Anwar Demands `Major' Changes in Malaysia Race Rules

Via Email - Bloomberg


March 13 - Malaysia's opposition parties, fresh from their biggest electoral gains ever, have vowed to dismantle the country's legalized system of preferences for ethnic Malays. Doing so won't be easy.

Opposition leader Anwar Ibrahim said after the March 8 elections that "major adjustments need to be made" to the race rules. The parties will be able to accomplish some incremental progress toward that goal in the five states they won. They also will pressure the ruling National Front coalition to move quicker in easing the requirements.

For now, that's about all they will be able to achieve, because most of the system is controlled at the federal level by a set of 37-year-old directives known as the New Economic Policy, instituted to help the majority Malays catch up with Chinese business owners. States have little say over the NEP, and some regions controlled by the opposition are dominated by Malays who don't want their advantages undone.

"A lot of the laws are central and federal", said Ooi Kee Beng, an analyst at Singapore's Institute of Southeast Asian Studies. The opposition parties "are in a daze and trying to feel their way around".

Anwar's People's Justice Party, the Democratic Action Party and the Pan-Malaysian Islamic Party, known as PAS, won enough seats to deny the ruling coalition the two-thirds majority it had enjoyed in parliament for 34 years.

Intel, Sony

They will stop setting aside projects for Malay businesses in their states, parting ways with National Front policies. These opposition-controlled areas include Penang, a base for Intel Corp., and Selangor, host to Sony Corp. Penang also plans to do away with racial quotas when licensing street vendors.

PAS, which has controlled northeastern Kelantan state since 1990, has said it doesn't discriminate based on race, and won't in Kedah, the state it has just won.

"That would resolve a major part of the problem, but only at the state level, where we are in charge", Anwar, 60, told reporters on March 11. "Hopefully, things will change, but not in the very near future".

Criticism of the rules was taboo after they were introduced in response to race riots in 1969. They were aimed at alleviating poverty and rebalancing national wealth concentrated in Chinese and British hands, a vestige of Malaysia's status as a U.K. colony until 1957.

"Creative Destruction"

Anwar's opposition to the NEP emerged over time. Early in his career, he was a champion of Malay preferences. Then, in 1998, he was ousted from the government and the ruling coalition's dominant party, the United Malays National Organisation, after calling for "creative destruction" of Malaysia's economic system. He later began criticizing the NEP for being used to justify institutionalized corruption.

Now he wants to dismantle it. "The New Economic Policy benefits the few family members of the ruling establishment and their cronies", he said.

The ruling coalition has eased the rules as it tried to lure global investment capital from China and Vietnam and explored free trade accords with the U.S. and European Union.

Malaysia's reluctance to increase access to government contracts by changing pro-Malay policies is among issues that have delayed a deal, U.S. Assistant Trade Representative Barbara Weisel has said.

"The NEP is very subjective", said Gan Kim Khoon, head of equity capital markets at OSK Investment Bank Bhd. "A lot of it is left to interpretation".

Lower Grades

The rules give Malays preferences over Chinese and Indians in education, jobs and investments. The country's 19 public universities admit Malays with lower grades than Chinese and Indians. Companies must sell 30 percent of their shares to Malays and declare how many Malays they employ to be listed on the local stock exchange.

"The country's economic development has been possible despite this expanding web of rules because the government has applied pragmatic exemptions", said Song Seng-Wun, an economist at CIMB-GK Research in Singapore. Malaysia's economy has grown an average 6.8 percent a year since 1970.

Selected foreign investors have been allowed 100 percent ownership of their local businesses since then under special provisions. In 1995, the government announced the first of a series of regions where the NEP wouldn't apply. Prime Minister Abdullah Ahmad Badawi, 68, launched a second such area in the southern state of Johor in 2006.

Suhaimi Ilias, an economist at Aseambankers Malaysia Bhd., a unit of the country's largest banking group, predicted Chinese and Indian parties in the UMNO-led coalition would call for the rules to be eased further.

"Whatever it is, something will happen", Suhaimi said. "The whole point is about reinventing. And that's what this country needed going forward".

While the opposition likely won't push for low-cost housing and other federal benefits to be dropped, the parties want them to be based on need, not race.
"Affirmative action will continue", Anwar said. Helping marginalized Malays "will not be purely on the basis of race".

