JUNE 19, 2017 www.theedgemarkets.com

NO TELLING WHAT WILL HAPPEN AT THE POLLS | S2

BN always emerges stronger after a testing time S4 | I think the same party will come back to power S5 | We will off er good governance S8 | BN is weak, but opposition is not strong S9 | We are focused and committed to reform S10 | is just about ready S11

Will economic or political issues hold sway?

STORIES BY AZAM ARIS, KATHY FONG, JOSE BARROCK AND ESTHER LEE

he outcome of a general election in Malaysia may the British people would be all for it. What he got instead such issues as rising unemployment and cost of living not be that hard to predict, given that the Umno-led was a vote in favour of Britain exiting the EU, or Brexit. and more expensive healthcare as well as cuts in the ed- coalition has won every one since independence Just a year later, his successor, Theresa May, called a ucation allocation? Will the irregularities at 1Malaysia in 1957. The (BN), along with its snap election, confi dent that she would strengthen her Development Bhd (1MDB), FELDA and its unit, Felda Glob- predecessor — the Alliance Party — is today the position and that of the Conservative Party. It turned out al Ventures Holdings Bhd (FGV), be enough to convince Tlongest ruling party in the democratic world. to be a setback for the Tories, who lost their parliamenta- voters in the Malay heartlands and FELDA settlements Will the 14th general election, which must be held ry majority as a resurgent Labour Party surprisingly won to opt for a change? anytime between now and August 2018, be any diff erent? over the bulk of young voters. Or will stick to the tried and tested BN Worldwide trends at present indicate that populism In between the British election and the Brexit ref- that touts political stability and policies that have de- holds sway, and that race and religious issues have become erendum, Donald Trump in the US surprised everyone, livered continuous economic growth, albeit at a slower important factors in infl uencing election results. At the including his own Republican Party, when he defeated rate than before, for the larger part of its 60-year rule? same time, bread-and-butter matters such as employment Hillary Clinton in the presidential election with his pop- Political strategist James Carville was credited with still dominate many campaigns, while fi ckle-minded vot- ulist “America First” campaign. coming out with the phrase, “It’s the economy, stupid”, ers, especially the youth, are less easy to fi gure out. Voters in France, meanwhile, handed Emmanuel Ma- when he advised Bill Clinton to focus on economic is- In the last couple of years, pollsters and major news cron a landslide victory and checked the rise of Marine sues during the US presidential election in 1992. Clin- channels have more often than not got their predictions Le Pen’s far-right party — which came as a huge relief for ton defeated the senior George Bush, whom many had wrong. the liberals of the world. expected to win after the US had successfully defeated David Cameron had called for a referendum on whether Will Malaysia’s 14th general election spring any sur- Iraq in the first Gulf War only a year earlier. Britain should remain in the European Union as he believed prises? Can the opposition gain more votes and seats with CONTINUES PAGE S6 S2 MALAYSIA JUNE 19, 2017 MALAYSIA JUNE 19, 2017 S3 RUN-UP TO GE14

analysts believe about 43 seats are more, I cannot see the opposition still up for grabs. Liew says in these parties reaching a consensus on constituencies, 60% to 70% of the who should be their candidate for voters are Malays, although many prime minister before GE14,” says of them have at least 30% non-Ma- Second Finance Minister Johari. lay voters. “In these areas, if you No telling don’t win the non-Malay votes, Opposition’s woes and let’s say the Malay votes are While the opposition seems shaky split 50:50, you will still lose. But on all fronts, Mahathir, in an ex- if you secure a high percentage clusive interview with The Edge, of the non-Malay votes and the warns, “Yes, it looks pretty shaky Malays are split equally [even if but believe me, it’s not as shaky what there is a three-cornered fight as made out to be.” between Umno, PAS and Bersa- But there seem to be many is- tu/Amanah/PKR], then you have sues that the opposition has to a chance to win.” deal with. The deaths of former will happen Najib shows his strengths but menteri besar and PAS spiritual still overall popularity drops leader Datuk Nik Abdul Aziz Nik At the Umno general assembly Mat or Tok Guru in February 2015 in December last year, Najib, in and Bukit Gelugor MP and former a fiery speech to 2,729 delegates, DAP national chairman Karpal labelled Mahathir’s decision to Singh in April 2014 had an ad- at the polls quit Umno and set up PPBM as verse effect on the coalition, while the ultimate betrayal of the par- the jailing of Anwar for sodomy ty, the race and the country. One for the second time was an even here was great difficulty jority are of the view that it will be doors for the opposition to get delegate says Najib’s speech gave bigger blow. in getting people to talk around October this year — after into the Malay heartland, notably him goose pimples. Political observers believe that to The Edge for this cover the Southeast Asian Games, which the FELDA settlements — Umno The prime minister has also if Tok Guru had not died, PAS would story. We sent questions is slated to be held between Aug 19 strongholds — that comprise the been generous. Recently, during not have pulled out of the opposi- to Prime Minister Datuk and 30 (see infographic). majority of over 54 constituencies. a visit to FELDA Sayong in , tion coalition. The party’s decision Seri ’s office With Malaysia likely to do well But did Mahathir do the right he announced a cash incentive of to leave the opposition coalition in the belief that he would match because of home ground advan- thing by joining the opposition? RM500 for each FELDA settler’s revolved around RUU355, a private Tanyone the opposition put forward tage and our 60th Merdeka cele- One seasoned businessman says family and an additional RM280 member’s bill tabled by Marang but his executives politely rebuffed brations following closely behind, Mahathir made a mistake in part- from Felda Global Ventures Hold- MP and PAS president Datuk Seri our request. the feel-good factor could be brew- nering DAP and the rest of the ings Bhd (FGV). . Though not Defence Minister Datuk Seri ing, which means a snap election opposition. He believes the for- This was over and above the firmed up yet, Umno has courted said no could be called. mer premier should have done a quarterly 1Malaysia People’s Aid PAS by sending the Islamist par- via WhatsApp while Youth and Two years ago, Singapore host- deal with PAS, which would not (BR1M) 2017, the second payment ty signals that it would support Sports Minister Khairy Jamalud- ed the SEA Games and the govern- have divided the Malays. “I believe of which was made on June 5. Na- RUU355, which aims to increase din Abu Bakar declined after sev- ment rallied its people after com- many Malays are united against jib also announced this month the the power of the shariah courts. eral attempts to contact him. ing in second — their best-ever Mahathir … seeing him on stage government’s plan to offer free But without the support of While we know that The Edge performance in the Games’ history with old foe Kit Siang was the digital television decoders to 4.2 and BN, it is un- is a business publication and not — and went to the ballot box. The last straw. I, for one, have lost all million BR1M recipients in Ma- likely that Umno will support the part of mainstream media, we Games ended in mid-June and the respect for Mahathir.” laysia in phases until the end of bill. This issue and the pulling thought our cover story would election was called three months But some political observers next year. The decoders are worth out of the opposition coalition give the ruling Barisan Nasional later in mid-September. feel that many Malays in the ur- RM199 each. have caused a lot of dissatisfac- (BN) coalition an opportunity to The ruling People’s Action Party ban, semi-urban and even rural Nevertheless, Najib’s popularity tion among the PAS grassroots, show how it has fared as the in- did its best since 2001 with 69.86% areas might think twice about has taken a turn for the worse. The especially those in the urban ar- cumbent government and how of the popular vote — up 9.72% voting for Umno this time round going has been tough, largely as a eas who think Umno is taking confident and equipped it is to face from the 2011 election. because Mahathir is still well re- result of the many issues plaguing the party and Hadi for a ride. PAS the next general election. However, in Malaysia, there are garded and respected as a leader the country, such as the lack of itself seems to be split into three Some of the others who de- many other issues, one of which of the Malays and who has done a transparency and losses at 1Ma- factions despite the “progressive” clined were former deputy prime is the presence of former prime lot for the community and Islam. laysia Development Bhd, the poor group having left the party to form minister Tun Musa Hitam, for- minister and Najib’s harshest crit- performance, management and Parti Amanah Negara and join mer minister of finance Tun Daim ic, Tun Dr , as The opposition’s equation perceived leakages at FGV, which forces with PH. Zainuddin (who was travelling) part of the opposition. DAP national political education could have an impact on FELDA As at end-April, PAS deputy and former minister of interna- director says the settlements and the rising cost president Datuk tional trade and industry and The Mahathir factor decision by Mahathir’s new party of living partly brought about by Tuan Man had made clear that his Wanita Umno chief Tan Sri Rafi- Seeing Mahathir on the same — Parti Pribumi Bersatu Malaysia the removal of subsidies and the party would not work with DAP dah Aziz (who said she did not stage as DAP supremo Lim Kit (PPBM) — to become a part of PH implementation of the Goods and and Amanah, and would not con- want to talk about politics but Siang must have come as a shock or an opposition coalition without Services Tax. sider a coalition state government asked us to look out for her blog to many Malaysians, what more PAS is the right one. In October 2015, Najib’s govern- with opposition members. PAS postings). his handshake with his political He says the main battle will ment lost the approval of the ma- says it will go it alone in the next On the other side of the divide, nemesis Datuk Seri . be for Peninsular Malaysia be- jority of Malay voters for the first election but Hadi’s closeness with Datuk Seri Dr Wan Azizah Wan Is- Mahathir even signed a peti- cause both Sabah and Sarawak time; news reports citing a Merde- Umno’s top leaders seems to indi- mail, the opposition leader in De- tion to free Anwar from jail at the — which want more autonomy ka Center survey said only 31% of cate that there may be some coop- wan Rakyat, and Menteri PKR national congress last month, as evident in their recent demand Malay voters were satisfied with the eration between the two parties. Besar Datuk Seri Mohamed Azmin which is ironic, considering that for English-medium schools, their government. In January 2015, Malay But then again, Hadi had a valve Ali did not respond to requests to Anwar was jailed for sodomy the opposition to the Syariah Courts voters’ approval of the government replacement surgery in May and be interviewed. But Parti Keadilan first time round — which many (Criminal Jurisdiction) Act 1965 stood at 52%. Now, the government’s may be out of action for as long as Rakyat vice-president and director believed was a trumped-up charge (RUU355), Sarawak’s withdrawal overall approval rating is down to six months. of election had — when Mahathir was the prime from the Malaysia Tourism Board a mere 23%. By comparison, when Another issue for the opposition a session with us. minister. because of the tourism tax, issues the 13th general election was held is Chief Minister and DAP Second Finance Minister Datuk Former finance minister and of higher oil royalty and the set- in May 2013, the government’s ap- secretary-general ’s Seri Johari Abdul Ghani gave us a a political adversary of Mahathir, ting up of state oil corporations proval rating was 43%. ongoing corruption case, which quick interview over lunch, and , or — will swing with whoever gets Granted, the BN and Najib face could end in jail time. It is also his answers were short, factual Ku Li as he is better known, tells the majority in the peninsula. In many problems but the opposition known that opposition leader Wan and to the point. The Edge, “Well, Mahathir can do short, they are neither fixed depos- is in no better shape. Azizah does not get along with Se- None of those interviewed was anything, you know. He can som- its for the BN nor do they want to And despite a tough fight from langor Menteri Besar Azmin. sure when the election would be ersault and he can jump … [and] be dictated to by Umno and could the opposition, Najib still led BN to So, against this backdrop — a held, but then again, that is the six- he’ll do it even if he’s 150 [years become the kingmakers. victory in the last general election. BN that is not strong, a weak op- ty-four-thousand-dollar question. old]. He’s a political animal.” Umno won 88 seats in total in “At the risk of sounding patron- position, a possible three-cornered Some quarters familiar with Nevertheless, some political 2013 — 73 of them in the peninsula. ising, at this moment, in my opin- fight that will split the Malay votes the government say Najib will call observers feel that Mahathir, who Of the 73 seats, Umno is guaranteed ion, there is no likelihood of the further and a Sarawak and Sabah it in March next year, others say ruled the country for 22 years, 30, including in areas like Pekan, opposition being able to offer any that want more autonomy — it is he may wait till the last possible could be a game changer for Paka- Mersing, Pengerang and Rompin. alternative as they lack ‘cohesive- anybody’s guess what will hap- date — Aug 24, 2018. But the ma- tan Harapan (PH) and could open Liew and his fellow PH election ness’ compared with BN. Further- pen in GE14. E S2 MALAYSIA JUNE 19, 2017 MALAYSIA JUNE 19, 2017 S3 RUN-UP TO GE14

