COMMENT
By WONG CHUN WAI

JUST carry out a simple survey among your family members and friends – they are probably not aware that our cooking oil is subsidised.  

The price of cooking oil in Malaysia is RM2.50 per kg and we would assume that the price would be in the same range in the neighbouring countries.  

In Thailand, cooking oil costs between RM3.20 and RM5.80 per kg and in Singapore, it is RM6.50 per kg.  

Our price is pegged low because the Government dished out RM800mil in subsidies last year alone.  

Even flour is subsidised, as are some essential items in education, housing and agriculture – totalling RM5bil.  

And that’s not even taking the fuel subsidies into consideration. With crude oil prices hovering at US$100 per barrel, the subsidies have climbed to RM35bil. That’s equivalent to what our planners have set aside as the development expenditure for the Ninth Malaysia Plan each year.  

The fact is Malaysians have become used to the pampered life. Even those rich enough to drive luxury cars would shudder if they have to pay more at the pump, what more the common people.  

But the harsh reality is that at one point or another, the Government has to review these huge subsidy bills.  

Increasing subsidies means diminishing funds for projects that matter, like roads, schools, hospitals and other public amenities.  

But no Government would make such decisions when the general election is around the corner. The political costs would be simply too high.  

Nobody wants to hear the bad news with regard to price increases, especially when the opposition has even promised that they would reduce fuel prices if they come to power. That may be a mission impossible but in the emotions of the polls, anything can be made believable.  

Malaysians have rightly asked why the country should face a cooking oil shortage when we are the world’s second largest producer of palm oil.  

Palm oil prices are on the ascent and this has certainly benefited major producers like Malaysia and Indonesia.  

But in Indonesia, where cooking oil is not subsidised, millions of poor Indonesians have turned to boiling, instead of frying, their food, when the price zooms up.  

Another factor that comes into play is that with crude oil prices going up, the price of crude palm oil goes up in tandem since the commodity is increasingly being used also as a source of biofuel.  

The average consumer is not interested in the complicated mechanics of palm oil futures trading and the voracious demands from China and India, the biggest consumers of palm oil and everything else.  

But from smuggling to hoarding, to increased demand of our subsidised cooking oil, an artificial shortage has hit us.  

Back to the bigger picture, the demand for oil has gone up from 82.4 million barrels a day last year to an expected 90 million barrels by 2010, mostly from China and India.  

Malaysia produces about 700,000 barrels a day but we use over 520,000 barrels a day. Based on current trends, we may end up as an importer within four years. This is hardly good news when Petronas is a major contributor to the country’s economy via the payment of taxes, dividends and royalties.  

Other external factors are difficult for the Government to control. For example, the cost of shipping raw materials across the world’s oceans have reached an all time high, pushing up the prices of grain, iron ore, coal and other commodities.  

Flexnews reported in October last year that the average price of renting a ship to carry raw materials has tripled, and in some cases, ocean shipping can be more expensive than the cargo itself.  

Higher costs are naturally passed on to the consumers, affecting the price of everything from cars to washing machines and bread, it reported.  

Politicians are fond of asking businessmen to absorb higher costs, which makes no sense.  

The Manila Standard Today reported recently that the prices of milk and milk-based products had gone up as the cost of imported raw materials continue to rise. Powdered milk and evaporated milk have been the main items.  

Everything is interconnected. The drought in Australia affected its dairy industry as the country had to import maize, an essential item for animal feed, for its cattle. Even the price of cheese has jumped as a result.  

Our politicians have preferred to downplay the escalating cost of living while trying to convince the people on the need to reduce subsidies. But the fact is, you cannot do both at the same time.  

Sooner or later, we have to bite the bullet and face the reality of sharing the burden of subsidies. Elections or not, the Government will have to deal with the impact of oil price increases.  

At the same time, the Government needs to work harder to stop wastage in projects that bring little benefit to Malaysians. Pride is one thing but if it serves little besides inflating our egos, then we should just save our money.  

We also need to contain our cost of production and be serious in fighting corruption and mismanagement.  

The campaign to convince Malaysians to be prudent and thrifty can only work if the Government also ends some of these abuses.

The prediction is that crude palm oil prices will continue to escalate from current record levels.  

Employee benefits: United Plantations poured money back into the working community by building these housing quarters in Jenderata.

Heavy foreign buying in Sime Darby and IOI Corp, two of the world’s largest oil palm planters – pushed the Kuala Lumpur Composite Index to 1,466.67 points.  

It is the best start for the year, as some 942 million shares changed hands. There is bright hope for a Chinese New Year rally ahead of the general election.  

