Put you money where your Pua-ka mouth is

1MDB Group Executive Editor and President Arul Kanda Kandasamy agreed unconditionally to stand up and face against DAP Strategist and Petaling Jaya MP Tony Puaka in a public debate as is, anywhere, anytime and the latter need not to relinquish his exalted membership as a Piblic Accounts Committee (PAC) member. story:

Channel News Asia story:


1MDB President agrees to have open debate with PAC’s Tony Pua

In a rare media conference on Saturday (Oct 31), Mr Kanda accepted a challenge to debate Opposition MP and the bipartisan PAC member Tony Pua – a staunch critic – on live television.

By Sumisha Naidu
POSTED: 31 Oct 2015 12:02 UPDATED: 31 Oct 2015 13:08
1MDB President and Group Executive Director Arul Kanda. (Photo: Sumisha Naidu)

KUALA LUMPUR: The President and Group Executive Director of controversial state investment firm 1Malaysia Development Berhad (1MDB) held a rare media conference on Saturday (Oct 31), defending the company’s track record and accepting a challenge to debate an Opposition MP on live TV.

Mr Arul Kanda spent more than an hour explaining the company’s road to RM42 billion debt, blaming it on a cashflow mismatch brought on by failed plans for an IPO.

He acknowledged that the criticisms and controversy had been “tough”, and that it even impacted a previous attempt for an IPO, but he said he is confident that ongoing independent investigations into the fund will clear its name.

Mr Kanda also accepted a challenge to debate Opposition MP and the bipartisan Public Accounts Committee (PAC) member Tony Pua – a staunch critic – on live television.

Initially Mr Kanda had said he would only do so if Mr Pua stepped down from the PAC, as the PAC is currently conducting its own investigations into 1MDB.


In a statement later on Saturday, Mr Pua acknowledged Mr Kanda’s acceptance of the challenge, and said that “the biggest winners from the live discussion will be Malaysians out there who have been frustrated, perplexed and perhaps confused by the shenanigans which appear to have taken place in 1MDB.”.

He also thanked Mr Kanda for accepting to do the debate without attaching any conditions, as well as Communications and Multimedia Minister, Datuk Salleh Said Keruak, for offering RTM to host the live talk show.
“I am certain that over the next week, our respective teams will meet and thrash out the date, time and format of the talk show,” said Mr Pua. “I certainly look forward to meeting Arul for the very first time and asking the questions which Malaysians have been dying to ask for the longest time.”

– CNA/av


Arul is very consistent to face his accuser, who at the moment is the playing the role judge and jury as a PAC member.

Initially, Arul summarily accepted Pua’s challenge for a public or live tv debate, provided that Pua step down as PAC member first. This is because as a PAC member, he is privy to very classified and confidential information and the debate is widely known nothing but a political stunt by the DAP leader to demonise 1MDB, in an attempt to have a trickle effect against the erosion of confidence towards Prime Minister Dato’ Sri Mohd. Najib Tun Razak’s leadership and administration.

Many MPs, UMNO/BN and Opposition alike felt that is it inappropriate for Pua to remain as a PAC member and use privileged information to score.

Now that Arul wants to have a to go Pua come what ever it may be, is very much the demonstration of the confidence level and consistency that the 1MDB CEO has to offer and dispel any wrong perception and deceits about the Federal Government strategic investment corporation.

The debate also meant that Arul could have a no-holds-barred go after Pua. Especially in the attempt to demonise 1MDB and Prime Minister Najib, Pua is associated with leaders who obtained stolen information from former Petro Saudi Executive Xavier A. Justo. It is now a game of facts over perception or more precisely, deception.

The “Thirteen Million Plus Ringgit” question is Pua ready to face Arul. Probably it is interesting to note what ever lame excuse he would come up with to wiggle his way out of this, there on.

Arul’s confidence and determination to sort out what ever Pua had been and wanted to be thrown at and against 1MDB, with or without information obtained in PAC, is a point to note and carefully observe on how sincere Pua is with his challenge.

It is the real test against the accuser, with the obvious sinister political agenda.

Published in: on October 31, 2015 at 13:15  Comments (1)  

Courtroom courage

There are two staggering news on parties being sued in court pertaining to the highly controversial Malaysian Government strategic investment corporation 1MDB.

First, it is Prime Minister Dato’ Sri Mohd. Najib Tun Razak against former MCA President and Transport Minister Tun Dr. Ling Liong Sik for the utterance of slanderous statement.

The Star story:

Published: Thursday October 29, 2015 MYT 3:36:00 PM
Updated: Thursday October 29, 2015 MYT 8:25:36 PM

Najib sues Dr Ling for defamation


KUALA LUMPUR: Datuk Seri Najib Tun Razak is suing former Cabinet minister Tun Dr Ling Liong Sik for allegedly implying that he had misused public fund for his personal interests.

Najib said that an online news portal had on Oct 3 published an article saying Dr Ling had made slanderous statements against him while attending a ceremony at Tunku Abdul Rahman University College.

He said Dr Ling, former Transport Minister, had uttered defamatory words in his speech with malicious intention to put him in the position of public scandal, contempt and odium.

He said the words had implied that he had misappropriated government funds belonging to government investment fund, 1MDB, into his personal.account.

He said the words also meant that he had betrayed the trust given by the people by corruptly misusing his position and capacity as the chairman of Advisory Board of a government investment company for his personal interests.

He said the words had implied that he had abused his power as the leader of a political party and leader of the people, he is not a competent to be leader of the Government or the Prime Minister and involved in a scandalaous or financial conspiracy to defraud the people of Malaysia.

He said the words implied that he is not fit to be chairman of Barisan Nasional, which is constituted by the amalgamation of 13 registered political parties.

Najib said his reputation has been gravely injured following the publication of the defamatory words which was shared by the social media and mass media users.

He said that the allegations are very serious and that it has caused contempt to him in the social and mass media.

He said the defamatory words also an attack to his moral and character that he is now being labelled as a dishonest, untrustworthy and irresponsible person.

He said the defamatory words are baseless allegations and without any basis.

Najib said that his solicitor had sent a letter of demand dated Oct 5 to Dr Ling to cease from making any further defamatory statements of him, an apology, an retraction and to provide a written undertaking that he shall refrain from publishing such defamatory statement and to compensate him for severe damage to reputation.

He said Dr Ling, through his solicitor had replied in a letter dated Oct 8 stating that he did not admit to any of the statements and reserved his right to take or receive further legal action.

The premier is seeking for general, special, aggravated and exemplary damages to be assessed by the court.

Among others, Najib is applying for an injunction to restrain Dr Ling from further speaking or publishing or causing to be published any similiar defamatory words against him, whether orally or in the printed media or on the Internet.

He is asking for an order that Dr Ling publish a written apology in newspaper or magazines to be identified by him.

He had on Oct 27 filed the suit at the High Court civil registry through Messrs Hafarizam Wan & Aisha Mubarak.


This is a bold and historical decision for a sitting BN Chairman to take to court a leader who acted as BN Chairman for a period of a week. It was on the day UMNO was declared illegal by Kuala Lumpur High Court (8 Feb 1988) till UMNO (Baru) was formed and approved by Registrar of Society a week later, to replace the former nationalist party.

It is a demonstration of the seriousness Prime Minister Najib against the defamatory statement made by Dr Ling at a formal and esteemed event.

There is other story about former Petro Saudi executive Xavier A. Justo taking to court those who got the stolen information of his former employer, namely The Edge CEO and publisher Ho Kay Tat and Sarawak Report Editor Clare Rewcastle-Brown.

Bernama.com story:

Published: Thursday October 29, 2015 MYT 8:57:00 PM
Updated: Thursday October 29, 2015 MYT 9:05:13 PM

Justo to sue those he gave Petrosaudi data

BANGKOK: Swiss national Xavier Andre Justo, now serving a three-year jail term here for trying to blackmail his former employer PetroSaudi International, is to sue the owner of the Edge Media Group and its top executive as well as the founder of Sarawak Report in the High Court in Singapore.

Justo wants Toong Kooi Ong and The Edge Communications Sdn Bhd group chief executive and publisher Ho Kay Tat and founder-editor of Sarawak Report Clare Rewcastle-Brown to return the data that he had handed them, according to a source familiar with the case.

The source told Bernama the lawsuit is scheduled to be heard at the High Court in Singapore on Nov 4.

He said the lawsuit was brought to Singapore as the data, which Justo had stolen from PetroSaudi, was handed to them there.

Justo had admitted to stealing 90 gigabytes of data, including emails and documents, from PetroSaudi as part of an attempted blackmail.

When the blackmail failed, he handed the data to Toong and Brown who are alleged to have offered about US$2 million, but was arrested on June 22 on the island of Koh Samui in southern Thailand before he could receive any payment.

Justo applied for bail on Monday but his application was rejected by the court. He is expected to make a fresh bail application next week.

In Kuala Lumpur, lawyer Kevin Joshua said Justo had no right to sue since he has “no title to the property” to make any claim.

“It’s like a robber suing a goldsmith to whom he sold stolen jewellery,” said the partner in Kevin and Co.

“While he may have a right to initiate a suit the question is whether it can be sustained, and that depends on what is pleaded.” – Bernama


The Edge and Sarawak Report dishonoured Justo for the promise of cash but instead  indiscriminately abused the stolen information,  in the strategy to put the Opposition in power by demonising Prime Minister Najib and indirectly affecting UMNO/BN led Federal Government.

If Ho and Rewcastle-Brown are made to return the said stolen information, then it is admission that the duo utilised stolen goods to achieve their sinister agenda.

On the other hand in the court of public opinion, 1MDB Group Executive Director and President Arul Kanda accepted the challenge by DAP Chief Strategist and Petaling Jaya Utara MP Tony Pua for a public showdown pertaining the strategic investment corporation.

Media statement by 1MDB:

Media statement by Arul Kanda, President & Group Executive Director, 1Malaysia Development Berhad

Issued on 29 October 2015

For immediate publication

Arul Kanda: I Accept the Challenge

YB Tony Pua has challenged me this morning to a “live talk show” with him. I hereby accept his challenge and look forward to answering his questions.

It is a known fact that YB Tony Pua is a member of the Public Accounts Committee, which is in the midst of conducting an investigation into 1MDB. In order to maintain the integrity of the PAC’s investigation, and to avoid any conflict of interest, YB Tony Pua must first resign from the PAC.

Despite his efforts to do so, YB Tony Pua cannot be judge, jury and executioner. As such, I trust he will have the courage to do the right thing and resign from the PAC in order for us to have, in his words, a “no-holds barred” discussion on live television.

Arul Kanda, President & Group Executive Director


It is obvious a political stunt by Pua as a current Public Accounts Committee (PAC) member to challenge Arul, where at the moment the Parliamentary body is still hearing evidence and testimonies on 1MDB.

There are growing serious concerns of integrity, breach of secrecy and abuse of privileged information, with the likeliness that Pua might use information he obtained as a PAC member against Arul in the live TV debate.

Hence, call amongst Parliamentarians to demand Pua to quit PAC before taking Arul live on tv is growing.

Pro-Anwarista news portal story:

Nazri backs Arul Kanda, says Tony Pua should quit PAC


Published: 29 October 2015 3:44 PM
A senior Umno minister says DAP’s Tony Pua should quit Parliament’s Public Accounts Committee (PAC) if he wants a live TV debate with 1Malaysia Development Berhad (1MDB) president Arul Kanda Kandasamy as this will prevent conflict of interest.

Tourism and Culture Minister Datuk Seri Nazri Aziz said PAC was in the midst of probing the state-owned investment firm and the Petaling Jaya Utara federal lawmaker could not be part of the debate if he was still on the bipartisan panel.

“He must be a neutral person, so he must resign from PAC so he can go debate with Arul Kanda,” he told reporters at the Parliament lobby.
“He must get out of PAC and debate. PAC is investigating so how can you debate when you’re still a member?” he said.
Arul Kanda today accepted Pua’s challenge to a live TV interview on the debt-ridden investor, but said the DAP lawmaker must first resign as PAC member to preserve the integrity of the committee and prevent conflict of interest.

Pua had earlier challenged Arul Kanda to a live interview to clear the air about the state-owned firm as the 1MDB president had failed to respond to allegations against it.

Pua added that Malaysians were no closer to the truth concerning the scandals as the 1MDB head continued his public relations campaign with recycled answers. – October 29, 2015.

– See more at: http://www.themalaysianinsider.com/malaysia/article/nazri-backs-arul-kanda-says-tony-pua-should-quit-pac#sthash.MiReBb3c.dpuf


The call even arisen from fellow PAC member and Opposition MPs alike.


PAC member joins calls for Pua to quit panel before 1MDB debate


Published: 29 October 2015 6:01 PM

A member of the Public Accounts Committee (PAC) has joined the chorus of voices asking colleague Tony Pua to quit the bipartisan panel if he wants to go ahead with a live debate with 1Malaysia Development Berhad (1MDB) president Arul Kanda Kandasamy.

Barisan Nasional MP Datuk Liang Teck Meng said the DAP’s Petaling Jaya Utara MP should respect parliamentary institution and holding a “no holds barred” TV debate with the chief executive of the state investment firm would be an “insult” to the nation’s highest legislative body.

“Holding a live no holds barred TV debate with one of the subjects of the parliamentary inquiry is an insult to Parliament,” he said in reference to PAC which was probing 1MDB.

“No respected parliament in the world would allow this.

“If this is a legal case, it is as good as member of the jury or judge arguing with the accused on live TV before the court case. That would be sub judice,” Liang said in a statement today.