COMPILED BY CHUA SUE-ANN | GRAPHICS: NURUL AIDA MOHD NOOR/ THE EDGE

PAST GENERAL ELECTIONS

GE1 Wednesday, Aug 19, 1959 Tunku Abdul Rahman (Alliance Party) GE2 Saturday, April 25, 1964 Tunku When WILL Abdul Rahman (Alliance Party) GE3 Saturday, May 10, 1969 Tunku Abdul Rahman (Alliance Party) GE4 Saturday, Aug 24, 1974 to Saturday, Sept 14, 1974 Tun Abdul Razak Hussein (Barisan Nasional, the successor to the Alliance Party) GE5 Saturday, July 8 to Saturday, July 22, 1978 Tun Hussein Onn (Barisan THE election Nasional) GE6 From Thursday, April 22 to Monday, April 26, 1982 Tun Dr Mahathir Mohamad (Barisan Nasional) GE7 Saturday, Aug 2 & Sunday, Aug 3, 1986 Tun Dr Mahathir Mohamad be called? (Barisan Nasional) GE8 Saturday, Oct 20 and Sunday, Oct 21, 1990 Tun Dr Mahathir Mohamad (Barisan Nasional) 2017 GE9 Monday, April 24 and Tuesday, April 25, 1995 Tun Dr Mahathir Mohamad (Barisan Nasional) GE10 Monday, Nov 29, 1999 Tun Dr Mahathir Mohamad (Barisan Nasional) GE11 Sunday, March 21, 2004 Tun Abdullah Ahmad Badawi (Barisan Nasional) May 27-June 24 Fasting July 7-Aug 26 Umno divisional Aug 19-30 SEA Games in KL END SEPT-MID OCT Possible election season GE12 Saturday, March 8, 2008 Tun month meetings are held Aug 31 Merdeka Day Sept 2 Hari Raya Aidiladha Oct 18 Deepavali Abdullah Ahmad Badawi (Barisan Nasional) June 25 & 26 Hari Raya July 23 Najib’s 64th birthday • Third tranche of BR1M Sept 16 Malaysia Day Oct 23-Nov 30 Parliament Aidilfitri July 29 Yang di-Pertuan payment scheduled for August Sept 17-23 Asean Para Games in session GE13 Sunday, May 5, 2013 Datuk Seri • Second tranche of BR1M Agong’s birthday in KL Oct 27 Prime minister Najib Razak (Barisan Nasional) payment scheduled for June to table Budget 2018 2018 For one, Barisan Nasional can ride the feel-good sentiment flowing from the SEA Games and Asean Para Games as well as the Malaysia Day celebrations. What’s more, the government has Nov 6-11 Prime minister to • Monsoon season, Possible election season attend Apec Economic Leaders’ election unlikely slated late October to table Jan 1 New Year’s Day Feb 16 & 17 Chinese March 30 Good Friday Week meeting in Vietnam Dec 25 Christmas Day Budget 2018 in Parliament. New Year (public holiday in Sabah & • Monsoon season, Sarawak) November does not election unlikely seem likely as Najib has committed to attend the Asia Pacific Economic Cooperation leaders’ meeting in Vietnam. Year- end is not preferable as it is the monsoon season in the ge14 east coast.

Possible May 16-June 14 fasting June 15 & 16 Hari Raya Aidilfitri Once Parliament60 days is dissolved, month (tentative) (tentative) a general election must be election season June 23 Parliament automatically called within 60 days to elect dissolves if the prime minister has representatives. yet to call for its dissolution

LAST CALL March or April 2018 is another election possibility NOTE: Parliament automatically dissolves at the end Aug 24 Malaysia’s 14th general election that people are betting on. The thinking goes of the five-year period from the date of the first sitting 120 days that if election is not called this year, likely Prime after a general election. After the 13th general election, must be held on or before this date. Minister Datuk Seri Najib Razak will take it all the the newly constituted Parliament sat for the first Assuming Parliament automatically Parliament must convene time on June 24, 2013. Hence, Parliament’s automatic within 120 days from way to the end. dissolves, two timeframes will kick in: dissolution. dissolution date is five years after June 24, 2013.

