interest, the member of the Federal Political Negotiation and Consultative Committee (FNPCC) includes the Northern Alliance EAOs, which are known for attacking commercial interests in northern Shan State and Kachin state that shares a border with China. China-funded the EAOs to attend the conference, which was the first time all the ethnic groups attended it with Chinese aid and diplomacy. Thus, Myanmar can’t shun Chinese help when it comes to the peace process. As of August 2020, the fourth Union peace conference marked the absence of many of the ethnic groups as due to COVID and other factors China was not seen pushing much for their inclusion. Yun Sun noted that the reason could be the absence of any specific request of the Myanmar government to China regarding the same.
Apart from, engagement with the peace process and supporting Myanmar at the international front regarding the Rohingya crisis, and mediating between Bangladesh and Myanmar, China seem to have a resilient network approach towards Myanmar. This has led China to engage different actors in its diplomacy towards Myanmar. Chinese government NGOs (GONGO)’s such as the China International Poverty Alleviation Foundation (CIPAF), Blue Sky are becoming more present in Myanmar. These GONGO’s are not only providing humanitarian aid but also organizing skill development programs for locals. The Chinese government also sometimes organizes training programs for Myanmar’s diplomats and officials and businessman. Hence, China is more engaging at the grassroots level, a diplomatic style China has adopted from its experience of engagement in unstable states in Africa.
Thus, as for now, it is both a win-win game for China and Myanmar, as both seem to seek leverages from each other. However, it would interesting to see if more international actors, especially the US lifts the ban on Myanmar and get engage with the country how Myanmar would design its policies towards China.
The views expressed in this article are those of the author.
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