Tag: Malaysia

  • Malaysia and Singapore Reunite After 60 Years with New Economic Zone

    Malaysia and Singapore Reunite After 60 Years with New Economic Zone

    On the 60th anniversary of Singapore gaining independence from Malaysia, or Malaysia expelling Singapore, the two nations are uniting once again by launching a bold initiative that brings them together. Last week, Malaysia and Singapore signed an agreement to establish the Johor-Singapore Special Economic Zone (JS-SEZ) in Malaysia’s southern Johor state, just north of Singapore. The project is more than a symbol of reconciliation decades after their split; it aims to transform their bilateral relationship by fostering cross-border investment, facilitating the movement of goods and people, and leveraging each country’s unique strengths to deepen economic integration.

    As Asia’s business significance grows for Western nations, Singapore emerges as the most viable option, particularly with Hong Kong now fully under China’s control. Meanwhile, both China and India have risen as global powerhouses but remain entangled in unresolved political disputes. Businesses from both countries may view Singapore as a neutral venue for collaboration. These factors create a favorable investment climate for both Singapore and Malaysia. While Singapore faces challenges with limited space and rising costs, Malaysia offers its land and infrastructure to complement Singapore’s global appeal. Together, the two nations are poised to achieve a significant economic boost through the new special economic zone. Proposals for the JS-SEZ include a passport-free immigration clearance system, collaboration on renewable energy, and streamlined business approvals.

    Singapore Prime Minister Lawrence Wong emphasized that the JS-SEZ will create high-quality jobs for citizens of both nations and attract significant international investment. He highlighted that both governments have worked closely with stakeholders to establish conditions that support long-term business growth, underscoring the value of collaboration in securing global investments. Malaysian Prime Minister Anwar Ibrahim described the initiative as a groundbreaking effort that enables both countries to leverage their strengths and deepen ties in a world increasingly divided by geopolitical tensions. Johor’s Chief Minister, Onn Hafiz Ghazi, stressed the importance of capitalizing on the opportunities provided by the agreement, noting that the benefits of the JS-SEZ would extend beyond Johor Bahru, driving economic growth and boosting tourism across the state.

    In the long run, the zone is expected to attract diverse investments, with developed nations and China continuing as key sources of FDI in ASEAN. In the short term, Southeast Asia, including Malaysia, has gained from the “China Plus One” strategies employed by global companies, which shift some production from China to other emerging markets. However, the long-term viability of these advantages depends on major powers maintaining a cooperative stance toward smaller and middle powers engaging with their rivals. If this cooperation declines, FDI may face notable setbacks, particularly in the short to medium term.

    Singapore and Malaysia appear poised for closer cooperation with ambitious projects in the future. Singaporean Prime Minister Lee and Malaysian Prime Minister Anwar have invited proposals for a high-speed rail connection between the two countries. Anwar emphasized that the project should be led by the private sector with minimal government involvement, a stark contrast to the earlier plan that was scrapped in 2021 due to disagreements. It is ironic that, 60 years after their separation, both nations are now taking significant steps to strengthen their relationship.

    This collaboration reflects a forward-thinking vision for the region. As China and India reestablish themselves as global economic powerhouses in the 21st century, both are poised to compete for soft power and investment opportunities in Southeast Asia, a region historically tied to their influence. Malaysia and Singapore, with their strategic location and strong relationships with both superpowers, are well-positioned to draw Western investments. By offering a streamlined and business-friendly environment, they present an appealing alternative to the complexities businesses often encounter in China and India.

  • Malaysian Opposition Leader Faces Charges for Insulting Royalty

    Malaysian Opposition Leader Faces Charges for Insulting Royalty

    Southeast Asian nations are known for rigorously enforcing lese majeste or royal insult laws to suppress dissenting voices, whether they are republics or constitutional monarchies. Thailand frequently makes headlines for its enforcement of these laws, while Malaysia, another constitutional monarchy in the region, has generally been viewed as more democratic and less prominent in this regard. However, a notable development has emerged from Malaysia: former prime minister and current opposition leader Muhyiddin Yassin was charged with sedition on Tuesday over alleged comments about the previous king’s decision to appoint Anwar Ibrahim instead of him following a closely contested 2022 general election.

    Malaysia has filed sedition charges against Muhyiddin Yassin for allegedly insulting the country’s former king during a political speech on August 15. Muhyiddin, who served as prime minister from 2020 to 2021 and currently leads Malaysia’s conservative, Malay-centric opposition bloc, has pleaded not guilty. Though Under Malaysia’s Sedition Act, which dates back to the colonial era, remarks deemed disrespectful to the country’s largely ceremonial and highly revered royalty can lead to prosecution. Muhyiddin is the first former leader in Malaysia to face charges under this law and could face a fine of up to 5,000 ringgit, a prison sentence of up to three years, or both if convicted. He is also dealing with separate corruption and money laundering charges, which he argues are politically motivated.