Just consider this: in 2006, the price of crude palm oil was RM1,500 per tonne. Today it is past RM3,000 per tonne. In all likelihood, the price is going to be robust in view of the strong demand due to the ravenous appetite for edible oils from China and India.  

In short, oil palm plantations are rich and going to be so for sometime to come.  

The question is how they are using it to reward the little people who have contributed significantly to their bulging pockets – their workers.  

In an ideal world, it would be great if they could tear up the collective agreements signed when prices were lower, and draw new ones to take into account the spike in crude palm oil prices.  

But the fact is this is not going to happen because what could be a RM3,000 per tonne commodity today could drop to RM2,000 per tonne in 24 months. Companies will loath to tie themselves down with a bigger wage bill due to the cyclical nature of the business.  

Still there are other ways in which palm oil companies can share the good times with their workers and families. For a start, they could upgrade the housing in plantations, provide better medical facilities and adopt schools in the vicinity of their plantations.  

The point is that they have a duty and obligation to spread the wealth, especially to those who have toiled under the sun for years.  

It is interesting that when the issue of marginalised workers was raised recently, all fingers were pointed at the Government.  

Sure, while it is the responsibility of the Government to install the infrastructure, to nurture the economy and ensure there are sufficient opportunities for education and work, the private sector cannot take a hands-off approach – especially when record profits are being chalked up.  

To be fair, some plantation giants have already started moving in the right direction. Take Sime Darby Bhd for example. In December, it announced that it was going to build model townships of affordable housing for thousands of low- and middle-income earners in several states.  

Under the Bandar Gemilang programme, the diversified multinational plans to turn slivers of its vast tracts of plantation land in Negri Sembilan, Kedah, Selangor, Malacca and Johor into townships with a mix of apartments, link houses, semi-detached houses, libraries, schools, sports fields, police stations and places of worship for the major religions.  

In addition, 30% of the land area in each of the townships will be dedicated to open spaces, parks and landscaped gardens.  

It is understood that the prices will be competitive, as the land is owned by Sime Darby. In all probability, some of the workers in Sime Darby’s plantations may well be able to afford the low-cost apartments in these developments.  

With a market capitalisation of more than RM70bil, Sime Darby has also started adopting Tamil schools in its estates as well as sponsoring rural schools in the northern states.  

United Plantations is another exemplary employer – its housing quarters for workers in Jenderata is one of the best around. The plantation group has also poured money back into the working community by building a bakery and sporting facilities.  

The point is that there is no limit to the good that money from the palm oil boom can do.  

Just think about it. There are more than 500 Tamil schools in the country, and two-thirds of them are in rural areas. These schools need resources so that their students can enjoy better teaching facilities and even have the opportunity to attend tuition classes.  

Funds from plantation companies will be heaven-sent for these schools, as they will help their students break the cycle of poverty.  

Even Chinese language and national schools in rural areas can do with a lift.  

Last month, IOI Corp Bhd executive chairman Tan Sri Lee Shin Cheng announced that the company would build the second phase of SRK Ladang Harcroft in Selangor. TSH Resources Bhd, meanwhile, has an adoption scheme for 100 students in three Tawau schools.  

One of the more successful corporate social responsibility programmes is Pintar – a scheme where government-linked companies adopt schools in the back of beyond. 

The main aim of the programme, which stands for “Promoting Intelligence, Nurturing Talent and Advocating Responsibility,” is to assist children from low-income families so as to improve their academic performance. 

There is nothing stopping plantation companies from getting involved in the Pintar programme.  

Basically, the sky is the limit when it comes to doing your bit for Malaysians in these days of heady palm oil prices.  

WHEN Datuk Seri Abdullah Ahmad Badawi chaired his first Cabinet meeting, on assuming the Prime Minister’s post, he had a message for his ministers – he would defend them if they were right. 

But if they were wrong, they would have to fend off the criticisms, sort out the mess and bear the consequences themselves. 

It was a simple leadership style – unlike that of Tun Dr Mahathir Mohamad, who led the government for 20 years with his strong shadow on almost everyone. Pak Lah was going to let his ministers have more space. 

But the price is that if the person fouls up, then the minister concerned would have to go, so as not to burden the Government. 

So, when Abdullah accepted the resignation of Datuk Seri Dr Chua Soi Lek as the Health Minister last week, it came as no surprise. 

The news of the controversial sex DVD came quickly and the issue was not allowed to drag on. It ended just as quickly. 