First half of the year vs 2Q seems to be a favourite Is there a favourite date/day for polls? Najib’s second half of the year season for election favourite number 4 of 13 9 of 13 7 of 13 Saturday 100 2nd half 1Q 2 past elections past elections held seems to be a 80 held on a 46.2% 2Q 5 elections in the first half favourite day 60 1st half 3Q 4 weekday held on a of the year for general 40 4Q weekend elections 20 53.8% 2 0 1 2 3 4 5 0 The last three elections have been held on a weekend and in the first half of the year S4 MALAYSIA JUNE 19, 2017 RUN-UP TO GE14

Datuk Seri Johari Abdul Ghani, Finance Minister II T BN always emerges stronger I after a testing time The ele BLOOMBERG Ten The Edge: How do you think the Barisan As far as our trade diversifi cation is con- in P Nasional (BN) will fare in the [next gen- cerned, China makes up 16% of our trade; in U eral election]? the European Union, about 10%; the US, at (wh Datuk Seri Johari Abdul Ghani: I am con- 9.2%; Japan, 8%; and Asean, the largest, at form fi dent that the BN will continue to govern about 27%. I would say that despite the chal- any post-GE14. If you look at the Sarawak state lenging environment, we are doing pretty be i election in May last year, and more recent well and I am very confi dent that we will to that, the Kuala Kangsar and Sungai Be- continue to prosper in light of improving You sar by-elections (June 2016), despite all the global economic outlook. dat ‘noises’, BN still managed to win with more Bec than a two-thirds majority in Sarawak and Are there any urgent measures that need commanded very healthy wins in both Kua- to be taken in governing the country? Fro la Kangsar and Sungai Besar. Integrity, transparency and good govern- wr ance are key to bringing the country to the It h Many say that this will be the BN’s next level as a developed economy. We also for strongest test to date. need to manage our government expend- left If we were to look at our recent history, I iture so that every ringgit we earn from dur remember the period when the BN had to taxpayers will be productively spent for Tun face a string of issues in the 1990s, especial- the development of the country and econ- wit ly in the aftermath of the sacking of Datuk omy. Further, we need to make sure the gap cou Seri Anwar Ibrahim, which spawned the between the rich and the poor, or income eve Reformasi movement. It was also the time inequality, be minimised by having a more way when the country was facing the Asian fi - inclusive growth. Inclusivity also means peo nancial crisis. At that time, there were peo- that the government should be mindful in ple who said that ‘this is Barisan Nasion- of the impact of the rising cost of living on An al’s strongest test’. My comment would be, the rakyat while eff ectively managing in- infl BN emerged stronger each and every time fl ationary pressure. All of these will create cou we were tested as we were willing to learn a good economic environment and boost from our mistakes and shortcomings. I am investor confi dence to continue investing Um confi dent that the BN will continue to get in Malaysia to stimulate economic activ- ue the mandate from the rakyat. ity and create employment opportunities res for the rakyat. que Several senior leaders have left the BN. peo How much of an impact do you think Do you think Sabah and Sarawak will or t this will have? remain safe-deposit states for the BN? you The issue of people leaving and joining other I don’t subscribe to the notion of safe political parties is common in a democratic deposits states in politics. You can no longer Wh country. The BN is not unique; there have 1MDB suff ered from weak management, take the rakyat for granted. Nevertheless, It m been cases of people leaving the opposition poor corporate governance and wrong busi- based on the performance of the BN in the cor parties as well. Even newly formed politi- ness model. There are lessons to be learnt recent Sarawak state election, I am confi - told cal parties like PAN (Parti Amanah Negara) from this experience. There may be other dent that the people of Sarawak and Sabah go b and PPBM (Parti Pribumi Bersatu Malaysia) areas within the government system that Integrity, will continue to give their mandate and An were not spared from instances of members can be improved, but we are surely far from support to the BN. leaving. In a democratic country, changing the stage where the government is deemed transparency Is M one’s political allegiance should not be seen to have failed in managing the country. and good There are views that without PAS and It’s as the death knell for any particular polit- in an environment of three-cornered cia ical party; it is just healthy democracy. At How has the economy been since 2013? governance are fi ghts, there is no hope for the opposi- gai the end of the day, the power of the rakyat As far as the economy is concerned and key to bringing tion to win. What do you think? det will determine which political party will notwithstanding lingering external factors I am not privy to the composition of vot- cou govern the country. such as the volatility of commodity prices, the country to ers in all [constituencies in] the country. wh particularly global oil prices, anticipation of the next level We must, however, acknowledge that we lea Since the last general election in 2013, further hikes in the US interest rate, China are facing a more sophisticated and savvy com how do you think the BN has fared in rebalancing its domestic economy, Brexit, as a developed [generation of] voters whose outlooks cor- terms of governing the country? ongoing geopolitical tensions in some parts economy.” respond with those of the rest of the world. dat The BN has proved itself again and again of the world, we still managed to record — Johari The political landscape of the country and reli as the foremost choice of the rakyat when continued expansion in the economy. From its fate will ultimately be crafted and de- thi it comes to forming the government. Al- 2013 until 2016, the economy continued to cided by the voters. No political party can pro though I cannot deny there are weaknesses record positive growth rates of 4.7%, 6%, 5% take the voters for granted and their ex- to u here and there in the system, overall, de- and 4.2% respectively. For 2017, we expect pectations of leaders are ever increasing. uni spite all the challenges, the BN is still able GDP growth to be better, at 4% to 5%. We Whether you have straight or three-cor- to provide political stability and continue also managed to diversify our economy, nered fi ghts, it ultimately depends on the Wh to grow the economy without fail. with the services sector forming 54% of our ability of the parties and the candidates to ern economy; 23% in manufacturing; 9% in the convince the voters. I do Do you think issues such as 1MDB have mining sector, including oil and gas; 8% in gov weakened the government? Any other agriculture; and 4.5% in the construction In your opinion, does the opposition to g areas you think the government has industry. In terms of government revenue, off er any alternative? and failed? in 2013, oil-related revenue was about 41% At the risk of sounding patronising, at Gov The 1MDB issue has admittedly created of total government revenue, but in 2016, this moment, in my opinion, there is no me an unfavourable perception, but I am con- it was only 14%. likelihood of the opposition being able fi dent that we will overcome this in due From a total trade of RM1.4 trillion in to off er any alternative as they lack the Ho time as long as we are focused in what we 2013, we have managed to grow to RM1.5 ‘cohesiveness’ compared with the BN. ern are doing now. The government has taken trillion in 2016 with what can only be de- Furthermore, I cannot see the opposi- We note of the weaknesses that came to light scribed as a well-diversifi ed trade structure tion parties reaching a consensus on is i with the 1MDB, especially in respect of how across products and markets, and we have who should be their candidate for prime we companies operate. As I have said before, also made our country open to the world. minister before GE14. E ed t are 2017 MALAYSIA JUNE 19, 2017 S5 RUN-UP TO GE14

Tengku Razaleigh Hamzah, MP for Gua Musang I think the same party will come back to power

KENNY YAP/THE EDGE The Edge: You won’t be contesting in this election? Tengku Razaleigh Hamzah: I have been in Parliament for over 45 years. I have been in Umno for over 60 years with a short break (when Umno was declared illegal in 1988 and he formed Semangat 46). I don’t aspire to anything anyway. A person has to be very ambitious to Th e people want the be in politics. I no longer have that ambition. government to govern,

