Attempt to oust Pak Lah by UMNO MT almost succeeded

A powerful faction, led by former Prime Minister Tun Dr Mahathir Mohamad, in the ruling Umno party failed to force Prime Minister Datuk Abdullah Ahmad Badawi to step down yesterday, although it has accelerated his departure from office.

After a two-hour emergency meeting, the 25-member Umno supreme council decided against demanding Abdullah's immediate resignation and gave him three months' breathing space by postponing party elections scheduled for December until next March.

However, Abdullah, who has come under pressure since the Barisan Nasional coalition suffered its worst election result in March, has been given until Oct 9 to decide whether to defend his position as party president or throw in the towel. On that date, Umno's 191 divisions will meet separately and nominate their candidate for party president.

The council yesterday overwhelmingly rejected Abdullah's original offer to hand over power to his deputy, Datuk Seri Najib Razak, in June 2010 as "too far off and unrealistic".

Under the rules, Abdullah or a challenger must win at least 30 per cent or 58 nominations to contest the presidency.

The council has left it to Abdullah to decide if he wants to put his name forward. If he decides to do so it would signal a full-scale battle that is expected to seriously divide the already weakened party.

If he decides not to take part, he would continue as president until March and then quit, gaining notoriety as the only Umno leader to have nearly lost the government to the opposition.

Under attack from both inside and outside his party, Abdullah put on a brave front yesterday.

"I am not leaving any time soon, I am not under pressure, I will decide for myself," he said. "I will announce my decision [to contest or to quit] by Oct 9."

Umno leaders say Abdullah has become so unpopular since the March 8 election, which saw the coalition lose its two-thirds parliamentary majority, that he might not garner the required 58 nominations from the divisions.

A faction led by Dr Mahathir applied strong pressure to get Abdullah to quit yesterday.

Originally Abdullah agreed to hand over to Najib in June 2010 but under pressure he agreed to bring the date forward by a year provided he was returned unopposed as president in December and allowed to stay for another year.

"He wants Najib to make it happen for him," said an Umno supreme council member who did not want to be identified. However, the Mahathir faction was against the plan. Instead they want a handover in December or, failing that, an open and fair contest. "We are very upset the council has agreed to defer elections to March," said another council member allied with the faction.

Yesterday's outcome shows the powerful influence of Najib, who leads a third faction in the supreme council. "But even Najib could only persuade the leaders to agree to postpone to March and with a caveat that Abdullah has to decide by Oct 9," said another council member.

"What does a few months really matter?" a member allied with the Mahathir faction said. "It is very clear Umno does not want him but we feel he is a good man and we want to give him a graceful exit," he said. "The general feeling is not to embarrass him, especially during the Muslim holy month of Ramadan."

Abdullah is also under pressure from his supporters to garner enough nominations and fight it out.

Najib, who leads the most powerful faction, is unsure whether to wait for the handover or challenge Abdullah.

"Abdullah has bought himself some time but his days are clearly numbered," said political commentator James Wong. "In about 10 days he has to decide — fight or walk away." — South China Morning Post

Click this link to read more!

Anwar is a preferrable PM than Najib - Merdeka Centre polls

By a small margin, Malaysians think opposition leader Datuk Seri Anwar Ibrahim would make a better prime minister compared with Datuk Seri Najib Razak, according to a survey conducted recently by the independent Merdeka Centre.
In the same survey, Malaysians also appear more divided than ever over their support for the country's political leadership.

There are also sharp differences in preferences between the different races, with a majority of non-Malays supporting Anwar, while more Malays preferred Najib.

Between Sept 11 and 22, Merdeka Centre carried out a leadership performance perception on a cross section of 1,002 people of voting age from the three main ethnic communities in the country.

Among the questions asked was: "Between Najib Razak and Anwar Ibrahim, who do you think makes a better prime minister?"

Najib garnered a 33.8 per cent average total support among the three major races. Anwar edged him by a margin of less than six per cent — he garnered an average total of 39.3 per cent.

The difference is more conspicuous when the show of support is broken down according to the ethnicity of those polled.

The split was apparent among racial lines, with Najib drawing as much as 47.3 per cent support from the Malay community. Anwar trailed with just 32.5 per cent.

The opposition leader gained greater support among non-Malays, receiving the support of 37.4 per cent of Chinese voters and a whopping 85 per cent from the Indians.

In comparison, Najib only won the approval of 18.4 per cent of Chinese voters and just five per cent of Indians thought he would make a better prime minister.

Of note was the high percentage of voters who remained non-commital. More than 40 per cent of Chinese voters polled expressed no preference.

Based on the poll results, Malay support for Najib is significantly stronger than that for Anwar.

Political analyst Tricia Yeoh says the party factor is a very strong featuring factor with the non-Malay communities.

"It is possible they view Najib as continuing to perpetuate the same kind of politics that has plagued Malaysia through Umno," she said.

"Anwar will need to fight for Malay support most prominently since Najib may continue to be seen as the final bastion of support for the Malay position," she added.

Another political analyst, Khoo Kay Peng, sees it differently.

"No doubt Najib commands higher support among the Malay community because of the status of Umno as a Malay party. It has been representing the Malays for a long time. But at 47.3 per cent, the support is not really very high for Najib. It's not much off Abdullah's support," he said.

Based on the same Merdeka Centre report, Abdullah still enjoys 50.7 per cent support from the Malays.

"The key is that Najib does not get much support from the Chinese and Indians. Najib is still seen as a Malay leader.

"If you want to be the prime minister, you must have support from across the board," he said.

"Anwar stands a much better chance because he gets support from over 30 per cent of the Chinese and the Indians, predominantly from the Indians, which is consistent with past reports," he pointed out.

In a toss up between who will become the next prime minister, he felt it would definitely be Anwar.

But for Khalid Samad, the Pas MP for Shah Alam and an ally of Anwar, the results are frightening for the Pakatan Rakyat alliance.

He said the results of the survey showed government media propaganda still held sway, especially among the rural Malays.

He is concerned that much of the Malay media has portrayed a negative impression of Anwar as being an "immoral guy" and being a stooge of the United States.

"Basically, Umno-Barisan Nasional has been quite successful in conning Malays into believing that Anwar is selling out the Malays and that is the reason for the low percentage of support for Anwar," said Khalid.

"These are not very encouraging results if it is representative of the entire population. It means there is a problem. Anwar will have to work harder.

"It's important he should have at least a 50-50 situation among Malays. That would suffice," he stressed.

But he does not think that the sample poll is a true reflection of the voting populace.

"I don't think that Anwar in the actual situation is that far behind Najib. I would expect 47 per cent for Najib and 45 per cent for Anwar.

"The difference, almost 15 per cent difference in support from Malays, gives the impression that if Pakatan Rakyat comes to power, the position of the Malays will be jeopardised.

"But no one race will lose out under Pakatan leadership," he said.

Click this link to read more!

Opaque govt crippling economy - Anwar

Opposition leader Datuk Seri Anwar Ibrahim took a swipe at the government’s opaque operations, which he claims, are crippling the economy and discouraging investment.

He said the opposition was concerned that public-sector spending had risen to RM200 billion annually from RM160 billion in 2004.

“That of course doesn't include the slush funds in excess of RM30 billion used at the discretion of the Prime Minister,” Anwar said in his address at the CLSA Investor Forum in Hong Kong today.

He was also concerned that the national debt has gone up by another RM100 billion and the fiscal deficit has risen to 4.8 per cent of GDP this year.

“With capital flight at a record high since the 1997 crisis, RM125 million in 2008 already, Malaysian investment abroad now exceeds inward foreign investment. We are facing a double barrel onslaught of our own doing with the ringgit hitting all-time lows since 2005 and inflation a record high of 8.5 per cent, the worst in 27 years.”

The de facto leader of the Pakatan Rakyat opposition coalition said issues of governance and corruption in the country had yet to be resolved.

“The latest corruption perception index from Transparency International speaks for itself. In almost a decade Malaysia has hardly improved its position in the ranking while our would-be peers are making substantial improvements.”

Anwar claimed that the opposition had a clear agenda for Malaysia.

• Revive the lagging economy by adopting market friendly policies.

• Take decisive action to cure the festering sore of corruption and cronyism that has decimated the judiciary, rendered anti-corruption efforts impotent and leeched billions of dollars from the state coffers

• Restore faith in the institutions of governance both domestically and internationally so that investors will once again find the country an attractive destination for their long-term investments.

• Strict adherence to the rule of law and an immediate end to draconian statutes that would allow the powers that be to detain their adversaries willy-nilly and without due process.

He said a change in government was central to the current political scenario. “The ability to handle a transition is a measure of the strength of the country's democratic institutions.”

However, he said it should be done peacefully and orderly as stability could not be sacrificed no matter how intense the desire for change has become.

Anwar said Pakatan Rakyat would introduce structural reforms in public procurement programmes and the management of state companies while ensuring that adequate social safety nets are in place.

“With the political will to combat corruption, wastage and mismanagement, an 8 per cent per annum growth rate is not unrealistic.

“Petronas should be made accountable to Parliament and not remain the private piggy bank of the Executive branch. We will remove restrictions on foreign capital inflows and outflows and revamp government protection of monopolies in industries like telecommunications and banking.”

