TEMPO.CO, Jakarta - Malaysia's Prime Minister Najib Razak has blundered. Firing Deputy Prime Minister Muhyiddin Yassin and replacing four ministers has taken Malaysia into uncharted waters. Believing the nation needs to be saved, the people have risen up in opposition.
The Malaysian crisis began when the Wall Street Journal published details of the mega-scandal involving the misuse of state investment funds. Najib stands accused of receiving almost US$700 million from 1 Malaysia Development Berhad (1MDB). The money was paid into his personal account in 2009-believed to be for his nomination as prime minister. 1MDB is a state investment company established with Najib at its head in 2008.
Muhyiddin joined in the criticism of his boss. But instead of receiving a clarification, he was replaced by Home Affairs Minister Zahid Hamidi-a Najib loyalist. Attorney General Gani Patail, who was investigating the scandal, was also removed. Nur Jazlan Mohammad, who was chairman of the Public Accounts Committee looking into the scandal, was shunted sideways to the position of deputy foreign minister. Two financial newspapers, The Edge Weekly and The Edge Financial Daily, were banned for three months, starting from July 27. Around US$11.23 billion, or Rp148 trillion, of 1MDB funds is believed to be misused. The mismanagement of 1MBD assets came to light in 2008, when Najib gave businessman Low Taek Jho a loan with easy terms, amounting to US$2.8 billion. The funds, which should have been used to build infrastructure for an oil and gas project in Terengganu, vanished without a trace.
Today there are calls across social media to bring down Najib. 1MDB has been retitled '1Malaysia in Danger'. The opposition has launched the hashtag #Kita Lawan (We Oppose). Even Najib's luxurious lifestyle has become a target of public mockery. His wife Rosmah Mansor is portrayed by Malaysian cartoonist Zunar as living like Marie Antoinette. Her hedonism surpasses that of Imelda Marcos.
The Clean Coalition plans to hold major demonstrations in August. It is believed that Najib's government is also coming under pressure from overseas banks and donor countries. Singapore has frozen two accounts suspected of being sources of funds for 1MDB. Remember, 1MDB was very aggressive when obtaining massive loans from overseas banks. According to the rules, these loans have to be approved by the Malaysian National Bank and the finance minister. The problem is that the finance minister when 1MDB was established was none other than Najib.
Now that the scandal has broken, it is not impossible for donor nations to ask questions about their investments. Big players like Goldman Sachs and the Saudi monarchy are also involved. Now we will have to wait and see if the Special Task Group comprising the police, the Malaysian anti-corruption commission and the central bank has the audacity to thoroughly investigate Najib. Will Najib be detained and eventually fall? Will the pro-democracy movement be able to consolidate, involve all elements of society to take advantage of the momentum for change?
Several Malaysian activists believe the situation in Malaysia is similar to that in Indonesia in May 1998. But Malaysia is not Indonesia. There are no students taking to the streets to form 'do or die' groups. Malaysia is facing this storm in its own way. (*)