Your name always pops up as a candi- not to dictate. Th e date, though. people are clever and Because [I guess] they have no other name. wise enough to do From your experience in Umno, what is things for themselves.” wrong with the party today? — Tengku Razaleigh It has lost its way. Umno was formed to fi ght for the rulers and for the Malays who were left behind [politically and economically] during colonial times. After independence, Tunku Abdul Rahman, under his leadership with his team, made Umno the leader of the country, looking after not just the Malays but everybody. But of late, it doesn’t seem to be that way. People have become too materialistic. And people think it is only through their position in politics that they can gain extra wealth. And so they go all out to secure a position of infl uence in politics. When they get there, of course they want to maintain their position. And then the other side of things, whether Umno can continue. I’m sure it can contin- ue but whether it will regain the regard and respect it used to enjoy, that’s another big question mark. You are not attracting good people, intelligent people, or seasoned people or those with high moral values, so where do intervention. It may not be done in the way of the accusations have been proven, none of What is your view on the next general you go from here? people expect, and I think the people must the people who have been openly accused have election? have a greater voice in this because, after all, been detained, arrested or brought forward to I’m not a prophet but I think the same party What can Umno do better? the government is spending [the taxpayers’] answer the questions that were raised. But I will come back to power because the oppo- It must go back to the old ways. We were never money in its interventionist policies. don’t think it has escaped the attention of the sition [parties] are not together. corrupt. It was not like it is today. We always By and large, the government has done the people. Even the rural people have taken note told the truth, we spoke the truth. Can’t we right thing but it has not achieved the expected of what has happened. But whether it has in- What is you view on this Sarawak for Sar- go back to that? And let’s embrace everybody. results, partly because some civil servants are fl uenced their thinking, that is another thing. awakians, Sabah for Sabahans thing. Are And bring in new talent, for heaven’s sake. not enterprising enough to run industries or these states still safe deposits for BN? commercial enterprises (those owned by the The people are concerned about the high They have always been saying that, even be- Is Malaysia a diffi cult country to manage? government). The economy is now more di- cost of living. fore the formation of Malaysia. Yes, it looks It’s not easy because, for one, it is a multira- versifi ed and it opens up more opportunities Yes. It’s not just the rising cost of living but like it. But I think the situation in Sabah is cial [and multireligious] society. When we for people, but of course there are accusations the government has cut allocations for im- a bit diff erent from Sarawak. gained independence, the leaders then were of cronyism and nepotism. I admit there is … portant things like healthcare and education determined to prove to the world that they there are pitfalls and we ought to get rid of all and ministries are experiencing diffi culties This might be BN’s toughest challenge. could make something out of the country, this. I’m against it. The people must guide the with how to adjust. We have come to a stage It’s always the toughest challenge. Even the which they did. People rallied around their government and tell it that these are things we have not experienced before. 13th [general] election was tough. The easi- leadership and that is how we defeated the they do not encourage or want it to continue. est was when [Tun] Dr Mahathir [Moham- communist insurgency. So what do you think is the cause of this? ad] left because people were fed up [with But of course, later we had to accommo- There is feedback that the government One word — mismanagement. him]. Sadly, [Tun] Abdullah [Ahmad Badawi] date the demands for the politics of race and is not listening to grouses about corrup- didn’t take the opportunity and we are back religion. We had to give them their say, and tion, wastage of resources and leakages What is your view of what Malaysia can be? in the same rut. this is what we have inherited. This is the in the economy. I thought we would have achieved this some problem. We must put a stop to it if we want Well, there are two things — the budget defi - time ago, not now after 60 years of existence. I Some Malaysians say we may need a new to unite the country and have a democratic, cit may not necessarily be due to leakages. It thought after 25 years, 30 years at most, when government. united country. could be because of borrowing too much or we had oil and everything, we could have Some say, but will the [majority of] people overextended spending. In order to fi nance the achieved that status where our people would respond to that wish? It doesn’t seem like it’s What do the people want from the gov- defi cit, the government borrows. In my time, have a very well-rounded education. This sense going to happen. You look at the opposition ernment today? the government did borrow but we were never of belonging to racial groupings would have parties, they all have problems. [There is] I don’t think the people want much from the in continuous defi cit for a long period. Cur- disappeared and we could have become one, not one party in the opposition that doesn’t government. The people want the government rently, the budget has been in defi cit since 1997. including Sabah and Sarawak. We should have have a problem. So how do you get your act to govern, not to dictate. The people are clever We borrowed in order to fulfi l our require- become richer than Singapore, talking about together and go ahead and tell the people, and wise enough to do things for themselves. ments. I admit there are leakages and that is the per capita income of our people. The gov- ‘I’m replacing this government’? People Governance must be upright and the govern- corruption. You cannot deny there is corrup- ernment income from Petroliam Nasional Bhd might say, forget about this [opposition] and ment must uphold the constitution. tion. The problem is that the big fi sh have not [and other oil companies] alone over the last 30 let’s go with this government. been caught; they are catching only the little years [is enormous]. We could have been like How has Barisan Nasional fared in gov- ones. We have to plug the holes and stop this Norway (its oil sovereign fund is about US$900 Do you think having Mahathir in the erning the economy? nonsense once and for all. billion). During the peak of oil prices [when opposition makes much of a diff erence? Well, it’s a free enterprise [economy] but there they touched US$147 a barrel in 2008 and re- He is still [the same] Mahathir, whether he is intervention by the government in how Do you think issues such as 1Malaysia mained above US$100 a barrel for most of the is in the opposition or not. Look at the party wealth is distributed and the balance need- Development Bhd have weakened BN? time until 2014], the government was getting he’s formed. There is a post for president … ed to ensure certain sections of the economy Yes and no. You see, 1MDB is an issue which RM90 billion a year from Petronas [and the but he is the chairman and runs everything. are looked into. In this regard, there is steady has not yet been proven [in Malaysia]. None oil industry] … Where has that money gone? That’s Mahathir for you. E S6 MALAYSIA JUNE 19, 2017 RUN-UP TO GE14

WHAT INFLUENCED THE GENERAL ELECTION RESULTS — THE ECONOMY OR POLITICS?

ELECTION DATE EPF DIVIDEND ASB PETROL PRICES BR1M CIVIL SERVANTS’ PAY RISE, BONUS EXCHANGE GDP GROWTH FIXED BASE CPI GROWTH UNEMPLOYMENT PER CAPITA INCOME FEDERAL G IN THE YEAR (THE YEAR PRECEDING POLLS) FOR AND OTHERS RATE RATE DEPOSIT LENDING RATE RATE PRECEDING HOUSEHOLDS US$/RM (%) RATE — RATE (%) (%) THE POLLS WITH 3 MONTHS (%) (%) INCOME (%) < RM3,000 (RM) DIVIDEND BONUS (SEN) RON 97 RON 92/ RM US$ REVENUE (SEN) (RM) RON 95 RM BILLIO (RM)

Income tax for 1999 waived. Announced during the tabling of Nov 29, the Budget in October 3Q1999 Oct 1999 3Q1999 1998. 12,305 3,238 1999 6.7 8 2.5 1.10 1.06 — 3.8 9.1 3.33 6.79 2.1 2.9 58.7

Additional half-month bonus. Total bonus given equivalent to a month’s salary. March 4Q2003 Feb 2004 4Q2003 21, 4.5 7.25 2 1.35 1.31 — 3.8 6.8 3.0 6.0 0.9 3.2 16,616 4,373 99.4 2004

1. Civil servants received revised salaries with pay rise between 7.5% and 42%. March 4Q2007 Feb 2008 4Q2007 8, 2. 100% increase in cost 25,784 7,737 159. 5.8 8 1 1.92 1.88 — of living allowance 3.19 7.3 3.14 6.72 2.7 3.0 2008 (RM300, RM200 or RM100 — depending on location).

Bonus of 1.5 months’ salary: half-month paid during Aidilfitri 2012; half-month given in December 2012; and 1Q2013 April 2013 1Q2013 May 5, final half-month in January 2013. 31,844 10,106 213. 2013 6.15 7.75 1.15 2.90 1.90 500 3.04 4.3 2.97 6.53 1.7 3.1

WHERE WE ARE NOW...

