The people with the big cables in Malaysia

Super Admin

Wed, 18 May 2011 23:38:55 +0000

Today, we are revealing this first of almost 4,000 cables specifically on Malaysia that were leaked to Wikileaks. Today's seven-page cable is about the political and business cronies of Prime Minister Najib Tun Razak. Some of these names may be familiar to you but many of you were probably not aware who the personalities behind Najib are. These are the people with 'big cables' who decide what happens in Malaysia.

THE CORRIDORS OF POWER

Raja Petra Kamarudin

C O N F I D E N T I A L SECTION 01 OF 05 KUALA LUMPUR 000268

SIPDIS

FOR EAP/MTS AND INR

 

E.O. 12958: DECL: 04/10/2029

TAGS: PGOV, PINR, PINS, ECON, MY

SUBJECT: NAJIB'S NETWORK - A PRELIMINARY LOOK

 

REF: A. KL 266 - NAJIB UNVEILS CABINET

     B. KL 253 - NAJIB SWORN IN AS PM

     C. KL 78 - NAJIB LEADS TAKEOVER OF PERAK

     D. 08 KL 193 - NEW MINISTER PORTFOLIOS

     E. 08 KL 192 - MALAYSIA'S NEW CABINET

Classified By: Political Counselor Mark D. Clark for reasons 1.4 (b and d).

Summary

1.  (C) This cable provides a preliminary review of Prime Minister Najib Razak's close aides and political associates, known associated companies, and business contacts, as well as summary information on Najib's four brothers.  The review is based on information available prior to Najib's confirmation as Prime Minister on April 3 and his formation of his Cabinet on April 9.  Najib's aides could find themselves in positions of influence with the PM's office, while four political associates from his inner circle have taken positions in Najib's cabinet.  Post identified 16 companies with strong links to Najib and his family, with many of the companies having substantial business interaction with the government.

Among the 19 key business leaders listed, Rohana Mahmood stands out as deeply embedded in the Najib family's commercial interests.  Najib's family has personal links to the Sultan of Perak, of note given Najib's involvement in wresting control of the state from opposition hands in February (ref B).  Syed Mokhtar Albukharry, a major Malaysian investor in Iran, has significant business operations in Najib's constituency and in the defense sector. 

The Embassy provides this information, not as a definitive study, but to help guide Department offices as they examine Najib's emerging administration and policy decisions, and identify actors of influence. End Summary.

Political Aides

2.  (C) According to Embassy's information, including one well-placed source, Najib's three closest advisors are Shahlan Ismail, Alias Anor, and Shafie Mohd Abdullah.

Previously, Alias was Najib's political secretary, but has since assumed the role of a key advisor.  Shahlan and Shafie are Najib's current political secretaries, with Shahlan filling the position since April 2008.

Political Associates

3.  (C) Post developed the following list of close political associates by speaking with informed observers, including those on Najib's current political team, and by identifying individuals who have worked closely with Najib, some since he was the UMNO Youth Chief from 1988-1993.

-- Hishamuddin Tun Hussein, named Home Minister in Najib's new cabinet.  He was the former UMNO Youth Chief and Minister of Education under PM Abdullah Badawi.  Najib and Hishamuddin are cousins (their mothers are sisters).  Hishamuddin was elected to one of three UMNO Vice President posts during the March party elections. 

-- Ahmad Zahid Hamidi, Najib's choice as Defense Minister. He was a Minister in the PM's Department for religious affairs under PM Abdullah Badawi.  He was also a former political secretary to Najib and former UMNO Youth Chief. Ahmad was elected to one of three UMNO Vice President posts during the March UMNO party elections.

-- Nazri Abdul Razak, retained by Najib as Minister in the PM's Department in charge of parliamentary affairs, a position he also held under former PM Abdullah Badawi.

Former UMNO Perak Youth Chief and was the UMNO International Bureau Chief when Najib was the Youth Chief.  Nazri had lobbied for the position of Foreign Minister in Najib's new cabinet.

