UMNO Minus Mahathir
From Today's Wall Street Journal Asia
May 20, 2008

Former Prime Minister Mahathir Mohamad resigned yesterday from the party he led for 22 years. It's good news for Malaysia's economic reformers and a sign that the country may finally be able to move beyond the divisive affirmative action policies that have hampered economic growth and soured its democracy for so many years.

Dr. Mahathir's ostensible reason for deserting the United Malays National Organization is the whipping it received in the March elections, when it lost its two-thirds majority in Parliament. The party's losses were due, in large part, to minority ethnic groups throwing their weight behind broad-based secular parties that support economic liberalization and corruption clean-ups, such as the multiracial National Justice Party, unofficially led by Anwar Ibrahim. Malays deserted UMNO too.

The defeat to a party led by his former deputy prime minister must have been especially bitter to Dr. Mahathir. Mr. Anwar was nastily ousted when he challenged the UMNO establishment in the 1990s. The economic and political liberalization he championed then is resurgent today.

The March elections created a crisis for UMNO, which has long based its power on the Malay vote. Dr. Mahathir wants the party to reassert its traditional preferences for Malays. Prime Minister Abdullah Ahmad Badawi, on the other hand, is trying to shore up his base by responding to what voters want. In the past few weeks, he has announced an anticorruption drive and judicial reform measures, as Law Minister Zaid Ibrahim explains on a nearby page.

Whether this is enough to save Mr. Abdullah's job remains to be seen. The UMNO party conference is in December, and Dr. Mahathir's action may intensify calls for the PM's resignation. Meanwhile, UMNO's internal squabbling gives opposition parties a chance to show they're capable of governing. Whatever the outcome, Dr. Mahathir's departure from UMNO is a sign that Malaysia's political debate is changing.

Fake farewell for Malaysia's Mahathir
From Asia Times
By Anil Netto

PENANG - Former premier Mahathir Mohamad's decision to quit the ruling United Malays Nasional Organization (UMNO) on Monday represents his strongest political protest yet against his hand-picked successor Prime Minister Abdullah Badawi - and perhaps his biggest gamble.

His high-stakes decision came after a royal commission of inquiry last week recommended that the former prime minister and a number of his associates face probes under various laws for suspected involvement in the fixing of appointments, promotions and removal of judges, including the sacking of six top judges in 1988, which critics claim permanently undermined the judiciary's
independence.

Among those implicated are gaming tycoon Vincent Tan, the then de facto law minister, Tengku Adnan Tengku Mansor, prominent lawyer V K Lingam, and a retired top judge. The inquiry said that Mahathir was also "entangled" in the alleged scandal. All denied any wrongdoing during inquiry hearings held earlier this year.

Mahathir's surprise decision comes while Abdullah is fighting for his political life after UMNO's poor showing at general elections held in March. Some contend Abdullah is trying to regain the reform high ground from opposition parties through his pursuit of the backward-looking charges against Mahathir and his associates.

Some observers see Mahathir's move as a clever ruse to raise the political ante, while others say it smacks of desperation, as he could have waited for rivals to oust Abdullah during UMNO party elections scheduled for the end of this year. It is also being seen as an attempt to divert public attention away from the actual inquiry findings.

Many observers believe that Mahathir's desperate move also stems from his concern that his nemesis, former deputy premier Anwar Ibrahim, who was jailed on corruption and sodomy charges, could soon rise to power through his opposition Pakatan Rakyat party and then open the books on Mahathir's 22-year tenure, which spanned from 1981 to 2003.

Ironically, Mahathir is resigning from the so-called UMNO Baru, or New UMNO, the party he founded in 1988 after a court declared the original UMNO, established in 1946, illegal. That court decision was made due to voting irregularities during party elections held in 1987, which Mahathir had won by a thin majority over his then arch rival Tengku Razaleigh.

Abdullah, UMNO's current president, now faces a stiff leadership challenge within the party, not least from the ambitious and ever-persistent Razaleigh, a former finance minister and prince from the eastern coastal state of Kelantan. Intra-party leadership elections are scheduled for later this year and already there is intense jockeying for position to oust Abdullah from UMNO's top post.

At the same time, few political analysts believe that the 82-year-old Mahathir will fade away without a fight. Instead, they expect him to step up his crusade from outside UMNO. He has already urged other UMNO party members to follow him out of the party, saying that once Abdullah steps down they could collectively return to the party's fold.

Some saw the recent establishment of a royal commission as an intensification of the ongoing proxy war between Abdullah and Mahathir, which until now has largely been fought in the press. The former premier had slammed Abdullah on a wide range of policy matters, including the cancelation of key mega-projects he initiated and the growing political and commercial influence of Abdullah's family members.

Although Mahathir said he was willing to be charged in court so that he may "expose more conflicts faced by the judges, including those who have implicated me", the recommendation that he be investigated was probably the last straw for the ex-premier, who considers himself the father of modern Malaysia.

Legacy in doubt
In recent months, Mahathir had watched quietly from the sidelines as his legacy was drawn into question. Critics say that apart from rapid economic growth, his legacy also included a loss of judiciary independence, religious polarization, uneven economic development, yawning income inequalities, environmental degradation and declining standards in public universities.