Election post-mortem: Top 10 factors....

By Bridget Welsh via M'Kini


Few expected that the wave of protest would snowball into the record losses for the Barisan National. My own analysis was the gains would be at maximum 70 seats and two state governments, not the record five state governments and 82 seats for the opposition.

While the ground swell of disgruntlement was there, concerns about electoral fairness and persistent patterns of ethnic voting dampened the optimism, even among the opposition. Yet, the record breaking losses for the BN have created a fundamental rupture in Malaysian politics.

Based on following the campaign and the generosity of ordinary people and political elites sharing their views, here are my top 10 reasons for the outcome:

1. Reformasi spirit lives on

The BN severely miscalculated in its assessment of the Malaysian electorate. In 2004, Prime Minister Abdullah Ahmad Badawi embraced the reform agenda that catapulted into the electoral agenda in the 1999 election.

The fight against corruption, increased transparency, and, most important, better governance underscored his 2004 campaign. Recall the advertisements for a more effective civil service, and the focus on building on his ‘Mr Clean’ persona.

Coupled with Abdullah's affable personal style and the groundswell of goodwill, Malaysians embraced his leadership, giving him then a record mandate. But the mandate was not just about Abdullah the man, it was also about the issues that he used to get himself and the BN elected.

The 2004 campaign was filled with promises of reform of the police to address crime and pledges to reduce corruption. Not only were these promises not fulfilled, the problems have been seen to deepen during his tenure as reform efforts were abandoned and anti-corruption efforts were selectively applied.

Many in the 2008 BN slate continued to have questions about alleged corruption, from S Samy Vellu (Maika scandal) to others close to the prime minister. These charges were not investigated, and in fact with the continued selection of candidates this round with corruption clouds, the Abdullah administration failed to show a commitment to address the problems it acknowledged in 2004.

At the core, Malaysians want - and deserve - a better government. The spirit of reform remained alive and kicked back in this election.

2. Abdullah's laissez-faire lackluster leadership

Abdullah brought about a profound transformation in liberalising the political system, allowing more voices to be heard, and graciously accepting the electoral results. In these areas, he deserves high praise.

Yet, he failed in the key area that has been the backbone of the BN's legitimacy - economic performance. The macro numbers in Malaysia are strong and the country remains one of the most competitive for investment regionally. Yet, it is falling behind in maintaining competitiveness and the economic gains are not being effectively distributed to the population.

Abdullah's administration corresponded to high inflation - the highest since the early 70s. Inequality is rising sharply and ordinary people, notably the middle-class based in the urban areas, are feeling the pinch. Even though commodity prices have brought more wealth to the rural areas, it is not keeping up with rising costs. This was brought home to me with conversations with Malay rubber tappers in Larut, Perak, who supported PAS in record numbers.

In fairness, the rising prices are the result of an appreciating ringgit, rising oil prices and high government subsidies, issues that are either out of Abdullah's control or he inherited. Yet, his economic team proved not able to manage domestic prices effectively and translate the oil and gas revenue into gains for society at large that could be felt in ordinary households.

The recent Hari Raya, Chinese New Year and Deepavali holidays were noticeably less plush than before, a real sign of fiscal difficulties. Wages have comparatively dropped and those working in the service sector make barely enough to survive. The starting take-home salary at 7-Eleven is RM700 a month. Unemployment among younger people remains too high, and not all of them can be absorbed into the civil service.

Difficult conditions are compared sharply to the wealth of the political elite, including Abdullah and his family with a reported new home in Perth. The conspicuous display of consumption of the elite is on display from the rural areas of Perak to the Kuala Lumpur shopping malls.

Beyond the bread-and-butter issues, was a more serious dynamic - the inability to instill confidence in promoting long-term economic development, increasing Malaysia's economic competitiveness. The economic vision was missing in Abdullah's first term, and the fiscal liquidity in the country was not adequately invested locally.

The economic reforms needed to bring about the changes were not pursued with the zeal to keep Malaysia ahead of countries like Vietnam. In particular, Malaysia faces the difficult task of making is domestic business entrepreneurs more competitive. This involves weaning them off a dependence on contracts. This is true for both the Malay and Chinese business communities alike.