-- Shafie Apdal, named by Najib as Rural Development Minister.  He was Minister of National Unity, Culture, Arts, and Heritage under former PM Abdullah.  He is Najib's point man in Sabah, former UMNO Youth Sabah chief and was Najib's deputy at the Ministry of Defense (1999-2004).  Shafie was elected to one of three UMNO Vice President posts during the recently concluded party elections in March.

-- Jamaluddin Jarjis, former UMNO Youth Chief for the state of Pahang.  He was Najib's chief campaign strategist during the party's elections in March.  Jamaluddin is a member of UMNO's Supreme Council.  Some observers expected Jamaluddin to be included in Najib's Cabinet, but he was not.

-- Johan Jaafar, former editor in chief of Utusan Malaysia newspaper owned by the ruling party, is Najib's media point man.  According to sources, Johan will be appointed as executive director of The New Straits Times Press Berhad (NSTP) (the publisher of the government-dominated mainstream newspapers New Straits Times, Berita Harian and Harian Metro) as well as chair of Media Prima Berhad, which operates all of Malaysia's private television stations and two private radio stations. 

-- Mohd Zin Mohamed, Minister of Works under PM Abdullah and former UMNO Youth leader.  He is a member of UMNO's Supreme Council.

Political Ally

4.  (C) Newly-named Deputy Prime Minister Muhyiddin Yassin emerged as a key Najib ally over the past year.  Muhyiddin was the most prominent UMNO leader responsible for forcing former Prime Minister Abdullah Badawi to agree to step down in favor of Najib after the March 2008 elections.  Najib personally but quietly supported Muhyiddin as the choice for Deputy UMNO President after Ali Rustam, Melaka Chief Minister and former UMNO Senior Vice President, was barred from contesting for the post for corruption. 

During the March 24 - 28 UMNO General Assembly, Muhyiddin pledged to be "ultra loyal" to Najib.  Muhyiddin won the UMNO deputy president post, which by tradition carries with it the Deputy Prime Minister position.  In addition, Najib made Muhyiddin Education Minister, an important patronage position but without access to the central levers of power. 

Observers debate how close Muhyiddin really is to Najib as some consider him as ambitious and a possible rival to Najib under certain circumstances.  Some observers have indicated Muhyiddin has yet to completely satisfy Najib of the new DPM's loyalty.  Their relationship bears watching before we can draw firm conclusions. 

Associated Companies

5.  (C) Post used both open as well as informed sources to build an initial picture of the companies associated with Najib and or his family members.  The companies listed below all have Najib or one of his immediate family members on their executive boards.  Most of the companies listed also hold government contracts or are believed to have substantial business interaction with the government.

-- Commercial International Merchant Bankers (CIMB) Group: Malaysia's second largest financial services provider and the fifth largest in Southeast Asia.  It is owned by Bumiputra-Commerce Holding Berhad (BCHB), which is listed on Malaysia's stock exchange, the Bursa Malaysia, with a market capitalization of 26.6 Billion ringgit (about USD7.4 billion). 

-- Symphony House Berhad: A publicly listed company mainly involved in business process outsourcing.

-- Johan Holdings: A publicly listed company involved in manufacturing ceramic tiles, distribution and sale of health foods and supplements, property development, and resorts and hotels.

-- Sapura Group: Has businesses interests in the secured communications and oil & gas industries with investments in Australia, Singapore, Brunei, Thailand, Sri Lanka, Philippines, Pakistan and China. 

-- Hong Leong Group: A Malaysian-based conglomerate with investments in financial services, manufacturing, and property and infrastructure development.  The group's shares are listed on the stock exchanges of Malaysia, Singapore, Hong Kong, the Philippines, and Europe.

-- Paramount Corporation Berhad: A publicly listed company with diverse interests in property development and investment, construction, and educational services.