1. Adjustments to civil servants’ salaries to at least RM1,200

2.24 1.98 2. Special assistance 4.26 1Q2017 April 2017 March 2017 2016/ as at as at as at 2.93 6.65 1,200 of RM500 to civil as at April as at April 37,738 9,096 212. 5.7 6.75 0.5 June 15, June 15, June 15, 5.6 4.4 3.4 2017 servants 2017 2017 2017 2017 2017

Rising cost of living continues to be a sore point for many Malaysians

FROM PAGE S1 managing severe fi nancial and fy our economy with the services sian vote, save for the 1999 election bus To the ruling BN coalition’s economic downturns such as the sector forming 54% of our econo- when a high number of Malays ter credit, Malaysia has chalked up Asian fi nancial crisis of 1997-98 my; 23% in manufacturing; 9% in voted against Umno because of cou continued economic expansion in and the global recession of 2008. the mining sector, including oil its treatment of former deputy spite of a slew of external factors Second Finance Minister Da- and gas; 8% in agriculture; and prime minister Datuk Seri Anwar (no that have shaken economies glob- tuk Seri Johari Abdul Ghani high- 4.5% in the construction industry. Ibrahim. However, Chinese voters ad’ ally over the past few of years. The lights this point when asked how “In terms of government rev- opted for stability, ensuring that pri Malaysian economy has managed the economy has fared since 2013. enue, in 2013, oil-related revenue BN continued its rule. Tun to weather the volatility in com- “From 2013 to 2016, the econo- was about 41% of total government In the run-up to the 11th gen- dul modity prices, in particular, crude my continued to record positive revenue, but in 2016, it was only eral election in March 2004, the ly i oil prices, expectation of US inter- growth rates of 4.7%, 6%, 5% and 14%,” he says in an exclusive inter- Malaysian economy was thriving, exp est rate hikes and an economic 4.2% respectively. For 2017, we ex- view with The Edge (see Page S4). as evident from the 6.8% gross fac slowdown in China, among others. pect GDP growth to be better, at 4% In past elections, economic is- domestic product growth year on lan Malaysia has a good record in to 5%. We also managed to diversi- sues have infl uenced how Malay- year in the fourth quarter, and ro- its 2017 MALAYSIA JUNE 19, 2017 S7 RUN-UP TO GE14

ELECTION RESULTS

FEDERAL GOVERNMENT FINANCES KL EMAS INDEX ISSUES VOTES PARLIAMENTARY SEATS VOTES TOTAL STATES IN THE SPOTLIGHT (%) (%) PARLIAMENTARY SEATS

REVENUE (IN OVERALL SURPLUS/ CLOSE ON % INCREASE/ NOTE BARISAN NASIONAL OPPOSITION RM BILLION) SURPLUS/ (DEFICIT) DAY AFTER (DECREASE) (DEFICIT) AS % TO GDP ELECTION (IN RM BILLION)

During the Asian financial crisis, Deputy Opposition Prime Minister and Finance Minister Datuk retained Kelantan Seri Anwar Ibrahim was sacked on Sept 2, and captured 1998. Shortly after, he was arrested under . Made ,238 58.7 (9.5) (3.2) 5,448.2 (1.3) the Internal Security Act and charged headway in with corruption and misconduct. This gave 56.5 148 45 43.5 193 and Selangor. birth to the Reformasi movement, which protested against the BN government.

Closed Tun Dr Mahathir Mohamad stepped down Abdullah led BN at a one- as prime minister and Tun Abdullah Ahmad to a landslide year high Badawi took over on Oct 31, 2003. Seen as victory. It regained on March “Mr Clean”, Abdullah opened more avenues Terengganu and 22, 2004. for the exercise of civil and political rights, lost narrowly in ,373 99.4 (19.4) (4.3) 6,393.2 0.4 and promised to clamp down on corruption, 63.8 198 21 36.2 219 Kelantan. MCA which brought about a feel-good sentiment won big too and after Mahathir’s 22-year rule. PKR was left with one seat.

Issues like crime, corruption, high cost of Opposition won living and judicial independence came under Penang, Kedah, the spotlight as the public felt that the , Selangor government was handling them well. Bersih and Kelantan and and Hindraf staged massive protests. for the first time ,737 159.8 (35.6) (4.8) 7,961.8 (9.5) Meanwhile, Abdullah’s capability as a leader denied BN a two- was questioned. 51 140 82 49 222 thirds majority in .

Closed Sentiment regarding the country’s economic BN recaptured at a one- conditions was poor on the back of rising Kedah and retained year high inflation and a weakening economy. Perak, which it on May Corruption, transparency and leadership wrested from the 6, 2013. quality were seen as major issues. opposition after 11,980.3 defections in 0,106 213.4 (38.6) (3.9) 3.7 49 133 89 51 222 2009 but failed to get a two-thirds majority yet again. It also lost the popular vote.

The ringgit has plunged dramatically against the US dollar since crude oil prices fell from a high in mid-June 2015. It is now subsidies and the high cost of liv- pace with a better than expect- at levels lower than that seen during the ing remained a common grouse. ed performanace in 1Q2017 . The Asian financial crisis. Rising cost of living BN failed to regain its two-thirds stock market is showing some ,096 212.4 (38.4) (3.1) and the GST remain a sore point among parliamentary majority but won buoyancy, while the ringgit has Malaysians. The troubles in FELDA and back Kedah and retained Perak. strengthened in recent months. FGV do not help. Also, the 1MDB debacle Ahead of GE14, while the op- If James Carville is right that continues to make international and local position is struggling to show a elections are won or lost over the headlines. united front, its leaders claim vot- economy, the BN should call snap ers are more restless than before. polls soon. Or should it wait till “The ground is fertile for a 2018 if it is confident of further change. People are angry over many improvements in the next 6 to12 socioeconomic issues,” says Datuk months? Rais Hussin Mohamed Ariff , strat- The risk of waiting is that the egist for Parti Pribumi Bersatu, the economy may slow again. And bust growth in the previous quar- But the feel-good factor quickly splinter party of Umno. the opposition will have time ters. Inflation was low and the dissipated as the rising cost of liv- Despite eff orts such as BR1M to rally around 92-year-old Ma- country recorded full employment. ing and an increase in petrol pric- handouts, the rising cost of liv- hathir, under whose watch Ma- After 22 years of Datuk Seri es caused hardship to the rakyat. ing, caused in part by the GST, the laysia enjoyed a golden era of (now Tun) Dr Mahathir Moham- At the same time, certain factions weak ringgit and cut in subsidies, economic growth. ad’s rule, the country had a new within Umno wanted him out. is a sore point. GE14, whenever it is held, will prime minister in Datuk Seri (now In 2008, BN suff ered a major re- Issues like 1MDB and FELDA add undoubtedly be the mother of Tun) Abdullah Ahmad Badawi. Ab- versal, losing its two-thirds parlia- to the issues the BN has to grapple all GEs pitting Najib against dullah’s new approach, particular- mentary majority and fi ve states. with. Among urban Malaysians, Mahathir. It is a classic mas- ly in allowing greater freedom of Going into the 2013 election, 1MDB is seen as an example of mis- ter vs student showdown, but expression, gave rise to a feel-good Umno was led by new president management and corruption at the the student has the power of factor, and he went on to win by a and Prime Minister Datuk Seri highest level. incumbency and, what appears landslide, with the BN registering Najib Razak. It was the fi rst elec- After a rough two years, the to be an improving economy, in its biggest ever victory. tion after the removal of petrol economy appears to be picking up his favour. E S8 MALAYSIA JUNE 19, 2017 RUN-UP TO GE14