Within 48 hours of Dr Chua’s admission, it was all over. He made his confession, had his final words and exited swiftly. 

By this week, Dr Chua would no longer be news. That is the harsh reality of politics and a veteran like Dr Chua is well aware of this. 

One week, as they say, is a long time in politics. The media moves on to new issues and follow-up news are relegated to the back pages or not used at all. 

But the issue of leadership qualities, in a general manner, would be discussed. Dr Chua will go down in history as the first Cabinet minister to be caught in such a controversy. 

High expectations 

But he has also set a benchmark. With his forthright admission, he has sent a message to other politicians who have not been caught – you have to quit too if you have been caught with your hand in the cookie jar. 

Adultery is one thing but worse crimes include corruption and stealing land belonging to others. 

Dr Chua has paid a heavy price for his actions. There is no need for any witchhunting exercise, such as trying to locate the woman implicated in the DVD. Let it go. 

But the lesson to be learned from here is that capability, optimism and strength are not enough in politics. The person can be forceful, dynamic and self-deprecating but society expects more from their leaders. 

They don’t expect their leaders to be celibate but values count, which must be difficult for many traditional Asian male leaders. 

The late president Sukarno of Indonesia was well known for his sexual passion; he was reportedly filmed and blackmailed by the Russians. 

On a trip to Moscow, he was said to have befriended a few stewardesses, all KGB spies, who later seduced him in a hotel room. After he was secretly filmed, he was taken to watch the film. 

But the delighted Sukarno asked for copies of the film and asked that it be screened in Indonesia, as he expected his countrymen to be proud of his sexual exploits with the Russian women. 

Changing times 

In Thailand, it is a common practice for the rich, and even poor, to have second wives, or mistresses. 

For Muslim politicians, the religion allows them to have four wives, so it is not an issue. 

But times have changed. Even in the United States, Republican presidential candidate Rudy Giuliani is struggling with such problems. 

He has made New York a safe city and demonstrated crisis management skills during Sept 11 but his three failed marriages and apparent adultery continue to dog him. 

Former US President Bill Clinton, who was caught in a string of sex scandals, said in an interview that he has learnt not to judge people too harshly after his downfall, adding that he understood the pain he and his family had to go through in those difficult times. 

Unfair as it may sound, politicians find themselves judged on a different basis, including by those who don’t practise what they demand of their leaders. 

But that’s the price to pay when one stands for public office, fair or otherwise.

COMMENT
By WONG CHUN WAI 

THE writing was on the wall. It was possibly the worst way for Health Minister Datuk Seri Dr Chua Soi Lek to end the year after the sex DVD, which had been quietly circulating in Johor became a full-fledged controversy. 

Yesterday, the MCA vice-president announced that he was quitting his Cabinet and all party posts. This came barely 24 hours after he admitted he was the man in the DVD and that he was not resigning. 

The drama had unfolded on the morning of New Year’s Eve when Dr Chua took his wife to meet the Prime Minister and admitted he was the man in the sex DVD. 

Datin Seri Wong Sek Hin told Datuk Seri Abdullah Ahmad Badawi that she would stand by her husband and that they would go through the difficult time together. 

And shortly before the countdown for the New Year began, a lonely Dr Chua walked away from a restaurant in Bangsar, where he had earlier huddled with his aides to talk about the press conference the following day.  

The leader, who turns 61 in May, had decided to come clean by taking responsibility for the controversy. 

Those who know the outspoken Johor politician were not surprised by his decision. He has always taken the bull by the horns and his public confession was classic Chua Soi Lek. 

A man who does not mince his words, Dr Chua gained the respect of those who dealt with him but at the same time, also offended those who found him brash. 

A hands-on minister, he knew what he was doing at the Health Ministry. He had certainly gained the respect of doctors since he assumed the post in 2004 and quickly made several major positive changes. He was cut out for the job and even his detractors would admit so. 

Reporters covering the Health Ministry beat quickly found out they had better do their homework and polish up their knowledge on the medical profession before interviewing him. He was a man who brooked no nonsense. 

Some said it would not be wrong to say he was the best Health Minister the country has ever had. Many also acknowledged that he was among the most intelligent and capable leaders in the country. 

Dr Chua was also regarded as a man who has bigger political ambitions. For months, the media had watched his movements and speculated he could possibly contest the deputy president’s post in the MCA polls this year. Even his running mates were identified as they criss-crossed the country to meet delegates. 

But all the plans came to an abrupt end with his announcement at about 3.30pm yesterday that he was giving up all his Government and party posts. Even as news of his decision broke, his supporters expressed their sadness over his resignation. Some cried openly, when they heard he had quit. 