    Prosecutors allege that Muhyiddin questioned why the former king did not summon him to be sworn in as prime minister following the 2022 general election, which produced a hung parliament. Despite his claims of having ample support from lawmakers, it was Al-Sultan Abdullah, who concluded his five-year reign in January, who ultimately appointed Anwar Ibrahim as prime minister. Anwar secured the necessary backing from rival factions to forge a unity government. Muhyiddin’s remarks, made during a by-election campaign in Kelantan, are viewed by prosecutors as a challenge to the former king’s credibility. Although Al-Sultan Abdullah has not publicly commented, his son has criticized Muhyiddin’s remarks as dangerous and undermining the monarchy. 

    Muhyiddin expressed frustration at not being invited to the palace for his swearing-in, despite claiming support from 115 of the 222 parliamentarians. In the 2022 election, Muhyiddin’s Perikatan Nasional (PN) coalition, which includes the Malaysian United Indigenous Party and the Pan-Malaysian Islamic Party, won 74 seats, while Anwar Ibrahim’s Pakatan Harapan bloc secured 82 seats. The third-place alliance, Barisan Nasional (BN), chose to support Pakatan Harapan and received cabinet posts in the new government. Muhyiddin believes that Sultan Abdullah’s decision to appoint Anwar Ibrahim strengthened Anwar’s position in negotiations with other parties, resulting in support that excluded his coalition from power. Last week, Muhyiddin provided the police with evidence to support his part, asserting that his loyalty to the constitutional monarchy should not be questioned. Nevertheless, Malaysia’s police chief, Razarudin Husain, has confirmed that Muhyiddin will be charged under Section 4(1) of the Sedition Act for allegedly acting with seditious intent.

    Under Malaysia’s unique monarchy, nine sultans alternate on the royal throne every five years, a role traditionally seen as ceremonial. However, the constitutional monarchy is increasingly worried that rising criticism and rising political Islam could jeopardize their position. Analysts suggest that Muhyiddin’s alleged criticism of the king’s choice of prime minister may have been a key factor in the recent by-election, damaging Perikatan Nasional’s (PN) image as a defender of ethnic Malay supremacy and Islam, where respect for the king is crucial. PN, the incumbent, lost the seat to Barisan Nasional, a key ally in Prime Minister Anwar Ibrahim’s administration. Last Monday, Pahang Crown Prince Tengku Hassanal Ibrahim Alam Shah accused Muhyiddin of implying that his father had unfairly appointed Anwar as prime minister and of inciting distrust in the Malay royal institution. The tense political climate in Thailand might also affect sentiments in Malaysia, leading authorities to likely take stringent measures to safeguard the constitutional monarchy.

  • What Does the Influx of Western Investments in Malaysia Mean?

    What Does the Influx of Western Investments in Malaysia Mean?

    In Asian politics, two major alliances are emerging: one led by the United States, with Japan, South Korea, Taiwan, Australia, and Singapore, and the other led by China, including Russia, North Korea, and Iran. However, there are still players in the region that have not joined either side but whose moves can shift the power balance. These countries skillfully open up to both parties, using the rivalry as an opportunity. Malaysia can be counted among these.

    Malaysia is a country that always keeps close ties with the US; it has strong military and economic relationships with the US and is a place where many Western companies Asian businesses operate. However, unlike other United States allies in the region, Malaysia does not distance itself from China, economically or politically. Malaysia maintains a warm relationship with China and is part of the Belt and Road Initiative. Even though Malaysia receives significant investments from the United States, China is now Malaysia’s biggest trade partner. There are many doubters who believe that Malaysia’s Islamic identity and increasing authoritarian nature in administration could lead it to side with China or remain neutral. Being strategically located, Malaysia’s neutrality would be a setback for the USA.

    However, the influx of investments, including in the semiconductor industry, is flowing to Malaysia from the West. These investments are not only meant for economic growth but also serve as a political strategy. This substantial amount of investment could help Malaysia join the list of developed countries and ultimately become part of the Asian NATO.

    The semiconductor industry is increasingly important in the digital era, and the world seeks alternatives beyond Taiwan. Malaysia understands this opportunity and is setting up infrastructure to capitalize on it. However, it’s not just about business; investing in such an important sector also requires considering the country’s political and economic policies. Investments will flow into the country only if it is politically stable and aligns with Western interests. It is important to note that Malaysia has successfully attracted Western companies in this sector. Prominent companies like Intel and Infineon have invested $7 billion, NVIDIA is preparing to invest $4.3 billion in an AI data center, and Texas Instruments has allocated $3.1 billion for two new semiconductor assembly facilities. Other significant investors include Bosch, AT&S, Ericsson, and Simtech. This aligns perfectly with Malaysia’s aim to become a high-tech economy.

    It needs to be considered that the U.S. is giving a green light to investments because they want to keep Malaysia aligned with them. Malaysia holds an important geopolitical position, connecting the South China Sea to the world. Supporting Malaysia and facilitating its semiconductor ambitions is part of the United States’ strategy. Although Malaysia is already involved in the semiconductor industry with local firms like Tera and Upstar, which handle high-end technologies such as wafer fabrication and IC designs, Malaysia is expecting $107 billion in investments to position itself as the next Taiwan. The “Kuala Lumpur 2030” initiative aims to establish the country as a global hub for semiconductor manufacturing. All this is possible with foreign investments, and the influx of money from the West will help achieve this dream. Through these investments, Malaysia will become increasingly dependent on the United States, paving the way for its inclusion in the emerging Asian NATO. The investment pattern, which includes not only Western countries but also South Korea and Japan, highlights the broad scope of collaboration among these nations and supports the United States Asian NATO initiative.