Tun Dr Mahathir Mohamad, Parti Pribumi Bersatu Malaysia chairman

MOHD SHAHRIN YAHYA/THE EDGE

and of a cen be b tire gen

Ab RM say cou Th can rep ed. bor

to a IM has Edr ow by to Coa Hig giv Th ere’s nothing RM similar at all wil between Najib so i and myself.” a sm — Mahathir Bu pro Th as fro wil ple bet oth to g sho We will off er good governance pro por as t we The Edge: You are quite confident light rail transit [projects]. The high as made out to be. Yes, we have inter- So, you are not seeing [PAS splitting in t that Barisan Nasional (BN) can be cost of living is disliked by a lot of nal problems and we have inter-party from Pakatan] as an advantage to bes defeated. Where does this confi- people... ikan kembung costs RM18 problems, but we have got together Umno? Ku dence come from? per kilo... there are so many issues and Bersatu has become part of the It is an advantage to Umno, of course, bui Tun Dr Mahathir Mohamad: In 2004, that the government cannot possi- coalition. We accept the leadership of but even if PAS were to join the oppo- Ku BN did extremely well and that was bly answer. the presidents of the parties, we are sition coalition, they might demand supposed to be because of the new Then there is this sale of Malay- working on the constitution, we are a huge number of seats, which they lion prime minister, Tun Abdullah Ahmad sian land to foreigners — the sale of going to use one symbol for our party, cannot win. Historically, their perfor- buy Badawi. But in 2008, Pak Lah lost five [power assets of] Edra [Global Energy we have agreed that we should fi eld mances were good only when DAP sup- com states. [When] current prime minister Bhd], which are energy assets owned only one person for each constituency ports them and it is part of a coalition. to t Datuk Seri Najib Razak took over, we by Malaysians, to foreigners. And with — all these things have been agreed Indirectly, [PAS] is now working [we expected him to do better but, very respect to China, the government’s but, of course, the next move is how for Umno. hav surprisingly, [he[ did worse. There action is not to be non-aligned any– many seats for whom, and where. wh were a lot of things against Pak Lah more where, before, we were free to There may be some disagreements What do you think about the East tha [in 2008] but in 2013, Najib did not be neutral [in our foreign policy]. on other things but all have become Malaysian states, Sabah and Sar- have too many issues. Other issues include [poor] man- minor relative to the need for Najib awak? So, Today, there are many issues. One agement of Felda and Tabung Haji, to be unseated. Sabah and Sarawak are very insular. dev is, of course, 1MDB (1Malaysia Devel- loss of money by Retirement Fund They talk about Sarawak for Sarawa- Bor opment Bhd)… billions of dollars have Inc (KWAP) and SRC [International In this scenario, where does PAS kians and Sabah for Sabahans, which use been lost and there is no proper au- Sdn Bhd] — all these things will be fi t in? is one reason we have not gone there. bor dit and [there is the role of] Jho Low. issues the government will have to PAS is a spoiler, it has always been a Umno is not popular because it is re- Eve These are issues which even people handle in the election. spoiler, it has never achieved anything. garded as a peninsular organisation. mo in the village now understand. The What has PAS done for Islam except So, we are leaving that to them (Sar- You assumption that they do not under- The Felda issue is about how FGV to weaken the Muslims? They did not awakians and Sabahans) to decide. stand is not valid anymore. They un- (Felda Global Ventures) performed create the Islamic university, Islamic In derstand, at least, that huge sums of since the listing? banking, the Takaful or Tabung Haji There is a view that the voters are Eas money have been lost. Felda people have lost money. Set- to facilitate haj, for example. facing political and election fatigue. Jap Then, of course, there are the tlers were asked to buy the shares All these were not done by PAS. They I don’t know about fatigue, but from tod things which have burdened the peo- at RM4.40 and now it’s down by a have condemned people who do not join the number of people who attend all wo ple [directly]. We have the goods and few ringgit. them as being infi dels — kafi r — and these rallies that we have, they don’t We services tax [GST], unemployment, that serves to divide and weaken the seem to be tired at all to hear me talk hav reduction in the number of scholar- The opposition also looks pretty Muslims. They have been able to split about 1MDB and other issues. I must lea ships, less infrastructure being done shaky… the Malay Muslim votes, so much so admit that even as president of Umno, me except for the mass rail transit and Yes, but believe me, it’s not as shaky that they too have become weakened. I never had that kind of audience, Jap 2017 MALAYSIA JUNE 19, 2017 S9 RUN-UP TO GE14

Liew Chin Tong, DAP strategist and MP for Kluang

EDGE

and most parties never get that kind sold small parcels of land to build fac- of audience. But today people are in- tories… that is a foreign direct invest- BN is weak, but censed at the government. So, it can’t ment. But that is not selling property. be because they are tired. They are not The factory is important as it creates tired; they are looking forward to this jobs for our people. But here you are opposition is not strong general election. selling land for people to build cities where they can come and live, which About 1MDB piling up debts of over is not foreign direct investment; it is KENNY YAP/THE EDGE RM40 billion, there are people who selling assets. say that this is just a fraction of the country’s GDP, so it is no big deal… But there are some quarters who The country can borrow money, but it think that during this economic can borrow money only when it can slowdown, it’s good to have foreign repay, and the money is to be invest- direct investment from China, no- ed. It is quite clear that the money tably to build infrastructure. borrowed cannot be repaid. That is not foreign direct investment. A country should have a defi cit up Foreign direct investment is about to a certain amount but not so much. capital and technology coming in IMDB borrowed over RM40 billion but here to produce things in Malaysia has recovered RM12 billion by selling and employing Malaysians, with Edra energy assets, which used to be Malaysians running the companies. owned by Malaysians but is now owned Now, money [is] coming in mainly by foreigners. The government wants to buy land, property and to develop to borrow RM55 billion for the East cities where we cannot live in be- Coast Railway Line (ECRL), and for the cause it’s too expensive. It’s going High Speed Rail (HSR), the quotation to be lived in by expatriates, so how given in the newspapers range from do we gain? RM40 billion to RM80 billion. We cannot aff ord these things. It When Pak Lah took over, they were will take you 30 years to repay the loan, saying you had spent too much, and so it is a serious matter. Don’t say it is the country was broke. a small sum. What is the proof that the country was broke then? I left the country But the ECRL is an infrastructure with three conditions: fi rst, I wanted project. the party (Umno) to be in good shape; These are not infrastructure projects secondly, I wanted the economy to be as they are not necessary. To travel in good shape; thirdly, I wanted the from Kota Baru to KL by train [now] government to have suffi cient mon- will take you almost 12 hours, but peo- ey to run the country together with ple can fl y. Today, low-cost airlines fl y development of the country. between Kota Baru and KL and many I didn’t leave the country in shambles. other places, and it takes half an hour to go anywhere from Kota Baru. Why How is the present state of the should they take the rail? economy? The east coast is not well known for The present economy is not well man- producing a lot of goods to be trans- aged and the [focus] is on being pop- ported by rail. It doesn’t make sense ular. To be popular, you increase the as the greater consumption is in the number of civil servants and pay west [coast]. Why should you produce them [big] increments. I never gave ing in the east? You only increase the costs; any increments of more than 10% to besides, if you want to export, there’s and they have been giving up to 25% Kuantan Port. Why do you have to [over a period of time]. That is why rse, build a railway to Port Klang when the salary bill is so big, and that is po- Kuantan Port is there? why we don’t have the money for and Just imagine, you borrow RM55 bil- development. The Edge: What’s the sentiment out 65% among the non-Malays and many hey lion to fi nance the construction and there? Do you see support for the say they will not fl y back to vote. One for- buy the rolling stock from Chinese Given the current economic en- opposition increasing? particular area is Singapore — one up- companies, because they are now tied vironment, if you were the pol- Liew Chin Tong: You could say million Malaysians work in Singa- on. to the Chinese companies. And after icymaker, what would you do to non-Malay support for the opposi- pore. And those voters who reside in ng [we] have paid for all these, [we] still minimise the adverse impact for tion has stagnated or softened. In 2008, Singapore are very important to Johor. have to pay for the money [we] owe, the man in the street? non-Malay support for the opposition which is RM55 billion. How do you pay There are a lot of things that can be was probably about 65% to 70% across How will Barisan Nasional fare? ast that? It is not easy. done. This country is a fantastic coun- the board. In places like Penang, it BN has no feel-good factor now. You ar- try. It doesn’t take much skill or clev- was a bit higher. In 2013, the support cannot go into an election purely play- So, you are saying we can’t fi nance erness to develop this country. When of non-Malays for the opposition, es- ing on the fear of the DAP. The battle- lar. development through borrowings… I stepped down, I had a lot of ideas, pecially in Chinese constituencies, ground is in the semi-urban areas. The wa- Borrowings are all right if you can but I thought I had been in power went up to 85%, in places like Penang urban areas, we are more or less there. ich use money to make a profi t. You don’t too long, so I gave a chance to other 90%. But we are not at that level now. Urban areas have very high non-Malay ere. borrow to spend. It is very damaging. people; of course, I expected them to We are probably at 65%. support for the opposition, and even re- Even for yourself, you don’t borrow at least carry on with some of the pro- among Malays in the last election it on. money to pay for your food every day. jects I put in line, but they decided to Any particular reason? was a 50:50 split. That was evident ar- You borrow money to invest, yes. change policies. Fatigue. Also, those who swung to us in because out of the e. in the last election were MCA (Malay- 11 parliamentary constituencies, BN In the 1980s, you initiated the Look Critics say Najib is doing what he sian Chinese Association) members, only won two. That means in many are East policy, centred on us emulating has learnt from you. the older Chinese and rural Chinese. other areas, Malays also voted for the ue. Japan, South Korea and Taiwan, but There’s nothing similar at all between For example, Barisan Nasional didn’t opposition. om today you are critical of [Malaysia Najib and myself. expect to lose in small towns in Johor In Selangor, the opposition was able all working closely with] China… because they are agricultural towns to win because it had 50% of the Ma- n’t We can learn a lot from China, they Voters are asking what the oppo- with older populations. But the young lay vote and a very high proportion of alk have made tremendous advances. But sition can off er if they become the people from the cities went back and Chinese and Indian supporters. That ust learning from other countries does not government. told their parents to vote for the op- is the formula that has to be replicat- no, mean selling our assets to them. The Good governance. That is the most position. And naturally, the moment ed everywhere else. The main battle- ce, Japanese did not buy our assets. We important thing. E you don’t become the government, grounds are southern Kedah, north- they went back. We are now at around CONTINUES ON PAGE S12 S10 MALAYSIA JUNE 19, 2017 RUN-UP TO GE14