Abdullah's administration strengthened its use of patronage, and did not send a clear message to end wasteful big projects. The new economic corridors have yet to be shown to be effective allocations of resources, rather than avenues for elite economic gain. Malaysia did not aggressively pursue trade liberalisation in a means to attract more foreign capital.

Moreover, the much-needed reforms in education, to strengthen Malaysia's human capital, were not effectively implemented, although good ideas were touted. Investors want confidence, and effective policy implementation.

Abdullah's decision-making style has yet to yield the results his 2004 mandate should have given him. The ideas were developed, but not implemented. The talent in Malaysia is there, but Abdullah was not able to effectively harness it. The BN is fooling itself if it thinks the electorate does not appreciate the larger issues that affect their children's futures.

3. BN coalition failings and infighting

Abdullah's poor management extended to the BN itself. The component parties within the BN were dismissed and ignored. Whether this involved the PGCC (Penang Global City Centre) project in Penang in which the opposition of Gerakan to the project was completely by-passed or the memorandum on Article 11 that the parties were forced to withdraw, the perception was created that voices for non-Malays in the coalition were not being heard.

Umno came across as too arrogant within the coalition. This came to a head in the Hindraf affair, when voices within the system rejected the concerns of ordinary voices and added salt to the wound by arresting the Indian Malaysian leaders. This seriously delegitimised the MIC as the voice of the Indian Malaysian community. It is not a coincidence that Devamany S Krishasamy, the MP from Cameron Highlands, who had the bravery to at least acknowledge concerns, was reelected and Samy Vellu, who justified the arrests, lost.

The issue of problematic BN management extended to the dominant party within the BN itself, Umno. Abdullah came into office without a strong political base within his party. The party rallied around him in the office of the PM, yet he continued to face dissension inside. Rumours of rifts between him and his deputy Najib Razak continued, and were denied as in fact their working relationship was overall sound in the first term.

Yet, the dissension continued to percolate, with former premier Dr Mahathir Mahathir leading the charge. The March polls were not just about national elections, they were also about positioning for the next Umno elections. In this regard, the March polls were used as a means to strengthen Abdullah and his allies positions within the party.

Mentri besars were given much more influence over the candidate slates. Popular candidates, those that hold important division chief positions within Umno, were dropped. It is no wonder the Umno machinery did not work as effectively in this election compared to the last. As one Umno elite described it, there were too many "fronts" opened this campaign to mend. The impact of Umno infighting is most obvious historically in Kelantan, but can account for losses elsewhere and reduced majorities even in safe areas such as Perlis.

The divisions within Umno were paralleled by splits within the other important component parties. For the MCA, the battle over leadership was already on the agenda before the election and the ouster of Chua Soi Lek, distancing of Chan Kong Choy and rise of Ong Ka Chuan, the brother of the party’s president have created serious ripples within the party.

The MCA knew defeat was coming, but not as serious as the outcome. They slated the least number of incumbents - 35% - due to infighting and the difficult Chinese electoral terrain. The MCA's loss in the urban areas shows that they lost both Chinese and English-educated Chinese, the latter of which have not been effectively included in Ong Ka Ting's tenure.

The MIC's crisis is well-known, as a similar dynamic over succession permeated the election, and the record number of new candidates for the MIC only served to have MIC fight itself in places like Perai in Penang. Gerakan's internal difficulties in the chief ministership issue were also on public display, although for the purposes of the election, the party maintained unity - to no avail.

4. Better messaging by the opposition

It is thus not surprising that the BN campaign lacked a coherence. In reading the messages about its record, the issues raised were disparate and lacked focus. While clearly polished posters and top printing quality, the BN content did not resonate clearly. The messages used in different states did not fit clearly under one umbrella, such as Umno's focus on it being the party of the struggle for Islam in Terengganu and Kelantan.

In fact, many of the messages belied the experience of ordinary Malaysians - end of poverty? clean police force? prices least in the region? The connection to society was missing. The tone of the campaign was one in which the voices of society were not listened to, and people were talked down to.

Many pointed to the arrogance of the BN in its campaign - highlighting the ‘One Choice’ poster as a fundamental lack of appreciation that there was another choice in this campaign, a choice that the majority of the electorate chose. The defensive posture of the BN campaign failed to offer hope to the electorate. "Be grateful for what you have" does not evoke support in a context of increased economic difficulties.