In an apparent hit at Prime Minister Datuk Seri Abdullah Ahmad Badawi, the opposition leader said if markets are strong and unfettered, and if laws are transparent and enforced by impartial judges, “we will not need special development corridors or regions to attract investment”.

“A stable and clean business environment is far more important than special tax breaks and quotas handed out by a corrupt and opaque government,” said Anwar.

He said when the Asian crisis struck 10 years ago, the decisions he made as Finance Minister were not populist nor were they popular.

But he added that on principle, he felt they were the right moves even though they were at the expense of his personal freedom.

“Yet in my darkest hours of solitary confinement I had never given up hope that something good was to come of the ordeal. And now after more than a decade of struggle and profound challenges we are on the threshold of a new beginning.”

The Malaysianinsider


Click this link to read more!

Pak Lah hints could step down in March

Malaysian Premier Abdullah Ahmad Badawi indicated Friday he could step down next March, saying he had not decided whether to stand in ruling party leadership elections to be held then.
Abdullah spoke after an emergency meeting of the United Malays National Organisation (UMNO), held amid speculation he would be forced to quit ahead of a planned transition to his deputy Najib Razak in mid-2010.

The embattled premier said that UMNO internal polls scheduled for December would now be postponed until March, and that he would make an announcement in the next few weeks over whether he would bid for the top job.

"I have not made any decision as far as this particular point is concerned," he said. "The decision is mine, you can go on guessing. As far as I'm concerned I love the party."

But he indicated that he would depart sooner rather than later, saying the party polls had been brought forward "to help facilitate an early transition".

Abdullah admitted that several members of UMNO's Supreme Council were pushing for a speedy transition of power, but he said the policy-making body agreed with the decision to shift the party elections.

Excerpt from http://news.my.msn.com/regional/article.aspx?cp-documentid=1696709

Click this link to read more!

Chess grandmaster, the queen of the board

Alexandra Kosteniuk, 24, is the reigning queen of the board.

I WOULDN’T mind meeting Alexandra Kosteniuk over a game of chess. In fact, I know of many chess players who wouldn’t mind either. But I can almost hear some of you ask: who is Alexandra Kosteniuk?

Kosteniuk is the current women’s world champion. She’s newly minted, not more than 10 days old in this role.

Last week, she won this title in Nalchik, a city in the Russian region of Kabardino-Balkari, after a tense four-game battle with China’s Hou Yifan.

What makes Kosteniuk so special? Well, apart from her chess-playing ability, Kosteniuk looks nothing like the dowdy, matronly female chess players that you’d tend to associate with Soviet chess. No, that was a completely different era in chess.

Grandmaster Alexandra Kosteniuk with her gold world champion medal.

Kosteniuk represents a new breed of women players. She’s chic, smart, stylish and swanky. She looks stunning and makes women’s chess seem fashionable!

Kosteniuk, 24, has a very popular Internet presence. Her website, kosteniuk.com, set up about five years ago, is the 14th most popular chess website today according to Alexa’s worldwide rankings. The website’s ranking would have shot through the roof since she became the women’s world champion.

But Alexandra Kosteniuk was just one of at least 50 chess beauties from around the world at the championship. Initially, 64 players were supposed to take part in the knockout event but 11 of them withdrew due to the military conflict between Russia and Georgia that began just days before the championship started.

This included six Georgian players who pulled out despite an appeal from the World Chess Federation. Others refused to travel to Nalchik as they felt that the championship’s location, just north of the border between Russia and Georgia, was too close for comfort.

So while the first round of the championship was hit by a spate of withdrawals, the second round saw the remaining players well settled down into their games. If there were to be any shocks left, it would be on the chessboard.

Indeed, there was an upset in the second round itself. Defend ing champion (but not the top seed) Xu Yuhua tumbled out in this round, losing to her less-fancied opponent, Russia’s Svetlana Matveeva.

By the third round, the field had been whittled down to just 16 players. Matveeva, who had shocked Xu in the previous round, now failed to make it past her opponent. The top seed in the championship, India’s Koneru Humpy, made short work of her Vietnamese opponent while Kos teniuk advanced by eliminating her compatriot Tatiana Kosintseva.

It was then that players started taking stock of China’s 14-year-old wunderkind, Hou Yifan. From the way she was playing, she seemed a possible title contender.

In the fourth round, Hou eliminated Armenia’s Lilit Mkrtchian to set up a semi-final match against Humpy, who knocked out China’s Shen Yang. The other semi-final was to be between Sweden’s Pia Cramling who beat Antoaneta Stefanova of Bulgaria and Kosteniuk, who beat the Ukraine’s Anna Ushenina.

To everyone’s surprise, Humpy worked Hou. After losing the first game, Humpy levelled the score by winning the second game. They exchanged points in the first two games of the tie-break and then suddenly, Hou found herself in the final when she claimed the third and fourth tie-break games. On the other hand, Kosteniuk cruised through Cramling’s defences.

Thus, the stage was set for a nerve-biting four-game final. Kosteniuk won the first game very convincingly. In the second game, Kosteniuk had four pawns against Hou’s single pawn in a rook ending, but the Chinese player was able to pull off a miraculous save. The third game was a tough draw and then in the final game, Kosteniuk sealed her victory and the title by forcing a draw while in a winning position.

With this win, Kosteniuk is only the 12th person to become the women’s world chess champion. Vera Menchik of the United Kingdom was the first women’s world champion, holding the title from 1927 to 1944.

Lyudmila Rudenko was the second women’s world champion from 1950 to 1953, Elisabeth Bykova held the title from 1953 to 1956 and again from 1958 to 1962. In between from 1956 to 1958, the title was held by Olga Rubtsova.

Nona Gaprindashvili was women’s world champion for 17 years from 1962 and Maya Chibur danidze held the title from 1978 to 1991. China’s Xie Jun won the title in 1991, relinquishing it to Susan Polgar from 1996 to 1999, and then regaining it from 1999 to 2001.

Another Chinese player, Zhu Chen, was women’s world champion from 2001 to 2004. That year, the title passed to Antoaneta Stefanova until 2006 when Xu Yuhua brought it back to China. Kosteniuk is now the latest title holder.

Click this link to read more!

Only Anwar knows the BN defactors list - Guan Eng

Opposition leader Datuk Seri Anwar Ibrahim has held the list of Barisan Nasional MPs allegedly "crossing over" to the Pakatan Rakyat so close to his chest that even the DAP has not been privy to it.

DAP secretary-general Lim Guan Eng said the Parti Keadilan Rakyat adviser had also not revealed the list to Pas leaders.

"I have not seen the list and in my meeting with Anwar on Tuesday night, he told me that he has not shown the list to any Pakatan Rakyat leaders," he told a press conference at party headquarters yesterday.

Lim said the DAP still trusted Anwar despite the failure to reveal the list. According to him, Anwar had said that PR leaders would be shown the list at the right time.

Lim also suggested that Anwar be the '916' spokesman making him the only person allowed to make statements and comments on the progress of the "crossover".
(916 stands for Sept 16, Anwar's original crossover deadline. The figure has since been adopted by the Chinese press as a term for Anwar's plans of taking over the federal government via defections from the Barisan Nasional.)

"I think it is better to let Anwar do all the talking. There should not be too many people talking about this issue. Otherwise it will create confusion, undermining the credibility of Anwar," he added.

Lim said he had informed Anwar of the suggestion that he be made the official 916 spokesman.

On Tourism Minister Datuk Seri Azalina Othman Said's plan to spend RM18 million on a Web TV project, he described it as a waste of government funds.

Lim also introduced new staff to the press -- Teh Chi-Chang, former Citigroup Investment Research director, who will be Lim's new economic adviser and Leong Joo Ti, his strategic implementation and execution manager.

Click this link to read more!

Another meeting on earlier handover

Umno's Supreme Council will meet in an emergency session today - for the second time in a week - in a last-gasp effort to hammer out a smooth handover of power from Prime Minister Datuk Seri Abdullah Badawi to his deputy, Datuk Seri Najib Razak.

The meeting was hastily convened after days of frantic behind-the-scenes efforts to head off a potentially damaging confrontation between the two men in party elections due in December.

Najib yesterday confirmed the meeting would be held today.

"Yes, I believe there will be," he told reporters, but declined to elaborate.

Minister in the Prime Minister's Department and Supreme Council member Nazri Aziz all but confirmed that the power transition plan would be the focus of today's meeting, even as he conceded that Umno was currently
split into camps for and against the 68-year-old Premier.

"It is seldom that such meetings take place, so it should be an important one. In the light of what is currently occurring, I suspect that the power transition plan will be the agenda for the meeting," Nazri said.

He said there were two "extremes" in Umno on the issue, with one side wanting Abdullah to stick with the date for his retirement, and the other side insisting that he go earlier.

Sources said today's meeting could be asked to endorse June next year as the new deadline for the handover of power, a year earlier than the original June 2010 date put forward by Abdullah.

There is also speculation that the Umno elections could be postponed to June, with the divisional elections to begin around March.

The divisions are due to start meeting on Oct 9 to make their nominations for top party posts. Candidates for the party presidency must secure 58 of the 191 nominations, and both Abdullah and Najib are expected to
secure enough to head into a showdown.

This would set the stage for a bruising battle.

Observers say the compromise plan could allow Abdullah to leave office with grace, while gradually handing over power to his deputy over the next few months.