The Barisan Nasional Simpang Renggam MP also expressed his worries that Pua’s impartiality may be compromised if he “loses badly” to Arul Kanda during the debate.

Earlier today, Tourism and Culture Minister Datuk Seri Nazri Aziz said Pua should quit before embarking on the debate to prevent a conflict of interest.

Arul Kanda today accepted Pua’s challenge to a live TV interview on the debt-ridden investor, but said the DAP MP must first resign as PAC member to preserve the integrity of the committee and prevent conflict of interest.

Pua earlier challenged Arul Kanda to a live interview to clear the air about the state-owned firm as the 1MDB president had failed to respond to allegations against it.

Pua added that Malaysians were no closer to the truth concerning the scandals as the 1MDB head continued  his public relations campaign with recycled answers.  – October 29, 2015.

– See more at: http://www.themalaysianinsider.com/malaysia/article/pac-member-joins-calls-for-pua-to-quit-panel-before-1mdb-debate#sthash.UDZCR2J7.dpuf


Arul Kanda’s willingness to accept Pua’s challenge outside the formal appearance in PAC under the secrecy of privileged information is a demonstration of his consistency in offering information to the various queries and angles, which affected 1MDB.

Arul calling Pua, translate to making it tight for Pua to weave around manipulated and fabricated information in the public debate since it would be a near exact testimony when Arul presents himself on behalf of 1MDB to PAC. Even without the public debate, it is a gambit pointing towards Pua’s gradual loss in the game of demonising Prime Minister Najib and 1MDB.

It is interesting how Pua would weave himself out of this tight political image of a sordid desperate MP.

Published in: on October 29, 2015 at 21:15  Comments (1)  

Lessons to Paracels XXIV: The Empire strikes back

The diplomatic row over multiple disputed claims in South China Sea had escalated to controversy which had arisen to a military dispute as a US Navy guided missile destroyer maneuvres so close to the artificial island built known as Fiery Cross Reef, by the Chinese PLA-Navy.

CNN com. story:

U.S. warship sails close to Chinese artificial island in South China Sea

Jim Sciutto-Profile-ImageBarbara Starr-Profile-Image
By Jim Sciutto and Barbara Starr, CNN
Updated 0502 GMT (1302 HKT) October 27, 2015 | Video Source: CNN

U.S. sends warship within 12 nautical miles of one of China’s artificial islands
Move viewed as potential challenge to China in South China Sea
Washington (CNN)

The United States sent a warship very close to one of China’s artificial islands in the South China Sea on Tuesday, a potential challenge to Beijing’s territorial claims in the contested waters.

A U.S. defense official told CNN that the destroyer USS Lassen “conducted a transit” within 12 nautical miles of Subi Reef in the Spratly Islands on Tuesday morning local time.

The operation put the ship within an area that would be considered Chinese sovereign territory if the U.S. recognized the man-made islands as being Chinese territory, the official added.

Why are the United States and China frenemies?

Why are the United States and China frenemies? 02:25
The mission, which had the approval of President Barack Obama, has now concluded, the official said.

The United States had not breached the 12-mile limit since China began massive dredging operations to turn three reefs into artificial islands in 2014.

In little more than 18 months, China has reclaimed more than 2000 acres at three main locations in the Spratly Islands — Subi, Mischief and Fiery Cross reefs.

The South China Sea is the subject of numerous rival and often messy territorial claims, with China, Brunei, Malaysia, the Philippines, Taiwan and Vietnam disputing sovereignty of several island chains and nearby waters.

On Tuesday morning before it was confirmed that the U.S. warship had breached the 12-mile zone, Wang Yi, China’s foreign minister, said:

“We advise the U.S. side to think twice before action, not to conduct any rash action, and not to create trouble out of nothing.”

China has repeatedly said its activity in the South China Sea does not target any other country or affect freedom of navigation by sea or air.

In May, a U.S. surveillance plane carrying a CNN crew swooped over the Spratly Islands, triggering eight warnings from the Chinese navy to back off.



Fox News:

China warns US after Navy ship passes disputed islands claimed by Beijing

Published October 27, 2015

May 21: 2015: Chinese dredging vessels are purportedly seen in the waters around Fiery Cross Reef in the disputed Spratly Islands in the South China Sea in this still image from video taken by a P-8A Poseidon surveillance aircraft provided by the United States Navy. (Reuters)
China’s Foreign Ministry reacted angrily Tuesday after a U.S. Navy ship passed within 12 nautical miles of disputed islands in the South China Sea late Monday in an apparent challenge to Beijing’s territorial claims in the region.

The ministry said that authorities monitored and warned the guided missile destroyer USS Lassen as it moved inside what China claims as a 12-mile territorial limit around Subi Reef in the Spratly Islands archipelago, a disputed group of hundreds of reefs, islets, atolls and islands in the South China Sea that is also claimed by the Philippines.

A defense official told the Associated Press the patrol was approved by the White House and took place without incident.

“The actions of the U.S. warship have threatened China’s sovereignty and security interests, jeopardized the safety of personnel and facilities on the reefs, and damaged regional peace and stability,” the ministry said on its website. “The Chinese side expresses its strong dissatisfaction and resolute opposition.”

Meanwhile, the Philippines welcomed the sail-past by the USS Lassen, calling it a way of helping maintain “a balance of power”.

Since 2013, China has accelerated the creation of new outposts by piling sand atop reefs and atolls then adding buildings, ports and airstrips big enough to handle bombers and fighter jets — activities seen as an attempt to change the territorial status quo by changing the geography.

Navy officials had said the sail-past was necessary to assert the U.S. position that China’s man-made islands cannot be considered sovereign territory with the right to surrounding territorial waters.

“We are conducting routine operations in the South China Sea in accordance with international law,” a senior defense official told Fox News late Monday. “We will fly, sail, and operate anywhere in the world that international law allows.” International law permits military vessels the right of “innocent passage” in transiting other country’s seas without notification.

The Navy’s plan to send a destroyer near the Spratly Islands was first reported by Reuters. A Pentagon spokesman, Navy Cmdr. Bill Urban, declined to comment.

About 30 percent of global trade passes through the South China Sea, which is also home to rich fishing grounds and a potential wealth of undersea mineral deposits.

China says it respects the right of navigation, but has never specified the exact legal status of its maritime claims. China says virtually all of the South China Sea belongs to it, while Brunei, Malaysia, the Philippines, Taiwan and Vietnam claim either parts or all of it.

Beijing’s response closely mirrored its actions in May when a navy dispatcher warned off a U.S. Navy P8-A Poseidon surveillance aircraft as it flew over Fiery Cross Reef, where China has conducted extensive reclamation work.

Speaking to foreign correspondents in Manila, Philippine President Benigno Aquino III said he supported the U.S. naval maneuvers as an assertion of freedom of navigation and as a means to balance power in the region.

“I think expressing support for established norms of international behavior should not be a negative for a country,” he said. “I think everybody would welcome a balance of power anywhere in the world.”

Without identifying China by name, he said “one regional power” has been making “controversial pronouncements” that if must not be left unchallenged.

“The American passage through these contentious waters is meant precisely to say that there are norms as to what freedom of navigation entails and they intend to exercise so that there is no de facto changing of the reality on the ground,” he said.

The Obama administration has long said it will exercise a right to freedom of navigation in any international waters.

“We have been clear that we take no position on competing territorial sovereignty claims to land features in the South China Sea,” the senior defense official told Fox News late Monday. “U.S. Freedom of Navigation (FON) operations are global in scope and executed against a wide range of excessive maritime claims, irrespective of the coastal state advancing the excessive claim. The longstanding FON program is not directed at any specific country.”

The Chinese Foreign Ministry statement said China adhered to international law regarding freedom of navigation and flight, but “resolutely opposes the damaging of China’s sovereignty and security interests in the name of free navigation and flight.”

“China will firmly deal with provocations from other countries. We will continue to monitor relevant situation in the sea and air and take any necessary measures when needed,” the statement said.

China’s assertive behavior in the South China Sea has become an increasingly sore point in relations with the United States, even as President Barack Obama and China’s President Xi Jinping have sought to deepen cooperation in other areas.

Despite those tensions, exchanges between the two militaries have continued to expand, with a U.S. Navy delegation paying visits last week to China’s sole aircraft carrier and a submarine warfare academy.

Fox News’ Jennifer Griffin and The Associated Press contributed to this report.


The Chinese PLA-Navy military installation which comprises of an air strip and harbour, is believed to the Chinese project of power in the world’s second busiest waterway. Chinese interest in the area is also about the rich hydro-carbon deposit.

A detailed map of China's claims into ASEAN nations' EEZ

A detailed map of China’s claims into ASEAN nations’ EEZ

China reiterated an insubstantiated claim of Kuomintang’s 1947 known as the ‘Nine-Dash-Line’ over most part of South China Sea. Most of the areas under this are EEZ of various ASEAN countries as per defined under the United Nations Convention Law of the Seas (UNCLOS) which was inked in 1982.

Extensively China PLA-Navy built military installation on Fiery Cross Reef

Extensively China PLA-Navy built military installation on Fiery Cross Reef

This armed US Navy maneuvres definitely would brought about a reaction in the projection of force by China. More than six months ago, United States already has been warned about military manoeuvres in the disputed areas.

Fiery Cross Reef, which is Cina PLA-Navy newest military installation in the disputed territories which the China name as the 'Nine-Dash-Line'

Fiery Cross Reef, which is Cina PLA-Navy newest military installation in the disputed territories which the China name as the ‘Nine-Dash-Line’

Almost six months ago, US Navy P8 Orion maritime patrol and surveillance aircraft flew very close to the said island.

The Arleigh Burke class destroyer’s USS Lassen very close proximity to China PLA-Navy military installation at Fiery Cross Reef is a projection of force, guided based on the demonstration US foreign policy for not recognising China’s illegitimate claim on the fictitious maritime borders of ‘Nine-Dash-Line’.

The illegitimate claim by China, which is deemed “Excessive”, is clearly against the norms and practices of the United Nations Convention Law of the Seas (UNCLOS) 1982.

*Updated midnight

China responded to USS Lassen’s manoeuvres near the China PLA-Nany artificially built military installation at Fiery Cross Reef by US Navy destroyer USS Lassen as “Illegal”.

BBC.com story:

China says US warship’s Spratly islands passage ‘illegal’

49 minutes ago
From the section China
Two warships underwayImage copyrightReuters
Image caption
Guided-missile destroyer USS Lassen seen with a South Korean ship in a photo from March
Chinese officials have condemned a US ship’s passage near disputed islands in the South China Sea as “illegal” and a threat to their country’s sovereignty.
The guided-missile destroyer USS Lassen breached the 12-nautical mile zone China claims around Subi and Mischief reefs in the Spratly archipelago.
The US has confirmed the operation took place, apparently as part of its Freedom of Navigation programme.
The operation is a challenge to China’s claims over the artificial islands.
Lu Kang, a spokesman for China’s foreign ministry, said Beijing would “resolutely respond to any country’s deliberately provocative actions”.
He added that the ship had been “tracked and warned” while on the mission to deliberately enter the disputed waters.
The Chinese foreign ministry summoned the US ambassador to protest over the move.
Meanwhile, US Defence Secretary Ash Carter confirmed that the USS Lassen had passed within 12 miles of the islands, during questioning by the Senate Armed Forces Committee.
US Defence Department spokesman Cdr Bill Urban had earlier said that “the United States is conducting routine operations in the South China Sea in accordance with international law”.
The move was welcomed by several countries in the East Asia region, including the Philippines and Japan.


Map showing Chinese construction in the disputed Spratly Islands

Map showing Chinese construction in the disputed Spratly Islands

China claims most of the South and East China seas. Other countries in South-East Asia have competing claims for the Spratly Islands, Paracel Islands and Scarborough Shoal, which are thought to have resource-rich waters around them.
The reefs, which were submerged, were turned into islands by China by a massive dredging project which began in late 2013.
China says this work is legal and in a meeting with US President Barack Obama last month in Washington, President Xi Jinping said China had “no intention to militarise” the islands.
But Washington believes Beijing is constructing military facilities, designed to reinforce its disputed claim to most of the region – a major shipping zone.
Satellite image of an islandImage copyrightAFP
Image caption
A file photo from April shows what is claimed to be an airstrip under construction on the Fiery Cross Reef in the Spratly Islands
What is Freedom of Navigation?
The US Freedom of Navigation programme challenges what it deems to be “excessive claims” to the world’s oceans and airspace.
It was developed to promote international adherence to the UN Convention on the Law of the Sea, even though the US has not formally ratified the treaty.
In 2013 and 2014, the US conducted Freedom of Navigation operations of different kinds against China, Malaysia, the Philippines, Taiwan, and Vietnam – each of whom occupies territory in the South China Sea.
China’s island factory
Why is the South China Sea contentious?
International maritime law allows countries to claim ownership of the 12-nautical mile area surrounding natural islands, but does not allow nations to claim ownership of submerged features that have been raised by human intervention.
A senior US defence official told Reuters news agency the warship began its mission early on Tuesday local time near the reefs and would spend several hours there.
Map of South China Sea
The USS Lassen, a guided-missile destroyer, was expected to be accompanied by a US Navy P-8A surveillance plane and a P-3 surveillance plane, according to the unnamed official, speaking to US media.
Additional patrols could follow in the coming weeks, the official added.
Jump media playerMedia player helpOut of media player. Press enter to return or tab to continue.
Media captionThe BBC’s Celia Hatton reports: ”This is a political issue and an economic one”
Why build a series of tiny islands in the middle of a vast sea? – Celia Hatton, BBC News, Beijing
China has altered Asia’s geography by dredging sand from the sea bottom and piling it on existing reefs to build several new islands.
Vague explanations have been offered to justify this costly exercise. Officially, the islands will be used for rescue operations and environmental projects.
Chinese President Xi Jinping has pledged the islands would not be “militarised”.
However, many are sceptical of China’s geopolitical aims. In recent years, China has amplified its claims in the South China Sea. Critics fear Beijing will use the islands’ airstrips to exert control over the area.
At the same time, the United States is exerting its own influence in Asia, pivoting more of its military and economic attention to the region. The new islands are relatively tiny, but the tensions they could create between Beijing and Washington could have global implications.
USS Lassen
USS Lassen (file image)Image copyrightUS Navy
The ship is an Arleigh Burke class missile destroyer, which the US Navy says is among the most powerful destroyers ever built.
It is 155m (509ft) long with a displacement of 9,145 tonnes when fully loaded.
Crewed by a staff of about 330.
It carries two Seahawk helicopters and uses the Aegis defence system.
Weapons include Tomahawk missiles, RUM-139 Asroc anti-submarine missiles and surface-to-air missiles.