In comparison, the opposition was united in promoting one message of "change". While they differed in their priorities of what they wanted to change, they all concurred on introducing more checks and balances in the system. Each party had a common template and umbrella that allowed candidates that were unknown to build on the individual party's identity.

The message was modest in goals and a positive message. This more effective messaging allowed the opposition to reach out to new voters, and convinced many Malaysians to vote outside of ethnic lines.

5. Embracing modern campaigning: New mediums

A critical component of the opposition's stronger campaign was its more aggressive move to modern campaign techniques. While Malaysia elections continue to be labour intensive affairs, with house-to-house campaigning the norm, the use of polling of the electorate and the embrace of the Internet, blogs and SMS worked more the advantage for the opposition.

The opposition was denied balanced coverage in the mainstream media, and thus was forced to adopt new campaign techniques for greater penetration of their message. PAS was perhaps the most effective of all the opposition parties in using its website to reach out to its supporters, with its candidates profiled early on. Yet, PKR and DAP were also close behind, using email list-serves and YouTube. The uploading of ceramah allowed a wider audience to hear their message.

The BN lacked the same level of adoption of these techniques. In part, it believed that control over the media and resources would work. This is understandable. They have worked in the past. Yet, Malaysia is no longer the same place. Now 42 percent of Malaysians reportedly use the Internet, and they have access to alternative opinions.

No matter what level of control over blogging the government introduces, they cannot control cyberspace. The BN will need to adjust its campaigning methods to reach out effectively, especially to younger voters.

6. Timing of election and campaign period

The long campaign worked in favour of the opposition, not the government. This has to do in part with the cheaper means to conduct campaigns noted above - CD's, Internet and SMS are cheaper than paying campaign workers.

Yet the longer campaign period - the longest since 1969 - allowed the opposition to get its message out, to respond to the issues that the BN were raising. Instead of a blast in which the focus was on a few key messages, candidates from all parties had to adapt and change their messages as the campaign evolved.

This was most evident in Penang, where the response of outgoing chief minister Dr Koh Tsu Koon to the issue of the state's future leadership, provided fodder to the opposition during the campaign itself. The BN proved less willing to adapt as the campaign evolved.

Thirteen is clearly not Abdullah's lucky number. This election was called too early. While there is no doubt that economic pressures would have made the context difficult, the possible international recession might have given Abdullah more ability to deflect blame. As is, he alone was faced with an assessment of his economic management.

The scheduling of the elections only a few months after Hindraf and during the Chinese New Year celebrations did not help build confidence among non-Malays. Rushing the seat allocation within the coalition contributed to internal BN disgruntlement. More policies should have been implemented to address ethnic relations and more efforts to address the infighting within the coalition needed to be done before the election. The election was clearly poorly timed.

7. Opposition cooperation

The opposition is comprised of three different political parties with different political outlooks and philosophies. It is also comprised of strong personalities. After the DAP left the Barisan Alternatif in 2001, the divide between the opposition parties widened, as the ideological differences over Islamic governance split the DAP and PAS, and even had ripple effects within PKR.

Bringing the opposition together into the non-aggression pact of this election and the common umbrella was a massive effort, led by members within all the parties who recognised that national gains were not possible without cooperation.

All the parties needed cooperation to win new ground - DAP in Penang, PAS in Kedah and all the parties in Selangor and Perak. The seat negotiations were heated and difficult, but in West Malaysia successful. All the party leaders are responsible for this success. It involved moving PAS away from an openly Islamist agenda, which it adopted in the 2004 campaign, and all the parties to embrace multiracialism.

Operationally, cooperation involved joint PKR-DAP and PKR-PAS ceramah and on the ground canvassing, in which PKR and Anwar Ibrahim in particular brought parties together. For the campaign, the common goal of breaking two-thirds majority blinded the opposition to the ideological differences within itself and instilled more party discipline in all the parties.

Electorally, the opposition was seen as a viable alternative as the opposition, not individual parties.

8. Strong opposition candidates

The opposition also slated strong articulate candidates who spoke about the issues. From Nurul Izzah Anwar's discussion of housing, Nik Nazmi Nik Ahmad's attention to education and Liew Chin Tong's focus on the chief ministership issue to Dr Syed Azman Syed Ahmad Nawawi's highlight of the royalty disbursement in Terengganu, the candidates in the opposition spoke concretely about concerns in their constituencies.