After admitting on Tuesday that he was the man in the sex DVD, MCA leaders called newspaper offices offering their support for the embattled politician.  

One prominent youth leader angrily condemned the “entrapment” of Dr Chua, saying he was shocked over such dirty tactics, where four cameras were said to have been used to film Dr Chua in a hotel suite. 

Labis MCA chief Tan Kok Hong said Dr Chua was “stabbed in the back” by certain parties who wanted to destroy the leader politically. He called for action against those involved in the production and distribution of the DVD. 

The DVD, made from a closed-circuit television footage, was said to be distributed openly at several shops in Muar, Tangkak and Batu Pahat, the stronghold of Dr Chua, in a calculated move to embarrass him. 

No one is sure when the recording was made but the blatant invasion of privacy at a hotel has shocked many politicians, who have questioned the security at such places. 

They also pointed out that his wife and family have forgiven him and publicly said they would stand by him.  

But Dr Chua has also been realistic, acknowledging that even with such support, there would also be those who would demand his resignation. 

The anguish for him and his family is apparent but any such controversy means an extra burden for the MCA, which is already facing a difficult election campaign with strong anti-establishment sentiments within the Chinese community. 

Voters also expect leaders to keep to higher standards of conduct. As public figures, they have little privacy. It is a price that comes with the perks and privileges they enjoy. 

But how many of us dare to say we have no skeletons, weaknesses or human fallacies, even as we question Dr Chua and hold our moral grounds?  

Dr Chua has handled his political crisis well. Those who have spoken to Dr Chua since the controversy have found him to be calm and prepared to listen to even the most negative of feedback. 

In Malaysia, where not many politicians and leaders are prepared to take responsibility for their actions, Dr Chua seems to be an exception, unpleasant as it may be. 

By quitting his Cabinet and party posts, Dr Chua has set the right example for Malaysian leaders. As the Chinese saying goes, ganzuo, gandang, which means dare to do, dare to be responsible. 

Dr Chua’s resignation from the Health Minister’s portfolio, by tradition allocated to the MCA, has, again, proven that the portfolio is a burial ground for MCA political careers. 

When Dr Chua assumed the post, he went on record that he was determined to end the curse. Like his predecessors, he couldn’t and the Health Ministry, among the MCA circle, remains the Hell Ministry

On The Beat: By WONG CHUN WAI

IT’S odd that it should even become an issue but the matter has now gone to the courts following the unprecedented suits by two church groups against the Government for prohibiting the word Allah to be used.  

Last week, the Catholic Herald filed a suit against the Government for banning the word to be used in the weekly’s Bahasa Malaysia section.  

Uplifting beat: The youth fellowship of Ba Kelalan Main Church, Sarawak, practising a worshipful song two weeks before Christmas. Sermons in churches are increasingly conducted in the Malay language simply because the younger congregations are no longer fluent in English.

The suit was made after the Herald, published by the Catholic archbishop of Kuala Lumpur, was issued a series of directives by the Internal Security Ministry for the publication to cease the use of the word Allah, failing which the publication’s permit could either be suspended or revoked.  

Other than the Bahasa Malaysia segment, the weekly also has the English, Chinese and Tamil segments for its members.  

The Sidang Injil Borneo (SIB) church and its president have also sought a judicial review against the ministry for its decision to stop the church from importing Christian books which contain the word Allah.  

Deputy Internal Security Minister Datuk Johari Baharum has reportedly justified the action by saying the decision was taken to prevent confusion as the word Allah could only be used in the context of Islam and not other religions.  

He was quoted as saying that “only Muslims can use Allah, it’s a Muslim word, you see. The word Allah is published by the Catholics, it’s not right.”  

As someone who knows Johari, I find him amicable, approachable and helpful but I believe he has only taken a political perspective on this issue.  

With due respect, I do not think Johari has taken into account the linguistic and historical issue of the subject. He probably made the decision on the advice of middle and lower-level officials and we hope he will review this decision, which has caused unnecessary discontent. 

Beautiful greeting 

Anyone travelling across the Middle East can tell you that tourists would be greeted with “Assalamualaikum”, even among Christian Arabs, but Malaysians are told that it is for use exclusively among Muslims. Even the Arabs are perplexed by this.  

“Peace be upon you” is such a beautiful and meaningful greeting, and we wish for it to be used by Malaysians of all races. It is also such a positive introduction to the world of Islam, where followers wish others well.  

The Arabs prefer salam, as with the Malays here, while the Jews use shalom. There is no religious context in such greetings.  