-- TH Group Berhad: A publicly listed company involved in plantations, contracting, biohealth care and information technology.

-- Dijaya Berhad: A publicly listed company involved in property development, investment, and management as well as investment holding and manufacturing.

-- MMC Group: A utilities and infrastructure group with interests in transportation and logistics, energy and utilities, engineering, and construction.  Its international business dealings focus on the Middle East, with investments in utilities and logistics in that region.

-- DRB Hicom: The largest totally integrated automotive company in Malaysia, with operations in the manufacturing, assembly, and distribution of passenger and commercial vehicles.  It also is involved in property and infrastructure development, and provides the Malaysian military land-based vehicles.

-- Hiap Teck Venture Berhad: A publicly listed company, it is the leading manufacturer of steel products in the country.

-- Mamee Double Decker Berhad: A publicly listed company involved in the manufacturing and marketing of a wide range of soft drinks, food and dairy products; other activities include property development.

-- Delloyd Ventures Berhad: An investment holding company with subsidiaries engaged in the manufacture and sale of automobile parts and accessories, palm oil plantations, repair and maintenance of motor vehicles, manufacture and export of agrichemicals, and magazine publishing.

-- Yeo Hiap Seng Berhad: Principally involved in the production, marketing, and sale of food, beverages, and sweetened condensed milk.

-- Nylex Berhad: Manufactures and markets vinyl-coated fabrics, calendered film and sheeting, and other plastic products, including geotextiles and prefabricated sub-soil drainage systems.

-- Daiman Development Berhad: Principally involved in property development and trading.

-- Ethos Capital: A boutique investment company chaired by Rohana Mahmood.

Business Leaders

6.  (C) Post compared the executive boards, used open sources, and spoke with informed contacts to identify key individuals within businesses that are linked to Najib and his family.

-- Rohana Mahmood, Chairman and partner of Ethos Capital, a RM200 million (about USD56 million) private equity firm. Rohana also sits on the boards of Paramount Corp Bhd, TH Group Bhd and Dijaya Corp Bhd.  She and another close aide of Najib, Abdul Razak Baginda, co-founded an independent think-tank, the Malaysian Strategic Research Centre (currently dormant).  (Note: Razak was acquitted in October 2008 of abetting the murder of Mongolian national Altantuya. End note.)  Rohana appears connected in some manner to most of the companies associated with Najib.

-- Azman Mokhtar, the managing director of Khanazah Nasional Bhd. He has been playing a prominent role in the reforms of government-linked companies (GLCs).

-- Mohamed Azman Yahya, director of Khazanah, and founder and group chief executive officer of Symphony House Bhd, an outsourcing firm.  He is also the ex-CEO of Pengurusan Danaharta Bhd and sits on several advisory panels for the development of the capital market, venture capital, and public service delivery system.

-- Tan Kay Hock, chair and chief executive of Johan Holdings Berhad.  Najib and Tan Kay Hock have known each other for a long time and are golfing buddies.  Tan is also a member of the Iskandar Regional Development Authority (IRDA).

-- Shahril Shamsuddin of Sapura Group, which has interests in communications, information technology, and oil and gas.

-- Syed Mokhtar Albukharry, whose privately owned company, SKS Ventures Sbd Bhd, has announced involvement in major oil and gas deals with Iran's National Iranian Oil Company, including to develop Iran's southern Golshan and Ferdos gas fields.  He also controls DRB-HICOM, and is one of the largest employers in Pekan, Pahang, Najib's parliamentary constituency, and political base. 

Syed operates a huge vehicle assembly plant there.  He also owns Defense Technologies Sdn Bhd or Deftech a DRB subsidiary and Malaysia,s leading supplier of land-based defense vehicles.

Syed Mokhtar also is believed to have a good (and some say stronger) relationship with Deputy Prime Minister Muhyiddin.

-- Danny Tan Chee Sing, Group Chief Executive Officer of Dijaya Berhad and Vincent Tan's brother.