Published in: on October 27, 2015 at 16:30  Comments (3)  

Budget 2016: Prospering the Rakyat

Prime Minister Dato’ Sri Mohd. Najib Tun Razak as the Finance Minister Budget 2016 speech in Dewan Rakyat:


Venue : Dewan Rakyat 2016
Date : 23/10/2015


Mr. Speaker Sir,

I beg to move the Bill intituled “An Act to apply a sum from the Consolidated Fund for the service of the year 2016 and to appropriate that sum for the service of that year” be read a second time.


Mr. Speaker Sir,

In the name of Allah, the Most Gracious and the Most Merciful. All praise is due to Allah, the Lord of the A’lamin. Wa bihi Nastai’n.

Praise be to Allahu Ta’ala who created the seven heavens and earth and who also created a state of darkness into the light.

Peace be upon the Prophet Muhammad, the chosen Messenger who rejects falsehood, and safeguards rights and truths.

Since March 2009, I have presented eleven major documents on the nation’s economy.

These include the first stimulus package, the second stimulus package, the 10th Malaysia Plan and the 11th Malaysia Plan (11MP) as well as the annual budgets since 2010. Today, I will present the 2016 Budget.

With Allah’s grace, we pray and hope that we will be able to continue presenting the Budget in the coming years.

The Budget presented today represents a manifestation of the 11MP. This is the first Budget in a series of five budgets until our beloved nation transforms into a high-income advanced economy.

This Budget leverages the lessons from history based on Al-Quran through the understanding of Surah An-Nisa’ verse 58 which was translated by Imam Qurtubi, as leaders, it is incumbent upon us to safeguard the rights and ensure equitable distribution of wealth among the rakyat.

Even before the presentation of the Budget today, there have been debates in various media regarding the Malaysian economy, alleging that the country is on the verge of bankruptcy; the economy is in a crisis; and the ringgit has depreciated sharply, due to the perception of ineffective financial governance and non-prudent Government spending.

Given the unwarranted comments and misperceptions, it is only fair that I take the opportunity in this august House to explain, particularly to the honourable members of Parliament as well as the rakyat, so that they are able to directly obtain a clear and correct understanding.


Since 2009, the nation has been confronted with several economic challenges. We faced various uncertainties in the global economy as well as domestic economic issues.

Praise be to the Almighty, despite daunting challenges, the Government has managed to address and overcome these challenges effectively.

To summarise, there are six main achievements that we can be proud of in uplifting the economy from where it was half a decade ago.

First Achievement: The Malaysian economy grew by 5.3% in the first half of 2015 and is expected to expand between 4.5% and 5.5% this year despite a slower global growth of 3.1%.

In this context, we have to remember that there is no comparison whatsoever between the current economic situation with 1998. Clearly, in 1998 Asia experienced a financial crisis and the Malaysian economy contracted by 7.4%.

We are aware that we are not spared from the impact of a slowdown in the global economy, including declining commodity prices, particularly crude oil, palm oil and rubber, depreciation of the ringgit and slower growth in major advanced economies.

Amid this scenario, the nation’s Gross Domestic Product (GDP) is expected to expand between 4% and 5% in 2016. Growth will be driven by private investment and consumption at 6.7% and 6.4%, respectively.

Exports will grow by 0.9% and imports by 1.5%. Meanwhile, the construction sector will expand by 8.4%, services 5.4% and manufacturing 4.3%.

Second Achievement: We have consistently reduced the fiscal deficit from 6.7% of GDP in 2009 to an estimated 3.2% this year.

Third Achievement: Through the National Transformation Policy (NTP) commencing 2010, the Government continued to vigorously eradicate poverty.

As a result, over the five-year period, the incidence of poverty has been reduced from 3.8% in 2009 to 0.6% in 2014. In fact, hardcore poverty has almost been eradicated.

Fourth Achievement: The unemployment rate in 1999 was 3.4%.

With Allah’s blessing, as a result of effective economic management, we have reduced the unemployment rate to 2.9% and the Government has succeeded in creating 1.8 million jobs.

Fifth Achievement: A total of 5 million rakyat in rural areas have benefited from basic amenities such as electricity and clean water supply.

Sixth Achievement: The rakyat has benefited from several initiatives such as Bantuan Rakyat 1Malaysia (BR1M), 1Malaysia Clinics, Urban Transformation Centres (UTCs), Rural Transformation Centres (RTCs) and Kedai Rakyat 1Malaysia, towards reducing the cost of living.

The inflow of foreign direct investment remains strong at RM22.4 billion in the first half of this year, while the FTSE Bursa Malaysia KLCI (FBM KLCI) recorded 1,705 points, with market capitalisation of RM1.675 trillion as at 22 October 2015.

Although the ringgit has depreciated, the international reserves remained high at RM418 billion as at 15 October 2015, sufficient to finance 8.8 months of retained imports and is 1.2 times the short-term external debt.

Moreover, the inflation rate is expected to remain manageable, between 2% and 3% in 2016.
In reality, Malaysia is not a failed or bankrupt nation, but one which is stable with strong economic fundamentals and remains competitive.

Clarification on Goods and Services Tax (GST) Collection

Before we continue with the Budget presentation, there are two important things to be clarified. The first is regarding GST, which has been hotly debated since early this year.

On GST, the Government appreciates the high and encouraging registration and compliance.

I wish to inform this august House that to date, almost 400,000 companies have registered for GST with a submission rate of more than 90%.

The Government’s decision in implementing GST is right, more so as crude oil prices have fallen more than 50% from a level of USD100 per barrel in 2014.

The fact is, Petroliam Nasional Berhad (PETRONAS) contributes a certain amount of dividend to Treasury every year. The amount of dividend is dependent on global crude oil prices.

For example, when crude oil prices averaged USD100 per barrel, revenue from PETRONAS dividend and petroleum tax revenue totalled RM62 billion.

The scenario, however, changed when crude oil prices declined to around USD50 per barrel. The contribution from PETRONAS and oil-related sectors will be RM44 billion in 2015.

As oil prices are expected to remain low in 2016, oil-related revenue is estimated at RM31.7 billion.

As announced several times, the rakyat can be reassured as revenue from GST collection will be returned to benefit the rakyat, in addition to clarifying how GST will be spent. This is the real intention of the Government and there is no hidden agenda.

The situation has changed. This intention must be balanced with the reality of the Government’s financial position due to the uncertainty in global crude oil prices as I elaborated earlier. However, due to the reduction in oil-related revenue, the collection from GST has helped to cover a major portion of the shortfall.

In this regard, in 2016 based on the Government’s calculation, if GST was not implemented and we had to rely on Sales Tax and Service Tax (SST) as previously, Government revenue would be lower by RM21 billion.

Furthermore, if SST was retained, collection would have been only RM18 billion compared with GST revenue of RM39 billion.

Consequently, the fiscal deficit would have increased to 4.8% and not the targeted 3.1% in 2016.

If this were to happen, the Government would have been forced to borrow, including to pay civil servants’ salaries; the nation’s credit rating would be downgraded; and all borrowing costs, including personal loans, business loans and housing loans would definitely be higher.

We are grateful to the Almighty that the Government remained steadfast and had the political will to implement GST, although this decision was faced with various challenges and was unpopular.

Those who used to vehemently oppose GST have now accepted it and even included it in their Budget document.

This clearly indicates the changing and inconsistent stand of the opposition.

As a responsible Government, however, we will continue to make the right decisions though not popular in the best interest of the rakyat and the nation.
In fact, GST is an efficient tax system as reflected by its implementation in more than 160 countries.

Despite the constrains on financial resources, the Government remains sensitive to the difficulties faced by the rakyat.

Thus, after receiving feedback from various segments of society including NGOs, I am pleased to announce the Government is prepared to forego the GST revenue on several basic necessities.

Seven measures to improve GST treatment, which will be effective from 1 January 2016, are as follows:

First: Zero-rating of all types of controlled medicines under the Poisons List Group A, B, C and D as well as an addition of 95 brands of over-the-counter medicines including treatment for 30 types of illnesses such as cancer, diabetes, hypertension and heart disease. This is a double increase from 4,215 to 8,630 brands of medicines.

Second: Zero-rating of the following food items:

Soybean-based milk and organic-based milk for infant and children;
Dhal or what is popularly known as Parpu in the north, such as chickpeas, green and white beans;
Lotus root and water chestnut;
Mustard seeds;
Jaggery powder; and
Dried mee kolok.

Third: To enable small-scale farmers to benefit from the Flat Rate Scheme, the Government proposes that the annual sales turnover threshold for registration under this scheme be reduced from RM100,000 to RM50,000.

The requirement to maintain records will also be simplified. With the reduction in the threshold, more small-scale farmers will be able to register under the scheme and impose an additional 2% on sales value and this amount can be retained to offset against any GST paid on their input.

Fourth: Companies involved in maintenance, repair and overhaul (MRO) activities in the aerospace industry are allowed to participate in the Approved Trader Scheme which relieves them from paying GST on the imported goods.

Fifth: GST relief is also provided for reimportation of goods that were exported temporarily for the purpose of promotion, research or exhibition.

Sixth: For the oil and gas industry, GST relief is provided on the reimportation of equipment such as equipment for oil and floating platforms that are temporarily exported for the purpose of rental and leasing.

Seventh: GST relief is also provided on teaching materials and equipment procured by skills and vocational training providers conducting approved programmes under the National Skills Development Act 2006.

The Government realises that the majority of mobile phone users, particularly youth depend on prepaid telecommunication services or prepaid cards.

In this regard, Malaysian consumers will receive rebates equivalent to the amount of GST paid, which will be credited directly to their prepaid accounts. This measure will be effective from 1 January 2016 to 31 December 2016.

In an effort to strengthen the tax structure to be more competitive and progressive, it is proposed that the taxable income band for the highest tax rate be increased from 25% to 26% for those with an income between RM600,000 and RM1 million.

Meanwhile, for those with an income above RM1 million, the tax rate will be increased from 25% to 28%.

The 2016 Budget allocates a total of RM267.2 billion compared with the revised RM260.7 billion in 2015. Of this amount, RM215.2 billion is for Operating Expenditure and RM52 billion for Development Expenditure.

Under Operating Expenditure, RM70.5 billion is for Emoluments and RM36.3 billion for Supplies and Services. Meanwhile, a total of RM106.6 billion is allocated for Fixed Charges and Grants, RM761 million for Purchase of Assets and RM1 billion for Other Expenditure.

Under Development Expenditure, the economic sector will receive the highest share at RM30.1 billion, followed by the social sector RM13.1 billion for education and training, health, housing and the well-being of the rakyat.

In addition, RM5.2 billion is allocated to the security sector. The balance of RM1.6 billion is for general administration and RM2 billion for contingencies.

In 2016, the Federal Government revenue collection is estimated at RM225.7 billion, an increase of RM3.2 billion compared to 2015.

Taking into account the revenue and expenditure forecast, the fiscal deficit is expected to decline to 3.1% of GDP in 2016.

This Budget and future Budgets will be premised on striking a balance between the Capital Economy and People Economy. In addition, we need to achieve an inclusive and sustainable growth as well as build a competitive, progressive and a morally strong nation, with a society that is united.

Therefore, I propose to table the Budget with the theme “Prospering the Rakyat” based on five priorities as follows:

First Priority: Strengthening Economic Resilience;

Second Priority: Increasing Productivity, Innovation and Green Technology;

Third Priority: Empowering Human Capital;

Fourth Priority: Advancing Bumiputera Agenda; and

Fifth Priority: Easing the Cost of Living of the Rakyat.


Measure 1: Boosting Domestic Investment. Domestic investment activity will be intensified with its contribution to GDP estimated at 26.7% in 2016. It will be driven by the increase in private investment at RM218.6 billion and supported by public investment of RM112.2 billion.