Nurul Izzah Anwar, Parti Keadilan Rakyat vice-president and MP for Lembah Pantai

SUHAIMI YUSUF/THE EDGE

We are focused and committed to reform

The Edge: Can the opposition win tracks — whether it’s the manifes- ple suffered. And it’s not just about dal (former Umno vice-president), we ne the coming [general] election? to negotiations, policy pronounce- Anwar; it’s about the entire system, have a hard worker and he’s been in- On Nurul Izzah Anwar: I’m confident ments, [or] quick, clear-cut pledges the entire generation. Then you see strumental in bringing momentum. los [we will win] if we manage to get — to showcase what we mean by a him changing position and adopting wo our message down to the grassroots. coalition committed to reform versus the reform agenda. I’m not going to On the ground, do the grouses cri a coalition committed to kleptocra- be the one to exclude anybody from of the voters tally with Pakatan We How different is it this time cy. But if [PAS] decides to combine supporting the reform agenda. Harapan’s manifesto? What are ern around from the past? forces with [BN], it’s their choice. the people unhappy about, ac- un I have never seen a time when Amanah took a conscious decision to You have seen what politics is all tually? Is it corruption? Is it the the Umno’s [popularity] is at an all-time set up a new party because it knows about… you opposed Mahathir and high cost of living? cou low. So, it really is prime for the pick- that the electorate wants it to be in a then in a moment he becomes a We are actually tracking these issues you ing. The breakup of Umno is not be- coalition with us. And we (PKR) had friend and a comrade on the bat- every week. In Selangor, we have done wit ing highlighted enough. Bersatu has to put aside our personal suffering tle field. quite an in-depth study on what vot- gained a lot of momentum in Kedah and differences with Mahathir when It has been a long time, and I think ers want on a weekly basis. For ex- Are [due] of course to [Tun Dr] Mahathir he set up Bersatu and we agreed to it was not easy… it’s not a personal ample, they want efficient garbage are [Mohamad]. Regardless of how peo- embrace them. issue per se, but it is also about how collection and Selangor has addressed sub ple view him in the past, but for a On PAS, I would say there will be you approach it. When I decided to this. One of the reasons [Datuk] Azmin We 92-year-old man making the rounds, different dynamics playing out in be part of Keadilan, [it was] because [Ali] managed to get a 67% popular am people do come out to listen to him. different states, for sure. Official- I supported the reform and multira- support is that from the beginning, dis The impact of [Datuk Seri] Anwar ly it decided to break away from us cial agenda. I wanted us to succeed he had tracked what were the top five im [Ibrahim] and Mahathir coming to- and destroy the existing working beyond Anwar’s release. You can’t be issues the voters are unhappy about. reg gether — it goes beyond politics, it relationship [but] there are some leading with a chip on your shoulder. I h goes beyond winning the elections. state assemblymen from PAS who I never hated the man, I hated the What is your sense of the Malay tar It is us as a nation coming togeth- are very friendly to us. actions... separate the two. heartland? ma er to build a future — focused and The Malay heartland, especially the ern committed to reform. But many of these leaders [in Ber- Where do Sabah and Sarawak fare Felda seats, we need just a few per- satu] were not too long ago part in the equation? centage points’ swing — 5% to 7%. Som The opposition is in disarray, isn’t and parcel of this same govern- I’m more optimistic about Sabah. With the problems faced by Felda, it’s the it? ment you call corrupt… I think we have to understand the ripe for the picking too, but we have en If you take PAS out of the equation, I completely agree with you. Ma- whole issue of autonomy — the fact to be strategic. Maybe it is better for Wh we are stronger together, we are hathir ruled with an iron fist and that they want to be leading the these seats to be taken up by Bersatu. lan working very closely. And discus- we have to state this. And there were charge for their own destiny, for their rul sions are taking place at different consequences of these actions — peo- own future. In [Datuk Seri] Shafie Ap- What urgent measures are of S 2017 MALAYSIA JUNE 19, 2017 S11 RUN-UP TO GE14

Dr Dzulkefl y Ahmad, Parti Amanah Negara strategy director

EDGE Pakatan Harapan is just about ready

The Edge: Where does Amanah stand So, how do you see your chances I must say that those [by-elections] in the new Pakatan Harapan? in GE14? were wake-up calls for us. However, Dr Dzulkefl y Ahmad: The position of We (PH) have a very good chance of the dynamics have changed. [Par- Amanah is premised on progressive unseating a government that has ti Pribumi] Bersatu [Malaysia] has and inclusive Islam and replaces overstayed. There is a plethora of is- emerged and it is now almost a year the position that has been tradi- sues facing the nation — high cost of since the last by-election. We have laid tionally held by PAS. This is in a way living, unemployment, inequality in down our coalition’s common policy a blessing in disguise because all terms of prosperity and a kleptocratic framework and we are working hard along there have always been con- government. People are insecure and to put together our manifesto. I think cerns [about an Islamic party like the disruption of racial and religious we are just about ready. I’m not going PAS among the non-Muslim voters]. harmony does not help. People are The nascent support base that was also concerned about what seems to How much of a game changer is to be the one emerging as the core support for PAS, be the beginning of a dysfunctional Tun Dr Mahathir Mohamad and to exclude in the 2008 and 2013 general elec- government. The political chemistry is Parti Pribumi Bersatu Malaysia? tions [notably the Chinese, Indians right and we are headed for a perfect We have been talking about 1MDB, anybody from and urban Malays], would have left storm that can unseat the incumbent. kleptocracy and abuse of power. When supporting the them (PAS). They are now our core Mahathir, [Tan Sri] Muhyiddin [Yassin] support. With that, we hope to be a If you look at the Sungai Besar and and the rest came on board with us, reform agenda.” critical player in the new coalition Kuala Kangsar by-elections, you Bersatu became the circuit breaker. front Pakatan Harapan (PH). didn’t fare too well… Information that the rakyat used not *** to believe because we were the opposi- tion has become believable now, with Mahathir and Bersatu in the team. 1MDB, for example, is no longer the message of the opposition; it has be- I never hated come the message of the rakyat. They the man didn’t really get to understand the message, but coming from someone (Mahathir), who has helmed the country for 22 I hated the years, the message — including the cost of living and other economic ma- actions... laise — becomes very powerful, simple separate the and understandable by all. two.” — Nurul Izzah What are the critical issues you need to address now? The rakyat are burdened by the high cost of living. They are worried about jobs and the cost of living in rela- tion to their wages and infl ationary pressures. The ringgit has dwindled in value, at least 22% in the last two we needed for the economy? years and even more than that since in- One key thing is how much we have [Datuk Seri] Najib [Razak] took over um. lost to corruption and leakages. But I in 2009. Many food items, including would also like to focus more on the essential goods, are imported. For in- ses crisis affecting our education system. dustries based on import substitution, an We are cancelling the overseas gov- I must admit they are also aff ected. Job creation for are ernment scholarships [for qualified locals is not easy to overcome but it ac- university students] who will form that the seat must be addressed. he the next generation, the talent of this distribution could On the issues of race and religion, country. If you can arrest leakages, why has the rift deepened? Why is it ues you can have [the funds] to continue very well be the aggravated? We must address them up- one with these scholarships. Achilles heel of front and not sweep it under the carpet. ot- It is regrettable that Umno and PAS are ex- Are you going to remove the GST, Pakatan.” using the racial and religious cards. age are you going to put back petrol — Dzulkefl y CONTINUES NEXT PAGE sed subsidies? min We have a group working on this. I lar am all for 0% GST, but how do you ng, dismantle a system that has been ive implemented? Taking off the GST out. regime needs to be done gradually. I have no issue with BR1M per se or lay targeted subsidies, but you can’t be making them part of continuous gov- the ernment policy without an exit plan. er- 7%. Some people are concerned that it’s the opposition lack the experi- ave ence to run a country. for Who is controlling Penang and Se- atu. langor? Malaysia [under Pakatan rule] will definitely be an extension re of Selangor and Penang. E S12 MALAYSIA JUNE 19, 2017 RUN-UP TO GE14