-- Nor Yusof, an ex-banker, who was the former managing director of Malaysia Airlines and past chair of the Securities Commission.  He is currently director and chair of Khazanah's executive committee.  He has a wealth of experience in banking and a keen insight on capital markets.

-- Mohd Nadzmi Mohd Salleh, chair and MD of express bus operator Konsortium Transnational Bhd.  The former Proton boss was called upon by the Government in 1996 to revive the ailing public transport company.  He was former PM Mahathir's prodigy and has expertise in transportation. 

-- Dr. Gan Wee Beng, the executive director of CIMB Group (the CEO is Najib's brother Nazir Abdul Razak).  Gan was a consultant to Bank Negara (the central bank), the Economic Planning Unit, Finance Ministry, and the World Bank.

-- Omar Mustapha Ong, a former special assistant to Najib, is the co-founder of Ethos Capital with Rohana Mahmood.  His father, Mustapha Ong, was the diplomat in Washington who allegedly tried to bribe a limousine driver in Washington to fabricate evidence against deposed Deputy Prime Minister (and current opposition leader) Anwar Ibrahim in 1998.

-- Quek Leng Chan, Chairman and Chief Executive of Hong Leong group of Companies.

-- Teo Chiang Quan, Group Managing Director and Group Chief Executive Officer, Paramount Corporation Berhad.

-- Lei Lin Thai, Group Managing Director, TH Group Berhad.

-- Pang Tee Chew, Chief Executive Officer, Mamee Double Decker Berhad.

-- Kenneth Eswaran, CEO Multi Vest Resources Bhd (MVest), whose primary business interest is the palm oil sector. Informed sources say he is close to Rosmah Mansor, Najib's wife.

-- Vincent Tan, Berjaya Group, a former Mahathir crony who is now close to Najib.  Tan managed to obtain a lucrative license to conduct additional lottery draws after Najib became Finance Minister in October 2008.  He is also rumored to be close to Rosmah Mansor.

-- Bakke Salleh, CEO of Federal Land Development Authority (FELDA) Holdings Berhad.  Najib is the Chairman of the Cabinet Committee on FELDA, the land authority established by his father.

-- Lodin Wok Kamarudin, Chief of Armed Forces Fund Board.

Najib and his Brothers

7.  (C) Najib, who is the eldest son of former Prime Minister Abdul Razak, is said to consult closely with his four brothers, who all have extensive commercial ties.

-- Johari Razak, the second eldest brother and a close friend of Perak Crown Prince Raja Nazrin Shah.  He is a lawyer and senior partner at Shearn Delamore & Co, a large law firm in Kuala Lumpur.  His areas of practice include corporate and commercial joint ventures, mergers and acquisitions; corporate restructuring; and the listing of public companies.

He is also the Chairman of Courts Mammoth Pte Ltd and Daiman Development Berhad, a director of Hong Leong Industries Berhad, Nylex Berhad, Daiman Golf Berhad, and Deutsche Bank (Malaysia) and a non-executive director in several publicly listed companies.

-- Mohamed Nizam Razak studied politics, philosophy, and economics at Oxford University.  He was a stockbroker and CEO of PB Securities Sdn Bhd in the 1990s.  He is currently a non-executive director in several publicly listed companies including Hiap Teck Venture Bhd, Mamee Double-Decker (M) Bhd, Delloyd Ventures Bhd, and Yeo Hiap Seng (M) Bhd.  Like Johari, Nizam is also a director of Deutsche Bank.

-- Mohamed Nazim Razak, the fourth brother, studied architecture in the UK.  He is Chairman of Meru Utama an outdoor advertising company that received a seven-year advertising concession in 2007 to advertise the Kuala Lumpur International Airport and Low-cost Carrier Terminal (LCCT).