  • What’s behind Malaysia’s Orangutan Diplomacy?

    What’s behind Malaysia’s Orangutan Diplomacy?

    The tradition of exchanging animals as part of friendship has been observed by many countries in the past. However, China transformed this practice into a continuous diplomatic strategy. Panda diplomacy, the act of sending adorable, giant pandas from China to other countries for diplomacy and wildlife conservation purposes, serves as a strategy to demonstrate their appreciation for friendships and their dedication to nature preservation. Panda diplomacy catches the news headlines because of the exceptional rarity of the species, fascination that pandas evoke. Now, Malaysia, a country heavily criticized for its deforestation for large-scale palm cultivation, is also adopting China’s strategy to demonstrate its commitment to nature. Although Malaysia doesn’t have pandas, they possess another rare species, the orangutan.

    Malaysia faces pressure from the EU, one of its largest trade partners, which last year approved an import ban on commodities linked to deforestation. The action will severely impact the Malaysian economy, which relies on palm oil exportation. Malaysia criticized the law as discriminatory and began working with states that are consumers of their palm oil to reduce obstacles and continue trade. Thus, Malaysia adopted a strategy widely known as orangutan diplomacy, as it plans to give orangutans as gifts to countries that buy its palm oil to ease concerns over the environmental impact of the commodity. This commodity is prevalent in more than half of supermarkets from food to cosmetics. Over the years, media and environmental workers have accused the global demand for palm oil of fueling deforestation in Malaysia and neighboring Indonesia. According to Malaysia’s Plantations and Commodities Minister, Johari Abdul Ghani, the act of gifting the rare species orangutans to trading partners such as the EU, China, and India would demonstrate Malaysia’s commitment to biodiversity conservation to the global community. He emphasized that the country could not take a defensive approach to the issue of palm oil. Instead, they need to show the world that Malaysia is a sustainable oil palm producer committed to protecting forests and environmental sustainability.

    The Bornean orangutan, which is endemic to the island of Borneo, is listed as critically endangered by the International Union for Conservation of Nature, akin to Giant Pandas in China. Besides Malaysia’s part of the Borneo island, orangutans are visible in the Indonesian part of Borneo and Sumatra. The numbers of orangutans are noted to be decreasing while the governments of Malaysia and Indonesia make efforts to conserve them. As the threat orangutans face from the shrinking of their natural habitats, rainforests, wildlife organizations have taken different stances on Orangutan diplomacy. Many have called on the Malaysian government to consider other ways to signal its commitment to protecting the species. On the other hand, many welcomed the government’s commitment to supporting coexistence with Malaysian wildlife, believing it will be a success like the panda diplomacy model, which has successfully promoted the conservation of species. Panda diplomacy led the species to be a talking point in western nations, and funds were raised for saving pandas from extinction. The Chinese government started to work more for their ambassador, and western nations also looked to support the preservation of Giant Pandas. Many wildlife conservators believe that through orangutan diplomacy, the problems facing orangutans will come into the spotlight, and the Malaysian government will work more for orangutan conservation.

    Palm oil holds significant importance in the Malaysian economy, serving as the cheap and widely available cooking oil in India and Pakistan, and used in food and cosmetics across Europe and the Americas, and even as biofuel in some countries, making it an indispensable commodity. Malaysia’s palm oil cultivation extends over roughly 5,000,000 hectares (19,000 square miles) of land, which was once forested. In light of concerns regarding deforestation, the Malaysian government pledged to curb the expansion of palm oil plantations by ensuring that at least half of the nation’s land remains covered by forests. Nonetheless, this effort faces significant challenges, particularly with rising demand leading to the expansion of plantations in Indonesia, and subsequent deforestation in Indonesia. The rainforests of both these countries are crucial for the world, and their loss would considerably impact global climate patterns. Therefore, reducing the usage of Palm oil is the strategy evolved to reduce the reliance on Palm oil, with the European Union leading this effort, which will likely extend to the USA and many other countries. 

    However, it’s clear any regulation  will significantly impact the Malaysian economy. In this context, Malaysia, seeking to continue in the European market and others, is demonstrating its dedication to nature and wildlife conservation through Orangutan diplomacy. By showcasing their commitment to nature, they expect to retain the market with them. Therefore, the Malaysian government’s Orangutan diplomacy will contribute to preserving the Malaysian economy and wildlife simultaneously.

  • Rise of Political Islam in Malaysia and Indonesia: An Analysis

    Rise of Political Islam in Malaysia and Indonesia: An Analysis

    Malaysia and Indonesia, both predominantly Muslim nations with secular governance, have charted unique paths in history, differing from many other Islamic countries. Their divergence traces back to colonial eras, with British and Dutch rule shaping them differently from Ottoman-controlled territories. Even after achieving independence, while they instituted specific Islamic frameworks – Indonesia even embracing Islamic Sharia in certain areas – they generally maintained a more liberal outlook compared to Arab nations. However, in recent years, there has been a noticeable rise in the influence of Islamic parties in both countries, signaling a shift from the waning of anti-colonial nationalist movements. This trend emerged prominently in Indonesia from the early 2000s and has more recently gained traction in Malaysia. Although these parties may not hold unilateral authority, they wield significant sway over the public.

