Any Future for the Loser?


Partyforumseasia: Will the defeated Prime Minister end up in prison? One of the successful campaign slogans of the rather old (92, and dynamic) new Prime Minister Mahathir Mohamad was his calling Najib Razak a thief and his UMNO party corrupt to the core.

Najib's resignation 2

Loser loses all. Najib and his defense minister resign from all party posts.

Most political observers had believed that the 1MDB scandal would not play such an important role and that the memories had faded since it erupted in 2015. But voters, often characterized as forgetful, may have remembered the case and believed Mahathir that he was running only to save the country from the corrupt Barisan Nasional government. Obviously, only few Malaysians were unaware of the wasteful corruption going on and continuing to increase.
Now, Najib Razak is no longer Prime Minister, after a lightning transfer of power and the swearing in of his successor Mahathir within 24 hours after the election results were out. Najib, at least confronted the media to declare that he accepted the verdict of the people…without having a choice anyway. But an attempt to board a private jet and fly to Indonesia was thwarted by a crowd at the airport, and Mahathir did not hesitate to ban him  and his wife from leaving the country.
Since Mahathir has called it his biggest political mistake to help Najib become Prime Minister, the latter cannot expect lenience or mercy. His private residence is already cordoned off by the police. Mahathir announced already that the attorney general, who had whitewashed Najib soon after replacing a less compliant one, will be replaced shortly. Mahathir has vowed to investigate the 1MDB scandal and take action against those who may have abetted or benefited from corruption at the fund. At least six countries, including the United States and Switzerland, are investigating claims that $4.5 billion was allegedly siphoned off from 1MDB. If found guilty, Najib might end up in prison.

Interesting Cash Flows in Malaysia


Partyforumseasia: Election campaigns are getting more expensive practically everywhere in competitive political systems. Ruling parties regularly enjoy a huge advantage because private donors from the business sector have enough incentives to support them for all the possible protection they can get in return. Legislation can change their competitiveness in many ways, and in many Southeast Asian countries, especially in Malaysia, licences and big public procurement orders are not necessarily given to supporters of the opposition.

The upcoming election in Malaysia, “GE 14” (14th general election), due latest by August this year, is highlighting the monetization trend in a very special dimension. Not that the generous distribution of “goodies” and further promises are anything new before elections, but the Barisan Nasional government’s cornucopia, or “horn of plenty” has never been as full as this time. Being a political symbol of sorts, offering the cornucopia has a long tradition, e.g. in the seal of North Carolina or – more bluntly with gold coins – in the coat of arms of the city of Copiapó in Chile:

 

Prime Minister Najib Razak, who is also the Finance Minister, explains the nature of the current cash flows as follows:
“ … the RM6.3 billion (USD 1.6 billion) worth of financial aid to be given to seven million people nationwide this year is a targeted subsidy scheme hatched by the central bank, not an effort to buy votes ahead of a general election due within months.”  (Straits Times, Singapore, 27 February 2018)

This amount is only meant for poorer people under the “1Malaysia People’s Aid Program” or BR1M. Other “cornucopia programs” have been implemented long before, RM 2.5 billion have already been paid since July 2017. Pay hikes and bonuses for the huge civil service which is dominated by the main voter target group, the Malays, and for another Malay vote bank, the farm land distributing organization FELDA. Discontent among the settlers seems to have been overcome with extra payments.

Prime Minister Najib dismisses criticism with his remarkable cold blood and straight face. When his challenger, veteran politician Mahathir Mohamad called the payments vote buying, Najib insisted that his government is truly concerned about the people and that the central bank suggested the latest round of payments, not the ruling coalition Barisan Nasional (BN). The rising cost of living is one factor in the looming election campaign which is a possible danger for his re-election. The corrupt image of the BN- government and its cronies is another one. This is why there might be a sign of nervousness despite all the successful maneuvers to split and harass the opposition, with the biggest coup being the new closeness to the Islamic PAS party and the defamation of the Chinese dominated Democratic Action Party (DAP) as anti-Malay and anti-Islam.

The Prime Minister keeps boasting about the fabulous economic development of Malaysia. The figures are indeed quite good, but could possibly be even better without some of the opaque political money flows, as a comparison with tiny Singapore illustrates. In 2016, the latter’s GDP was one billion USD higher than that of Malaysia, and the GDP per capita 5.5 times higher accordingly. The voters in Johor, Malaysia’s federal state bordering Singapore, know that very well, and the opposition tries to use their comparison with the rich neighbor to conquer Johor.