All the alleged corruption, cronyism and superficial nation-building during his administration - and some say carried over into the Abdullah administration - finally came home to roost with UMNO's comparatively poor performance at the March general elections.

The opposition Pakatan Rakyat, led by former UMNO big wig and deputy premier Anwar Ibrahim, made sharp electoral inroads at the polls, winning close to half the popular vote. The UMNO-led Barisan Nasional coalition still maintains a 140-82 majority of seats in the federal parliament, but there is growing speculation that Anwar's party could soon seize power through defections.

With Mahathir's surprise announcement, many Malaysians believe his departure will work to Pakatan's political advantage and even perhaps signal the beginning of the end of UMNO. "You know UMNO is in trouble when its party members start abandoning ship," said one political scientist, who requested anonymity.

Soon after Mahathir made his shock decision, UMNO stalwart Razaleigh addressed a crowd of over 1,000 people at a hotel in Alor Star, the capital of Mahathir's home state of Kedah, saying that he would challenge for the party's top post and that UMNO needed to adopt among other things a more democratic culture.

One political analyst at the scene told Asia Times Online that he believes Mahathir is now prepared to throw his backing behind his former rival Razaleigh to protect his legacy. Analysts are also watching closely to see what Mahathir's son, Mukhriz, who is a committee member of the party's youth wing, and UMNO deputy president and Mahathir ally Najib Razak, do next.

Barring UMNO's outright implosion, with Mahathir's departure intra-coalition factionalism is likely to intensify ahead of the party leadership contest. As the countdown to the UMNO polls begins, few are betting that Abdullah will last the distance. Abdullah's initial reaction to Mahathir's departure was one of measured calm, admitting on one hand that his resignation would impact on UMNO but with the other impressing upon party members the importance that they continue to support the party.

Even with the charges against him, few are willing to write off Mahathir, who some believe for his own personal reasons is attempting to heighten the sense of crisis within UMNO and disenchantment with Abdullah's leadership. Much will depend on how many UMNO members are swayed by Mahathir's decision to actually leave the party.

To be sure, Mahathir's gamble could backfire, particularly if it encourages defections among restless ruling coalition parliamentarians from Sabah and Sarawak, who won 54 of the ruling coalition's 140 seats, to the opposition. In recent weeks Sabah politicians in particular have articulated demands for higher oil royalties and greater political representation.

UMNO supreme council member, Shahrir Samad, has suggested that if the party's lawmakers start to defect the government would have no choice but to call for new general elections. Though not imminent, with UMNO in crisis such a possibility cannot be discounted in the months ahead. And if fresh polls were held while Anwar's Pakatan party gains political momentum, a weakened UMNO could fare even worse than it did in March.

Anil Netto is a Penang-based writer. 

Fixing Malaysia's Judiciary
By ZAID IBRAHIM
From Today's Wall Street Journal Asia
May 20, 2008

KUALA LUMPUR

If there's one lesson to be learned from March's elections, it's that business as usual in Malaysia is no longer acceptable. This is a challenge to the government of Prime Minister Abdullah Badawi, and to me, as law minister. And it's why our recently announced reforms to the judiciary are so important.

When a videotape surfaced last September of a prominent lawyer purportedly trying to fix the promotion of a senior judge, the government swiftly appointed a commission comprising three senior judges, a former solicitor general and a prominent academic to investigate these events. The commission's report was made public last Friday and the government has now pledged to further investigate the allegations of wrongdoing contained in the report.

The report also contains recommendations to improve the integrity of the judiciary, some of which were initiated prior to its publication. In a speech to the Bar Council last month, Prime Minister Abdullah announced a proposal to establish a Judicial Appointments Commission that will evaluate and vet proposed judges in a systematic and credible manner, based on clearly defined and transparent criteria. Our government will also initiate a review of the judiciary's terms of service and compensation as part of our commitment to attract and retain the very best people to serve as judges.

The prime minister has also moved decisively to confront a serious blemish on our judicial history: the 1988 legal upheaval. That year, then-Prime Minister Mahathir Mohamad accused the judiciary of overreaching its powers and subsequently took steps to reduce its influence. Three judges, including the lord president, were sacked and three others were suspended. Since then, the judiciary has been hampered by serious and persistent allegations of corruption, inefficiency and executive interference.

The malaise must stop. The judges who lost their jobs were recognized at the Bar Council dinner for their commitment to upholding justice and acknowledgement of the pain and loss they have endured. Our government will make goodwill, ex gratia payments to these judges as a small gesture to mend what they have experienced.

Some may wonder why so much attention is being paid to an event that occurred nearly two decades ago. I believe it is important the government acknowledge that serious transgressions have occurred, even if those actions were not taken by the present administration, and to take steps to restore faith and trust in our judiciary. It is important for our people and for Malaysia's reputation in the world.

A fair and impartial judiciary is also critical to sustain Malaysia's strong economic growth and its record as an attractive destination for foreign investment from prominent companies such as General Electric, Google and Virgin Group. The business community in Malaysia has been concerned about the fairness and capacity of Malaysia's judiciary in settling disputes, which affects perceptions of our country's economic competitiveness.

