KUALA LUMPUR — Malaysia is on track to achieving high-income status, according to the World Bank, while many of its Southeast Asian neighbors face the prospect of being caught in a middle-income trap. “Malaysia is well on its way to cross the threshold into high-income and developed country status over the coming years,” Victoria Kwakwa, the World Bank vice-president for East Asia and Pacific, said this month after meeting Prime Minister Mahathir Mohamad. Malaysia’s gross national income per capita has grown from $1,980 in 1981, when Mahathir first became prime minister, to $9,650 in 2017. Even so, the country still has some way to go to reach the World Bank’s developed country benchmark of $12,055. “As long as the country does not face growth stagnation, it is inching toward the high income level as defined by the World Bank,” said Yeah Kim Leng, Professor of Economics at Sunway University Business School in Kuala Lumpur. “Hence, it’s a question of when, give or take a couple of years, as long as it is able to sustain its current growth momentum.”
JAKARTA — Rattled by rapid oil price swings in recent months, Southeast Asian economies are on tenterhooks ahead of an OPEC meeting this week that is expected to result in a supply cut to boost prices. The recent plunge in prices — the benchmark Brent crude dipped under $60 a barrel last week — has benefited economies such as Indonesia and the Philippines that are net importers of oil. This is helping to blunt the inflationary effects of currency slides against the U.S. dollar in these countries, which are caught in the crossfire of the U.S.-China trade war. Oil rebounded as much as 5% on Monday after the U.S. and China agreed to a truce in their trade conflict. This latest move follows a 30% slide in crude last month, after it touched four-year highs at the start of October. While nations in the region welcome the break in trade tensions — Singaporean Prime Minister Lee Hsien Loong said on Sunday that he hoped to see the U.S. and China take further “constructive” steps — they have to be prepared for further volatility after the meeting of the oil producing cartel that starts on Thursday.
JAKARTA — In contrast to Malaysia’s electoral earthquake in May, which resulted in the first opposition win since independence, last Sunday’s elections in Cambodia produced a predictable landslide victory for Prime Minister Hun Sen, in power since 1985. His Cambodian People’s Party claims to have won all 125 seats available, prompting Mu Sochea, an exiled opposition leader, to tell media in Jakarta that election day “marked the death of democracy in Cambodia.” The view from Malaysia: “Millions of Cambodians were denied a genuine choice, as the CPP’s victory was guaranteed even before the first ballot was cast,” said Charles Santiago, a member of the Democratic Action Party, which is now part of the new Mahathir Mohamad-led governing coalition, in a statement released on Monday.
JAKARTA – A businessman alleged to have aided Malaysian Prime Minister Najib Razak siphon millions from a state development fund has fled the country as an Interpol warrant was issued for his arrest. Mr Najib, who has pleaded not guilty to three counts of criminal breach of trust and one of abuse of power, is alleged to been involved in the laundering of millions from the state fund he established – 1MDB. Malaysian authorities said that Jho Low, a financier who US prosecutors claim was a central figure in the looting of the fund, had fled the country.
KUALA LUMPUR — Malaysia’s opposition and its 92-year-old autocrat-turned-reformer prevailed in Wednesday’s election, upsetting the coalition that has ruled the country for the last six decades. Pakatan Harapan, or Alliance of Hope, won 113 seats in the country’s parliament — one more than needed to form a government and dislodge Prime Minister Najib Razak, who has been in office since 2009 and whose Barisan Nasional, or National Front, has held power since the country gained independence from Britain in 1957. By 10 p.m. Wednesday, thousands of opposition supporters had poured into the streets of the capital, Kuala Lumpur, and other cities in anticipation of a formal announcement of victory. “We have in fact achieved a substantial majority,” Mahathir Mohamad, the former prime minister who became a front man for the opposition, said at a news conference at 2:30 a.m. Thursday. “I hope tomorrow we will have a swearing in of the prime minister.”
KAMPUNG BUKIT, KEDAH, MALAYSIA — With police investigating him under Malaysia’s new anti-“fake news” law, Mahathir Mohamad, the nearly 93-year-old former prime minister turned opposition frontman, says his country faces its dirtiest election on Wednesday. The governing coalition “will cheat like mad, they will steal votes, but still I think we can win,” Mahathir said in an interview with The Times, stepping off a makeshift stage and into a nearby BMW waiting to take him to yet another campaign rally. Defying his age, Mahathir had just wrapped up a half-hour stump speech in this farming area about a 20-mile drive from Aloh Setar, the capital of Kedah state, his home base. Kedah has typically been a government stronghold, although the green flags of Malaysia’s Islamist party also flutter along its roadsides. Mahathir wants to swing the state, and enough rural Muslim Malays across the country, to his four-party opposition grouping known as the Alliance of Hope.
GEORGE TOWN — Not many people give Malaysia’s opposition much hope of ending the Barisan Nasional’s 13 election winning streak, when the country goes to the polls next Wednesday May 9th. “For a government to rule for 60 years in a democracy, it shows there is something wrong with the country,” said Harindra Singh, a volunteer canvasser with the Democratic Action Party, the biggest of the 4 parties that make up the opposition coalition. The Barisan Nasional, or National Front, has governed Malaysia since independence from the UK in 1957. In the last elections held almost 5 years ago to the day, the Front lost the popular vote by 3% but still won enough of a majority of parliamentary seats to once again form a government.
SINGAPORE — The recent exposé of how polling firm Cambridge Analytica mined Facebook for information on voters was focused mainly on the United States. But the investigation, which aired on the UK’s Channel 4 last month, has caused ructions in Malaysia after Mark Turnbull, a Cambridge Analytica executive, was filmed bragging that they helped the governing coalition retain power in the country’s last elections in 201, apparently by using social media to profile voters and deliver campaign messages. “We’ve done it in Mexico, we’ve done it in Malaysia and now we’re going to Brazil,” Turnbull said. With another election due anytime between now and August, Malaysia’s opposition predictably seized on that claim. The government in turn said it had nothing to answer for, blaming Mukhriz Mahathir, a former ally turned opposition member, for personally hiring Cambridge Analytica.
JAKARTA/SINGAPORE — A year ago two young female migrant workers in Indonesia, including 26 year old Indonesian Siti Nurbaya, were cast at the center of an international murder mystery when they were arrested by police for their alleged role in the audacious, Le Carré-esque assassination by poisoning of Kim Jong Nam, the half-brother of North Korean leader Kim Jong Un, which was carried out despite the usual bustling morning crowd at Kuala Lumpur’s international airport. Preying on the women’s perceived vulnerability as relatively-poor migrant workers at the margins of society, defense lawyers contend that North Korean agents duped their clients into unwittingly carrying out the murder by bluffing they were being recruited for a series of made for TV pranks. As the trial of Nurbaya and her alleged accomplice from Vietnam rolled on last month in Shah Alam near Kuala Lumpur, another case was emerging that highlighted the perils facing migrants in Malaysia. Adelina Sao died in a Penang hospital on February 11 after she was found with head injuries and infected wounds on her limbs, succumbing after two years in Malaysia as one of around 400,000 foreign maids working in the country.
JAKARTA — Major palm oil producers in Asia are hoping European governments will not go ahead with proposals that could undermine their businesses and damage the Indonesian and Malaysian economies. Proponents say palm oil requires less land to grow than other vegetable oil crops. “Palm oil is the most productive oil that exists today,” said Colin Lee, director of corporate affairs at Cargill Tropical Palm, which has around 80,000 hectares of oil palm plantation in the region. Indonesia and Malaysia provide around 85% of the world’s palm oil. Palm oil makes up between 10% and 12% of their total exports, according to global bank HSBC.