But the plan could stumble if it does not go down well with the grassroots.

Abdullah had originally intended to hand over power to Najib in June 2010, but events soon overtook his plans, especially in the face of constant sniping by his predecessor, Dr Mahathir Mohamad, and opposition leader Anwar Ibrahim.

Things began to unwind rapidly after Anwar re-entered Parliament last month, and Dr Mahathir appeared ready to endorse Kelantan prince, Tengku Razaleigh Hamzah, as a challenger to Abdullah.

Soon after that, Najib shifted his stance to say that it was for the party grassroots to accept the power transition plan. This was as clear a signal as any that he was willing to accept nominations for the party presidency.

With supporters pushing the Prime Minister and his deputy towards a battle, an earlier transition date could be a face-saving gesture to avoid the fight that could split Umno.

It would allow Abdullah to retire on his own terms, and the June 2009 date would enable him to avoid being the Malaysian prime minister who served the shortest term.

The third prime minister, Tun Hussein Onn, served five years and six months from January 1976 to July 1981. Abdullah took office in November 2003.

Reports said members of Umno's management committee, comprising top leaders, had been agreeable to a compromise when they met on Wednesday, the same day Najib cancelled an official overseas trip for the second time in less than a week.

Bernama news agency said this was followed by a series of "secret" meetings between the two leaders and their supporters, and speculation was rife that an agreement on the transition was reached late on
Wednesday night, after both parties settled on a deadline for the power transfer.

"We are expecting something positive to come out tomorrow at the meeting," Bernama quoted a party insider as saying.

"It would be a win-win situation between those calling for an immediate handover and those wanting to stick to the original date (June 2010)," he added. - The Straits Times

Click this link to read more!

Pak Lah and Najib discussed new deal for transition plans

Despite near unanimous backing from Penang and Kelantan, other states may be so forthcoming with their support, forcing Abdullah to hammer out a new deal with Najib. It seems that Pak Lah is fighting hard for survival. New deal is expected to be discussed among them where Najib might ask Pak Lah to quit before June 2009 as reported by Malaysiakini.

Datuk Seri Abdullah Badawi and Datuk Seri Najib are having a private meeting once again today to discuss the transition plans, which may include the possibility of the Prime Minister handing over the reins before 2010.

Today's discussions follow an Umno management committee meeting yesterday chaired by Najib, and which was attended by Tan Sri Muhyiddin Yassin, Datuk Hishammuddin Hussein, Tan Sri Rafidah Aziz, Tengku Adnan Mansor, Datuk Seri Mohd Ali Rustam and Tan Sri Muhammad Muhammad Taib.

It is understood that members of the management committee were sworn to secrecy after leaks from last week's supreme council meeting caused turmoil.

It was reported that Abdullah, the Umno president, came under severe pressure from his party colleagues to quit during that meeting.

Despite the constant reassurances from Najib that he would stick by the transition plan, which is for Abdullah to hand over power by 2010, the pressure has grown from a number of senior party leaders, as well as from significant numbers among the grassroots, for Abdullah to step down sooner.

Sources told The Malaysian Insider today that some party officials have started floating the idea of postponing the party polls from December to next June.

Such an equation would include having Abdullah hand over power by the middle of next year as well.

This would avoid a potentially bruising and bitter struggle for the party, with Najib then taking over as Umno president and Prime Minister in a smooth, and probably unchallenged, manner.

But such a proposal may still not go down well.

It comes at a time when both Tengku Razaleigh Hamzah and Tun Dr Mahathir Mohamad have accused Abdullah and Najib of turning the party into their own personal property.

The two veteran leaders are of the opinion that members should be given a chance to decide who their leaders are.

Click this link to read more!

Use of ISA has affected govt's credibility - Ku Li

Tengku Razaleigh Hamzah slams the recent ISA arrests

Another Umno stalwart has criticised the recent use of the Internal Security Act, saying it had eroded the government's credibility.

Gua Musang member of parliament and Umno presidential aspirant Tengku Razaleigh Hamzah said the detention under the ISA of a blogger, newspaper reporter and an opposition MP had heightened rather than calmed racial fears.

"In the present context of a leadership struggle within Umno and a strong opposition, it is impossible to dispel the notion that these measures are calculated to keep certain individuals in power.

"Nothing does more to undermine the legitimacy of a government than plainly unjust acts," Tengku Razaleigh said in a statement here.

His criticism follows that of former de-facto law minister Datuk Zaid Ibrahim, who resigned from his cabinet post last week in protest against the ISA arrests.
Blogger Raja Petra Kamarudin was on Tuesday sent to the Kamunting detention centre in Perak where he will begin his internment of up to two years under Section 8 of the ISA.

Selangor senior executive councillor Teresa Kok and Sin Chew Daily reporter Tan Hoon Cheng have been released.

The arrests were also criticised by other Barisan Nasional component party leaders from the MCA and Gerakan.

In his statement, Tengku Razaleigh painted a bleak picture of the nation's current political and economic situation.

He said the political and economic crisis could cascade into long-term instability for the country.

"I appeal to all parties to come together to hold an honest discussion about what is happening to our country.

"We need to come together to find unity and direction out of this dangerous situation."
(TheStar)

Click this link to read more!

Teresa challenges Utusan to sue her

"Bring it on!" was the response of Selangor executive councilor for investment, trade and industry Teresa Kok when asked about the call by certain non-governmental organisations (NGOs) for Malay daily Utusan Malaysia to sue her.

The NGOs said that Kok should be sued for making all kinds of allegations against the paper, thus putting its credibility on the line.

Questioned by reporters about this when met after the state executive council (exco) meeting, she said: "If they can find a case against me, then sue me!"

"But now they want to sue me based on what? Based on something I never did?" she asked.

Kok was arrested under the Internal Security Act (ISA) on Sept 12 because she was apparently considered as a potential threat to national security for inciting racial sentiments when she allegedly petitioned a mosque to reduce the volume for the azan (call to prayer). Kok who is also Seputeh parliamentarian and Kinrara assemblywoman had denied this happened and her non-involvement was later supported by the committee of the mosque involved. She was subsequently released on Sept 19.

Kok’s arrest and that relating to the use of the ISA was also discussed in the exco meeting where it was decided that the state will initiate legal action against Utusan Malaysia who published articles alleging Kok’s involvement in the petition by residents to reduce the volume of the azan, pending a response from the daily.

State excutive councilor (exco) for health, plantation workers, poverty and compassionate government Dr Xavier Jayakumar said the state will send a letter of demand to Utusan Malaysia via its lawyers Derek and Co asking them to retract the false allegations and apologise for the article published on Sept 10 in the column titled Cuit written by Zaini Hassan.

"If they fail to respond within seven days or give a satisfactory response then we will initiate a legal suit," he said. The letter will be sent to Utusan Malaysia within the week.

Kok said that she too will also be taking legal action against those responsible for her arrest including the daily.

Meanwhile, speaking on the state’s plans to amend laws and the Standing Orders to compel key witnesses to come forward when inquiries are held, Menteri Besar Tan Sri Abdul Khalid Ibrahim said: "Checking on the use of public funds is not a waste of time and money."

Responding to criticisms against the plan which some quarters say is a toothless in dealing with the issue of mismanagement of funds, he said: "There are two principals we are running this state on that is - transparency and accountability."

These amendments will not only compel those in power to be more responsible, it will also be a step towards learning how we can fix our methods of making decisions, he added.

Abdul Khalid said by understanding the decisions made we can improve on the way we delegate our authority and subsequently monitor our performance and so forth.

Asked whether inquiries as held in the past will be a waste of time as although the persons involved are named, no action is taken, he said: "That’s what the Barisan Nasional government has said for 51 years."

"They have not seen us in action yet, so this is a start," Abdul Khalid said.

Kok who was also present at the press conference equated the inquiry to the Public Accounts Committee and Parliament Select Committee at the Dewan Rakyat level.

Abdul Khalid also announced that the state has allocated RM2 million to help people affected by storm which hit the Straits of Klang, Rantau Panjang, Tanjung Karang, Ampang, Sabak and Sungai Panjang.

State Exco for Welfare, Women Affairs, Science, Technology and Innovation Rodziah Ismail also said that the state is working together with the National disaster and relief management committee to face the onslaught of more bad weather expected until the end of this month as predicted by the Meteorological Department.

- TheSun

Click this link to read more!

Ku Li chances to be PM become stronger with Chedet help

In a move that could help Tengku Razaleigh Hamzah bid for Malaysian leadership, former prime minister Dr Mahathir Mohamad has launched one of his strongest attacks yet against the leadership of the United Malays National Organisation (Umno).

Expressing amazement at recent developments in Umno's Supreme Council, Dr Mahathir deplored "private deals" between Prime Minister Abdullah Badawi and his deputy Najib Razak as "unsatisfactory".

"By the time Abdullah meets Najib, he would have been briefed by his family on what to say," Dr Mahathir wrote in his Internet blog yesterday.

"And Najib, being Najib, would then accept Abdullah's solution to the problem. Najib would have the task of selling the solution to the Supreme Council. By doing so, Najib would go down further in the estimation of council members and the public when Najib's behaviour is leaked."