Under this measure, among the projects and initiatives that will be implemented are:

First: Development of the Malaysian Vision Valley covering an area of ​​108,000 hectares from Nilai to Port Dickson, as announced in the 11MP, with an initial investment forecast of RM5 billion in 2016;

Second: Implementation of Cyber City Centre in Cyberjaya with a development cost of almost RM11 billion for a period of five years;

Third: Development of an airport township or KLIA Aeropolis in an area covering 1,300 acres which is expected to attract an investment of RM7 billion;

Fourth: Investment of RM6.7 billion by Khazanah Nasional Berhad in nine high-impact domestic projects in sectors such as healthcare, education, tourism as well as communication software and infrastructure;

Fifth: Khazanah Nasional to allocate RM500 million as venture capital and private equity fund including a tourism capital venture fund of RM50 million;

Sixth: Investment of RM18 billion estimated in 2016 for the Refinery and Petrochemical Integrated Development Project (RAPID) Complex in Pengerang, Johor;

Seventh: To attract more private investment. Among the projects being implemented are the development of Rubber City, Kedah with an allocation of RM320 million, Samalaju Industrial Park, Sarawak RM142 million and Palm Oil Jetty in Sandakan, Sabah RM20 million;

Eighth: Focus will also be given to chemical, electrical and electronics, machinery and equipment, aerospace and medical devices industries as well as services. For this, RM730 million is allocated to funds under the Malaysian Investment Development Authority (MIDA); and

Ninth: To further promote reinvestment among existing companies in the manufacturing and agriculture sectors whose Reinvestment Allowance incentive has expired, a new incentive that is, Special Reinvestment Allowance, will be provided. The rate of claim is at 60% of the qualifying capital expenditure and is allowed to be set off against 70% of statutory income from year of assessment 2016 to 2018.

Measure 2: Invigorating Capital Market. To further invigorate the capital market, the Government agrees to implement several initiatives, including tax deduction on issuance costs of Sustainable and Responsible Investments (SRI) sukuk and 20% stamp duty exemption on Shariah-compliant loan instruments to finance the purchase of houses. Other initiatives will be announced later.

Measure 3: Energising Small and Medium Enterprises (SMEs). Indeed, SMEs play a key role in developing the business value chain and are expected to contribute 41% of GDP by 2020. For this, the following five initiatives will be undertaken:

First: Provide an additional RM1 billion for the Shariah-compliant SME Financing Scheme until 31 December 2017 with the Government subsidising 2% of the financing profit rate;

Second: Allocate RM107 million for the SME Blueprint to provide funds for entities at various stages of business development;

Third: Allocate RM60 million for the Entrepreneurs Acceleration Scheme, and SME Capacity and Capability Enhancement Scheme;

Fourth: Establish a RM200 million SME Technology Transformation Fund under the SME Bank to provide soft loans at 4%; and

Fifth: RM18 million to expand the Small Retailer Transformation Programme (TUKAR) and Automotive Workshop Modernisation (ATOM) projects.

Measure 4: Improving Infrastructure. Infrastructure is a catalyst for overall economic and social development.

Currently, Malaysia is ranked 25th out of 160 countries in the 2014 World Bank Logistics Performance Index report.

In this regard, the Government will continue to improve logistics infrastructure, including building and improving rail transport network and highways in 2016. These include the highways of Damansara – Shah Alam, Sungai Besi – Ulu Klang, Pulau Indah and Central Spine Road.

To reduce traffic congestion in Kuala Lumpur, RM900 million is provided to implement the Jalan Tun Razak Traffic Dispersal Project through a strategic public and private partnership.

The Government will also study the feasibility of constructing a coastal highway from Masjid Tanah to Klebang and from Klebang to Jambatan Syed Abdul Aziz in Melaka.

A sum of RM42 million is provided for the construction of Mukah Airport, Sarawak as well as the upgrading of airports in Kuantan and Kota Bharu. A feasibility study will be undertaken for the extension of the runway in Batu Berendam Airport in Melaka.

To ensure the comfort of people in urban areas, an efficient public transport system is being intensively implemented, involving significant outlays.

Allow me to provide an update on one of the biggest projects in the nation’s history, that is, the MRT-LRT, an integrated public transport system.

The first Phase of the Ampang LRT line extension project spanning 18.1 kilometres (km) will be ready for use in March 2016. Meanwhile, the LRT extension line from Kelana Jaya to Putra Heights spanning 17.4 km will be ready for commuters from the middle of 2016. Both these projects cost RM10 billion.

The MRT line from Sungai Buloh – Semantan will also be ready for commuters in December 2016. Meanwhile, Phase 2 of Semantan – Kajang is expected to be completed by mid-2017. These projects covering 51 km are being implemented at a cost of RM32 billion.

The Government will also implement other public transport networks as follows:

First: MRT II project from Sungai Buloh – Serdang – Putrajaya spanning 52 km, with an estimated cost of RM28 billion, will benefit two million people. Construction will commence in the second quarter of 2016 and is expected to be completed by 2022;

Second: LRT3 project from Bandar Utama, Damansara – Johan Setia, Klang spanning 36 km, with an estimated cost of RM10 billion, will benefit two million people. Construction will commence in 2016 and is expected to be completed by 2020. Meanwhile, the Government will continue negotiations on the high-speed rail with the Singapore Government; and

Third: For public bus services, the Rapid Transit Bus (BRT) project at a cost of more than RM1.5 billion and BRT Kota Kinabalu at a cost of almost RM1 billion, will be implemented.

To improve the telecommunication infrastructure, Malaysian Communications and Multimedia Commission (MCMC) will provide RM1.2 billion, among others, for rural broadband projects which will see a four-fold increase in Internet speed from 5 megabyte per second to 20 megabyte per second; National Fibre Backbone Infrastructure; High-speed Broadband; and undersea cable system.

A sum of RM250 million is allocated for the national broadcasting digitalisation project to enhance audio visual quality and provide value-add to TV content as well as interactive data transactions.

Since independence, the well-being of the rural population remains our priority. We will never marginalise them. To date, under the Barisan Nasional Government, rural road coverage has increased from 46,000 km in 2009 to 51,000 km, while 98% of rural areas have access to electricity and almost 95% have access to water supply.

The Government will continue with efforts to implement infrastructure development in rural area as follows:

First: RM1.4 billion to build and upgrade 700 km of rural roads nationwide. A sum of RM200 million is provided for the upgrading of roads in Federal Land Development Authority (FELDA) settlements;

Second: RM878 million for the Rural Electrification Project covering 10,000 houses and RM568 million for the Rural Water Supply Project to benefit 3,000 houses;

Third: RM60 million for the Social Amenities Programme for drainage projects to mitigate floods. Emphasis will be given to states affected by floods such as Kelantan, Kedah, Terengganu, Pahang, Sabah and Sarawak;

Fourth: As a catalyst for entrepreneurship in rural areas and for rural communities, RM70 million is allocated for continuation of the Rural Business Challenge (RBC) and Sustainable Rural programmes; and

Fifth: RM67 million is allocated to the MARA Bus Transport Project for operating buses on uneconomic routes in rural areas.

Measure 5: Promote and Strengthen Economic Activity. The tourism sector has the highest potential to generate economic activities in the current situation. For 2016, the Government targets 30.5 million tourists, which is expected to contribute RM103 billion to the economy. For this, a sum of RM1.2 billion is allocated to the Ministry of Tourism and Culture.

Online visa applications will be implemented beginning with China, India, Myanmar, Nepal, Sri Lanka, the US and Canada.

To facilitate tourists to visit Malaysia, the Government will implement E-Visa by mid-2016.

To take advantage of the current level of the ringgit and in efforts to attract more tourists, the 100% income tax exemption on statutory income for tour operators will be extended from year of assessment 2016 until 2018.

Economic activity in the agriculture sector provides a source of food as well as a source of income for farmers, paddy farmers and fishermen.

In this regard, RM5.3 billion is allocated to the Ministry of Agriculture and Agro-based Industry. The programmes for 2016 are:

First: RM450 million for various high-impact programmes such as fruit and vegetable cultivation, matching and research grants for herbal products as well as fish cage farming;

Second: RM180 million to upgrade drainage and irrigation infrastructure in the Integrated Agricultural Development areas;

Third: RM190 million to FAMA, for the Price Reduction Programme; increase farmers’ markets by an additional 50; and establish 150 new Agrobazaar Rakyat 1Malaysia (ABR1M). Of the goods sold in ABR1M, 40% are fresh food such as fish and vegetables with prices expected to be lower between 5% and 30% compared with market prices; and

Fourth: RM90 million is allocated for Youth Agropreneur Development Programme in the form of in-kind grants; Agriculture Entrepreneurs Financing Fund; rebranding MARDI, Department of Veterinary Services, Department of Agriculture and the Department of Fisheries; as well as to implement the Multiplier Farm Project for breeding cattle and free-range chicken.

In formulating appropriate policies for the current economic situation, the Government proposes the tax incentive for food production be extended until 2020. The following incentives will be provided:

First: Companies that invest in subsidiaries that undertake food production project will be given tax deduction equivalent to the amount invested;

Second: Companies that undertake new food production projects will be given 100% income tax exemption for 10 years; and

Third: Existing companies undertaking project expansion will be provided with the same incentive for five years.

The scope of the incentive will be widen to include rearing deer, cultivation of mushroom, coconut, seaweed, honey bees and stingless honey bees and planting animal feed crops such as sweet potato and tapioca.

In addition to the above measures, the Government will intensify support to strengthen exports.

A sum of RM235 million is allocated to MATRADE for 1Malaysia Promotion Programme, Services Export Fund and Export Promotion Fund.

MATRADE and SME Corp will also increase the capacity of SMEs and mid-tier companies to export goods and services overseas.

To diversify the use of foreign currency in trade transactions, Bank Negara Malaysia provides the Ringgit-Renminbi credit swap facility for local banks.

Currently, SMEs are eligible to claim income tax exemption of 10% or 15% of the value of increase in exports. To further increase exports, SMEs are given flexibility to comply with the value-add condition that is from 30% to 20% and from 50% to 40% for manufactured products. This flexibility will be given for years of assessment 2016 to 2018.

To encourage evaluation and international standards compliance services to be conducted in the country, the Government will provide incentives for the establishment of Independent Conformity Assessment Bodies (ICABs).

As of today, Malaysia has signed 13 free trade agreements (FTAs) comprising six regional agreements through ASEAN and seven bilateral agreements.

As an open economy, with total trade accounting for about 150% of GDP, the Government has agreed in principle to the Trans-Pacific Partnership Agreement (TPP). However, the final decision will be made by Parliament.


To raise productivity, we need to accelerate innovation and creativity. The use of green technology will also ensure sustainability of the nation’s natural resources.

Therefore, the Government has targeted an annual labour productivity growth of 3.7% through:

Measure 1: Accelerating Innovation and Entrepreneurship. To make the nation a competitive technology hub in the region, RM1.5 billion is allocated to the Ministry of Science, Technology and Innovation (MOSTI).

The year 2016 will be declared as Malaysia Commercialisation Year towards spurring commercialisation of R&D products by local research institutions. The following initiatives will be implemented:

First: SMEs that incur expenditure on R&D projects up to RM50,000 for each year of assessment are eligible to claim double tax deduction automatically. This facilitation is provided for the years of assessment 2016 to 2018;

Second: RM100 million to Malaysian Innovation Agency (AIM);

Third: RM200 million under the Funding Scheme for Technology and Innovation Acceleration by Malaysia Debt Ventures Berhad;

Fourth: RM35 million to MaGIC as a Leading Regional Entrepreneurship and Innovation Hub, including RM10 million as initial allocation for the Corporate Entrepreneurs Responsibility Fund;

Fifth: RM30 million for several youth entrepreneurship programmes such as Global Entrepreneurship Community, BAHTERA, GREAT, 1MET, National Innovation Competition and a Pilot Coding Project in schools; and

Sixth: To accelerate demand-driven innovation activities in 2016, the Government will allocate RM50 million for a Public-Private Research Network.

Measure 2: Leveraging Advancements in Technology. To enhance the use of technology in the construction sector, the Government will promote the use of Industrialised Building System (IBS). In this respect, the Government will encourage more companies to adopt the IBS technology.

For this, an IBS Promotion Fund of RM500 million will be established through the SME Bank to provide soft loans to developers and contractors in category G5 and below.

Measure 3: Inculcating Green Technology. The Ministry of Energy, Green Technology and Water will implement various projects including to provide clean water supply by building water treatment plants with an allocation of RM877 million. A sum of RM515 million is allocated to ensure the reliability of electricity supply in Sabah.

The Government targets to reduce the intensity of greenhouse gas emissions (GHGs) to 40% of GDP in 2020 through:

First: RM45 million for the implementation of an Electricity Mobility Action Plan including energy audit process;

Second: Sustainable Energy Development Authority (SEDA) will offer a quota of 100 megawatts per year under the Net Energy Metering Scheme to encourage the use of solar photovoltaics; and

Third: Extend the implementation period of the Green Technology Financing Scheme until 31 December 2017 with a fund of RM1.2 billion.


This is a critical factor for the future of the nation. In this regard, the following measures will be undertaken:

Measure 1: Strengthening Malaysia’s Quality of Education. Under the Malaysia Education Blueprint 2013 – 2025, a sum of RM41.3 billion will be allocated in 2016.

Among others, the Government will build:

30 primary schools;
27 secondary schools;
Four MARA Junior Science Colleges (MRSM) will be built in Sik, Kedah, Ketereh and Tanah Merah, Kelantan and Bagan Datoh, Perak; and
Five fully residential schools in Alor Gajah, Melaka; Pendang, Kedah; Segamat and Ledang, Johor; and Jerantut, Pahang.

A sum of RM44.6 million is allocated to implement various programmes in 9,113 pre-school classes in schools nationwide.

To increase Proficiency in Bahasa Malaysia and English, a sum of RM135 million is allocated for upholding Bahasa Malaysia and strengthening English Language.