    The intertwining of religion and politics is becoming more pronounced in the region. Islamist politics is gaining significant traction in Malaysia, with PAS’s influence transcending its traditional support base. Especially in rural Malay areas, PAS has emerged as the favored choice for many Muslims. Strengthening its hold in the northern states and the east coast, PAS is also gaining ground in other parts of Peninsular Malaysia. This shift towards Islamist parties like PAS can be attributed, in part, to internal turmoil within UMNO, Malaysia’s oldest political party, including scandals such as the 1MDB controversy involving former Prime Minister Najib Razak. For the Malay Bumiputera community, race and religion stand as core values that have long guided PAS since its inception. There is a growing sense of concern that Malay voters are increasingly leaning towards conservatism, embracing PAS’s agenda of Islamization and advocacy for Shariah laws.

    After Malaysia’s 2022 General Election, PAS emerged as arguably the most potent individual party at the federal level. It now commands 43 out of 222 seats in parliament, surpassing the influence of Prime Minister Anwar Ibrahim’s Parti Keadilan Rakyat (PKR), the multiracial-centric Democratic Action Party (DAP), and even UMNO. Historically, UMNO, a Malay nationalist party, held sway over Malaysian politics from 1957 to 2018. On the federal stage, PAS spearheads the opposition coalition PN alongside the Malay nationalist party Bersatu. In the six state elections of 2023, PAS achieved significant victories, securing 105 out of 127 contested seats. It orchestrated a clean sweep of all 32 state seats in Terengganu under the PN banner, clinching 27, while the remaining five went to Bersatu. Presently, PAS governs four states—Terengganu, Kelantan, Kedah, and Perlis – in the north, known as the Malay heartland.

    Fueled by its recent political successes, the conservative party is setting its sights on forming the government in the upcoming General Election. Divisive Malaysian politics have exacerbated societal fractures. In the Malaysian context, the majority comprises the Malay Bumiputera, who are predominantly Muslim. This reality underscores PAS’s unwavering stance that leaders in Malaysian politics must be Malay-Muslims, as they represent the dominant demographic in the country. PAS remains resolute in this position.

    In Indonesia, a nation more diverse than Malaysia, the mission of Islamic parties focuses heavily on fostering Islamic identity within the state. The National Awakening Party and the Progressive National Mandate Party are prominent Islamic parties in Indonesia, advocating for political Islam. And there are many small parties, They have a limited regional presence, particularly in Aceh, where Sharia law is implemented. These parties have achieved varying levels of success in terms of seats won and membership.

    The prominent party, The National Awakening Party (PKB) was established in 1999 by the traditionalist Muslim community in Indonesia, with significant overlap with the membership of Nahdlatul Ulama. Described as a nationalist Muslim party, PKB promotes inclusive and nationalist principles while upholding the Pancasila doctrine. In the legislative assembly, the party holds 68 out of 580 seats, with a vote percentage of 10%.

    Indonesia boasts larger Islamic territories and population, dissenting voices foresee an impending demand for Sharia law in additional regions. They perceive the recent electoral defeat of figures like Anies and Muhaimin Isakander in the presidential election as part of the ongoing Jokowi wave. These proponents argue that the current 10% representation could burgeon in the future, leading to the proliferation of Islamic politics across more regions.

    In the region, Muslims are devout yet also seek prosperity. Political Islam has often relied on instilling fear, anxiety, and the perception of Islam being threatened. While fear may resonate with some of the younger generation, hope tends to be more appealing. Malaysia and Indonesia, with their unique identities among Islamic nations, have pursued more modern and secular political approaches. In contrast, Islamic Arab countries like Saudi Arabia and the UAE are gradually relaxing strict Islamic rules. Meanwhile, Islamic factions are gaining influence in the democracies of Malaysia and Indonesia. It’s clear that if these factions were to govern independently, it would likely result in a significant loss or alteration of the national identity of these states.

  • Behind the Pardon: Najib’s Sentence Reduced Though Gilt Unchanged

    Behind the Pardon: Najib’s Sentence Reduced Though Gilt Unchanged

    The Federal Territories Pardons Board has formally declared a reduction in the prison sentence for the former Prime Minister, Najib Razak. Following his conviction for embezzling RM42 million from a defunct 1MDB unit, Najib will now serve a shortened sentence. The decision of the Pardons Board is particularly noteworthy, given the pronounced corruption in the case. 

    Najib, a figure of prominence, a former prime minister, and the son of the late Prime Minister Abdul Razak Hussein, held significant roles. He served as the president of the United Malays National Organization (UMNO) from November 2008 to May 2018. Additionally, he assumed leadership as the head of the Barisan Nasional (BN) coalition, guiding Malaysia for almost six decades with a parliamentary majority until the defeat in the 2018 general election.