Dr Mahathir predicted that Najib would not get his wish for a peaceful transition. "There has never been a president of Umno who is as much disliked and even hated by the people as Abdullah," said the former premier. "Malays, Chinese, Indians . . . the ordinary people all want Abdullah to go - the sooner the better."

Dr Mahathir's outburst is the latest in a long line of ferocious attacks going back two years. It comes at a critical point for the embattled Abdullah, who could face a party revolt amid calls for him to go much earlier than his previously announced June 2010 handover to Najib.

Dr Mahathir's tart comments could also bolster former finance minister Tengku Razaleigh's chances in his seemingly quixotic quest to obtain enough nominations to challenge Abdullah for Umno's presidency and, with it, the prime ministership.

The 72-year-old Kelantan prince faces an uphill battle getting the 58 nominations he needs to challenge Abdullah, largely because he has been out of government for 21 years and a whole generation of Umno members do not know or care about his contributions to the nation.

But if Najib, 55, maintains support for Mr Abdullah and refuses to challenge him, Tengku Razaleigh could get support from frustrated Umno divisions desperate for a change at the top and a firm hand on the rudder.

As if sensing the country's dark mood, Tengku Razaleigh issued an epistle-like statement to all Malaysians on Monday, urging them "to come together in this dangerous situation" because Umno and the government "are no longer viable".

He said the government now commands much less support than it did after the March 8 general election, but rather than share the public's urgency for change, the present office- holders had "redoubled efforts to frustrate renewal, cut off reform, and silence criticism".

Tengku Razaleigh blasted Abdullah's transition plan as a "fantasy which rides roughshod over the party's constitution and the rights of its members".

In many ways, the prince's statement echoes Dr Mahathir's sentiments. "This brazen attempt to treat public office and party trust as a private bequest between two individuals - one of whom wishes to hold office beyond his democratic mandate, the other to ascend without one - and the continuing effort to force-feed the country with this notion, fools no one," said the prince. And there is no mistaking the individuals he was referring to. - Business Times Singapore

Click this link to read more!

New fuel price by tomorrow

The Cabinet will decide on fuel prices tomorrow. "We will see tomorrow," said Prime Minister Datuk Seri Abdullah Ahmad Badawi when asked if there would be a Hari Raya present for the people.

He was speaking after chairing an Economic Council meeting at the Putrajaya International Convention Centre today.

The Prime Minister said the EC was taking steps to strengthen the economy.

The services sector, which represents 45 per cent of the economy, would be liberalised and the Ministry of International Trade and Industry would be tasked with presenting a paper at the next council meeting.

The key targets were areas with surplus funds such as the Middle East, China, Korea, Japan and India, where the government hoped to draw investment and trade from, although the council noted that intra-Asean trade had grown to 26 per cent of Malaysia's total trade, reducing its dependency on the US which contributed 18 per cent of trade.

He called on the private sector members of the council to provide papers and suggestions for discussion as the Economic Planning Unit (EPU) would make available all its statistics for them to study.

He rejected the possibility of a stimulus package, saying the US government had responded to its economic crisis in the same way Malaysia had during its 1998 crisis, where government bailouts had been met by criticisms of intervening with a free market.

The EC was formed by the government on Aug 5, replacing the Cabinet Committee on Anti-Inflation.

It assists the government in updating and coordinating policies and procedures to spur economic growth and overcome uncertainties.

It also serves as an advisory body to tackle inflationary issues and a weak global economy that had dire consequences on the country.

It is chaired by Abdullah, with Deputy Prime Minister Datuk Seri Najib Razak as deputy chairman, and comprises ministers and representatives of the public and private sectors. It held its first meeting on Aug 11.

Click this link to read more!

Rapper Namewee grilled by cops

Wee Meng Chee, also known as Namewee, was questioned by police today over the controversial 'Negaraku-ku' rap video he released on youtube last year.

Wee travelled from his hometown of Muar with his parents at 10.30 this morning to see officers from the cybercrime unit of the Commercial Crimes Division. He finished just before 2pm.

"They only questioned me about the song. I was asked to translate it from Hokkien to Bahasa Malaysia," said Wee, who had no legal representation. Asked why it took so long, he said: "It's a long song..."
"They are just doing their job. My job is to make music and their job is to catch people," said the 25-year-old mass communication graduate from Taiwan’s Ming Chuan University.


Wee Meng Chee with his parents, Ong Kwang Fang (mother) and Wee Ann Hee (father) walking out of the Commercial Crimes Division building at Jalan Dato Onn. — Picture by Choo Choy May

Kamarudin Md Din, assistant director of the cybercrime unit, said the case was being investigated under the Sedition Act. He said they had almost wrappped up the case and would refer it to the A-G's Chambers for further action.

Several quarters had condemned Wee for mocking the national anthem and asked that he be detained under the Sedition Act. Wee, who denied he had any ill intentions, issued a public apology.

"I love my country and would never do anything to put it in a bad light," he said today.

Excerpt from http://www.themalaysianinsider.com/index.php/malaysia/9448-cops-grill-rapper-namewee


Click this link to read more!

Syed Hamid ordered RPK to Kamunting for 2 years

Malaysia Today editor Raja Petra Kamarudin was served with an order last night that would see him detained in Kamunting for two years under the Internal Security Act (ISA).

The detention order was signed by Home Minister Syed Hamid Albar last night.

He will be held without trial under Section 8 of the ISA, reporters were told by his lawyers, who were at the High Court hear to argue their habeas corpus application on Tuesday.

He was detained under the ISA on Sept 12. Two others detained that day, Seputeh MP Teresa Kok and Sin Chew Daily reporter Tan Choon Heng, have since been released.

Raja Petra had filed a notice of motion through Messrs Mathews Hun Kandiah last Tuesday citing the grounds that his detention was unlawful and contravened the Federal Constitution. (TheStar)


Click this link to read more!

Anwar options - The King or October 13?

Today the ball is back in Pakatan Rakyat's court.

Opposition leader Datuk Seri Anwar Ibrahim had served up his latest volley last Thursday, asking Prime Minister Datuk Seri Abdullah Ahmad Badawi to call for an emergency sitting of Parliament to table a motion of no confidence in the latter's administration.

Abdullah duly rejected the idea the same afternoon but the PR leaders have decided to wait until today's latest deadline to expire before deciding on their next move.

PKR vice-president R. Sivarasa told The Malaysian Insider that while there have been unofficial discussions since Thursday, PR would only decide on a date for a formal meeting today.

Its leadership will decide on the latest move in a series of failed attempts to checkmate the Barisan Nasional government.

Anwar has seen what he now calls the "symbolic date" of Sept 16 come and go, then a request for an appointment with Abdullah go unheeded and now the attempt to convene Parliament today rebuffed.

Sivarasa revealed that there were now only two clear options to back claims that PR has in hand the 31 or more MPs it requires to command the majority in the Dewan Rakyat.

"We can wait until Oct 13 or go to the palace."

With Anwar having made firm statements about the urgent need for a new government to address the country's economic and democratic woes, it would be both unlikely and inconsistent to wait until Parliament reconvenes on Oct 13.

If they do indeed "have the numbers" as PKR often declares, then there is nothing to lose by going to the King.

If they have instead been stalling for time, this may be the riskiest gamble yet. The King could decree that they wait for Oct 13, or decide to inquire into the matter personally and force Anwar to reveal the identities of all, if any, defecting legislators.

Whatever PR decides on, an endgame is nigh. Either the King decides or PKR will go for a no-confidence motion on Oct 13, which would be no different from having one today, save for a three-week wait.

Hence, what DAP leader Lim Kit Siang said of the emergency session applies here as well, as it would serve "to resolve this issue once and for all. If Barisan Nasional has the majority Abdullah will continue to rule and Pakatan Rakyat will accept it.

"But if Pakatan Rakyat has the majority, let him announce that he will gracefully, orderly and democratically effect a transition of power."



Click this link to read more!

Ways to appoint new PM other than no-confidence vote

THE premise that Parliament has to be called for a vote of no-confidence against the prime minister (PM) to be passed is too simplistic, said advocate and solicitor Tommy Thomas. He was responding to an interview published on Thursday in theSun with constitutional law expert Prof Dr Shad Saleem Faruqi who said that under the Constitution [Article 43(4)], it is Parliament, and not the Agong, which must dismiss the PM.

Article 43(4) of the Constitution reads: If the PM ceases to command the confidence of the majority of the members of the House of Representatives, then, unless at his request the Yang di-Pertuan Agong dissolves Parliament, the prime minister shall tender the resignation of the cabinet.

“However, for Shad’s interpretation to be correct, Article 43(4) ought to read like this: If the Prime Minister is defeated on a motion of confidence in the House of Representatives, then…” Thomas said.

If Shad’s interpretation is right, it was limited to only one occasion and one fact pattern – that the matter needs to be brought to the Dewan Rakyat, he said, adding that the broad scope of the Constitution allowed for other methods to be applied.

“I accept the method Shad mentioned as the traditional method and the first method of preference; where I am disagreeing is that it is not the only method,” he said in an interview last Friday.

He said Article 43(4) represented the Reid Commission report draft and maintained its original form and essentially codified the British Constitutional principle that awards the Agong the exact same powers as the British monarch has. He said nearly all Commonwealth countries had persons who were in similar positions to the British monarch and had the same powers. India, being a republic, has a president while Australia and New Zealand have governors-general to represent the Queen.