Given the importance of the English Language to face current global competition, another two initiatives, namely the Dual Language Programme and Highly Immersive Programme will be implemented as an option at a cost RM38.5 million. In this respect, 300 schools have been identified as a pilot project.

To ease the burden of schooling expenses faced by parents, the RM100 schooling assistance will be continued. From January 2016, it will be targeted to students from households with monthly income of RM3,000 and below. This will benefit 3.5 million students through an allocation of RM350 million.

The supplementary food programme involving 550,000 students from poor families listed in e-Kasih will be enhanced.

Previously, the programme only provided meals during recess, but it will now be expanded to provide breakfast with an additional cost of RM173 million. The overall cost for the programme is RM423 million.

As in previous years, the Government will continue to provide allocation to develop and maintain education facilities for national schools, national-type Chinese schools, national-type Tamil schools, religious schools, fully residential schools, national religious assisted schools, MARA Junior Science Colleges, registered Sekolah Pondok and national-type Chinese secondary schools or Conforming schools which adopt the national curriculum, with a total allocation of RM500 million.

Measure 2: Strengthening Higher Education. Under this measure, the scholarship programmes will be continued with allocations as follows:

RM1.65 billion through Public Service Department;
RM288 million through Ministry of Education;
RM250 million through Ministry of Higher Education; and
RM258 million through Ministry of Health.

To encourage the rakyat to pursue higher education, I am pleased to announce that the maximum relief on tuition fees for an individual taxpayer is increased to RM7,000 from RM5,000 a year.

This will be complemented with the continuation of the RM250 1Malaysia Book Voucher Programme for 1.2 million students. To prevent misuse of the voucher, the redemption will only be allowed in designated book shops.

Measure 3: Transforming Technical and Vocational Education and Training (TVET). In efforts to enhance employees’ income, we need to target 60% of 1.5 million new jobs by 2020 are for workers with TVET skills. A sum of RM4.8 billion is allocated to 545 TVET institutions.

Towards this, the Ministry of International Trade and Industry (MITI) will establish an Industrial Skills Committee to coordinate TVET programmes in collaboration with industries.

More than 330,000 trainees will benefit through programmes including the following:

First: RM585 million for TVET training equipment at polytechnics, community colleges, MARA Skills Institutes, National Youth Skills Institutes, Industrial Training Institutes, GiatMARA and vocational colleges;

Second: RM350 million to finance various TVET training programmes under the Skills Development Fund Corporation; and

Third: RM80 million to establish a Tourism Academy at Community College in Kota Kinabalu and Vocational College in Sandakan as well as Industrial Training Institute of Serian, Sarawak.

Measure 4 is for Empowering Youth, Community and NGOs. For this measure, RM930 million is allocated to the Ministry of Youth and Sports for the following initiatives:

First: RM280 million for technical and vocational training in National Youth Skills Training Institutes (IKBN) and National Youth Advance Skills Training Institutes (IKTBN);

Second: RM50 million to enhance youth participation in economic and entrepreneurial activities;

Third: RM145 million to prepare athletes for the 29th SEA Games and the 9th ASEAN Para Games in 2017 in Kuala Lumpur;

Fourth: RM75 million to produce world-class champions under the Preparation of Elite Athletes (Podium Programme);

Fifth: RM22 million to build two sports complexes in Bagan Datoh and Kuantan; and

Sixth: RM360 million to improve the National Service Training Programme (PLKN) for 20,000 trainees. The new curriculum will include creative thinking and technical skills.

A sum of RM160 million is allocated for NGOs to implement programmes based on community development, solidarity, social welfare, health and safety.

Measure 5, to empower human capital through a quality workforce. To improve the employability of the workforce, the following programmes will be implemented:

First: Allocate 30% of the Human Resources Development Fund (HRDF) to implement training programmes to meet the needs of local industries in Sabah and Sarawak as well as an Outplacement Centre to retrain retrenched workers; and

Second: Train an additional 15,000 participants under the 1Malaysia Training Scheme (SL1M) with an allocation of RM250 million which will be fully financed by GLCs.

To improve the management of foreign workers, a sum of RM77 million will be provided by PSMB to implement programmes such as Train & Replace in selected fields such as hospitality, shipping and transport.

The Government remains committed to achieving at least 30% participation of women in decision-making positions in the public and private sectors. This includes at the board of directors level. The Government will continue to monitor the achievement of this policy.


I would like to emphasise that empowering Bumiputera is a national agenda and this includes the development of Bumiputera community in Sabah and Sarawak.

A sum of RM150 million is allocated to the Bumiputera Agenda Unit (TERAJU) to implement various programmes including Bumiputera Entrepreneurs Startup Scheme and High Performing Bumiputera Companies Programme.

A sum of RM150 million is allocated to the Bumiputera Education Steering Foundation to implement Peneraju Tunas, Peneraju Profesional as well as Peneraju Skil dan Iltizam programmes.

Majlis Amanah Rakyat (MARA) is allocated RM3.7 billion for expenditure, including the sponsorship of 72,000 Bumiputera students to continue studies at tertiary level.

To increase equity ownership and strengthen Bumiputera entrepreneurship and businesses, the following initiatives are allocated with a sum of:

First: RM400 million to National Equity Fund Limited (EKUINAS);

Second: RM250 million to Perbadanan Usahawan Nasional Berhad (PUNB);

Third: RM150 million to Pelaburan Hartanah Berhad; and

Fourth: RM100-million loan to UDA Holdings for development of Kampung Baru, Kuala Lumpur.

Intensifying Development in Sabah and Sarawak.

The following development agenda will be implemented in Sabah and Sarawak:

First: Sarawak Pan-Borneo Highway spanning 1,090-km is expected to be completed in 2021 with an estimated cost of RM16.1 billion.

In Sabah, construction work on the 706-km highway from Sindumin to Tawau will commence in 2016 with an estimated cost of RM12.8 billion. I am pleased to announce that the Pan-Borneo Highway will be toll-free;

Second: Air transportation is one of the main modes of transportation for people in the interior areas of Sabah and Sarawak as well as Labuan. Thus, the domestic air transportation for economy class passengers on Rural Air Services (RAS) routes is exempted from GST;

Third: As a new programme, RM70 million is provided through Bank Simpanan Nasional in collaboration with the state government of Sabah and Sarawak for interest free loans for the purpose of building longhouses with a maximum loan up to RM50,000 for every unit in the longhouse;

Fourth: RM70 million subsidy for hill paddy fertiliser to increase food supply and income of hill paddy farmers in Sabah and Sarawak. The programme will cover ​​65,000 hectares of crop areas in Sarawak and 11,000 hectares in Sabah;

Fifth: RM260 million is provided to ensure price uniformity of selected items nationwide through the 1 Price 1Sarawak and 1 Price 1Sabah programmes;

Sixth: RM115 million is allocated to the Special Programme for Bumiputera in Sabah and Sarawak, such as for native customary rights, including mapping procedures and customary land surveys as well as for building native courts. For native customary rights, RM20 million is provided for land surveys in Sabah and RM30 million in Sarawak; and

Seventh: Enhance services of 1Malaysia Mobile Clinics in the interior areas of Sabah and Sarawak including procurement of new boats and vehicles.


This issue is implemented as follows close to my heart and the Government. Thus, various initiatives will be.

Measure 1: Increasing the quality of life of B40 households as follows:

First: TEKUN will provide RM600 million of which RM500 million is for Bumiputera entrepreneurs and RM100 million for 10,000 Indian entrepreneurs through the Indian Community Development Scheme. In addition, SME bank will provide RM50 million to assist small-scale Indian entrepreneurs;

Second: An additional RM200 million to Amanah Ikhtiar Malaysia (AIM) for its micro-financing facility to B40 households;

Third: RM100 million is provided under the Socio-Economic Development of Indian Community Programme in collaboration between NGOs and private skills training institutes;

Fourth: An additional RM90 million is provided for microcredit to Chinese hawkers and petty traders including RM50 million for KOJADI;

In addition, RM40 million is allocated to implement infrastructure projects and soft loans programme for residents in Chinese New Villages for land premium payments and repairing houses;

Fifth: RM50 million is allocated to the Ministry of Rural and Regional Development (KKLW) for the Career and Skills Training Programme as well as the Income Increment Programme. Through these programmes, participants will be able to benefit from skill training and assistance in the form of assets and raw materials; and

Sixth: Provide RM100 million to private skills training institutions and NGOs to enhance skills of the B40 group to help them get jobs or start business.

The Government is very concerned about the welfare and progress of the Orang Asli community. For this, RM300 million is allocated as follows:

First: RM80 million for the development of Integrated Villages including in Sungai Siput, Perak which involves the construction of connecting roads, provision of electricity and treated water;

Second: RM45 million for supplementary food assistance, pocket money and school transport fares; and

Third: RM25 million for development of rubber and oil palm plantations as well as cash crops through the Orang Asli Economic Development Project.

For the B40 group, the eRezeki and eUsahawan programmes will be expanded nationwide to increase employment opportunities and raise their income. The Government targets 100,000 people from B40 to benefit from the programme through an allocation of RM100 million provided by the Ministry of Communication and Multimedia.
For Paddy Farmers, Smallholders and Rubber Tappers, this Budget provides RM852 million to the Rubber Industry Smallholders Development Authority (RISDA) and Federal Land Consolidation and Rehabilitation Authority (FELCRA) to implement various income and productivity enhancement programmes.

The Government intends to improve the rubber production incentive (IPG). For this, I am pleased to announce that the IPG activation price of SMR20 FOB is raised from RM4.60 to RM5.50 per kilogramme as well as from RM1.75 to RM2.20 per kilogramme at farm price for scrap rubber or cuplumps.

As an illustration, based on the average production of 250 kilogrammes for each hectare per month, smallholders with two hectares are expected to receive income of RM1,000 per month, at a market price of scrap rubber of RM2 per kilogramme.

Now with an additional payment of RM0.20 per kilogramme from IPG, the overall income will be RM1,100 per month.

The improvement in IPG is expected to raise the income of 300,000 rubber smallholders with an allocation of RM200 million.

To encourage paddy farmers to increase the quality and quantity of harvests, the Government will implement a paddy grading initiative and improve the paddy price subsidy scheme or SSHP from 1 January 2016.

Paddy grading is based on standardisation of paddy prices at RM1,200 per metric tonne. To complement this initiative, the Government will also raise the rate of SSHP from RM248.10 to RM300 for every metric tonne.

This means that if a farmer produces six metric tonnes of paddy that meets the quality with a 20% discount, he is able to receive sales of RM5,760.

In addition, the farmer is also entitled to receive an additional income through SSHP with total income increasing from RM1,190 to RM1,440.
Overall, the farmer will receive RM7,200 for each harvest. A total of 155,000 farmers will benefit from the improved scheme.

Measure 2: Providing Affordable Houses. House ownership is an issue that has often been raised in recent years. The implementation of affordable housing requires the involvement of several agencies.

The 2016 Budget will continue with various house ownership programmes for all levels of income as follows:

First: PR1MA to build 175,000 houses which will be sold at 20% below market prices, with an allocation of RM1.6 billion. A total of 10,000 units are expected to be completed next year;

Second: SPNB will build 10,000 units of Rumah Mesra Rakyat with a subsidy of RM20,000 for each house through an allocation of RM200 million;

Third: Build 100,000 houses, priced between RM90,000 and RM300,000, under Perumahan Penjawat Awam 1 Malaysia (PPA1M) by 2018. A Facilitation Fund of up to 25% of development cost is provided;

Fourth: Build 22,300 units of apartments and 9,800 units of terrace houses under the People’s Housing Programme (PPR) with an allocation of RM863 million to KPKT;

Fifth: Establish a First House Deposit Financing Scheme under KPKT to assist first-time house buyers of affordable houses to pay the deposit. For this, RM200 million is allocated;

Sixth: Build 5,000 units of PR1MA and PPA1M houses in 10 locations in the vicinity of LRT and monorail stations, including in Pandan Jaya, Sentul and Titiwangsa;

Seventh: Allocate RM60 million to the Department of Orang Asli Development particularly for building houses for the community;

Eighth: Build houses for the second generation of settlers comprising 20,000 units by FELDA, 2,000 units by FELCRA and 2,000 units by RISDA.

For houses built by FELDA, the maximum price is reduced to RM70,000 from RM90,000 previously;

Ninth: GLCs to build affordable houses in the vicinity of the MRT station in Bandar Kwasa Damansara. Kwasa Land owned by EPF will build 800 units and Sime Darby Property 4,600 units; and

Tenth: Allocate RM40 million to KPKT for reviving abandoned low and medium-cost private housing projects;

In addition, exemption on stamp duty is given on financing instruments to contractors who revive the project as well as the original purchaser of the abandoned house.

To provide a comfortable living environment for the people, the following measures will be implemented:

First: RM150 million to build and repair 11,000 dilapidated houses in rural areas by KKLW; and

Second: RM155 million for maintenance of low-cost public housing and 1Malaysia Maintenance Fund by KPKT. Among others, the Fund provides 100% financing for the repair of lifts, railings as well as rewiring.