    Najib faces multiple criminal charges, having been on trial since 2020. Simultaneously dealing with three other ongoing criminal cases, he is currently facing trial for 25 counts related to abuse of power and money laundering. These charges involve RM2.28 billion from 1MDB funds deposited into his AmBank accounts between 2011 and 2014. Additionally, he is accused of three charges of money laundering, amounting to RM27 million, through three AmPrivate banking accounts. Collaborating with Irwan Siregar Abdullah, Najib faces six charges linked to the misappropriation of RM6.6 billion in public funds, associated with payments to IPIC, an Abu Dhabi state-owned entity. Commencing his prison sentence in August 2022, the latest resolution indicates that Najib is expected to be released from custody by 2028.

    DAP, the predominant party in the Dewan Rakyat, has urged the public to remain composed in the wake of the Pardons Board’s decision to reduce the sentence of former Prime Minister Datuk Seri Najib Razak. Anthony Loke, the secretary-general of DAP, emphasized that the Pardons Board’s ruling is definitive and not subject to challenge in any court. He clarified that while the decision doesn’t absolve Najib of his conviction, it is a final judgment.

    Acknowledging the discontent among some Pakatan Harapan supporters, Loke affirmed that the Cabinet played no role in the decision, and the Pardons Board’s autonomy should be respected. He added that this development would not impact DAP’s relationship with Umno-Barisan Nasional in the coalition government, although he expressed uncertainty about its effects on the coalition’s prospects in the upcoming general election.

    Loke clarified that existing laws afford every individual, including Najib, the right to seek a pardon for their crimes, specifying that in this instance, Najib was not pardoned. Despite the sentence reduction, Loke emphasized that Najib remains guilty of the charges, and the rationale behind the decision rests solely with the Pardons Board.

    Former Umno Youth chief Khairy Jamaluddin acknowledged that the board is not obligated to disclose its decision-making process but asserted that doing so would be in the public interest. Given the high-profile nature of the case involving a former prime minister, Khairy emphasized the importance of transparency and suggested that a representative of the board should explain the grounds for the sentence reduction to address the serious concerns of the Malaysian public.

    In Malaysia, each state possesses its own pardons board, appointed by the respective sultan or governor, with the sole exception of the federal territories. In the federal territories, the members are appointed by the King. The Federal Territories Pardons Board, overseen by the King, comprises five members, including the attorney-general, the federal territories minister (currently Dr. Zaliha Mustafa), and up to three others appointed by the King. Pardons Board’s ruling is definitive and not subject to challenge in any court. It is also deemed immoral to disagree with the board’s decision. 

    The pardons board is called upon to elucidate the reasons behind the reduction in Najib’s prison sentence, as the decision has left everyone perplexed. While the decision may be perplexing, it is essential to acknowledge the context within the constitutional monarchy framework. Malaysia, as a nation, has consistently adopted a robust stance against corruption. Consequently, this decision is expected to impact the country’s reputation, raising concerns about its commitment to anti-corruption efforts.

  • Sultan Ibrahim’s Enthronement: A New Chapter for Malaysia’s Monarchy

    Sultan Ibrahim’s Enthronement: A New Chapter for Malaysia’s Monarchy

    Malaysia welcomed a new Sultan in the person of His Majesty Sultan Ibrahim Iskandar of Johor. With a distinctive blend of business acumen, forthrightness, and cultural heritage, Sultan Ibrahim assumed the esteemed role of the new King of Malaysia in a traditional ceremony held at Istana Negara. Simultaneously, Sultan Nazrin Shah of Perak took the oath of office as the Deputy King. Both rulers earned their positions through election by the Malay Rulers during the 263rd (Special) Meeting of the Conference of Rulers in the previous October, embarking on a five-year term.

    The constitutional monarchy system in Malaysia, embraced by the country’s monarchies, is deeply rooted in a political framework that combines elements of the Westminster parliamentary system with features of a federation.

    While Malaysia is among the 43 nations practicing a constitutional monarchy, its unique rotational system sets it apart globally. This system involves the selection of a king from among the nine Malay rulers. The momentous occasion unfolded in the Balairung Seri (Throne Room), where 65-year-old Sultan Ibrahim and 67-year-old Sultan Nazrin Shah pledged their oaths and formally assumed their responsibilities. This took place in the presence of fellow Malay Rulers, Regents, and dignitaries from various sectors.

    Nine states in Malaysia are led by traditional Malay rulers, collectively known as the Malay states. The eligibility for these thrones is restricted by state constitutions to male Malay Muslims of royal lineage. Among these states, seven follow hereditary monarchies based on agnatic primogeniture: Kedah, Kelantan, Johor, Perlis, Pahang, Selangor, and Terengganu. In Perak, the throne rotation involves three branches of the royal family, loosely following agnatic seniority. Negeri Sembilan stands as an elective monarchy, where the ruler is chosen from male members of the royal family by hereditary chiefs. All rulers, with the exception of those in Perlis and Negeri Sembilan, hold the title of Sultan. The ruler of Perlis is addressed as the Raja, while the ruler of Negeri Sembilan is known as the Yang di-Pertuan Besar.

