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Thinking Allowed Aliran Monthly 2003:10 Please support our work by buying a copy of our print publication, Aliran Monthly, from your nearest news-stand. Better still take out a subscription now. We also welcome donations.
I was bemused by a columnist in The Star whose musings clearly belied a glibness about how smooth the transition of leadership from Mahathir to Abdullah was. To be sure, Malaysia�s record of leadership succession has been quite remarkable for a �Third World� country; it has had four transitions of leadership. Now, into the middle of its fourth decade of independence, chances are that the affable Pak Lah will duly ensconce himself as premier, albeit rather fortuitously after three deputy premiers had fallen by the wayside. Not quite so smooth, really. As is our wont, Malaysians have subjected themselves to bouts of rumour-mongering and extravagant speculation long before the event of Pak Lah�s succession. One interesting early rumour was that some 20-odd divisions of UMNO were ready to call an EGM of the party to ask Che Det to remain in the job. Nothing of that sort happened of course and in the event we know that the Great Pumpkin Spirit did not hesitate to take the good doctor away on Halloween night� to Spain, I mean! Then there was much talk that because Pak Lah had not (and still has not) named his deputy, political jockeying and factional infighting for the Number Two spot in the party would make for a chaotic transition. Again, nothing of that sort happened. All contenders and factions have remained remarkably supportive of the newly anointed PM and show no signs of being embroiled in internal struggles despite his reluctance to name a deputy. Now, of course much speculation is rife as to whom Pak Lah is likely to anoint to be Number Two and much speculation too about when this will happen. Defence minister Najib Abdul Razak isn�t coy about his �frontrunner� position (ever since Mahathir suggested his name) and has made subtle noises to the press that he is indeed an eligible candidate. But Pak Lah so far has refused to fall for the Najib bait. To compound the issue, rampant rumours suggest that the two wives don�t get along. Mahahtir owes a huge due to Tun Abdul Razak, who resurrected him from the ashes of political oblivion, but Pak Lah has no such utang budi. To my mind, Najib�s future remains somewhat iffy. Or would Pak Lah prefer a woman deputy? If so, this would make him a most progressive PM. Hence, Rafidah Aziz, the senior woman minister, would seem most suitably poised for the job, baubles, bangles and all. Nah, say the pundits, she won�t past muster with the UMNO rank and file. UMNO is so sexist that you�ll never see the day when a woman will be an education minister, a finance minister, deputy PM and God forbid, Numero Uno! So would Pak Lah then choose the most senior man in the pack? That would be Ku Li. With his vast experience, and past accolade of Baba Ekonomi Bumiputera, Razaleigh clearly qualifies except for that conspicuous faux pas and brief dalliance with the opposition during the S46 period. But does anyone still remember that S46 thingy? Seems like it never happened now that the spirit of 46 has all but evaporated and Ku Li seems comfortably reunited with the party. Very comfortable indeed, now that his nemesis has actually left the stage! When you have the stamina and stay the course, surely you�re should be in for some reward. Come to think of it, Pak Lah was himself a �Team B� man for a while under Ku Li. Hmmmm�. Other potential contenders include the other two UMNO Veeps, Muhiyiddin and Mat Taib. But, I think not. The pundits have it that dubious dealings in the past (let�s put it that way) disqualify these two. But could the scenario be something of a rank-and-file uprising to demand a candidate of their choice? This did happened in 1976 when Hussein Onn took the reins of power only to be told he had to choose from among Mahathir, Ghafar or Razaleigh for his deputy, while his own preferred candidate was the luckless Ghazali Shafie. This could happen again if the anointed PM is considered to be too �weak� or does not have a clear heir apparent. Pak Lah � the fourth of Mahathir�s deputies � does indeed have to live down quite hard the image of being a last choice and of lacking charisma, unlike a deputy such as Anwar Ibrahim. Now this brings me to the next subject�the 11th General Election. And this will also answer the question of when the deputy will be chosen. Since Pak Lah faces the problem of being picked by an outgoing PM and never really winning his spurs for the job, he has to establish a legitimacy and authority not just with his party but with the other BN partners as well. What better way than to get his mandate through leading the BN parties to victory in the next general election. Indeed, he has little choice. Imagine appointing a whole new cabinet on the thin legitimacy of a hand-me-down authority of the previous PM. How would he justify removing ministers he dislikes and putting in ones he likes? Pak Lah needs a general election to give him that authority, only then can he truly claim to have made that transition as leader of the country. Musings on the hustings
So, when is the general election? Again, this is the subject of much, much speculation. But Malaysians are truly expert on such predictions. They have honed it down to a fine art. They do it by a process of elimination and most times can get it right. Let�s see if I can do this here by stating the following obvious points:
Indeed parliament has already just adjourned sine die. All that remains is to dissolve parliament before a general election and this can be done by the stroke of a kingly pen, duly guided by his humble servant, the prime minister. But is the BN ready and can its component parties negotiate and allocate the seats within a month? If this is a tall order, then it would seem to me that March is the likely date for the 11th general election. Double timing on double tracking The controversy continues to brew at the time of writing. Abdullah inherits the sticky problem of the award of the RM14.5 billion project of the double tracking railway running from Padang Besar to Johor Baru. This will be Malaysia�s largest infrastructure project to date. The 600-plus kilometre track will form part of a 5,000km trans-Asia link between Singapore and Kunmin. And the contract has been awarded to two Malaysian companies, Malaysian Mining Corp Bhd (MMC) and Gamuda Bhd. All seemingly laudable, except for one thing. The government had already issued Letters of Intent to Indian Railway Construction (Ircon) and China Railway Engineering Corp (CREC) before the contract went to MMC-Gamuda. This was to be a G-to-G deal which was hammered out over three years of intensive negotiations. As primary industries minister, Lim Keng Yaik avers, �I fear China and India might retaliate.� (New Straits Times, Nov. 12). Lim is understandably worried that palm oil exports to both these countries may suffer because of this episode. My concern is more with a possible breach of trust by the previous regime and the udang behind the late awarding of a contract to a company tied to the rising luminary of the bumiputera business world, Syed Mokhtar Al-Bukhary. Why this late decision? What was the basis of the decision? The lower tender sum alone? Was the expertise of the contracting parties considered or what? To anyone with a cursory awareness of business norms, surely the deal smacks of favoritism, dare we say, cronyism. The Indian government is understandably unhappy with the whole distasteful affair. Ircon set up office more than two years ago and brought in its own staff to prepare documents, presentations, soil tests, land surveys and the like. Indian premier Vajpayee had also signed the MOU with his counterpart Mahathir amidst much fanfare in May 2001 in Kuala Lumpur. (NST, Nov. 4). The episode promises to become a diplomatic incident if it is not one already. This is no Ali Baba...
A little information about Syed Mokhtar Al-Bukhary, the new star of Malay business may be pertinent, so our readers can gauge for themselves how this tycoon qualifies for the double tracking job. This 52-year old hails from Kedah and the record shows a meteoric accumulation of a multi-billion ringgit business empire since his foray into the rice dealing business in Johor in 1990.
The tycoon was able to lay his hands on a mega project when his company Seaport Terminal was awarded a 30-year concession to build and operate the Port of Tanjung Pelepas (PTP), which made him a substantial majority shareholder. PTP has cornered the business of the Maersk Sealand and Evergreen lines much to the chagrin of Singapore. Syed Mokhtar proceeded to acquire 19.9% share in Malaysian Mining Corporation via his wholly-owned company, Syarikat Impian Teladan Sdn. Bhd. He also owns SKS Ventures, which was awarded the task of building the site for a 2100MW gas-fired power station at Tanjung Bin, Johor. He has a 32% share in PERNAS through his own company, Syarikat Ratu Jernih and has an interest in Fiamma Holdings Berhad, where a 18.68% share is held by him through his two companies, Syarikat Perdana Padu Sdn. Bhd. and Corak Kukuh Sdn. Bhd. Syed Mokhtar�s latest business �killing� came when Gulf International Investment Group Capital (GIIG), jointly owned by him and Dubai-based Mohamed Ali Alabbar, won a contract to develop a RM7.6 billion aluminium smelter in Bintulu, Sarawak. The smelter will consume up to 50 percent of the power output from the RM9 billion Bakun hydroelectric dam in the east Malaysian state. According to reports quoting Sarawak�s Deputy Chief Minister George Chan, GIIG acquired a 60 percent stake in the Bakun project for RM945.42 million from the Ministry of Finance Inc., which controls the remaining 40 percent. On the positive side, the Albhukary Foundation completed the RM70 million Islamic Arts Museum in Kuala Lumpur at the height of Asian Crisis in 1998. Well, well, now that all the Tajuddin�s and Ramli�s have faded, perhaps this new �darling�, from the state of the ex-premier, with a partner by the curious name of Ali Alabbar may be a sop yet for the ex-prime minister�s unfulfilled dreams of Melayu baru. Super stock SCOMI While on the subject of business personalities, a figure that has made the news through the Second Board listed company SCOMI is one Kamaluddin Abdullah. Nothing spectacular about the person as such, compared to a Syed Mokhtar, except that Kamaluddin is the only son of the present prime minister. What has been spectacular is the manner in which SCOMI shares, in which Kamaluddin has a controlling interest, have over a short period of time seen an 11-fold increase in price. SCOMI was only listed on the Second Board in early May this year but its share has already risen from a lowly RM1.80 to a heavenly high of RM16.80 � that is a gain of about 833 per cent! To be sure, the oil and gas company seems to be expanding and recently acquired the Singapore company Oiltools which is expected to boost its profit by 50%. But in truth, this is only a smallish company on the second board which had little business on its short track record. But do the speculators and punters know a thing or two about this company which I don�t? Could it be that they think �the PM's son's company� will be bestowed favours, concessions, contracts, whatever, well beyond the business norm, in the near future? D.L. Daun Now e-mail us and tell us what you think in fewer than 250 words. Your comments might be published in the Letters section of our print magazine, Aliran Monthly. Alternatively, post your comments to the message board. | |||||||||||||||