Measure 3: Quality Healthcare Services. Every country wishes to have the best world-class health quality. This is what the Barisan Nasional Government has and continues to strive for. Among the projects for health services that will be implemented are:

First: Building five new hospitals in Pasir Gudang, Kemaman, Pendang, Maran and Cyberjaya;

Second: The RM848-million Kuala Lumpur Women and Children’s Hospital will commence operations in October 2016;

Third: Redevelopment of Kajang Hospital;

Fourth: Provide RM260 million to build and upgrade rural clinics, health clinics, dental clinics as well as quarters nationwide;

Fifth: Allocate RM52 million for operating the existing 328 1Malaysia clinics and establishing 33 new ones;

Sixth: Allocate RM72 million to provide medical assistance, including haemodialysis, which is expected to benefit nearly 10,000 poor patients; and

Seventh: RM4.6 billion will be allocated for the supply of medicines, consumables, vaccines and reagents to all Government hospitals and clinics.

Beginning 1 January 2016, the Government will impose full medical charges on non-citizens.

Measure 4: Ensuring the Welfare of the Less Fortunate and Persons with Disabilities (PWD). The Government will continue to strengthen the social safety net system with an allocation of almost RM2 billion to the Ministry of Women, Family and Community Development to assist PWD, the elderly and poor families. For this, the following programmes will be implemented:

First: Allocate RM445 million for monthly allowance of RM350 for employed PWD; assistance of RM200 for unemployed PWD; and assistance of RM300 for taking care of bedridden PWD. The assistance will benefit nearly 150,000 PWD;

Second: RM100 million is allocated to establish an additional 20 Community-Based Rehabilitation Centres; and

Third: RM662 million is allocated for monthly assistance of RM100 to RM450 for children from poor families and RM300 for poor senior citizens.

Last year, the nation faced two major disasters, that is, massive floods at end-2014 and a major earthquake in Ranau, Sabah. If proactive measures are not taken, such disasters can cause huge losses amounting to billions of ringgit and more importantly, the loss of lives.

To strengthen natural disaster management, a sum of RM180 million will be provided including for establishing the National Disaster Management Agency under the Prime Minister’s Department.

A sum of RM730 million is provided for the Flood Mitigation Projects nationwide. Meanwhile, RM60 million is allocated to implement the National Flood Forecasting and Warning Programme and to develop a National Earthquake and Tsunami Sub-Centre in Sabah.

It is clear that this administration is carefully undertaking policies and plans as practised for decades.

I would like to reiterate that this Budget is part of a series of major measures which will enable us to achieve the status of an advanced nation.

However well we plan, ultimately the success of the nation depends on our ability to remain united.

We are thankful to the security forces for their service and sacrifice in ensuring peace and security in the country.

Therefore, the Government is committed to implementing capacity-building plans for the Malaysian Armed Forces (ATM) in stages.

In this regard, RM17.3 billion is allocated to the Ministry of Defence. This includes the procurement of six Littoral Combatant Ships, Very Short Range Air Defence weapons system, armoured vehicles and the A-400M Airbus.

ATM will be equipped with the latest technology including the use of Unmanned Airborne System to improve Intelligence, Surveillance and Reconnaissance capacity.

A sum of RM523 million is allocated for the development of an ESSCOM armed forces camp in FELDA Sahabat, Lahad Datu, Sabah.

In appreciation of the contribution of our heroes, a sum of RM160 million is provided to build 4,000 quarters for ATM personnel.

In addition, the Armed Forces Fund Board (LTAT) plans to build 2,000 units of affordable houses for armed forces personnel beginning 2016.

The Malaysian Maritime Enforcement Agency (APMM) is allocated RM864 million, among others, for the acquisition of Offshore Patrol Vessels and patrol boats.

To enhance safety and security in the country as well as to continuously reduce crime rate, RM13.1 billion is allocated. Among the initiatives that will be implemented:

First: RM155 million for building two new district police headquarters (IPD) in Lawas, Sarawak and Kota Kinabalu, Sabah while 10 IPD and five police stations are under construction;

Second: Plans to build 2,000 units of affordable houses for members of Polis Diraja Malaysia (PDRM), among them, in Rawang while other areas are being identified;

Third: RM36 million is allocated to build offices, quarters and upgrading of immigration detention depots;

Fourth: RM50 million for enhancing security measures in prisons; and

Fifth: RM20 million for the Safe City Programme in 60 black areas, among others, to provide pedestrian walkways and lighting in selected areas.

I would like to announce an additional 500 motorcycles and 500 cars for the patrolling unit at PDRM with a total allocation of RM35 million.

To enhance integrity and reduce leakages as well as corruption, Malaysian Anti-Corruption Commission (MACC) will be strengthened with relevant programmes and training. With this, the number of MACC officers will be increased as required.

The philosophy of 11MP and many other documents, including this Budget, is to prioritise the welfare and interest of the rakyat.

As we are aware, Malaysia is a progressive, dynamic and moderate Islamic nation well-known all over the world.

It is not an easy task to fulfil the needs of a moderate nation more so in the context of a multi-racial country.

We have since independence been practicing the principle of moderation in our own mould.

Based on these fundamentals, we have succeeded in building a nation that is prosperous, peaceful and harmonious.
In this regard, we cannot deny that the civil servants are the backbone and pillar of the nation’s administration.

Thus, let us congratulate and thank the more than 1.6 million civil servants who have served the nation well.

To appreciate the contributions of civil servants, the Government agrees:

First: Provide benefit of salary adjustment equivalent to one annual increment according to grade, which will benefit 1.6 million civil servants with an allocation of RM1.1 billion;

Second: Improve 252 schemes of service which will benefit 406,000 civil servants;

Third: Set a minimum starting salary in the civil service at RM1,200 a month, which will benefit 60,000 civil servants;

Fourth: Set the minimum pension rate at RM950 a month for pensioners with at least 25 years of service, which will benefit almost 50,000 pensioners; and

Fifth: Offer permanent post to contract of service officers who have at least 15 years of service. This will benefit 43,000 contract officers.

All these measures will be implemented effective from 1 July 2016 with a total allocation of RM1.4 billion.

To fulfil the pledge of reducing the cost of living for the rakyat, BR1M will be continued.

I know that there are parties who feel that BR1M should not be continued. However, from feedback that I have received, BR1M recipients appreciates the Government’s concern for it has somewhat helped them to reduce the cost of living.

In line with the Barisan Nasional Government’s pledge, I am pleased to announce that BR1M will be increased in 2016 as follows:

First: A new category will be introduced for all participants in the e-Kasih database, with monthly income below RM1,000, who will now receive BR1M of RM1,050;

Second: For households with monthly income of RM3,000 and below, BR1M will be increased from RM950 to RM1,000;

Third: For households with monthly income between RM3,001 and RM4,000, BR1M will be raised from RM750 to RM800;

Fourth: The Bereavement Scheme of RM1,000 will be continued;

Fifth: For single individuals aged 21 and above with monthly income not exceeding RM2,000, the assistance will be increased from RM350 to RM400.

In aggregate, BR1M assistance is expected to benefit 4.7 million households and 2.7 million single individuals with an allocation of RM5.9 billion.

In 11MP, I have mentioned about B40 and its definition. In this Budget, the Government will focus on another major group known as M40.

Statistically, M40 denotes households with monthly income ranging between RM3,860 and RM8,320. However, this definition of M40 will be further reviewed from time to time.

In this respect, I am pleased to announce:

First: The tax relief for each child below 18 years of age is increased from RM1,000 to RM2,000 from year of assessment 2016;

Second: The tax relief for individual taxpayer whose spouse has no income is increased from RM3,000 to RM4,000;

Third: Currently, individual taxpayers are given tax relief up to RM5,000 per year for medical treatment and care of parents who are ill.

The Government views positively the attitude of children who take care of the welfare of their parents and encourages strengthening of the family institution.

For the first time, tax relief for children who provide for their parents is given total tax relief of RM1,500 for the mother and RM1,500 for the father.

The relief is subject to the condition that each parent does not have income exceeding RM2,000 a month and must be 60 years and above.

Fourth: Increase the tax relief from RM6,000 to RM8,000 for each child above the age of 18 years who is studying at local or foreign institutions of higher learning, from year of assessment 2016.

Fifth: Increase the tax relief from RM6,000 to RM8,000 for disabled child above the age of 18 years who is studying at local or foreign institutions of higher learning, from year of assessment 2016.

The existing tax relief for parents with a disabled child is RM6,000. This means that if the disabled child continues his or her education in local or foreign institutions, the total relief allowable is RM14,000.

In addition to enable more employees to benefit from Social Security Organisation (SOCSO), the eligibility for mandatory contribution is increased from a monthly salary of RM3,000 to RM4,000. This adjustment will benefit 500,000 employees. Upon the death of the contributor, during the term of employment, the next of kin will receive a monthly payment of up to 90% of his last drawn monthly salary.

For decades, the Barisan Nasional Government has been shouldering the mandate and trust of the rakyat. This Government has continuously fulfilled and implemented its promises. This is a testament that the ruling Government has clear vision and direction.

More importantly, we continue to receive recognition from credible international agencies, such as Fitch Ratings, Moody’s and Standard & Poor’s, which have given an accurate assessment regarding the current state and management of the economy.

Over the years, we have achieved several successes. The latest was Malaysia’s ranking in the Global Competitiveness Report 2015 – 2016 by World Economic Forum where the nation improved two notches to 18th position out of 140 major economies.

To the rakyat, do not be worried. Have faith. This is a Government which you can rely on your future.

In whatever situation, my fellow colleagues and I will continue the nation’s economic plans, prioritising and giving importance to the well-being of the rakyat.

In essence, for this Government, the rakyat is everything. In this regard, I would like to announce effective from 1 July 2016, the national minimum wage will be increased from RM900 to RM1,000 per month for Peninsular Malaysia and from RM800 to RM920 for Sabah, Sarawak and the Federal Territory of Labuan. The new minimum wage will be implemented in all sectors except for domestic services or domestic maids.

Notwithstanding this, to reduce the burden of rising cost of living, the Government agrees to provide a special assistance of RM500 to all civil servants.

For the 700,000 Government pensioners, a special payment of RM250 will be provided. Both payments totalling almost RM1 billion will be made in January 2016.

Mr. Speaker Sir,

I beg to propose.

Published in: on October 23, 2015 at 17:45  Comments (2)  

A Bridge, Too Far

The fight for Arnhem Bridge. Operation Market Garden. September 1944

It seems like the ongoing ‘Operation Market Garden’ to ouster Prime Minister Dato’ Sri Mohd. Najib Tun Razak ahead of the 14GE, expected to be early 2018 is getting further away from meeting its objective.

The pro-Anwarista news portal story:

Dr Mahathir says little chance of ousting Najib

Published: 22 October 2015 10:10 PM | Updated: 23 October 2015 7:04 AM
Malaysia’s former prime minister Tun Dr Mahathir Mohamad conceded today that the chances of unseating Prime Minister Datuk Seri Najib Razak before polls in 2018 are slim, despite his rallying cries for a “people’s power” movement to topple the country’s leader.

The 90-year-old statesman, who led Malaysia for 22 years, has called on Najib to step down following allegations of corruption and mismanagement at state-owned fund 1Malaysia Development Berhad (1MDB).

But Dr Mahathir says lawmakers within Najib’s Umno are protecting their leader, and slammed them for not speaking up.
“All of them are scared and they look after their own safety. They’re not looking after the party, the nation. It’s about themselves,” he told Reuters, speaking from his office at the Petronas Towers in Kuala Lumpur.
“The way he’s going he might go full term. The way Umno has accepted him because they find he’s comfortable to be with, I think he can go full term.”

Dr Mahathir was once Najib’s patron but turned against him in 2013 by criticising the government’s economic policies and friendliness with the West.

The former leader demanded Najib step down after it was reported in July that investigators looking into alleged wrongdoing at 1MDB had traced a payment of nearly US$700 million (RM2.6 billion) going into the prime minister’s personal bank accounts.

Najib denies taking any money for personal gain.

The fallout from the allegations has scared away foreign investors though, adding to pressure on Malaysia’s economy that was already suffering from falling commodity prices.

Opposition leaders have called on all lawmakers to reject the annual budget that Najib will present to Parliament tomorrow as a show of no confidence against him.

They have also tried to bring a formal no-confidence vote against him.

But Dr Mahathir said such measures would fail as the opposition does not have the numbers to challenge the ruling coalition.

“The fact is that, the opposition is not able to gather enough people to support that. So the government with more support in parliament will push it (the budget) through.”

He said Umno lawmakers were scared of Najib taking action against them, while some others were just “comfortable”.

Najib has previously cracked down on dissenters in his government, ousting his deputy Tan Sri Muhyiddin Yassin and other ministers critical of his governance in a Cabinet reshuffle earlier this year.

He also replaced the attorney-general who was leading an investigation into 1MDB.

Muhyiddin, who is the current Umno deputy president, made a rare public appearance with Dr Mahathir earlier this month to condemn the arrest of two men who approached foreign investigators with documents about 1MDB.

Dr Mahathir said he believes Muhyiddin could lead the country, if Najib were to go.

“The former deputy PM would still be able to lead the country, provided that he listens to good advice… people with experience.”

Mahathir said he was concerned following reports that police were investigating him for allegedly making defamatory comments during a rally to protest against Najib.

“I fear, not because of anything, but because of manipulation of justice, manipulation of the law. Otherwise according to the law I have done nothing wrong.” – Reuters, October 22, 2015.

– See more at: http://www.themalaysianinsider.com/malaysia/article/dr-mahathir-says-little-chance-of-ousting-najib#sthash.rJAGnJXr.dpuf


The current political scenario is exactly like Field Marshall Bernard Montgomery’s failed ‘Operation Market Garden’ when British Army 1st Airborne was dropped simultaneously with US Army 82nd and 101st Airborne Divisions to capture Arnhem, Nijmagen and Eindhoven.