He is also Chairman of the Governing Council of Masterskill, a private University/College (the Pro Chancellor is Raja Azureen Raja Azlan Shah, the daughter of the Sultan of Perak) and Director of OYL Industries (a subsidiary of Hong Leong Group of Companies).

-- Nazir Razak, the youngest brother, is the most well known. He obtained a Master of Philosophy at Cambridge University. He is a career banker, joining CIMB Investment Bank almost 20 years ago and rising through its executive ranks to become its CEO in 1999.  Following the merger of CIMB and Bumiputra-Commerce Bank, to become Bumiputra-Commerce Holdings Bhd (BCHB), Nazir became CEO of the merged group.

Under his watch, the BCHB group, which is branded as CIMB group, was transformed into a GLC bank that could compete with its peers in the private sector regionally.  Informed observers widely believe Nazir advises Najib on finance and economic policy issues. 

KEITH

UPDATE 2-Malaysia to launch long-delayed biofuel mandate in 2011

UPDATE 2-Malaysia to launch long-delayed biofuel mandate in 2011

Wed Mar 24, 2010 7:05am GMT

* Palm-based biofuel blend to be implemented in stages

* Oil companies to bear costs of extra subsidies

* Government will fork out 43.1 mln rgt for six depots

* Announcement briefly supports palm oil futures (Changes lead, adds trader quotes and details)

By Niluksi Koswanage

CAREY ISLAND, Malaysia, March 24 (Reuters) - Malaysia has asked petroleum companies to bear the extra cost of selling diesel blended with palm oil from June next year to kickstart sales of the green fuel after a four-year delay.

The world's No.2 palm oil producer has struggled to implement a mandate to push the blended fuel and support the palm industry first introduced in 2007 as the government was reluctant to subsidise biofuel blends to match diesel prices at the pump.

Commodities minister Bernard Dompok said on Wednesday that the green fuel, a blend of five percent palm and 95 percent diesel petroleum, will be introduced in stages in the central states on the mainland.

"The (biofuels mandate implementation) will support palm oil prices and will enable planters especially the smallholders to reap economic benefits," Dompok said in a statement.

Eventually, the mandate will be extended to other Malaysian state and will take up half a million tonnes of the Southeast Asian country's total annual crude palm oil production but no timeframe was given.

Traders said the announcement briefly supported Malaysian crude palm oil futures KPOc3 before market players turned their focus to lower crude oil and soyoil markets.

"The government has been flip-flopping over this issue. It gives a good support base for the market but it remains to be seen if it will actually be implemented," a trader with a local brokerage said.

Dompok said the government will bear the cost of developing six petroleum depots with blending facilities at a cost of 43.1 million ringgit ($13 million).

Petroleum companies including state oil firm Petronas [PETR.UL] as well as oil majors like Royal Dutch Shell (RDSa.L) (SLRS.KL), Exxon Mobil (XOM.N) and Caltex (CTX.AX) will have to subsidise palm-based biofuel blends at the pump, he said.

Petroleum diesel retails at 1.70 ringgit ($0.498) a litre, a price that is regulated by the government and among the lowest in Asia. Any increase in petroleum prices is politically sensitive.

Local biofuel manufacturers say blending 5 percent palm biofuel into diesel increased prices by 0.02 to 0.06 Malaysian ringgit a litre over petroleum diesel.

Dompok said Malaysia has approved 56 licenses for biofuel production, for total capacity of 6.8 million tonnes.