The opposition is now comprised of a greater number of professionals - up to over 45% - and now includes businessmen such as incoming PKR MB of Selangor Khalid Ibrahim as well as social activists such as Dr Lee Boon Chye in Perak. Those that have stayed in the opposition and joined the parties after the heyday of 1999 are deeply committed to the principles the opposition calls for. While lacking in governing experience, there is talent and many who listened to the ceramah recognised this.

This is not to say that the BN did not slate capable candidates. The share of professionals remained high - over 30% - and the parties have extraordinarily capable people. Yet, the few that are tainted by scandals spoil the chances for others. Clean politicians within the BN - and there are many hardworking representatives within the BN - are negatively affected by the image that BN governance is about gaining wealth, not public service.

This time round, even the hardest working parliamentarians such as Chew Mei Fun, could not meet the challenge of the younger dynamic slate for change.

9. Backfire from attack on Anwar Ibrahim

If there was one serious miscalculation that took place during the campaign, it was the attack on Anwar Ibrahim. Personal in nature, it was seen as unfair, especially in the Malay community.

No question, there are real concerns among many Malaysians about Anwar Ibrahim's tenure in government - from issues of education to Islamic governance. He will have to continue to build confidence in the Malaysian electorate to those who have reservations about this leadership in the opposition.

Yet, the attack on Anwar provoked a reaction, particularly among Malays. It reignited the 1999 reformasi spirit, and only served to add credibility to his influence nationally. Here, the BN served to alienate many Malays through negative campaigning, rather than convince the electorate to support its message of development.

10. Sophistication of Malaysian electorate

Finally, and it is finally (with apologies for the length of this article), the 2008 election illustrated the strengthening of Malaysian identity and growing sophistication of the electorate.

Gone are the days when resources and promises alone can woo support - except perhaps in East Malaysia. Malaysians want more responsiveness and voices, and they used this campaign to stand in the majority for change. They no longer can be talked down to, but need to be listened and heard, not just during the election.

The leadership in both the opposition and the BN will have to keep this in mind, as the terrain has fundamentally changed.

Toyo, destroying state files....??

Source : http://sloone.wordpress.com

Apparently, these photos were caught by journalists at the Selangor state office. There’s also nothing anyone can do - since police have cordoned off the whole area (Elizabeth Wong). Our Opposition state assembly persons haven’t been sworn in yet. This is simply too much. In fact, this is criminal.

Is there really something to hide Mr. Toyo...??

Subra wants to help reinvent MIC...he...he...he...how about reinvent Maika...??

Source : NST


PETALING JAYA: Former MIC deputy president Datuk S. Subramaniam wants to play a role in revitalising the Malaysian Indian Congress.

In addition to this, he has called on every Indian to help MIC in whatever way he or she could.

Subramaniam has suggested that Indian-based parties like the Indian Progressive Front join forces with MIC.

Subramaniam said: "We should bring back all those who left the party so that the party can recapture lost ground. As a former MIC deputy president, I would like to offer my services."

He said Indians should feel they were part of the party and let bygones be bygones.

"The average Indian wants to become part and parcel of the party.

"If every Indian's heart is with the party, then why not all of us be under one umbrella," he said during a press conference at his residence yesterday.

He said MIC should put in place new strategies to lure other Indian-based party members to join MIC.

Subramaniam said he was willing to put aside his differences with MIC president Datuk Seri S. Samy Vellu for the sake of Indians and Barisan Nasional.

"If the party wants my services, I will accept. The position is not important at the moment," he said adding that he spoke to Samy Vellu two days ago.

It is learnt Subramaniam's call is part of an initiative by Prime Minister Datuk Seri Abdullah Ahmad Badawi, who is Barisan Nasional chairman, to bring Indians under a single party and consolidate the community under one banner.

It is also learnt that Samy Vellu has indicated he is not seeking a cabinet post but has instead suggested three names -- Datuk Dr S. Subramaniam (MP for Segamat), Datuk M. Saravanan (MP for Tapah) and S.K. Devamany (MP for Cameron Highlands) -- as MIC's representatives.

Asked if he thought race-based parties had lost their relevance in the country, Subramaniam said he did not think so.

"What is the reason for the formation of IPF? It is not a multiracial party.

"There are other MIC members who set up other Indian-based parties; they did not set up multiracial parties."