At the same time, Gen. Brian Horrocks XXX Corp would pouch through the German lines at the Belgian-Holland border and connect the three divisions within 72 hours.

It was a first major Allied Forces failure after the successful “Operation Overlord’ D-Day Landings on 6 June 1944 in Normandy, France.

Fourth Prime Minister Tun Dr. Mahathir Mohamad made up his aloud seven months ago that Prime Minister Najib was incapable and had to leave, either quit or be ousted.

He has been working with likeminded persons such as Sarawak Report Editor Clare Rewcastle-Brown and his minions have been operating aggressively to manipulate and fabricate facts and stories and perpetuating and echoing them, with the help of foreign media.

Tun Dr Mahathir Mohamad met Sarawak Report Editor Clare Rewcastle-Brown at his office in Perdana Leadership Foundation, Precinct 10, Putrajaya

Two of persons closely associated with the Fourth Prime Minister staged a series continuous reports based on manipulation and lies to foreign authorities and manipulated some of the facts for the benefit of perpetuating lies. They have since arrested under Security Offences (Special Measures) Act 2012 (SOSMA) and charged under section 124L of the Penal Code for sabotaging the Malaysian banking and financial system.

These foreign media and some of the backers of these NGOs working in cahoot the demonisation of Prime Minister Najib and the Malaysian Government.

The strategy of these different sides are common, with have almost similar approach and storyline. However, the objective is different.

Example is Tun Dr. Mahathir. He wants Prime Minister Najib to be ousted but Barisan Nasional still remain in power.

However, Opposition Leaders such as Tony Pua, Rafizi Daud, Wong Chen, media operatives Rewcastle-Brown, The Edge Media Group and the assortment of foreign media and NGOs such as Malaysia Opposition centric ones and Neo Con Jewish-backed Open Forum Society, Global Witness etc. all have the common objective to see the defeat UMNO-BN control of Federal Government.

The concerted effort so far failed. It did not got the traction what they intended to be. This is despite never before in history there was ever a Malaysian Prime Minister was subjected to such a concentrated, intensified and concerted effort in to oust a sitting Prime Minister.

However, it did damage some degree of public perception towards Prime Minister Najib and probably erode the confidence towards his leadership, administration and policies. Never the less, it didn’t do enough damage to get the rakyat to rise against the Malaysian Government and do a ‘Malaysian Spring’.

Even the BERSIH 4.0 29-30 August 2015 did gather enough traction to move the masses for Malaysians to outer Prime Minister Najib. Not even when Tun Dr. Mahathir attended both days and proclaimed that he was not supporting the rally but instead for the “People’s power” to meet his objective.

This is not the first time the Former Kota Setar Selatan dan Kubang Pasu MP gone after a sitting UMNO President and Prime Minister. The last time he did this, he welcomed Prime Minister Najib to come in as the Seventh UMNO President.

It is obvious that the bridge has been burnt after Fourth Prime Minister incessant progressively voracious attacks within very small space against Prime Minister Najib, in the past seven month.

Inadvertently, what Tun Dr. Mahathir did in his determined effort to oust Prime Minister Najib and desire for BN to remain govern Malaysia might prove to be counter productive. For himself, Prime Minister Najib, UMNO and BN.

Published in: on October 23, 2015 at 10:00  Comments (2)  

The Rewcastle-Brown connection


The two men who were charged for sabotaging the Malaysian banking and financial system posed for the lenses, in their jail ware.

They were charged on 12 October 2015, after both were detained under Special Ordinance (Security Measures) Act 2012, to faciliate investigations after the two made police reports in London, Hong Kong and Singapore.

Now, they are challenging the Attorney General:

The Star story:

Published: Monday October 19, 2015 MYT 8:12:00 PM
Updated: Monday October 19, 2015 MYT 8:17:10 PM

Khairuddin, Chang to initiate contempt proceedings against A-G

KUALA LUMPUR: Former Batu Kawan Umno vice-chairman Datuk Seri Khairuddin Abu Hassan and his lawyer Matthias Chang are set to initiate contempt of court proceedings against the Attorney-General for allegedly making a press statement explaining the charge against them.

The duo’s lead counsel Mohamed Haniff Khatri Abdulla said his clients had filed an application on Oct 13 to seek clarification on whether their charge under Section 124L of the Penal Code fell within the ambit of the Security Offences (Special Measures) Act 2012 (Sosma).

Khairuddin and Chang were charged at a magistrate’s court on Oct 12 for allegedly attempting to sabotage the country’s banking and financial systems.

They claim that Attorney-General Tan Sri Mohamed Apandi Ali had conducted a press conference at 2.30pm on Oct 13, explaining the charge while the case was still pending.

“It is the complaint of the applicants that the contents (of the A-G’s press statement) were subjudice and amount to contempt of court,” Haniff Khatri said.

He added that Mohamed Apandi had commented on the case “in such a way that there was a real and substantial danger of prejudice to the determination of the application”.

Mohamed Apandi had stressed at a press conference last week that Khairuddin and Chang were not charged under Sosma but Section 124L of the Penal Code.

He further noted that Sosma covered all security offences and was not limited to terrorism and terrorists.


AG Tan Sri Apandi’s Ali explanation of the arrest under SOSMA (2012).

The duo also incessantly lied about Prime Minister Dato’ Sri Mohd. Najib Tun Razak would be arrested by US Federal Bureau of Investigation whenever abroad especially in the UK, US and Hong Kong. It was part in their sordid attempt to demonise the Malaysian leader, in the eyes of Malaysian public and for the benefit of global media.

By conduct and intention, is clear that the duo is deemed “Where as action has  been taken and further action is threatened by a substantial body both inside and outside Malaysia”.

Security Offices (Special measures) Act 2012, also known as SOSMA

Security Offices (Special measures) Act 2012, also known as SOSMA

The intent is rile up Malaysians to demonise and rise against and topple the administration of Prime Minister Najib. They abused their right as citizens to make the allegations by making the Police reports.

Their complaint is very consistent with the manipulated and fabricated stories which appeared in Sarawak Report.

Both were also in constant contact with Sarawak Report editor Clare Rewcastle-Brown and also believed to be two of the ten implicated with former Petro Saudi Executive Xavier Justo, when the later was arrested by Thai Police. Justo is now serving three years jail term of extortion.

It is believed that the duo worked with Rewcastle-Brown to demonise Prime Minister Najib by raising a series of continuous controversies, which include manipulating stories and incessantly lied about 1MDB.

*Updated 2200hrs


Published in: on October 19, 2015 at 20:00  Comments (6)  

A horse to be named ‘Mahathir’?


Relationship is both a symbolic interactionism and measurement the extend between two parties to each other and how it is cyclical in nature.

Datuk Rocky posted about former Law Minister Dato’  Zaid Ibrahim’s launch of his upcoming book the Monday after next and the guest of honour is Fourth Prime Minister Tun Dr. Mahathir Mohamad. It is a development staggering to many.

This manifest of re-establishment of one time good relationship between two outstanding and strong Malay leaders and needless to day, reflective of the fondness of one to another.

Zaid Ibrahim collected Tun Dr, Mahathir at Pasar Seni LRT station on 30 August 2015, as the latter attended the second in a row appearance at BERSIH 4.0

Zaid Ibrahim collected Tun Dr, Mahathir at Pasar Seni LRT station on 30 August 2015, as the latter attended the second day in a row appearance at BERSIH 4.0. Both later shared a media conference together

Quoting a close friend when his opinion is sought for Datuk Rocky’s latest posting, “Five years ago, we would not have imagined that events would brought the two to this. We remembered how Tun (Dr. Mahathir) trusted him (Zaid) for UMNO’s wealth. Now, it seems that they have fostered a tight relationship again, unimaginable in this lifetime after what had happened”.

He was talking about Tun Dr. Mahathir Mohamad actively campaigned against Zaid in the P094 Hulu Selangor by-election April 2010. Zaid was then a PKR candidate and Opposition Leader Anwar Ibrahim’s horse for the Parliamentary race.

Tun Dr. Mahathir also in November 2008 lambasted Zaid who initiated the ex-gratia payment for the judges who were sacked during the former’s premiership. This is when the Law Minister contradicted himself, on the matter when he was a lawyer for UMNO.

Then again, he reminded us that Zaid was one of the specially entrusted solicitors who was tasked to recover all UMNO assets after Kuala Lumpur High Court declared the party ‘Illegal’  and the nationalist party was deregistered on 4 February 1988.

Zaid Ibrahim's earlier book

Zaid Ibrahim’s earlier book

Our ‘Thirteen Million Plus Ringgit Question” is would Zaid be naming one of his horses ‘Mahathir’, as a demonstration of utter reverence and fondness? He once named a stallion, ‘Melayu’.

It was seen as uplifting the stature of the Malays manifested in a high-society-Western-influenced sport loved by the upper classes, involving an elaborate rigorous training and discipline. It was probably Zaid’s eccentric call to the world that the Malays have arrived.

Tun Dr. Mahathir enjoying his most favourite sport

Tun Dr. Mahathir taking time off to enjoy his most favourite sport

“After all, both of them love and breed horses. Why not?”, adds our close friend.

Hence, we are contemplating of taking bets on the notion of Zaid’s next equestrian venture, an intriguing evolution from an amphibian known to the Malays as “Katak”.

Published in: on October 17, 2015 at 12:00  Comments (23)  

The conventional strategic defence initiative

RMN Perdana Class submarines KD Tunku Abdul Rahman and KD Tun Razak, in Sepanggar Bay, Sabah

RMN Perdana Class submarines KD Tunku Abdul Rahman and KD Tun Razak, in Sepanggar Bay, Sabah

The submarine force of any navy is the strategic non-nuclear capability which acts as a serious deterrent before any naval military manoeuvres and outcome is calculated. The role of the largest Commonwealth nation in the region is being measured on its submarine force capability.

The Diplomat story:

Australia’s Submarine Debate: Shipyards and Seas

The debate often misses the regional context surrounding Australia’s submarine program.
By Helen Clark
October 13, 2015

What’s being left out of Australia’s submarine and naval security debate? The region those subs will be patrolling.

In terms of defense news, the submarine debate on who will build Australia’s new fleet, and where it will be built, has had some staying power. However, the mainstream debate has not really looked at changes in the region. Many countries in the Asia-Pacific are now pursuing their own submarine plans, and nuclear-capable submarines in the Indian Ocean are not far away.

The South China Sea is a focus for new Prime Minister Malcolm Turnbull but the recent drill with India hasn’t received a lot of attention in the Australian press. What else is happening in the region, and what might that mean for future submarine and naval plans.

China and South China Sea a Priority

Turnbull gave his first serious interview on September 21. He spoke about domestic and foreign policy. ISIS, of course, remains a threat. But Turnbull has also come out strongly against China “pushing the envelope” in the South China Sea and suggested it is pushing regional instability whilst also ensuring a greater U.S. presence in the area, something that would seem contrary to Chinese interests.

How will this affect Australia and what will Australia’s role be in one of the busiest and most contested waters?

On this Turnbull was a little less clear: “Well our Defence Force has – and this is not a revelation … Our Defence Forces have to be able to play a role in a range of different potential conflict situations. But, you know, we’re not – we’re not seeking to, um, ah – I don’t want to – no-one – no-one, least of all the Australian Government, wants to exacerbate situations.”

Turnbull is right that China’s actions seems to be driving a greater U.S. presence and closer relations between it and certain nations.

He name checked the closer Vietnam-U.S. relationship. According to this mid-2014 piece from HIS Jane’s territorial disputes in the Asia-Pacific and “continued concerns over China’s military development – are driving defence spending across the region.

This has been characterised by some as an arms race, although it may be better viewed as a region-wide materiel upgrade propelled by resource competition, rising government revenues and declining markets elsewhere in the world.”

At the same time, both China and India are moving closer to having nuclear-capable submarines patrol the Indo-Pacific, and India and Australia are keen on naval exercises. Australia, in fact, wishes to participate in the Malabar exercises with India, the U.S. and Japan; Australia withdrew from those exercises in 2008.

The View in Australia, SEA 1000, etc.

China is a factor in many Australian plans, both economic and defense. China will also factor in the upcoming defense White Paper, which was delayed after former Prime Minister Tony Abbott’s shipbuilding announcement and may now make it out in October or November.

The Competitive Evaluation Process (CEP) between Japan, Germany and France and the issue over local build is front and center in the debate on the future submarine fleet. Sweden, which built the six Collins-class submarines the Royal Australian Navy currently operates, was ruled out early, to their and others’ surprise.

Japan was picked earlier, for strategic and alliance reasons, but the up and downsides remain, on a purely technical level, complex. Australia, with its enormous coastline, has special needs and can’t simply chose an off-the-rack purchase, even if domestic politics was not such an important factor.

The Australian Strategic Policy Institute has been running an excellent series on this on their Strategist blog, profiling the three nations and nearly every other aspect of the submarine process. The Kockums-built Collins-class were designed with Australian needs in mind, both the large coastline and a deterrence-based defense policy.

Though sometimes maligned, they are among the quietest and least detectable subs in operation. The question won’t be decided this year and new Defense Minister Marise Payne has already said she won’t be drawn into debate at this stage.

The CEP is politically loaded, of course, and Tony Abbott’s announcements of a A$90 billion ($65.6 billion) naval ship and submarine build and 2000 jobs for South Australia early last month were called a first “election salvo.”