    Every five years, or in the event of a vacancy, the rulers convene in the Conference of Rulers (Malay: Majlis Raja-Raja) to collectively elect the Yang di-Pertuan Agong. This federal constitutional monarch assumes the role of the head of state for Malaysia. Since the Yang di-Pertuan Agong is elected from among the rulers, Malaysia, as a whole, is considered an elective monarchy.

    Each of the nine rulers in Malaysia serves as both the head of state for their respective state and the leader of the Islamic faith within that state. Similar to constitutional monarchs globally, these rulers do not directly engage in the administration of their states. Instead, conventionally, they are obliged to act upon the advice of their state’s head of government, known as the Menteri Besar (plural: Menteri-menteri Besar). While the ruler has discretionary powers in appointing the Menteri Besar, who must command a majority in the state legislative assembly, and can refuse a dissolution of the state assembly upon the Menteri Besar’s request, the monarch’s powers have been progressively restricted over time, though the precise limits remain a subject of debate.

    The Yang di-Pertuan Agong holds the position of the federal head of state in Malaysia and fulfils symbolic roles, including serving as the Commander-in-Chief of the Malaysian Armed Forces and engaging in diplomatic functions like hosting foreign diplomats and representing Malaysia on state visits. Additionally, the Yang di-Pertuan Agong serves as the head of Islam in his own state, the four states without rulers (Penang, Malacca, Sabah, and Sarawak), and the Federal Territories.

    As part of the responsibilities, the Yang di-Pertuan Agong is required to delegate all state powers, excluding the role of the head of Islam, to a regent. Similar to other rulers, the Yang di-Pertuan Agong follows the advice of the Prime Minister, exercising discretionary powers in the appointment of the Prime Minister. The appointed Prime Minister must command a majority in the Dewan Rakyat, the lower house of Parliament.

    Furthermore, the Yang di-Pertuan Agong is involved in the appointment of the Yang di-Pertua Negeri, who serves as ceremonial governors for the four states without rulers. This appointment is made based on the advice of the Prime Minister and the Chief Ministers of the respective states.

    While the sultan may not have a direct role in the country’s governance, they wield significant authority that can shape the political landscape. One crucial authority is the monarch’s power to grant pardons, exemplified in 2018 when Sultan Muhammad V pardoned Anwar Ibrahim, who had previously served a prison term for sodomy-related charges and now holds the position of Malaysia’s prime minister. Amid the escalating feud between Mahathir and Anwar, and mounting cases against Mahathir and allies, the new Sultan Ibrahim assumes importance as a key authority.

    Royal intervention has played a pivotal role in naming prime ministers three times following government collapses and post-election hung parliaments in recent years. Accusations of movements to topple the government highlight the importance of royal intervention in making crucial decisions. In a December interview with Singapore’s The Straits Times, the 65-year-old Sultan expressed his reluctance to be a “puppet king,” emphasizing his alignment with the people rather than being confined to parliamentary dynamics. He asserted his willingness to support the government while reserving the right to voice concerns if he perceives any improper actions.

    Maintaining a close association with Anwar, Sultan Ibrahim has been outspoken on Malaysian political affairs and corruption issues. The Sultan’s role is poised to be significant in shaping the country’s trajectory in the coming years.

  • Singapore Shines: A Closer Look at its Global Ranking in the Corruption Perception Index

    Singapore Shines: A Closer Look at its Global Ranking in the Corruption Perception Index

    Corruption functions like widespread cancer. The most recent Corruption Perceptions Index (CPI) for 2023, unveiled by Transparency International, unveils a lack of substantial progress in combating public sector corruption worldwide. The global CPI average remains static at 43 for the twelfth consecutive year, with more than two-thirds of nations scoring below 50, underscoring widespread corruption challenges. Denmark maintains its top global position with 90 points, trailing Finland (87), New Zealand (85), Norway (84), and Singapore at 83. Singapore secures the fifth spot in the world, exhibiting resilience despite a decrease from 87 in 2013 to 83. The city-state outshines its neighbors.

    Singapore continues to lead in ASEAN, with Malaysia ascending to the second position, marking a positive turn by securing the 57th spot out of 108 nations in this year’s CPI. Transparency International’s data reveals a four-rank improvement for Malaysia, scoring 50 out of 100 points in 2023, a rebound from the previous year’s 47 and a reversal of the declining trend since 2019 when it scored 53. Vietnam claims the third spot (41), trailed by Thailand (35), and Indonesia and the Philippines tied at 34. Regrettably, all other ASEAN members, excluding Malaysia and Singapore, witnessed a decline in the 2024 CPI, with Laos (28), Cambodia (22), and Myanmar just scored 20.

    According to Singapore’s Corrupt Practices Investigation Bureau (CPIB), the country effectively combats corruption, as is demonstrated by the consistently low number of public sector corruption cases. The CPIB highlights the favorable outcomes of Public Perception Surveys, which continuously demonstrate a high level of public trust in the country’s efforts to fight corruption. The CPIB also lists additional honors associated with Singapore’s anti-corruption initiatives. In the World Justice Project Rule of Law Index 2023, the nation ranked third for the lack of corruption, making it the top Asian country out of 142. Additionally, Singapore excelled in the Political and Economic Risk Consultancy’s (PERC) 2023 Report on Corruption in Asia, taking first place out of 16 economies. 