If you take a copy of the Arabic bible, you will find that Allah is used as a reference to God in the Christian perspective. It’s not something new as it has been in existence for centuries. In fact, the Christian usage of the word predates Islam.  

This Arabic word is the closest equivalent to the English word God. In Hebrew and Aramaic, the language used by Jesus, the word used for God was “El” or “Elah”.  

Christians in Egypt, Lebanon, Iraq, Indonesia and many parts of Africa with huge Muslim communities have used the word with no problems.  

In fact, the Church of Nativity where Jesus was born is located at the Palestinian side and Muslim leaders have no problems attending the church mass annually, as part of the respect accorded to the church. 

I made my pilgrimage to Jerusalem some years back and it was an eye-opener for me to see most of the biblical sites at the Palestinian-run territory. A Muslim holds the keys to the Church of Nativity because of the factional fight between church groups.  

It is common to see Palestinian Muslims and Christians selling church souvenirs, including crosses and rosaries, to pilgrims side by side.  

The ministry has obviously decided that Allah is exclusive to Islam, seeing it as a security issue, but times have changed. They have no reason to fear that Malaysians would be confused. In fact, the ministry’s decision is confusing.  

SIB president Pastor Jerry W.A. Dusing has said, in court documents, that the word Allah was used in the first complete Malay Bible in 1733 and the second complete Bible in 1879.  

The ministry has stirred up a subject which should be left alone, as it has been for centuries. A new generation of Malaysians, more fluent in Bahasa Malaysia than English, has emerged because of our own policy.  

Sermons in churches are increasingly conducted in the Malay language, simply because the younger congregation are no longer fluent in English.  

Indonesians, mostly foreign workers, are attending church services in huge numbers alongside Malaysians. If Christian books cannot be in Bahasa Malaysia, then it has got to come from Indonesia and Singapore. The dilemma is that the Bahasa Indonesia translated Bible uses the word Allah and Indonesia has more Muslims than Malaysia but it’s not a problem there.  

Information Minister Datuk Seri Zainuddin Maidin is right. He has consistently reminded Malaysians that Bahasa Malaysia is not exclusively for Malays. The same applies to Arabic words.  

But I believe our Prime Minister Datuk Seri Abdullah Ahmad Badawi is a fair man. He has been open-minded enough to attend Christmas gatherings and it was him who lifted the ban on the Iban-language Bible, revoking an Internal Security Ministry order.  

Pak Lah must have listened to the views of both Muslims and Christians by now and certainly he serves as a good appellant.  

It would be good if the church could meet Pak Lah, express their feelings and possibly withdraw the suits. They could also give an assurance that these books and publications will be used only for their members.  

Challenging tasks 

The impasse has to end and as we usher in the new year, let us remember there are bigger and more challenging tasks ahead of us. Surely, the ministry has more issues to handle than to create a linguistic controversy with religious connotations.  

It is good that the controversy has been handled in a rational and calm manner. Many Malaysians, in fact, do not see the need for it to crop up in the first place, and we sometimes need to remind ourselves that we should not see any agenda or shadow in every action or statement that we make.  

These similarities, in words and practices, in Islam, Christianity and Judaism, are expected because these religions originated from the same area and the people share many cultural, sociological and anthropological traits. 

Unlike other religions, these three religions, are sometimes referred to as “Abrahamic faiths”, believe in one God but have different concepts of the Creator.  

There is something positive out of this controversy – it’s good to learn and appreciate each other’s religions. As individuals, we are all constantly seeking out God in our personal journey of faith. Let us do so with our eyes, our minds and our hearts open.  

On The Beat
By WONG CHUN WAI

THE Cabinet meeting was held on Tuesday last week instead of the customary Wednesday. At the same time, Members of Parliament were wishing each other farewell, believing it would be the last time they would meet before the next general election. 

For the ministers, many wanted to clear their work before the Hari Raya Haji celebrations while some had taken leave. 

One minister took his family to Europe for a week, telling MPs that he would be busy campaigning once he is back.  

For some, they have already hit the campaign trail, taking advantage of the holiday season to meet their supporters and constituents. 

Others wanted to register their presence at flood-hit areas and have even cancelled their vacations. 

There are already enough signals – the general election is likely to be held in the next two or even three months. 

The Bersih and Hindraf protests, which led to the use of the Internal Security Act, may have its impact on urban votes but are unlikely to drastically affect the leadership’s showing in the elections. 

According to some, the Hindraf issue may have even strengthened Umno, particularly among the electorate in the Malay heartland. 