A paper from the Defence Minister said in February, “Submarines are the most complex, sensitive and expensive Defence capability acquisition a Government can make.”

The go-or-no dogfighting capabilities of the F-35 pale in comparison to the complexities of a submarine fleet, especially one built for Australia’s unique needs. The winner of the CEP will have to build as much of the new fleet in Australia as possible, despite the poor report on the Air Warfare Destroyers and a lengthy report by RAND Corp commissioned by the Australian government earlier this year on the naval shipbuilding capabilities of the three main shipyards that suggested they were not quite competitive or effective enough.

One of the talking points of the Japanese Soryu-class, which former Abbott was earlier suggesting Australia should buy off-the-rack, was that it might have shored up something of a trilateral alliance between Australia, the U.S. and Japan.

The U.S. was certainly happy with the Soryu idea. Aussies however, were not remotely happy with the idea of coming to the aid of Japan should any conflict with China arise.

Ankit Panda has a more up-to-date analysis on what Malcolm Turnbull might mean for a Japanese sub-build.

The Missing Piece of the Debate

So far, so much the same ground covered. All this has been the view from Australia since last year. But the rest of the region is also engaged in its own submarine race. Politicians aren’t talking about that as much, outside of Turnbull’s South China Sea comments.

Vietnam has now taken possession of its six new Kilo-class Russian-made submarines, ordered in 2009. Vietnam also wants naval assistance from Washington, with President Truong Tan Sang saying during Ashton Carter’s June visit that he would like Washington to “provide all necessary assistance to Vietnam in raising the capacity of maritime law enforcement forces.”

Indonesia is now looking at Russian subs of its own, preferring when the budget allows it, to buy new and no longer second hand. More broadly, Indonesia wishes to increase its naval presence in the region. Thailand has been wanting submarine capability for a long time but has delayed purchase again after finally plumping for three Chinese-built subs. As Prashanth Parameswaran has noted, the Chinese option was unexpected, “given the significance of the purchase, the Thai military’s preference for Western equipment which was also on offer, and well-known suspicions about the reliability of submarines from Beijing….”

At the same time this worthwhile paper from the Lowy Institute has noted that China and India are moving to the test phase of their nuclear-armed submarines, which will patrol the Indo-Pacific, and discusses what that might mean for stability. China can apparently already put a nuclear-capable submarine out to sea with weapons. “Advocates of sea-based nuclear weapons see such fleets as providing stability because of their relative invulnerability to surprise attack… This was certainly the case during the Cold War. But what applied in the 20th century struggle between the West and the Soviet Union does not necessarily hold for the more complex strategic situation that is now evolving in Asia.” The security environment is changing rapidly, in other words.

The majority of Australia’s trade goes through an area already patrolled by half the world’s submarines, and with plans afoot for more in many nations this will increase.

Australia is concerned enough to have been involved in its first-ever war games with India, ones which had a submarine focus, which apparently unsettled the Chinese. Captain Sheldon Williams, defense advisor at the Australian High Commission in New Delhi told Bloomberg last month, that there is “potential for increased security tensions in the Indian Ocean.. We sit right in the confluence of the Indian and Pacific Oceans. We have a significant responsibility for its security. That’s how we’re looking at it now.”

Australia and India both have a stake in Chinese nuclear-capable submarines in the Indian Ocean. Australia has also requested to join the Malabar Exercise between India, the U.S. and Japan, though actually pulled out in 2008 under Kevin Rudd.

These wider strategic moves do not always make it into public debate over the circumstances Australian submarines might face. What would closer ties or a “democratic security diamond” (as Shinzo Abe has said of the Japan-U.S.-India-Australia quadrilateral arrangement) mean?

Would the pick of a customized Soryu be a good option for those reasons? What is Australia’s perception of these shifts in the security environment? Much may be cleared up once the White Paper finally arrives, but until then the debate will stick to shipyards and not seas.


Again, Australian naval operations take into consideration the development is South East Asia where China is staking a claim for the ‘Nine-Dash-Line’, in a multinational dispute of territorial waters.

China encroaching into neighbours EEZ territories as defined by UNCLOS (1982) and relationship is sliding downwards

China encroaching into neighbours EEZ territories as defined by UNCLOS (1982) and relationship is sliding downwards

The South China Sea is the second most busiest and important merchant shipping waterway, on top of the rich hydrocarbon deposits. Both are within the ambit of China’s interest to have access to and control.

The ability to project force between the major naval powers in the region is not primarily for the South China Sea alone, but all the way across the vast Indian Ocean.

The projecting of force with effective submarine capability would provide an added burden to the potential aggressor. It is as when the risk is calculated, the potency of a submarine is equal to ten surface combat vessel.

It is very important for Malaysia to continue having a strong naval force with even more potent submarine force. Considering as maritime state Malaysia is dependent to sea for trade, food and other essential imports, the ability to project force is deemed necessary when the need arises.

It was a strategic decision to acquire the Perdana Class Scorpene submarines. However, it was heavily politicised with really bad demonisation-intent after tones.

In the interest of trade growth and stepping into a developed nation status, Malaysia should be moving forward by acquisition of more assets to improve the potency of the submarine force of the Royal Malaysian Navy and not pander to pessimism and lies and regress.

Published in: on October 15, 2015 at 11:30  Comments (5)  

The Hijrah gravely needed for the likes of Pua

In wake of the recent statement by the Attorney General, the very morning of 1 Muharram 1437H 1MDB issued the call for Strategic Director Tony Pua to “Present the clear cut evidence” and “Walk the Talk”, or risk losing the position of adjudication.

Media statement by 1Malaysia Development Berhad

Issued on 14 October 2015
For immediate publication

Walk the Talk, YB Tony Pua

1MDB refers to a statement issued on 14 October 2015 by YB Tony Pua which, in typical “instant expert” style, is long on rhetoric but short on facts.

The facts are as presented by the Attorney-General’s Chambers (AGC), via a clear and unambiguous statement issued on 13 October 2015 (www.agc.gov.my). In summary, the AGC, having reviewed all relevant documentation contained in the Bank Negara Malaysia (BNM) investigation papers (including the application forms submitted by 1MDB and the relevant BNM letters issued), applied the relevant laws governing such matters and confirmed that “no offence had been committed” by 1MDB.

This confirmation by the AGC reinforces the statement by the Malaysian Anti-Corruption Commission (MACC) on 22 September 2015 that 1MDB is not under investigation.

1MDB continues to work closely with National Audit Department to provide requisite information for its final report, which will be presented by year end to the bi-partisan Public Accounts Committee (PAC), of which YB Tony Pua is a member.

YB Tony Pua claims his “expose” will provide “clear cut evidence” of “criminal breach of trust, abetting misappropriation and embezzlement” to the investigating authorities. These are serious criminal accusations, so we urge YB Tony Pua to “walk the talk” and provide his “clear cut evidence” to the lawful authorities for further investigation. 1MDB has consistently maintained that if there is any evidence of wrongdoing, then action must be taken under the law.

However, if he cannot provide such evidence, then YB Tony Pua should stop making wild and unproven allegations, which are clearly politically motivated.


Pua has been time and again abuse his position, role and function as a Parliamentarian Public Accounts Committee (PAC) member.

PAC is a select committee appoint by Parliamentarians, having the power to scrutinise the accounts of Government agencies and departments. It is supposed to be the highest forum of audit committee.

PAC is expected to be professional in their approach, in upholding the interest of the rakyat who voted Parliamentarians to represent them in the augur legislative chambers.

What Pua did was bastardising that position, role and authority for his sinister political agenda.

That is why Pua and his likes of demons should do the Hijrah and transform, in the name of the righteousness that they have been elected to do for the rakyat.

Then there is the other pressing various aggregated situation pertaining to 1MDB by various parties.

Yesterday Attorney General Tan Sri Apandi Ali put it sternly on record in a media conference that Bank Negara Malaysia erred in their statements with regards to matters pertaining to 1MDB, which include the approval of monies remittance in the past.

In the case of the arrest and charge of Khairuddin and Chang for “Attempting to sabotage the Malaysia’s banking and financial system”, Apandi also put that the ‘disaster duo’ were arrested and investigated under Security Ordinance (Special Measures) Act (2012). Later, the ‘disaster duo’ were charged under Article 124L of the Penal Code, not SOSMA (2012).

“SOSMA is a procedural law that provides the special measures to facilitate the investigation and prosecution of what is known as ‘Security Offences’. It is not limited to terrorism or terrorist alone”.

The former Federal Court Judge also added that SOSMA allowed persons to be arrested and investigated even they are not terrorists. Hence, the arrest of the ‘disaster duo’  is valid and legal.

Apandi was strong in highlighting the ‘Former Club’s first-thing-in-the media conference in Precinct 10, Putrajaya, which was designed to rile up the emotions of Malaysians.

They collective and in sundry issued strong but misleading statements to project that the Federal Government abused the law, for the purpose of ‘protecting Prime Minister Dato’ Sri Mohd. Najib Tun Razak in the controversy issues arisen from 1MDB and its ongoing investigations’.

It is the right time for Pua and the ‘Former Club’ six and their staunchest supporters to do the Hijrah, for the betterment of the majority if not all Malaysians.

Published in: on October 14, 2015 at 11:45  Comments (2)  

The game is afoot

1MDB has challenged DAP Strategist and MP for Petaling Jaya Utara Tony Pua to do the responsible thing as a Parliamentarian and Public Accounts Committee (PAC) member, by seriously call for the investigation on how confidential BNM papers on the Federal Government strategic investment corporation ended up with Sarawak Report Editor Clare Rewcastle-Brown.

Media statement by 1Malaysia Development Berhad

Issued on 13 October 2015
For immediate publication

Take Action, “Tidak Apa” Tony

1MDB refers to a statement issued by YB Tony Pua this morning. We note that YB Tony Pua has yet again become an instant expert on certain technical matters. This tiresome approach is designed for nothing more than political point scoring which benefits no one.

It is important to highlight Bank Negara Malaysia (BNM) clearly stated “… the Bank concluded that permissions required under the ECA for 1MDB’s investments abroad were obtained based on inaccurate or without complete disclosure of material information relevant to the Bank’s assessment of 1MDB’s applications.”

The above findings appear to be very different from the unproven allegations of fraud, embezzlement, theft, money laundering etc. made against 1MDB by, amongst others, Clare Rewcastle-Brown, YB Tony Pua, YABhg Tun Mahathir Mohamed, YB Tan Sri Muhyiddin Yassin, YB Datuk Seri Shafie Apdal and others.

Accordingly, the Attorney-General’s Chambers, having reviewed the investigation papers and recommendations of Bank Negara Malaysia (BNM), has determined that no further action is to be taken. This point has been accepted by BNM itself, which clearly stated “It is to be noted that under the Federal Constitution, the decision to initiate criminal prosecution lies solely with the Attorney-General.”
We suggest that YB Tony Pua focus his attention on matters on which he has taken a “tidak apa” (lackadaisical) attitude, e.g. did he know that Clare Rewcastle-Brown was involved in the sale of stolen goods, based on the following quote attributed to her (which neither Clare nor Tony has denied) – “I have told Tony that if he doesn’t pay up then he will be seen to have been dealing with me as you (Justo) are threatening to publish (make public the deal).”

Alternatively, YB Tony Pua may want to commence an enquiry as to how confidential BNM investigation documents ended up in the possession of the foreign internet portal, the Sarawak Report or how confidential Public Accounts Committee (PAC) documents such as the Auditor-General interim report ended up with the foreign news publication, the Wall Street Journal.

We trust YB Tony Pua will take all necessary actions to, at the very least, preserve the now questionable integrity of the PAC process and not continue to mislead the public on matters outside of his competency.


Bank Negara statement:

Statement on 1MDB

The Attorney General’s decision with respect to the investigations on 1Malaysia Development Berhad (1MDB) relates to Bank Negara Malaysia’s recommendation to initiate criminal prosecution against 1MDB for breaches under the Exchange Control Act 1953 (ECA). It is to be noted that under the Federal Constitution, the decision to initiate criminal prosecution lies solely with the Attorney General.

As an investigative authority, the Bank is duty bound to conduct its investigations with the highest professional care and diligence. The Bank at all times expects full and accurate disclosure of information by applicants in considering any application under the ECA. On its part, the Bank concluded that permissions required under the ECA for 1MDB’s investments abroad were obtained based on inaccurate or without complete disclosure of material information relevant to the Bank’s assessment of 1MDB’s applications.

Therefore, the Bank has revoked three permissions granted to 1MDB under the ECA for investments abroad totalling USD1.83 billion and also issued a direction under the Financial Services Act 2013 to 1MDB to repatriate the amount of USD1.83 billion to Malaysia and submit a plan to the Bank for this purpose.
The Bank will continue to extend its full cooperation to ongoing investigations by the Royal Malaysia Police and the Malaysia Anti-Corruption Commission.
Bank Negara Malaysia
09 October 2015


The false allegations made by the personalities stated by 1MDB in the statement is very serious and warrants to be rectified. Pua as a PAC member should stand up for the principle of righteousness and do the necessary to correct the misleading if not false allegations made.

The attitude of selective on Pua’s part if reflective of his disinterest to present himself as a true Parliamentarian and representative of the rakyat but instead play politics.

As a prevaricator, Pua has countless times used 1MDB as the bogeyman to demonise the leadership of Prime Minister Dato’ Sri Mohd. Najib Tun Razak, even by bastardising this position and role as a PAC member.

Published in: on October 13, 2015 at 13:00  Leave a Comment