The other Indian-based party is former PKR member Datuk S. Nallakarupan's Malaysian United Indian Party.

Subramaniam said MIC should be people-friendly, not arrogant.

"It needs to get closer to the people. The party is weak.

"The MIC president has lost the election.

"I have no joy in seeing what we built being destroyed. As a long- standing member, I think we can bring in members who are not in the party."

He said the right talent should be recognised and young bright people should be identified to win the hearts and minds of the younger generation.

"We have to work very hard," he acknowledged.

Subramaniam is MIC division chief for the Seputeh constituency.

Should Samy Vellu resign?

"I don't believe that if he leaves the party it will regain its strength. But everyone has to leave at one point.

"I don't believe the party will automatically become strong if he leaves.

"We have to motivate people from inside and outside to become strong."

He said the party had also suffered badly in 1969 and lost many seats.

Thank You Malaysia for voting wisely….

By YennaMike


After failing to vote for the past 2 election I have finally decided to fly back to Malaysia to make my one vote counts – although my decision to fly back criticised as an insane move by some of my friends and family members. Being abroad does not mean that we are not aware of what is going on in Malaysia – infact we know more about what is going on, not to mention the “unfiltered” news that we get through international media.

The MAS flight that I took was full on the day I flew back to Malaysia, I could hear the passengers having serious conversation about the General Election. Through out the conversation I could hear the word “need to change them lah…., time to change lah…”. I decided to join their conversation. We got into chatting and they were quite surprised to hear the facts from me despite knowing that I have left Malaysia to work abroad 10 years ago.

Having got off the plane my lovely Wife and Uncle picked me up from the airport and I was quite amused with what I heard from my Uncle. A man with less education but great business mind spills out his thought – I want change…Makkal Sakthi will win. We arrived in Brickfields for a meal and the mood in Brickfields were the same.

I noticed that the Ruling party had more posters and banners compared to the Oppositions. In the midst of all these a Malay boy was distributing “Sivaji the Boss” pamphlets with Dato Seri Anwar’s face on it – people were taking it with great respect and I could see a mark respect and of unity – they whispered Makkal Sakthi when collecting it from the boy.

Come the Election Day we were getting ready to leave to the polling station when my mom’s friend came to visit us after casting her vote….she said I did my part and I hope you will do yours. She then turned to my mum and said listen to your son…vote what is best for your next generation…!!!. Funny enough my mom already decided to Vote for the Opposition for the first time in her life…!!!

After a while we excused ourselves and drove to our polling station, there were three tents erected near the polling stations – BN, PKR and Independent and guess what….the crowd was in the PKR tent and strangely no one was sitting in the Independent tent apart from few BN Campaigners – eeemmm that is very fishy.

The polling station was empty and we did out bit and left hoping to a good Majority win. Left to Klang that night and sat in front of the tele for the rest of the night. The first good news came around 9.00pm – Samy is out..!!!. Then the rest – many seats won in Klang and later came to know that PKR won at my hometown with a majority over 4000 votes…yippee my effort is paid off…!!!.

The following morning – I was desperate for a news paper to see the final results, nearly fell of the chair when came to know that the Opposition won majority in 5 state and Selangor being one of them….!!!. Met my Uncle for breakfast and I would see he was so excited – we were exchanging greeting “Makkal Sakthi”…!!! – The mood was the same in the Restaurant, each and every one of them had news paper on their table and they were referring this victory to Ramayana Epic…

I personally felt that people really wanted a CHANGE and I salute all those voted for the Opposition to allow them to prove themselves. Once again Thank You Malaysia for voting wisely….!!!

Malaysian PM in the hot seat after bad poll result

Source : The Canberra Times


"Angkasawan" means astronaut in Bahasa Malaysia. The word adorned the country's billboards last year, accompanied by the image of Sheikh Muszaphar Shukor Malaysia's first astronaut standing proudly in a space suit. The idea to send a Malaysian into space was hatched in 2003 when a Sukhoi fighter-jet deal was signed with Russia, which offered to send a Malaysian into space as a sweetener.

Muszaphar's journey, aboard a Russian-made Soyuz rocket launched from Kazakhstan, was significant. He did not just represent Malaysia. As only the ninth Muslim in space fasting during Ramadan no less his journey carried international significance. At least that's what Malaysia would like the world to think.