So what are the other methods instead of a no-confidence vote?

Thomas: To answer this we have to first look at the fact that in almost every Commonwealth nation, there is a supreme head, a constitutional monarch. In Malaysia, it is the Agong as stipulated in Article 32(1) of the Federal Constitution. This supreme head has to be above politics and serve the role of stabilising the nation, especially in a time of crisis like this.

Article 43(2)(a), which states that the Yang di-Pertuan Agong shall first appoint PM to preside over the cabinet a member of the House of Representative who in his judgment is likely to command the confidence of the majority of the members of that House, leaves the discretion of appointing the PM to the Agong.

The King has to take the advice of the PM 99.999% of the time according to Article 40(1); however the Agong may act in his discretion to appoint the PM and to withhold the consent to a request for the dissolution of Parliament according to Article 40(2).

In some situations he doesn’t take the PM’s advice because the advice may be self-serving. In the case where a PM does not enjoy the support of the majority, his self-serving advice may be to “keep me, don’t sack me”.

So in these situations and in times of trouble, the King should look above the advice and speak up in the interest of the nation.

As a constitutional monarch, the Agong cannot remove the PM unless he is convinced that the PM has lost the confidence of the majority of Dewan Rakyat members as stipulated in Article 43(4) and 40(3).

If the events in 43(4) occur, then the PM can be dismissed if he doesn’t resign.

The provisions in the Constitution give the King a very broad discretion, but he cannot act as a dictator as there are restraints to his absolute discretion. For example, he cannot appoint you or me to be PM because of the simple reason that we are not members of the lower house. That tells you straight away that the choice is limited to 222 people.

How does the King exercise his discretion if there is no vote of no-confidence?

A written and signed declaration signed by the majority members of the lower house, where if a member/members of Parliament sees him and produce documents to show that more than the majority needed have signed a declaration of no confidence.

If the King is satisfied with that and genuineness of the signatures, then he can accept that – the method of ascertaining the losing of confidence.

Now this is where I must comment on Shad’s statement where he cited the Stephen Kalong Ningkan case (1966) where the High Court in Kuching refused to accept this method.

What Shad failed to mention was a Privy Council case before (Nigerian case: Adegbenro vs Akintola in 1963) and a Malaysian case after which went the other way.

In the Nigerian case, the governor of Nigeria received such a letter and based on this he sacked the Chief Minister (CM) but the CM said “there was no vote against me so I have not been sacked”.

The Privy Council ruled that it was a genuine sacking and decided that the governor can do what he wanted because of his wide discretion.

In 1966 Justice Harley in Kuching in his judgment on the Stephen Kalong Ningkan case said he won’t follow the Nigerian case because Nigeria is different from Sarawak – which in my view is a very simplistic view.

Then 30 years later, we had this case involving Datuk Amir Kahar Mustapha vs Tun Mohd Said Keruak – which involves former chief minister of Sabah Datuk Joseph Pairin Kitingan when there were several defections from the party after the 1994 general election and Kitingan lost his position. The appointment of the new governor was later challenged. The facts are very similar and the issue raised was whether a signed letter cum document could be accepted. Justice Kadir Sulaiman followed the Privy Council method and said of course.

What is more interesting is the winning lawyer whose arguments were accepted by Kadir Sulaiman was none other than present Attorney-General Tan Sri Gani Patail, who was arguing for the state government of Sabah.

The disadvantage of this method is the authenticity of the signature, thus the whole idea is proof that the King is acting reasonably and responsibly, not arbitrarily. Therefore, the King has to make his own investigations and satisfy himself and make known the steps which he took in making the decision for the whole country. To do this the King should summon them, whether he does this or they voluntarily go then this is the best evidence, best proof. If any constitutional monarch did this, then they can be absolutely above criticism.


The King’s say in removing the PM

Scenario One:
A vote in the lower house takes place and motion is carried. Then the outgoing PM must inform the monarch that he has lost the confidence of the house. The PM then has a prerogative to ask for the dissolution of Parliament so that fresh elections can be held for him to test his mandate with the people.

The King then has to use his discretion at this stage. If he accepts, Parliament will be dissolved and the PM’s government will be appointed as a caretaker government. But if the King says no to dissolve Parliament, the PM must tender his resignation to cabinet. If he refuses to resign, it is implied that the King can sack him.

Scenario Two:
The King does not rely on a motion in the house but upon being satisfied that the PM no longer enjoys the support of the majority in the house, tells the PM to resign and replaces him with a candidate which he sees fit. If the PM refuses, it is implied in the Constitution that he can be sacked.

What happens if a motion of no confidence is not granted by the Speaker of the Dewan Rakyat?

This is unconstitutional. But this is precisely why scholars are arguing if this is the only method or if there are other ways of doing this. Opposition Leader Datuk Seri Anwar Ibrahim is playing a very careful game where he is exhausting the first and preferred method of tabling a no confidence vote against the PM first. Two such motions have been tabled and disallowed by the Speaker so far.

What happens if Anwar is detained under the Internal Security Act?

Even if Anwar is detained under the Internal Security Act, the King can ask for him to be released to meet him – if he sees him as a person qualified as prime ministerial candidate.

Excerpt from http://www.sun2surf.com/article.cfm?id=25890


Click this link to read more!

What stopping Pak Lah from stepping down?

A question that is being asked again and again since the March general elections is: Why doesn't Prime Minister Datuk Seri Abdullah Badawi just quit? He did promise Malaysians improved policing, a better judiciary system, and better rule of law, opening up the media, reducing corruption, etc.
Sadly, under him, crime has jumped, the judiciary remains shaky, the tough Internal Security Act law had just been unleashed again, the mainstream media is used to spin stories not write facts, and corruption seems to have gotten worse.
Added to these - race relations and the economy have also taken a beating.

There are actually good reasons, from his perspective, why he does not want to step down quickly.

* Umno is in a mess, with the ground angry, confused and scared of losing power.

* The civil servants are in disarray too on whether, and how far, they should help these four Pakatan states or not.

Four, and not five, because after 18 years under PAS, federal civil servants in Kelantan know how to play the game.

But one word, perhaps, sums up what he why he wants to stay on: Legacy.

(Of course, there is also a very good reason why he SHOULD step down also - namely, so that Umno could re-unite under a stronger leader, Deputy PM Datuk Seri Najib Razak).

But look at it from Abdullah's point of view - he cannot afford to step down now as he would be forever seen as the prime minister who did almost nothing.

Yes, he launched all those corridors. Yes, he did somehow, and without having real control, did open up the media space.

But he would want to go down in history as having achieved something tangible, something solid even.

Don't we all? Put yourself in his position - would you leave when you see things are not right?

He sees himself as a responsible person who should put things right first.

The unkind view would be that he did not want to step down because the people behind him want him there so that could remain in power too.

And that those who wanted to cling on include his family who are allegedly also profiting from his staying in power.

But to appreciate how Abdullah looks at himself, let us look at the contributions of the past prime ministers, and the titles given to them by some people:

No. 1 - Tunku Abdul Rahman Putra, Father of Independence

For whatever his detractors may say after the 1969 race riots, he did get Malaysia its independence.

You cannot talk about Malaysia's independence without showing that famous picture of Tunku shouting 'Merdeka' while a couple of white men dignitaries sat behind him - power handed over smoothly.

No. 2 - Tun Razak Hussein, Father of Development

The second prime minister, set up the New Economic Policy in 1971.

He is the father of deputy prime minister, Najib Razak, the man who could be prime minister very soon.

The policy has been much abused today by Umno, but it certainly helped to raise millions of middle class Malays.

The NEP backed poor Malays with financial aid so they could study abroad or locally, gave them top jobs (even though they might not be the most qualified), and even handed them cheap shares as Chinese companies which wanted to list on the stock exchange must have 30 per cent Bumiputra partners.

Of course, the Chinese and other minorities are angered by this, but it did help raise the middle class Malays today.

And Tun Razak, in trying to eradicate poverty among Malays, pushed Felda (Federal Land Development Authority), a legacy that helped Malays to own millions of hectares of plantation land - mostly palm oil and rubber. Some call him Father of Development.

No. 3 - Tun Hussein Onn, Father of Unity

He stood firmly behind the unity of the races and how to work the economy to achieve this, earning him the title Father of Unity.

He launched Amanah Saham Nasional (ASN), or the national unit trust scheme.

He also pushed the concept of Rukun Tetangga (Neighbourhood Watch scheme), where villages and residents of in town areas take turns to guard their neighbourhood. It was quite multi-racial in nature, in that neighbours from the various communities worked together in this scheme, from what I remembered.

No. 4 - Tun Dr Mahathir Mohamad, Father of Modernisation

He led for a record 22 years. He changed Malaysia from a rural economy dependent on rubber and tin to an industrial nation and the 17th biggest trading nation in the world.

Father of Modernisation is an apt title for him.

Though it must be noted (and many have these days) that the press was increasingly muzzled, and the judiciary lost its independence during his time.

And corruption in politics, like corruption in business, and the cosy ties between business and politics, just grew and grew.

Still, to many 'men-in-the-street' types, it was during his premiership that middle class Malaysians owned houses and two cars.

THE COUNTDOWN HAS STARTED

Now let us return to why Abdullah is not quitting.