Dzulkefl y: Liew: Th e opposition will have to articulate a vision A chance for FROM PAGE S9 set of economic advisers. I think per- the rakyat ern and southern Perak, mainland haps among all his advisers, [Second Penang, northern Selangor, northern Finance Minister Datuk Seri] Johari to make an and southern Johor and the Karak belt. [Abdul Ghani] has the best under- All these will give you over 40 seats. We are now standing of the economy. informed And these 40-plus seats will decide the future of the country. talking about What then? What urgent meas- decision These are all marginal seats. Out ures will you take to revive the of the 133 seats that BN won, 60 were a major economy? won with less than 55% of the vote. realignment that The opposition will have to articulate FROM PAGE S11 Among the 60, 16 were won with be- has not been a vision — one that basically says There are many voters who dare low 50%, many of them were marginal that over the past 20 years since the not take the risk with the oppo- and three-cornered fi ghts, particularly seen in Malaysian Asian financial crisis, we have stag- sition. in Sabah. So, those are very margin- history. ” nated. We have wasted a generation Democracy is about citizenry and al seats. and we shouldn’t waste the next. And about voters making informed deci- — Liew it should be about doing all these sions. It’s so important and critical So, you see your chances as being difficult things together, including that the PH must be able to articu- good? reducing unskilled foreign labour, late and advocate its policies loud Maybe... because we have never seen moving small and medium enterpris- and clear and, of course, be given Malay voters so restless. Back to the es to a higher level, creating Malay- the opportunity to do that. We will 2008 scenario, there was no opposi- sian champions, creating more jobs spell clearly our policies and mani- tion coalition in 2008. There was no for Malaysians. All these will have to festo and what we will do — even in aggression among the opposition but Cost of living issues have been be articulated in a way that ordinary the first few months — if we capture there was Bersih — it was a platform there for a while. BN, as the in- Malaysians can understand. . for the opposition to come together cumbent, has the nation’s coffers When people vote for us, they will under a larger umbrella. There was in hand. If tomorrow more mon- On the ground, some people are have a choice. We have clear policies Hindraf. At that point of time, there ey is allocated to BR1M, how will saying that if it was not for Ma- on the economy, healthcare, edu- was no dispute among the opposition. that work? hathir and the system he put in cation, race and religious relations, And of course, BN at that time was It may work. Except that these dif- place, Najib wouldn’t have been political reform and upholding the quite arrogant — it thought it would ficult times have been dragging for so powerful. And now Mahathir position of critical institutions. We win [big]. Of course, now [some] think too long. But still, if they deal with is on the opposition side. want this election to be a contestation it may not win, so it is doing anything it properly, the entire dynamics will Nobody’s a saint. Everyone makes of policies and leadership of compe- it can to stay in power. be different. The opposition is still mistakes but eventually they are tency, capability and accountability. banking on [Prime Minister Datuk prepared to fight the system. And The rakyat have a chance to make How do you compare Reformasi Seri] Najib [Razak]’s unpopularity and that is where I see the public giving an informed decision. If we win and and now? cost of living issues. But the next step support to Mahathir — not because fail, by way of delivery, then they [Tun Dr] Mahathir [Mohamad] will for the opposition is to offer policies. he’s a saint, but because at his age, have every right to criticise and vote tell you that he won on Chinese votes That is where we are lacking. he’s prepared to do this. People are us out the next time around. That is in 1999. That year, 50% to 55% of the prepared to accept his fighting the democracy. Malays voted for the opposition, that Isn’t that basic? Why is it so diffi- system and undoing his wrongs to was the highest ever. After that, even cult for the opposition to get its redeem himself. Will the division of seats be a prob- in 2008, Malay votes did not exceed act together and offer policies? lem? 50%, hovering at around 40%. But in I think the main issue is that over How about Sabah and Sarawak as For the incumbents (DAP and PKR), Kuala Lumpur and Selangor, you have the past three years, we have had safe-deposit seats? they will keep the seats they have higher Malay support for the opposi- two major political earthquakes. We I think a lot of interesting things won. For Amanah and Bersatu, we tion. It’s worse in Johor. PAS only gets had the split of Umno, and the split are happening in Sabah, led by [Da- are looking at seats once held by PAS about 30% and DAP gets about 15% of PAS, which [I believe] was part of tuk Seri] [former Umno and Umno and those seats that PKR Malay support. Najib’s strategy. vice-president] and this long-stand- and DAP fought but never got to win. ing unhappiness among the Ka- For Umno strongholds, they are the So compared with 1999, what’s the You say BN is at its weakest now, dazans. Shafie is talking to everyone. seats suitable for Bersatu rather than diff erence? but you can’t capitalise on it… He’s making an impact. Sarawak is a Amanah. Amanah has to depend on [The support] was very urban, apart BN is weak, but we are not strong. That BN stronghold but not an Umno state. mixed seats due to its core strength from Kelantan and Terengganu. Of is the weakness of the opposition, among middle Malaysians who no course, the Malay votes in Kelantan partly because of our own leadership Without PAS in the opposition and longer support PAS. and Terengganu swung, creating the [who will be PM?] question. I acknowl- in a three-cornered fight, there is I must admit that the seat distri- Terengganu PAS government and Kedah edge that we have to move fast. no hope for the opposition to win. bution could very well be the Achil- as well. The electoral gains were in At the end of the day, the incum- Do we think that voters are loyal to les heel of Pakatan, but at the end of Kedah, Terengganu and Kelantan. But bents are still the incumbents and money or are they loyal to the party? the day, distribution of seats must the swing was in mostly urban areas. In they have the advantage. The next election will be very diffi- be aimed at maximising victory. It’s 1999, places like Johor were not aff ect- cult [for us to win]. It can only hap- about making sure that whoever ed because it was an Umno stronghold During our interview with Ma- pen when Malay voters who usually is [picked to contest] any seat… [he and Umno did not split. [Now] is the hathir, he said that to think that vote for Umno vote for other parties. or she is] winnable, and it must be fi rst time the Johor Umno machinery Malay votes can be bought would It has to be a groundswell. honestly and collectively decided has split down to the division level. It indicate that BN has a low opinion We are now talking about a major by all. has never happened before. of the Malays. What’s your view? realignment that has not been seen I agree with Mahathir. You talk to in Malaysian history. We have to deal Parti Pribumi Bersatu Malaysia is Do you see Tan Sri Muhyiddin Yas- many people and they say Malay vot- with two major trust issues: whether an Umno splinter party that forms sin’s crossing over as having a big ers are rural. Malay voters are not ru- eventually Anwar and Mahathir and part and parcel of everything you impact? ral, most are semi-urban and most of their people can fully trust each oth- are complaining about. It has an impact on Johor but, more their children are in Kuala Lumpur or er and build a genuine collaboration. In relation to Mahathir and Muhy- importantly, Bersatu’s impact now the Klang Valley. Their parents may Anwar appeals to a certain segment iddin, while many may say that they is not so much about how much it be rural but they are not. Also, under- of the population — the urban Ma- have baggage, at least when it comes has gained but how much it has split stand that for the first time, we have lays, the non-Malays, Malays who to the crunch, they are able to discern Umno. That means the battle is no Malay opposition leaders who have a are between 30 and 50 years old — between what is very, very wrong and longer within Umno but between the higher standing among the Malays those who may not trust Mahathir so what needs change and replacement. Umno warlords and the younger gen- compared with Najib — Mahathir much. Mahathir appeals to the older They are able to come on stage and eration. Umno can’t do away with its and [Datuk Seri] Anwar [Ibrahim]. generation, the establishment, civil admit they were from the BN and have warlords and it will not be able to fi eld servants, and the very young below made errors in the past. We must be too many young professionals, but What about the economy? 30. The [mood] on the ground is very mature enough and not be caught in when you go into an open election, My view is that in the past seven to anti-establishment. Whether we can a time warp of animosity. E young professionals are vote gainers. eight years, Najib didn’t have the right create a miracle, I’m not sure. E