Some survey findings show that these Malay voters were unhappy with the demonstrations, particularly the appeals to Queen Elizabeth II, and are supportive of the ISA against the leaders. 

At a recent meeting of Umno grassroots leaders in Kuala Lumpur, some even questioned why the Government had not used the ISA earlier. 

PAS president Datuk Seri Hadi Awang had to issue a late statement to condemn the Hindraf demonstrators, apparently after the Islamist party found out that it had misread the political mood among the Malay voters. 

PAS leaders also refused to condemn the demolition of an illegal Indian temple, just before Deepavali, which was a core issue of Hindraf, as it would be at odds with the Islamist cause pursued by the party. 

With the majority of parliamentary and state seats in rural and semi-urban areas, the Umno leadership must have done their homework. 

As for the urban areas, with predominantly Chinese voters, the MCA and Gerakan would have to work harder as anti-establishment sentiments are still strong, particularly in Penang and Perak. 

In the Klang Valley, the demography has changed over the past years.  

There are now sharp increases in Malay urban voters and in some constituencies, the Malays have formed the majority in Kuala Lumpur. 

The Chinese and Indian votes would be crucial for Umno candidates in these areas and the party should also not take for granted these Malay voters whose social consciousness and world view are not necessarily those of Umno. 

Luckily for Umno, most of these Malay urbanites do not support PAS while some find that PKR lacks credibility; but if these Malay voters stay away, it may affect the percentage of votes.  

The Indians may not have a single majority seat but their votes would still have an impact in many seats in Perak and Negri Sembilan. 

A recent survey showed that the Hindraf issue generated interest among all races but in the case of Bersih, it appealed mostly to Malay respondents, presumably because it involved PAS and Parti Keadilan Rakyat elements.  

The Bersih rally generated little interest among Chinese and Indian respondents while a huge number did not even know the march took place. 

The bets are on the elections at the end of February, after the Chinese New Year celebrations, and early March. 

To hold back the elections because of the Hindraf and Bersih rallies make little political sense because the impact of price hikes would be more politically damaging as it would cut across all races. 

Analysts should not just talk to urban voters and bloggers to have a better reading of the political mood as the issues and needs differ. 

Rural voters, especially smallholders, are reasonably happy with the Government as the prices of commodities, especially rubber and palm oil, have been strong. 

It will be a short Christmas for many as preparations have began for the next general election.  

Correction, the coming general election. 

COMMENT
By WONG CHUN WAI

  EXCEPT for those who read the business section of the newspapers, a major corporate deal that is underway is likely to be missed by most ordinary Malaysians. Yet, it would have tremendous impact on the country’s investment standing. 

The Abu Dhabi Commercial Bank is said to be planning to take up a 25% stake in RHB Capital Bhd, amounting to at least RM4bil, from the Employees Provident Fund. 

The move, if successful, will help RHB Cap become a strong regional financial services group, especially in the area of Islamic banking, and help to push the RHB Banking Group into one of three financial services providers in Asean in the years ahead. 

But more importantly, Malaysia is slowly but surely becoming a major destination for investments from the Middle East. Consider these facts: In the past six months, several billions of ringgit of investments have flowed from Abu Dhabi, Dubai, Kuwait and Saudi Arabia. 

This amount will easily breach more than RM12bil if the ADCB goes ahead as expected and buys the stake in RHB Cap from the EPF. The market suggests that the purchase price will close to RM4bil (based on between RM7.20 and RM7.40 per share) – a significant premium from the EPF. 

ADCB, which has been named by Euromoney as the “Most Improved Islamic Bank in the Middle East,” has certainly placed much confidence in Malaysia. The magazine also voted the ADCB as the best bank in the United Arab Emirates this year. 

ADCB is 64.8% owned by the Abu Dhabi government through the Abu Dhabi Investment Council. Last year, ADBC earned 2.15bil dirham (US$580mil) and was the most profitable bank in the UAE. 

It is easy to see why ADCB is interested in RHB. Despite its recent troubles, RHB still has strong branding. Its position in Islamic banking and regional offices makes it a prime candidate to become a regional financial services powerhouse. 

Their partnership will help to secure Malaysia’s position as Islamic banking hub at a time when it is being challenged by several countries including Singapore. 

We have plenty of reasons to be pleased by the Middle East money flowing here. All over the world, countries are chasing after funds from the Middle East. In short, the Arabs are being courted. Singapore’s ministers including Goh Chok Tong and Lee Kuan Yew are making regular trips to secure investment from Dubai and Abu Dhabi. 