He had said he will contest the December Umno elections and wanted to exit only in mid-2010, and that too under pressure.

He might now not contest the December polls and might quit before that.

Reverse a few days earlier, and people would remember him saying he wanted to 'put things right' before passing on the baton to Najib.

Obviously, he does not want to be known only as the fifth Prime Minister, the first one that did not have anything to show for it. The Premier with no legacy.

How then would they remember him? Making a joke that he would be remembered as Father of Kamaluddin and Father (in-law) of KJ, is easy enough.

Kamaluddin is his businessman son, while KJ, Khairy Jamaluddin, is his politically-ambitious son-in-law.

So Abdullah does indeed need the two years to 2010 to stamp his name on policies and issues.

But from what Malaysians have seen in the last five years, few people seriously think that he can do anything at all.

They say: If he could not and did not achieve anything while he was strong, how could he do it now when he is much weakened?

And today, sadly, almost everyone has started their countdown to his exit. - Singapore Straits Times


Click this link to read more!

No peg for ringgit - Najib

Datuk Seri Najib Razak's first steps as finance minister was to announce that the ringgit would not be re-pegged nor changes made to the budget for 2009.

He reasoned that "Malaysia's economy is more resilient and better placed to weather the storm" and insisted that the rate of inflation was under control and dropping.

He added that Malaysia's forecast gross domestic product growth was still targeted at 5.7 per cent

"We will allow the market to determine the value of the ringgit," said Najib, who is also deputy prime minister. He said this at a press conference after being briefed on his new portfolio by the ministry's officers.

The former defence minister, who swapped portfolios with Prime Minister Datuk Seri Abdullah Badawi last week, also added that the Cabinet would decide the new fuel price on Wednesday.


Prices are expected to be reduced further as the global crude oil price has dipped below US$100 per barrel, compared with the high of US$147 in July. On Aug 23, the government reduced the price of petrol by 15 sen, from RM2.70 to RM2.55.

He also denied that the postponement of his trip to the Middle East last week was due to political instability.

"The government is stable. The trip was postponed so I could take up this portfolio," he said and added that he would still be flying to New York on Wednesday night to address the UN General Assembly.

Najib closed the press conference after refusing to answer any political questions.

Excerpt from http://www.themalaysianinsider.com/index.php/malaysia/9387-najib-no-peg-for-ringgit

Click this link to read more!

Ku Li - It's not easy for Anwar to form government

(Bernama) -- Parti Keadilan Rakyat (PKR) advisor Datuk Seri Anwar Ibrahim has difficulties in forming a new government, said Gua Musang member of parliament Tengku Razaleigh Hamzah.

"One is the difficulty for PKR to collaborate with DAP although not so with PAS, because of their differing party policies and ideologies.

"I think it is very hard for Anwar to form a government because DAP is their good friend during the elections but when it comes to policies and ideologies, I don't think Anwar can make it. In the long run, how can he run Malaysia with two different ideologies and policies?" he said at a dialogue with bloggers at his residence here Sunday.

The Umno veteran said Anwar who had been appointed Opposition Leader in Parliament, had to substantiate his claim that Pakatan Rakyat had a majority to form the government and that the Barisan Nasional (BN) government had lost its majority.

"When he (Anwar) claimed about the number (of MPs joining Pakatan Rakyat), he should prove it. But he failed to do so.

"He's good at making offers that are populist to those who believe him," he said.

Anwar, who won the Permatang Pauh parliamentary seat by-election on Aug 26, claimed that he had the number (of MPs) to form a new government but did not mention any name.

Tengku Razaleigh said Anwar also hoped to attract people to his agenda by pledging to revoke the New Economic Policy.

"That is why some Gerakan, MCA and MIC supporters are attracted to his offers. This will have an impact on BN, which could be seen in BN's loss in five states in the March 8 general election. There are also other issues which he has capitalised on."

He said the nation would face a worse situation if Anwar were to lead the government because of the differing ideologies and policies between the parties in Pakatan Rakyat.

-- BERNAMA

Click this link to read more!

Why Malaysia is saved from global firestorm?

Business at the offices of AIA Malaysia, a wholly owned subsidiary of the American International Group (AIG), was relatively calm last week, the solvency crisis facing the US company notwithstanding.

While policyholders in some countries rushed in near agitation to cash out their policies for fear that the giant insurer's problems would invariably impact its offices overseas, Malaysia's over a million AIA policyholders appeared less panicked.

Perhaps it had to do with AIA's quick assurances of its well-capitalised state and separate reserves in Malaysia. Over 96 per cent of its total assets are invested in the country, the locally incorporated entity stressed, and insurance policies underwritten by it are direct obligations of its regulated business, "which is subject to stringent local regulatory and capital requirements as prescribed by the Insurance Act and regulations under close supervision by Bank Negara".
But the lack of anxiety has more to do with the belief that Malaysian banks and other local entities are less exposed to the sub-prime implosion, having been less plugged in to global market activities over the past few years.

As CIMB chief Nazir Razak observed, for once, Malaysia's relative insulation, which followed after it imposed capital controls in 1998 to stem capital flight before gradually easing them, might have saved it from the firestorm engulfing international markets, especially the US market.

A lot of effort went into recapitalising weakened local banks and restructuring corporations after the Asian financial crisis, as well as strengthening regulations.
But over time, bits deemed too restrictive have been gradually loosened or liberalised to make the local capital markets more attractive. Investment rules have also been gradually relaxed in part to allow for greater diversity of returns.

For example, unit trust companies can now invest up to 50 per cent of their asset under management overseas. Total investments abroad last year increased by nearly 80 per cent to over RM15 billion, or some 10 per cent of assets under management.

As market regulars, Bank Negara and the Securities Commission probably have a better idea as to the current situation, such as what foreign securities these funds own, for example.

So rapidly has the local unit trust industry expanded in the past five years, Malaysia is said to be Asean's biggest, holding about 45 per cent of market share.

For now, Malaysian banks have denied exposure to sub-prime loans, Maybank being the exception, but its estimated US$35 million exposure is described as a drop in the ocean for Malaysia's largest bank.

As reassuring as it is, as the sub-prime crisis continues to unravel, revealing the many different and complex financial instruments that were used, diced and traded to manage the risks underlining the original inferior loans, the chances of getting caught in the global sticky web appear greater, if not totally inescapable.

Now that trillions of dollars have already been lost, the best-case scenario for Malaysia would be escaping relatively unscathed given the colossal possibilities out there.

If so, Malaysia's relative insularity would have been the unintended silver lining in the dark clouds of 10 years ago. - Singapore Business Times

Click this link to read more!

Anwar launches end-game

Another long day in the Malaysian capital. Two hours to sunset and the breaking of the day-long fast in the third week of the holy month of Ramadan, Datuk Seri Anwar Ibrahim has spent hours in tense discussions with partners in his opposition coalition.

At his suburban office, Anwar appears in bare feet and apologises for a short delay while he says his fourth round of prayers for the day. Fifteen minutes later, the opposition leader is back, shod now in black ostrich-skin brogues, to talk about his extraordinary bid to convince the Government that, despite its apparent majority in Parliament, he should be in charge.

The psychological warfare is getting fraught. Prime Minister Datuk Seri Abdullah Ahmad Badawi had said Anwar was a "threat to the economy and possibly security" — indicating the opposition leader could fall foul of the draconian Internal Security Act.

In a formal statement yesterday, the US State Department said Abdullah's remark was "extremely troubling" and Washington viewed with "grave concern" the possibility the security Act might be used to detain opposition political figures.

Anwar wonders if he is heading back to prison. "When the prime minister, in any developing country where these sorts of security laws are in operation, states that you are a threat to the economy and possibly national security, then the next option is to arrest," he says.

A decade ago, when Anwar was deputy prime minister, his bid for power against then Prime Minister Tun Dr Mahathir Mohamad ended in disaster.

Hit with highly questionable charges of sodomy and trying to interfere with a police investigation, he spent six years in jail. He was released in 2004 when the more conciliatory Abdullah succeeded Dr Mahathir.

Now 61, Anwar has closed in on the Barisan Nasional ruling coalition that so humiliated and punished him for his "reformasi" bid in 1998.

In March, his improbable Pakatan Rakyat coalition of three diverse parties — his PKR, the leftist, ethnic Chinese-based DAP and the Islamic party Pas — broke Barisan's two-thirds majority in the federal Parliament, and won control of five of Malaysia's 13 states.

On Aug 26, Anwar won a by-election with a huge majority, despite having another sodomy charge laid against him shortly before the vote.

This week, Anwar announced he had "more than enough" defections from Barisan MPs to form a government, and asked to meet Abdullah to effect a smooth transfer of power. Unsurprisingly, Abdullah derided the request, as he did Anwar's later call to reconvene Parliament.

Barring an unlikely intervention by the King, Tuanku Mizan Zainal Abidin, Anwar faces a nervous wait until Parliament resumes on Oct 13.

He faces a relentless onslaught on his credibility by the state-controlled broadcast media and the mainstream newspapers.

He and his colleagues are also at risk from the highly politicised police, whose secretive Special Branch has morphed from its original role of fighting communist insurgents into one of keeping Barisan in power.