Unfortunately, the opposite is true. Malaysia has been struggling to gain anyone's attention since the hand-over of power by controversial former leader Dr Mahathir Mohamad in 2004 to current Prime Minister Abdullah Badawi.

It's not that the country hasn't tried there has been just as much scandal, ignominy, racial and religious tension now than ever before. But nothing has caught the eye of the international community in the way Mahathir was able to time and time again. While at home, most Malaysians feel that their politics is not worth the effort.

All this changed at the weekend as Malaysians went to the polls at both state and federal level. In a surprise result the ruling coalition, Barisan Nasional, suffered a shock voter backlash. While a reduced majority was expected, few would have predicted that the ruling coalition would fail to achieve a 60 per cent majority in federal parliament. At state level, experts were predicting at least one state to be in opposition hands (Kelantan) but not five.

Ordinarily Malaysians have to wait five years before going to the polls. This time they have voted a year early. Why? Most foreign pundits believe it was to prevent the deposed former deputy prime minister Anwar Ibrahim from standing. He's still banned from politics until April 15 on previous charges of corruption.

But while keeping Anwar out of politics may have been a factor, three other reasons were probably more important to the ruling coalition.

The first is an increasing concern over Abdullah's own leadership, which is a far cry from Mahathir, who, like him or loathe him, demonstrated at least one thing brilliantly that Malaysia matters. Talk of Abdullah's retirement is increasing in Kuala Lumpur coffee shops. By calling a snap election and winning it comfortably, Abdullah would be better placed to set his own hand-over agenda rather than face a tap on the shoulder. Given the shock result, he has cause for concern.

A second reason is ongoing racial tension, this time with the Indian community, many of whom feel they are being treated like second-class citizens. More than 20,000 Malaysian Indians rallied in Kuala Lumpur in November led by a group known as Hindu Rights Action Force to fight for better rights. The protest turned violent, forcing police to use tear gas and a water cannon to break it up.

By holding the elections early, the ruling coalition would have been hoping to stem the expected loss of support from non-Malays. A high-profile casualty was the leader of the Indian party in the ruling coalition, Samy Vellu.

A third reason for going to the polls early is an economic downturn that Malaysia will likely experience later in the year. This is likely to see inflation in the country rise, increasing the cost of basic goods. A downturn will noticeably affect millions of ordinary Malaysians, and potentially dry up the flow of much-needed foreign investment. The Abdullah administration would have felt it better to have an election out of the way before the downturn hits, rather than face an even bigger backlash from voters.

Given the election result, a purge of Abdullah is not out of the question. The safer bet is that he'll hand over power in the next three to five years. His replacement is almost certain to be the current deputy Najib Tun Razak, the son of Malaysia's highly respected second prime minister. In a country where patronage matters, Najib has been groomed for the top job since he was first elected to Parliament at age 23 (he is now in his 50s). While Najib is no Mahathir, he is controversial perhaps more through his actions than his words. It got prickly for him a few years ago, when a Mongolian woman was found dead having been first shot and then blown to pieces by explosives allegedly at the hands of two of Najib's police bodyguards.

Far less certain is who will become the next deputy prime minister after Najib is promoted. The position is likely to be filled by one of the next generation of leaders. The three main contenders are all Malay, as is always the case: the current Education Minister and son of Malaysia's third prime minister, Hishammuddin Tun Hussein; the MP and son of former prime minister Mahathir, Mukhriz Mahathir; and the son-in-law of Abdullah, Khairy Jamaluddin, who stood for Parliament for the first time at the weekend. All have ambition and pedigree behind them. And all have waved the "keris" (traditional Malay dagger) so to speak on behalf of their party. Hishammuddin, in his mid-40s, would be a safe bet. He appears to be looking for a senior appointment. Mukhriz's star rose quickly a few years ago, but his support is waning as his father's health deteriorates.

This leaves Khairy as probably the most talented and most controversial option. At just 32, he has packed a lot into his life, with wide-ranging business, sporting and political interests. Rumour has it that Khairy wants to be prime minister by the age of 40. He will want Abdullah to stay in power for as long as possible to help make the journey easier.

As for Anwar, he will likely re-enter politics if he so chooses, via his wife's safe seat or perhaps even his daughter's seat thanks to her unexpected win, in a by-election that will probably be held in the not too distant future.