To me, the significance of the prime minister's proposals extends beyond matters of law. Traditionally, the judiciary is an institution that is least amenable to change. By honestly recognizing its problems and acting to bring renewal, the prime minister is sending a signal to other institutions: that the government has heard the people's call for greater transparency and accountability, and will bring reform where it is needed. This is a historic moment for our country, and I am proud to be part of it.

Mr. Zaid is law minister of Malaysia.

By S JAYASANKARAN, Business Times
13 May 2008

He'll contest presidency in December party polls; says Umno must look beyond its own race for peace, stability

WHEN Malaysia's second premier Abdul Razak Hussein died in 1976, his successor, Hussein Onn, looked for a deputy from among the three elected vice-presidents of the ruling United Malays National Organisation, or Umno. He offered the job to Tengku Razaleigh Hamzah, then 39, and the head of fledgling oil corporation Petronas.

The prince from north-eastern Kelantan state declined the offer. 'I was too young and I thought that Dr Mahathir was the better man then,' says Tengku Razaleigh. Mahathir Mohamad, then 50, accepted Mr Hussein's offer and went on to become prime minister in 1981, a position he kept until Oct 31, 2003 when he stepped down in favour of Abdullah Ahmad Badawi.

Mr Abdullah was once Tengku Razaleigh's comrade-in-arms when the prince locked horns with Dr Mahathir in 1987. Tengku Razaleigh lost that battle narrowly and is preparing for another in the wake of the National Front's disastrous showing in the March 8 general elections.

Now Mr Abdullah is his nemesis and Tengku Razaleigh, now 71, wants to contest Umno's presidency when the party holds its triennial polls this December. Traditionally, the president of Umno, the dominant party in the National Front coalition, assumes the prime minister post.

'Without a leadership change, Umno will lose the next elections,' says Tengku Razaleigh, a former finance minister and current Member of Parliament for Gua Musang in Kelantan. 'Since March 8, there hasn't been any proposal to effect real change, to accommodate those who voted against us. Many of them were National Front supporters.'

The prince is sitting in his study at his house on Langgak Golf, a swank and leafy suburb in Kuala Lumpur with residences there mostly belonging to ambassadors from developed countries. His study itself is a perfect-to-scale replica of the Oval Office in the White House, an indication, perhaps, of his ambitions for leadership.

Tengku Razaleigh is charming, a person who smiles easily and treats his guests with the utmost courtesy - a reflection of his upbringing. He is one of Malaysia's royals and is an uncle of the current sultan of Kelantan.

He looks mildly surprised when asked why he wants to take on Mr Abdullah. 'There seems to be no else to take this challenge,' he replies. 'They don't seem to want to remove him. If they don't, then I'll do it.'

But what if another challenger surfaces, such as deputy premier Najib Razak, or, as has been speculated, Trade Minister Muhyiddin Yassin?

'I have already offered myself,' he says flatly. 'I am not the type who flip-flops.' The latter reference is a jibe at the premier's frequent about-turns on government policy.

But it is not clear at all if Umno will help the prince's cause. He has been out of government since 1987, a period of time during which an entire generation of Umno leaders have come to the fore. Moreover, Dr Mahathir, probably mindful of the fright Tengku Razaleigh gave him in 1987, changed the rules governing challenges to the presidency.

Now, any presidential aspirant has to get nominations from at least 30 per cent of Umno divisions across the country. That means that Tengku Razaleigh will have to get 58 nominations to become eligible for a crack at the top job - not impossible but not easy either given the power and potential patronage concentrated in the hands of the incumbent. Even so, his aides say privately that he could get as much as 70 nominations.

But the prince isn't so sanguine. 'Fifty-eight nominations aren't impossible if the whole thing is done in a free and fair manner,' he says. 'If it isn't, then even getting two nominations will be difficult. Even now, we have difficulty in just meeting members. And when we do, they get visits, representatives from various agencies will be sent.'

With his old-school charm and his seemingly innate sense of noblesse oblige, the prince hopes to restore Malaysia back to its days when tolerance was a given and not an empty catchphrase. 'We have been independent for 50 years and yet we don't have unity,' he says. 'There is racial polarisation in the universities, in the workplace. By this time, we should have attained some sense of unity, policies should have been fine-tuned but we have instead fallen by the wayside.'

Would multi-racial politics be the answer? 'The Opposition did well because of our weaknesses, because the people perceived Umno has abused its power and the behaviour of certain leaders. But having said that, Umno must also look beyond its own race. You cannot have peace and stability without that.'

The prince talks candidly about the concept of Malay dominance which he thinks has been blown out of proportion. 'You must understand that for the Malays, there is no other home so we have this sense of attachment to the land,' he explains. 'It's bound up with the customs and Malay royalty. It's about leadership. But it's not as if they are running around with tomahawks. And there is nothing spelt out in the Constitution.'

Would he be prepared to work with Mr Muhyiddin as his running mate? 'I am open and should have no difficulty working with anyone,' he says. 'I am prepared to sit down with him.'

And has he done so? 'Not yet,' says Tengku Razaleigh, smiling.