The Special Branch wields the Internal Security Act, which allows suspects to be held for 60 days, where interrogators specialise in "turning over" (breaking down) detainees through prolonged questioning, sleep deprivation, humiliation and disorientation. Then they can be locked away without trial for renewable two-year terms.

Last Friday, the Special Branch arrested MP Teresa Kok, an ethnic-Chinese member of Anwar's alliance, after a newspaper ran spurious reports that she had tried to stop a mosque broadcasting the morning call to prayer.

The country's best-known blogger, Raja Petra Kamarudin, was also taken in under the security Act, while another journalist was briefly detained.

Kok was released yesterday after a week's detention, and Abdullah seemed to back off his implied threat. But Anwar's team is acutely aware that only five arrests of MPs could change a no-confidence vote, if and when it happens.

"When a party has been in power for more than half a century, to imagine losing their grip on power is going to be horrendous, unthinkable and they may resort to this measure," Anwar said.

But he has his work cut out explaining to ethnic Malays why the positive discrimination of the past 40 years — preference for university places, government jobs, finance credits, cheaper houses and a 30% slice of new investments — mostly benefited a tiny, well-connected elite through Barisan founding party Umno and its networks of cronyism and patronage, and should be replaced with policies based on need rather than race.

On the other side, non-Malays wonder about his Islamist background and recall his role implementing pro-Malay discrimination as an Umno minister.

"It took us a while to come to terms and go from Anwar who was education minister and actually did a lot of damage to the Chinese school system, to the new reformist Anwar," said Dominique Ng, a Kuching lawyer who won a Sarawak state seat for Anwar's party in March.

Ng is now convinced that "the new Anwar can be the one who saves Malaysia".

Anwar doesn't regret his years in the Mahathir government.

"With all the faults and limitations of Umno at that time, it was never this blatantly corrupt and arrogant," he said.

He could have protested more loudly against the Mahathir government's security Act arrests and sacking of judges, but had still hoped to change the system from within.

"Having said that, I've suffered enough, I've repaid for the years I was in government," he said with a smile.

His agenda for Islam in Malaysia is one he's been pursuing in speeches and writings for many years: Malaysia should keep Islam as its state religion, but not become an Islamic state, accepting its pluralism.

But his jail ordeal strengthened his concern for freedom. "Being six years in prison, solitary confinement, teaches you quite a lot," he said. "The passion for democracy, for justice, is far more pronounced … Basically these years of sojourn and wilderness did help.

"You empathise with people as people. I am very Malay, I love the language, I follow Indonesian literature a lot … I am also a committed Muslim. I fast, I pray, but that does not make us intolerant of other cultures."

"So who am I?" Anwar says. "They say I'm a chameleon because to the Western journalists I sound liberal, to the Muslim crowd I echo the Quran.

"It's true — I don't go into the little village and quote Shakespeare, and when I talk to Chinese I use a few words of their language and quote Confucius. But the fundamental pillars remain unchanged … I am still a Malay, a committed Muslim, and very much a Malaysian." — The Age

Click this link to read more!

RPK Habeas Corpus Application to be heard by Court next Friday

The High Court here fixed next Friday to hear the habeas corpus application by blogger Raja Petra Raja Kamaruddin who is seeking his release from detention under the Internal Security Act (ISA).

The case will be heard before Justice Datuk Mohamed Apandi Ali.

His counsel, Ashok Kandiah, when contacted said he met Raja Petra at Bukit Aman and the blogger had affirmed his affidavit which would be filed at the High Court crminal registry Friday to facilitate his application.

Raja Petra filed a notice of motion through Messrs Mathews Hun Kandiah on Tuesday citing the grounds that his detention was unlawful and contravened the Federal Constitution.

He was arrested at his home in Sg Buloh last Friday, followed by Sin Chew Daily reporter Tan Hoon Cheng and Seputeh member of parliament Teresa Kok Suh Sim.

Tan was freed la st Saturday after being detained for 18 hours while Kok was released Friday.

-- BERNAMA


Click this link to read more!

Seputeh MP, Ms Kok released from ISA detention

Seputeh Member of Parliament Teresa Kok Suh Sim was released today after eight days of detention under the Internal Security Act (ISA).

The DAP national organising secretary was released at the Jalan Travers police station here at about 1.30 pm.

Her parents, father Kok Kim Tong and mother Poh Seh Kwon, and her lawyer N. Sankara Nair were at the police station when she was released.

"I am happy that I have been released and I'm OK," she told reporters gathered at the police station.

To a question, Kok said: "I do not know why I was released today, just as I do not know why I was detained."

Meanwhile The Star reports that Seputeh MP Teresa Kok was released from detention under the Internal Security Act at about 1pm on Friday, her lawyer Sankara Nair said.

He said she had called him and he was now on the way to the Jalan Travers police station here to meet her.

Kok, 44, is expected to give a press conference at the DAP headquarters in Petaling Jaya at 3pm.

The Kinrara assemblyman and senior Selangor state executive councillor was detained one week ago, together with Malaysia Today editor Raja Petra Kamarudin and Sin Chew Daily reporter Tan Hoon Cheng.

Tan was released after 18 hours.

Kok was accused of petitioning a mosque to reduce the volume for azan (the call to prayer), something which she had vehemently denied.

The accusation surfaced in a Sept 10 article in Utusan Malaysia quoting former Selangor Mentri Besar Datuk Seri Dr Mohd Khir Toyo.

The accusations were also refuted by the Kinrara mosque committee chairman and Kota Raja MP Dr Siti Mariah had lodged a police report against Dr Mohd Khir on this issue.

Kok also lodged a police report against the Malay daily, its columnist Zaini Hassan and Dr Khir.

“I believe one of the excuses for my ISA detention is in relation to that article and I place Utusan Malaysia, Zaini Hassan and Dr Mohd Khir Toyo responsible for my arrest,” she had stated in her police report.

On Monday, Kok filed a habeas corpus application in the High Court for her release citing that her arrest and detention under the Internal Security Act was unlawful.

Sankara said then that the court had fixed Sept 23 for hearing but said they would apply for Sept 22 instead as he had another case and Karpal Singh would be in East Malaysia on that date. (TheStar)

Click this link to read more!

Pak Lah may not seek re-election?

There is a possibility that Prime Minister Datuk Seri Abdullah Ahmad Badawi may not seek re-election at the December polls of Umno — of which he is president — following a meeting yesterday of the party’s supreme council, according to party insiders.

Even as recently as Wednesday, Abdullah had maintained that he would seek re-election. But the insiders said the meeting had been “lively and frank” and that while no firm decision had been taken on the handover of power — Abdullah has said he will hand over the job to his deputy Datuk Seri Najib Razak by June 2010 — the message delivered to Abdullah was that he was not popular at the grassroots.

Abdullah has been under pressure following the Barisan Nasional’s disastrous showing in the March 8 general election. Since then he has had to continually fight bushfires that included ferocious and relentless attacks from former Prime Minister Tun Dr Mahathir Mohamad and former Finance Minister Tengku Razaleigh Hamzah.

Abdullah's popularity in the party further waned following opposition leader Datuk Seri Anwar Ibrahim's spectacular victory in the Permatang Pauh by-election. Anwar won an increased majority which indicated that the Malays were still staying away from the party that claimed to champion their cause.

A mishandled crisis in his home state of Penang further demonstrated that Abdullah had lost the support of his home base while last week's arrests of three people under the Internal Security Act lent further credence to the thesis that Abdullah's administration was losing credibility.

According to party insiders, the issues came to the fore during yesterday's meeting with some supreme council members speaking bluntly to the premier. One leader, apparently, even told Abdullah that he would not get the nominations necessary to run for party president. Under party rules, a challenger for the presidency needs 58 nominations to run for the post.

More tellingly, International Trade Minister Tan Sri Muhyiddin Yassin, who said in Singapore two weeks ago that Abdullah should step down sooner rather than later, wasn't criticised, indicating that his statement was supported by a majority of supreme council members.

The meeting came to a conclusion when Najib stepped in to quell the debate, saying he would discuss the matter further with Abdullah.

This was reinforced by Abdullah who told the press he would meet Najib later. “Whatever decision I make, I will discuss with Najib and the supreme council will be informed,” Abdullah told reporters.

Meanwhile, Abdullah also rejected a challenge put forward by Anwar. The opposition leader threw down the gauntlet yesterday, asking the prime minister to convene an emergency parliamentary sitting to deliberate a no-confidence motion against his leadership “by no later than Tuesday, Sept 23”.

Anwar said that because Abdullah clearly did not believe he had more than 31 possible defectors, “then go to Parliament”. Anwar has consistently maintained that he had the numbers to topple the government.

But the premier declined to take the bait, saying that Parliament was due to meet after Hari Raya anyway.

Separately, Abdullah said that neither “Anwar nor anybody else” would be arrested under the ISA. There had been speculation that the government was planning to crack down on the opposition following Anwar's threats to topple the government.
— Business Times Singapore

Click this link to read more!

Bilal gives police statement on Azan issue

An official of the Al-Ehsan Mosque, in Bandar Kinrara, Puchong was today called up to give a statement on the petition sent by residents in the area on the 'azan' issue.

Bahrudin Maskor, 47, the muezzin of the mosque, was seen entering the Dang Wangi District Police headquarters at 1.30pm and completed giving his statement two hours later.

Bahrudin told reporters that he had been called up to give a statement to the police concerning the contents of the petition sent by 100 residents of the area several months ago.