But the Abu Dhabi government sees Malaysia as the gateway to Asia. They like the political stability, economic fundamentals of the country, the long term economic planning and the fact that culturally and in terms of religion, we are closer to them than other countries in the region. 

Note that many of their investments to date are long term in nature. When Mubadala, Kuwait Finance House, Aldar Properties pumped in an initial RM4bil into the Iskandar Development Region, they were investing in the future of Malaysia. Saudi Telecom has also bought a stake in Binariang GSM, for example. 

The Al Rajhi Bank has become a household name in Malaysia although it has been operating in Malaysia for only a year. 

Currently, the bank, owned by Abdul Aziz Al Rajhi and his four sons, has 12 branches. The bank plans to have 50 branches by 2010. 

The Al Rajhi family is known to be the wealthiest non-royals in Saudi and among the world’s leading philanthropists while the bank is the world’s largest Islamic bank and a major investor in Saudi Arabia’s business world. 

The Arabs have a reputation of being cautious, serious and even calculative in some ways. They do their homework and they drive a hard bargain before they put their signatures on any documents. 

They do not believe in ribbon cutting, long ceremonies and publicity – what they want to see, as in any commercial deal, is a decent return to their investment. By putting their money in Malaysia, they certainly believe there is a profit at the end of the day. 

When the consortium of prominent Middle East investors took control of Putrajaya Perdana, they had a long-term vision of making the boutique construction firm a much bigger player, especially in the field of energy efficient buildings in the region and in the Middle East. The point is this – these investors have confidence in the prospects of Malaysia. 

The Abu Dhabi Investment Authority, for example, is among the oldest and largest in the world. Abu Dhabi also has one of the largest reserves in the world. So any investment that flows from there is backed by solid financial muscle and usually has the endorsement of the leadership.  

Without doubt the recent massive demonstration by Hindraf to highlight the economic plight of Indians struck a chord among many Malaysians who feel the issues need to be addressed. 

These are legitimate concerns, particularly on education and employment, for which the Indian community has strong sentiments. Certainly the leadership needs to hear them out. 

And the Prime Minister did. On Friday, Datuk Seri Abdullah Ahmad Badawi met 16 representatives of Indian non-governmental organisations who opened their hearts to him. 

It was said to be a frank meeting where the representatives spoke up with one informing Pak Lah that he felt that the community had lost its “dignity” over certain incidents. 

Such dialogue is certainly important for the Prime Minister as it would enable him to listen to the concerns of the community directly, and the sentiments on the ground. 

Although Hindraf may have appealed to some sections of the community in the early stages, the extreme positions taken by its leaders, including the possible threat of violence, must have led many to review their support. 

Not a single Malaysian newspaper, for example, was prepared to print the entire contents of the memorandum submitted by Hindraf. For good reason, it was simply too extreme. 

But that meant, unfortunately, that many Malaysians were unable to see for themselves the whole memorandum and were also unable to make a better judgment of the group. That, in some ways, put the Government in a defensive position as Hindraf leaders continued to hold gatherings locally and overseas. 

In their memorandum to the British Prime Minister Gordon Brown, the Hindraf leaders complained about how “Commonwealth ethnic Indians” in Malaysia were allegedly persecuted by “government-backed Islamic extremist violent armed terrorists” who destroyed an Indian temple in Shah Alam last month. 

They appealed to Brown to move a “UN resolution” as well as to go to the World Court to condemn the “ethnic cleansing” in Malaysia, adding that “1,100 over Indians were slashed and killed” by the Malaysian Government in Kampung Medan. 

The fact is, in that racial clash in 2001, six persons were killed and 154 people arrested at the scene. 

Hindraf has also charged that it was a “policy” to kill one person every week, of which 60% of the victims were Indians. This is farfetched and exaggerated. 

It is a reminder to us all that extremism cuts across all religions and ideologies. 

While the temple demolition issue generated much unhappiness, if not anger, among Hindus, less talked about was the fact that the temple in question sat on private land. In short, it was an illegal structure, no matter a place of worship, and squatting on someone’s land. Compensation and an alternative site had been offered – but these facts were omitted by the Hindraf leaders. 

There were claims, via the Internet and SMS, that the temple was a 100-year-old heritage building. Not many asked if indeed this was so: why wasn’t it a tourist site, like Batu Caves, for example? 

Statistics have now been provided that on a per capita basis, there are more Hindu temples than mosques and suraus in Selangor, although the total Hindu-Indian population is about a quarter of the total Malay population. 