In 2009, Malaysia produced 227,457 tonnes of palm based biofuels that garnered export earnings of 604 million ringgit ($182 million). ($1=3.318 Malaysian Ringgit) (Editing by Ed Lane)

RON95 petrol price to be revised next month

POH: Come next month, the
government will review prices of all
petroleum products, including the
RON95 petrol, before deciding to
retain them or otherwise, Domestic
Trade, Cooperative and Consumerism Minister Ismail Sabri
Yaakob said today. He said the price revision to be
conducted by the ministry and other
agencies such as the finance ministry
and the Performance Management
and Delivery Unit (Pemandu) would
determine whether prices would be maintained or increased, depending
on the government's subsidies. "According to Pemandu's subsidy
rationalisation plan, there will be a
revision every six months for
subsidies on all products. "The last revision we had for diesel, LPG
and RON95, was in December,
last year. "This means that a mid-year revision will be carried out
this month or early
June… I can't say what will happen but the revision will take place
and
the government's subsidy burden is high," he told reporters after
officiating at the Ipoh Umno division
delegates meeting here today. He said this when asked on the
current price of RON95 petrol,
following the increase in price of On
April 2, the price of RON97, which
was floated according to current
petrol prices, rose 20 sen to RM2.70 per litre, following the Middle
East
crisis, while the price of RON95
increased by five sen to RM1.90 per
litre last December. Ismail Sabri said that although he
had previously stated that petrol
prices would not go up at the
moment, it did not guarantee petrol
prices would stay the same forever,
because the government was already burdened with subsidies for
petroleum products. "Last year, the government's subsidy for
petroleum products was RM8
billion when world fuel prices shot up,
and we don't see signs that it will drop. If this continues, the
government will bear RM18 billion in
subsidies this year, an increase of
RM10 billion," he said. He said that should subsidies be
reduced, the RM10 billion could be
used to build more schools, village
roads, housing projects and
educational aid. - Bernama

Kenny Dalglish was on Thursday appointed permanent manager of Liverpool after signing a three-year contract, the English Premier League club announced.

Dalglish, widely regarded as the Reds' greatest player, has breathed new life into the club since he replaced Roy Hodgson as coach on a temporary basis in January and the team could finish the season as high as fifth place.

Coach Steve Clarke, who arrived soon after Dalglish, has also signed a three-year contract.

John Henry, whose US-based Fenway Sports Group owns Liverpool, said there was no-one else he wanted for the job after the completion of contract talks with Dalglish, who is now in his second stint as the full-time manager.

"Kenny is a legendary Liverpool figure, both as a supremely gifted footballer and successful manager," Henry said in a statement.

"Since returning in January he has shown extraordinary leadership and the ability to bring the best out of so many people associated with the club.

Wayne Rooney scored the goal that gave Manchester United a record 19th English title in a 1-1 draw away to Blackburn Rovers at Ewood Park on Saturday.

United needed just a point from this game to regain the Premier League title from Chelsea and they got it when England striker Rooney scored from the penalty spot 17 minutes from time after Rovers keeper Paul Robinson brought down Javier Hernandez. 

Australia's Brett Emerton had fired Rovers, still not certain of top-flight survival, into a 20th minute lead before Rooney settled United's nerves with a powerful spot-kick.

The result gave United, now in sole possession of a record they had shared with arch-rivals Liverpool an unassailable seven-point lead at the top of the English Premier League table, with closest pursuers Chelsea only able to win a maximum of six points from their two remaining matches.

"I was terrified, the ref took a long time to give it," Rooney told Sky Sports in relation to the penalty.

"I had to compose myself, I'd been practising all week."

Rooney, who earlier in the season stunned United by handing in a transfer request, added: "After the year I've had, with the ups and downs, this is for the fans and the team."

Captain Terry tells Chelsea to 'splash the cash'

Chelsea captain John Terry has said the Blues must spend again on new players during the close season if they are to regain the Premier League title from Manchester United.

The Blues 2-1 defeat by United last weekend left Sir Alex Ferguson's side needing just one point from their final two games to scure a record 19th English title.

Chelsea, bankrolled by Russian billionaire Roman Abramovich, spent £50 million signing striker Fernando Torres from Liverpool and £25m on centre-back David Luiz during the January transfer window.

But the London club, who won the domestic double last season under Carlo Ancelotti, are set to end this campaign without a trophy after losing in the FA Cup to Everton and being knocked out of the Champions League by United.

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