"In the petition, the residents wanted the volume for the 'subuh' azan to be reduced and the 'subuh' ceramah on Saturday and Sunday not to use the loudspeaker. We complied with their request," he said.

However, he declined to comment on the individual who initiated the petition.

"The petition was only received by the 'nazir' of the Bandar Kinrara Mosque, Abdul Rahman Nasir. I don't know anything," he said.

-- BERNAMA

Click this link to read more!

Options available for Anwar to seize power

There are many roads that can lead to power for the Pakatan Rakyat alliance if opposition leader Datuk Seri Anwar Ibrahim indeed has the support of a majority MPs in his hand.

Today, the so-called "prime minister in waiting" demanded that Prime Minister Datuk Seri Abdullah Ahmad Badawi convene Parliament next Tuesday to move against a motion of no confidence against the ruling Barisan Nasional coalition.

Next Tuesday is, of course, the day before Anwar goes back to court to face sodomy charges, in a trial he has claimed is politically motivated to stop in the tracks his challenge against the BN.

Such a move appears designed to play up the urgency of his moves to take power, and remove the threat of his court case.

By calling for a vote just days after Sept 16, when he failed to take power according to his self-imposed deadline, he is strengthening his case in his contention that he has the support to form the government.

The prime minister does not need to bring Parliament back into session on Anwar's say-so, and is not likely to.

"We are heading towards a stalemate," he told The Malaysian Insider.But he points out that under Article 40a (2) of the Federal Constitution, the King may use his discretion to either appoint the prime minister or withhold consent for the dissolution of Parliament.

And this will certainly lead to assertions from the opposition that Abdullah fears losing the vote.

Whatever happens, the stalemate will continue.

Constitutional expert Prof Abdul Aziz Bari believes that the Yang di-Pertuan Agong can also intervene to break the impasse.

According to Abdul Aziz, the King could summon Anwar to the palace to furnish him with the list of MPs he claims supports him, and verify the claim by summoning the MPs as well.

He cited the initiative of the Rulers of Selangor and Perlis post-March 8 when they dealt directly with the elected lawmakers to ascertain their support.

"Should the claim by Anwar prove to be true then he needs to tell Abdullah to resign. This is actually putting the last nail in the coffin for as soon as Anwar manages to get 112 MPs with him, Abdullah no longer has the right to be in the PM's office," he said.

However, political analyst Khoo Kay Peng feels the most democratic answer is simply to wait until Parliament reconvenes on Oct 13.

"Anwar is using the only way possible now by asking the PM to resign. But it will not happen because even if Abdullah wants to comply, Barisan Nasional will not allow it. They would rather get rid of Abdullah than cede government," he told The Insider.

According to Khoo, there is no mechanism that Anwar can use to trigger a change in government until the opposition submits a motion of no confidence where legislators can vote democratically.

That is exactly what Anwar is now trying to do.

Excerpt from http://www.themalaysianinsider.com/index.php/malaysia/9218-anwars-options

Click this link to read more!

Anwar live media conference from PKR HQ Sept 18,2008

Watch live video from anwaribrahim's channel on Justin.tv
Venue : PKR HQ, Tropicana
Date : 18th September 2008
Time : 2pm
Click this link to read more!

How long can Pak Lah survive?

From STRATFOR.com

Malaysia’s Prime Minister Abdullah Ahmad Badawi on Sept. 17 yielded his position as finance minister to his deputy, Najib Razak (in exchange for the latter’s post as defense minister), and said for the first time that he might leave office before his previously set date of June 2010. The same day, the Sabah Progressive Party (SAPP) became the first to defect from Abdullah’s 14-party Barisan Nasional (BN) coalition government. Both developments came shortly after news emerged that former Prime Minister Mahathir Mohamad is planning to rejoin the ruling United Malays National Organization (UMNO) in order to continue his bid to oust Abdullah from it.

External and internal pressures on Abdullah to step down have finally come to a head, and his days as UMNO leader and prime minister are numbered.

Related Links
· Malaysia: Net Assessment
· Malaysia’s New Dawn

Although the SAPP’s defection was expected and the party held only two of BN’s 140 seats in parliament, fears that its official defection could trigger others are valid , as most of the challenges Abdullah faces come from one source: his rival and opposition leader Anwar Ibrahim.

Anwar made it his mission to topple Abdullah from power by Sept. 16 — the 45th anniversary of Malaysia’s founding — first by exploiting and widening rifts inside the UMNO, and second by luring at least 30 BN parliament members to join the opposition alliance (led by his Parti Keadilan Rakyat) that already commands 82 of the Malaysian parliament’s 222 seats.

Although the deadline has passed and the 31 defections that Anwar claims to have secured remain unconfirmed, these details are peripheral to the core strategy Anwar has used against the ruling party for months. Anwar said the delay occurred because Abdullah refused to meet with him in person to secure a guarantee for the personal safety of would-be defectors after their names are announced.

By using a clever mix of public relations tactics, promises of better governance (such as the scrapping of the pro-ethnic Malay discrimination policies) and political persuasion, Anwar has sown increasing distrust and disorientation inside the ruling coalition leadership — effectively freezing any attempts at efficient governance. This strategy was further boosted Aug. 26, when elections in Permatang Pauh in Anwar’s home state of Penang gave him his parliamentary seat again. As Stratfor predicted then , based within parliament, Anwar would gain greater leverage and opportunities to step up the intensity and frequency of his courtship of would-be defectors from BN.

Abdullah may have survived Sept. 16, but the uncertainty felt by his closest political allies, his continued failure to consolidate and motivate his own party, his firefighting rather than pre-emptive responses to the opposition’s provocations and his inability to take his eye off political survival long enough to lead the country from its worsening economic outlook have led even key members of the UMNO leadership in recent days to openly start questioning his reluctance to step down.

Among those questioning Abdullah are Zaid Ibrahim, former minister responsible for judicial and legal reform (who resigned Sept. 15 in protest against the use of the internal security act against members of the opposition), Abdullah’s second-in-command, Najib, and the UMNO Vice President and International Trade and Industry Minister Tan Sri Muhyiddin Yassin — all of whom had, in July, backed Abdullah’s plans to leave in mid-2010.

The surrender of Abdullah’s finance portfolio (a key portfolio in Malaysian policymaking) is likely a compromise struck with his UMNO colleagues, designed to eventually give the him a graceful exit, and to give Najib a chance to prove to the UMNO his ability to lead competently (in spite of his less-than-stellar reputation, including alleged misuse of Defense Ministry funds and the alleged murder of a 28-year-old Mongolian).

By accelerating the leadership transition process, the UMNO is likely hoping to shield its leadership from Mahathir’s inevitable attacks against Abdullah and thus prevent further defections from the BN coalition. Whether this defensive strategy works remains to be seen. But regardless of the outcome, rising political heat and uncertainty in Kuala Lumpur is nearly guaranteed for the next month ahead.

© Copyright 2008 Stratfor. All rights reserved.

Click this link to read more!

U.S investors lost RM2.4 trillion overnight !

Malaysian stocks went into a virtual free-fall in the first few hours of trading this morning, amid a global sell-off and political worries. At 11.30am, the KLCI was down 36.92 points to 966.07 points. Turnover was at 174.049 million shares valued at RM379.508 million.

Blue chips led the fall in early trade as the KLCI plunged below the psychological 1,000 points level within minutes of trade this morning.

Across Asia, most key indices also saw heavy retreating, as Asia awoke to news that the Dow had fallen almost 450 points while the Nasdaq fell nearly 5 per cent in the worst day of trading since the Sept 11, 2001 attacks.

Global investors have been shaken, as worries mount over the global credit crisis, whose latest victim was the storied Lehman Brothers.

The KLCI, hit by the double whammy of a global credit crunch and local political uncertainties, has already fallen by nearly 31 per cent this year.

In Japan, the benchmark Nikkei 225 stock index was down 3.2 per cent at 11,375.57 after sinking to a new intraday low for the year during the morning session.

Hong Kong's blue-chip Hang Seng Index tanked 847.54 points, or 4.9 per cent, to 16,805 points. Markets in South Korea, Australia and mainland China also were sharply lower.

The losses tracked US markets, where the Dow Jones industrial average fell about 450 points, or 4.06 per cent, to 10,609.66. Investors were unnerved by the Federal Reserve's US$85 billion loan to AIG, the giant US insurer that lost billions in the risky business of insuring against bond defaults.

"It's a complete collapse of confidence," said Francis Lun, general manager of Fulbright Securities Ltd in Hong Kong. "The financial crisis in the US is hitting everyone, everyone is running for cover. If the largest insurance company can fail, than no one is safe."

Banking stocks across Asian went into a tailspin.

Japan's three megabanks fell hard: Mizuho Financial Group, Inc sank 7.2 per cent, Mitsubishi UFJ Financial Group, Inc shed 4.6 per cent, and Sumitomo Mitsui Financial Group retreated 7.4 per cent.

Macquarie Group Ltd, Australia's biggest investment bank and securities firm, lost 16 per cent.

Leading China lender Industrial & Commercial Bank of China Ltd, or ICBC, fell over 5 per cent in Hong Kong.

In currencies, the greenback was trading lower against the yen at 104.48. — Agencies

Click this link to read more!