    The CPIB emphasizes its dedication to working with the community to fight corruption and appreciates Singapore’s well-earned reputation as one of the least corrupt countries in the world. The bureau reaffirms that it will treat all reports and information revealing possible corruption offences seriously, regardless of whether they come from reputable or unreliable sources. In order to maintain a corruption-free atmosphere in the country, the declaration ends with a pledge to maintain incorruptibility as a fundamental component of the Singaporean identity. 

    Muhammad Mohan, Chairman of Transparency International Malaysia, attributes the improved ranking of Malaysia this year to the dedicated efforts of the federal government in pursuing legal action against prominent individuals and implementing measures to enhance transparency and accountability in the public sector.

    Mohan highlights the government’s commitment to prosecute high-profile individuals through the Malaysian Anti-Corruption Commission and the Attorney General’s Chambers as a significant factor in Malaysia’s rise. The positive public perception resulting from the prosecution of two former prime ministers for corruption, coupled with the judiciary’s independence demonstrated in cases like the SRC International trial and the conviction of a former prime minister, are likely pivotal elements contributing to Malaysia’s recovery.

    In contrast to the previous year when Malaysia held the 47th position in the Corruption Perceptions Index (CPI), the low score was attributed to perceived lack of political determination to combat institutional corruption, implementation of substantial Covid-19 pandemic stimulus packages without parliamentary debate and scrutiny, appointment of unqualified politicians to lead government-linked companies, and a hesitancy to decisively address issues such as cost overruns in projects like the Littoral Combat Ship.

    Expressing concern about Malaysia’s lack of a clear plan, Mohan notes that leaders often discuss reforms without adequate follow-through. To secure a position in the top 25, he emphasizes the necessity for Malaysia to reach the 68-point range, assuming other countries do not gain additional points.

    According to Transparency International’s 2023 Corruption Perceptions Index, Vietnam has seen a decrease, which is consistent with the country’s recent stepped-up anti-graft drive led by the Communist Party. The previous year’s massive anti-corruption campaign, which resulted in the detention and arrest of deputy ministers, the investigation of hundreds of officials, and the resignation of then-President Nguyen Xuan Phuc, is blamed for the score decline. 

    Vietnam is still ranked higher than many of its regional rivals, even if its ranking has declined after rising over the previous two years. In contrast, corruption is said to be greater in Indonesia, the Philippines, and Thailand. The Rule of Law Index highlights the link between corruption and the availability of justice, indicating a global deterioration in the efficacy of legal systems. There is a definite correlation between corruption and justice because the nations with the lowest scores in this index also tend to perform poorly in the Corruption Perceptions Index (CPI). 

    A growing perception of impunity for corruption is a result of actions taken by both democratic and authoritarian authorities that undercut justice. In certain situations, these actions may even encourage corruption by eliminating the repercussions for wrongdoers. This effect may be seen in a number of nations, from Venezuela (13) to Myanmar (20). In any case, the Singapore government is shining thanks to the CPI Ranking, which is an important statistic for Singapore considering the gravity of the scandal surrounding Iswaran’s case. 

  • Malaysia’s Gig Economy Ambitions: Government to take more Initiatives

    Malaysia’s Gig Economy Ambitions: Government to take more Initiatives

    With Malaysia poised as a significant player in the gig economy, the Malaysian government is proactively pursuing strategies to capitalize on its benefits and address its challenges. Minister of Communications Fahmi Fadzil has given his endorsement to the Umno Supreme Council’s proposal, advocating for the swift establishment of the Malaysia Gig Economy Commission. He plans to present this proposal during the upcoming Cabinet meeting scheduled for next week.

    During the Jiwa Madani Programme in Kampung Sungai Putat, Ayer Keroh, Fahmi Fadzil, in a statement to reporters, emphasized the importance of prioritizing the welfare of gig workers. He expressed that, from his perspective, ensuring the well-being of gig workers is of paramount importance. Fahmi Fadzil has consistently made efforts to support ride-hailing riders to the best of his ability, highlighting his unwavering commitment to this cause.

    Umno Secretary-General Datuk Asyraf Wajdi Dusuki confirmed that the Umno Supreme Council unanimously agreed to urge the government to promptly establish the Malaysia Gig Economy Commission. This initiative is designed to ensure the welfare and rights of gig economy workers in Malaysia are effectively safeguarded.

    Malaysia’s gig economy expanded significantly in 2023, bucking predictions that post-pandemic household and corporate activity would decline. In their September 2023 report, “Working Without Borders – The Promise and Peril of Online Gig Work,” the World Bank recognized Malaysia as one of the countries that has effectively used gig labor to increase job accessibility. This expansion is ascribed to heightened cognizance about the potential of digitalization and diverse inducements that facilitate the shift. The market size was RM1.33 billion in the third quarter of 2023. According to Mahadhir Aziz, Chief Executive Officer of Malaysia Digital Economy Corporation (MDEC), the market size in 3Q 2023 had already reached 80% of the overall market size recorded for the entire year 2022, which was RM1.63 billion. 