At the Batu Caves, where a huge protest took place, we seemed to have lost sight of the fact that there is a huge statue erected on the grounds of the temple that has been accorded recognition by the Government. Thaipusam and Deepavali are also gazetted holidays. 

There is also not a single Indian majority constituency, state or parliamentary, and yet the MIC is recognised as the third largest Barisan Nasional component party with representation at state and national levels. 

But as action is taken against the Hindraf leaders, there are lessons to be learnt from the incident. The Hindraf protest was unprecedented and certainly the MIC must sit up and listen hard. 

It has been weeks since the party talked about setting up hotlines to listen to the grievances of the community and we have yet to hear details of the plan and the committee set up to analyse the issues affecting the poor. 

In the case of the demolition of the illegal temple, it is highly insensitive on the part of the local authorities to carry out the action so close to Deepavali, a religious celebration. All Mentris Besar and Chief Ministers must learn from this incident. 

Problems affecting the Malaysian urban poor, regardless of their race, need to be addressed. There must be a comprehensive plan to tackle these social concerns. It is not a consolation to use statistics to tell the community that they are not the poorest. 

Similarly, officials of some public universities must avoid holding examinations just days before the Chinese New Year, which has been a practice at one or two universities. 

Thus it is good to hear the National Service Department announce that trainees will be allowed to take off for Chinese New Year and Thaipusam. 

Maintaining race relations in Malaysia is not an easy job. As recent events have shown, it is a very delicate process indeed. 

COMMENT
By WONG CHUN WAI

THE Internal Security Act (ISA), which allows for detention without trial, is unpalatable to most Malaysians. 

A British legacy, it is regarded by many as draconian and to be used only as the last resort when the country’s security is threatened. 

Over the last few days, the chorus for the use of the ISA against the Hindu Rights Action Force (Hindraf) has become louder. 

Umno vice-president Datuk Seri Mohd Ali Rustam and Youth chief Datuk Seri Hishammuddin Hussein Onn – two senior Umno leaders – want the ISA invoked while MIC president Datuk Seri S. Samy Vellu said he would not interfere if the ISA were used. 

The pressure seems to have been stepped up and Prime Minister Datuk Seri Abdullah Ahmad Badawi must surely be aware of the feeling on the ground. 

Any decision to use the ISA would not make the leadership popular, particularly in the eyes of the world, but for many Malaysians, this could well be the only solution to keep the peace and stability. 

The massive turnout at the Hindraf gathering outside the British High Commission has made a point – there are many poor Indians who feel they have been left out of the country’s development. It should just end there. 

But the campaign has taken a new dimension with allegations of ethnic cleansing, murder of Indians, body snatching of converts and daily demolition of temples by what Hindraf has termed as Islamic terrorists. 

Whatever good the Hindraf lawyers had in mind for their community has now taken a terrible twist. Much goodwill has been lost. 

Even opposition leaders such as DAP’s Karpal Singh and PAS’ Datuk Seri Hadi Awang have found these allegations baseless, if not offensive. 

The Sultan of Selangor, who is regarded as a populist royalty, said he was upset and angry at the protest, which turned into a riot. 

To carry out an international campaign with these allegations is unlikely to help the community. Yes, the Indian poor, as with the poor of all races, have a case and the Government must sit up and listen hard. 

Yes, they complained that their leaders have not done enough. Much needs to be done to help the under-privileged, regardless of their race. No sane person would quarrel over that. 

But the campaign has gone overboard and terribly wrong. There are some who want to counter-demonstrate and retaliate in bigger numbers – but what is the point and its effect on the nation? 

Protesters who talk in numbers sometimes forget that others too can match them. 

Hindraf demonstrators have been arrested and charged in court. As much as we sympathise with them, that is the price they must pay – they were warned many times by the police to stay away from such protests. By defiantly ignoring this principle of law, they cannot argue otherwise now, harsh as it may seem. 

The purpose of the Hindraf gathering was to hand over a memorandum but from what the press is aware, it has not been done so far. Not even a faxed copy to the British High Commission. 

Yesterday, about 100-odd people, including lawyers, some linked to Parti Keadilan Rakyat, and activists, went ahead with a protest march although the Bar Council had called it off. As lawyers, they should know the law better, even if they disagreed with it and taking to the streets is something new to Malaysian politics. 

Tomorrow, the PKR-backed Bersih intends to gather outside Parliament House for another protest. 

These series of protests have put the leadership under test, if not strain, including within their party and supporters. 

No one should be surprised if the ISA is used against those who threaten racial harmony, as enough warnings have been given.