    Aziz emphasized that the market’s continued demand, especially from the household and business segments, is indicated by this growth, with a particular focus on micro, small, and medium-sized enterprises (MSMEs). He emphasized how different gig economy platform services and solutions are becoming more well known and how they help organizations along their digital transformation journey. The MDEC’s internal examination of the quarterly sharing economy platform report, which focuses exclusively on online labor platforms and excludes other types like money-sharing and goods-sharing platforms, is the basis for determining the market size. The gig economy, freelancing economy, and similar forms are collectively referred to as the “sharing economy”. 

    The lack of social safeguards, equitable pay, and opportunities for upskilling and reskilling gig workers are major concerns, but the true issue facing Malaysia is coming up with a precise definition of the gig economy. Although this would be a fairly promising area for policy for Malaysia, it would require lawmakers and policymakers to have a much better understanding of the nature of the gig economy as well as the realities of the commercial policies, algorithms, and business models of various platforms. 

    Mahadhir, however, stated that other difficulties faced by gig workers in Malaysia this year include a lack of social security and benefits; uncertainty and unpredictability surrounding income and means of subsistence; feelings of loneliness and stress; and an unclear career path. According to Mahadhir, independent contractors frequently do not have the same protections under labor laws and regulations as full-time employees, including minimum wage, employees provident fund (EPF), overtime, medical leave, extended health insurance, and other benefits. Thus, the government has a lot of issues to deal with. 

    For informal workers, the gig economy’s growth is a good thing since it gives them chances to move into more secure and reliable employment. Having access to employment prospects and other perks is a big step forward from the uncertainty these individuals faced before. The government will fulfill the strong demand for safety, rules, and control in this field when it moves to create codes specifically for the gig economy. 

  • Strategic Economic Alliances: Hong Kong and Malaysia Forge Deeper Connections Despite Ongoing US-China Dynamics

    Strategic Economic Alliances: Hong Kong and Malaysia Forge Deeper Connections Despite Ongoing US-China Dynamics

    Amid the challenges of the United States trade war, Hong Kong, the special administrative region of China, is grappling with a backlash. The protests for democracy, viewed as a catalyst for the deterioration of Hong Kong’s standing by the United States, have led to a significant retraction of American businesses from the region. However, China, emerging as a new superpower, is extending support to Hong Kong, ensuring the continuity of trade through the territory. In pursuit of this objective, the new government in Hong Kong is actively fostering stronger ties with Southeast Asia, especially Malaysia.

    In a recent development, at a celebration commemorating the tenth anniversary of the Malaysian Chamber of Commerce, the newly appointed Chief Executive of Hong Kong, a special administrative territory of China, committed to strengthening collaboration between Malaysia and Hong Kong to support free-trade agreements among ASEAN member nations. Malaysia, a crucial member of the Association of Southeast Asian Nations (ASEAN) and Hong Kong’s second-largest economic partner, plays a vital role in this initiative. 

    Acknowledging the strategic significance of ASEAN in its comprehensive plans, Hong Kong is actively expanding its corporate engagements. Chief Executive John Lee Ka-chiu underscored that this pivotal collaboration goes beyond mere trade statistics. He highlighted Hong Kong’s contributions to the Economic and Technical Cooperation Work Programme under the free-trade agreement between ASEAN and Hong Kong, expressing optimism about the future. The event attracted a diverse audience, including ambassadors and representatives from over 30 international trade associations.

    The Malaysian ambassador to China, Norman Bin Muhamad, who was present at the reception, expressed his hope for an intensified relationship between Malaysia and Hong Kong in the future. He emphasized that the success of this ongoing collaboration is a result of sustained and diligent efforts by all stakeholders over the years. He added, “It is our responsibility to ensure the relationship will endure and grow.”

    Chief Executive John Lee Ka-chiu conducted a week-long tour of ASEAN nations, including Singapore, Indonesia, and Malaysia, last year. During this tour, he oversaw the signing of 33 agreements covering various areas such as trade and commerce, investment and finance, innovation and technology, logistics, academic research, and cultural exchanges. Among these agreements were 11 deals with Malaysia, including a significant railway and property agreement with Hong Kong’s MTR Corporation for a rapid transit project connecting the city of Johor Bahru and Singapore, with an estimated cost of about 10 billion ringgit (US$2.2 billion).

    Anthony Loke, Malaysia’s transport minister, expressed admiration for the property development funding model employed by Hong Kong’s MTR Corporation during the 2023 visit by Chief Executive John Lee’s delegation. Loke indicated openness to expanded collaboration with MTR Corp in various locations across Malaysia. Additionally, Malaysia, Indonesia, and Singapore have endorsed Hong Kong’s membership in the Regional Comprehensive Economic Partnership (RCEP), the world’s largest free-trade bloc, comprising 15 Asia-Pacific countries, including the ASEAN group. During a meeting with consuls general of ASEAN countries, Lee reaffirmed his commitment to fostering closer ties between Hong Kong and the group.

    The prevailing trend in Southeast Asia reflects a growing affinity toward China. The surge of Chinese investments in infrastructure development and technology serves as a clear indicator of a significant shift in the region, where China is gradually assuming a more central role. Notably, Hong Kong is no longer detached from China, and the actions of the Hong Kong premier should be interpreted in conjunction with China’s strategic movements in the region.