Malaysia’s Anwar wants more money from Goldman Sachs

Malaysian leader threatens new legal action against US bank amid claims previous $3.9 billion settlement for 1MDB-related losses was insufficient

Malaysian Prime Minister Anwar Ibrahim is upping the ante on efforts to renegotiate a controversial settlement with Goldman Sachs for its role in the multi-billion-dollar 1Malaysia Development Berhad (1MDB) financial scandal and extradite one of Goldman’s convicted former bankers.

“We have our position; we want some more money back,” Anwar said candidly at a regional forum in Singapore this month, asserting that Malaysia is not “some banana republic where one can plunder and leave.” The premier has since reiterated his vow to take a “tougher” stance, including potential new legal action over settlement disagreements, is not a bluff.

While many observers see merit in the Malaysian leader’s claim of being short-changed by Goldman, winning concessions from the Wall Street giant would also be a needed political win for Anwar, who has lost political ground to the ethnic Malay nationalist opposition bloc, Perikatan Nasional (PN), which approved the 2020 settlement when it led government.

According to Bloomberg, Anwar recently claimed that Goldman executives have made fresh overtures and struck a noticeably more conciliatory tone on the matter during his recent visit to New York last week for the United Nations General Assembly. But it is altogether unclear whether a quick resolution of the dispute is in the cards.

Read the full story at Asia Times.

Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.

Malaysia: Zahid free today; Najib sprung tomorrow?

Politics over principle with discharge of deputy premier Zahid’s corruption cases as speculation rises jailed ex-PM Najib will be next

Malaysian Prime Minister Anwar Ibrahim is at risk of losing his progressive support base amid rising perceptions the leader is failing to live up to his anti-graft credentials. The perception shift comes as state prosecutors controversially dropped criminal charges against his deputy premier, sparking criticism that Anwar’s government is cracking down selectively on corruption.

Activists who had long supported Anwar’s reformist agenda were already peeved that his government has used laws that curb free speech and stifle dissent to appease and please politically powerful conservative forces. But Deputy Prime Minister Ahmad Zahid Hamidi’s release from multiple graft charges marks to many the crossing of a political red line, one where Anwar has appeared to prioritize power over principle.

Indeed, many saw the move as the political price to be paid for securing support from Zahid’s scandal-tainted United Malays National Organization (UMNO) party and Barisan Nasional (BN) coalition, which are crucial to sustaining the government’s parliamentary majority.

Opposition lawmaker Wan Ahmad Fayhsal said the move marked the “collapse” of Anwar’s reformasi struggle. “Their raison d’etre for the past 25 years was all about good governance, anti-corruption,” he told Asia Times. “It has gone down the drain. They’ve sacrificed it all to save one man. This government might survive, but the infrastructure of their support is crumbling.”

Read the full story at Asia Times.

Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.

Tharman’s win may hasten Singapore’s PM succession

Tharman Shanmugaratnam’s election as president raises inconvenient questions for the ruling PAP but ultimately helps it

Tharman Shanmugaratnam, a former deputy prime minister seen as close to Singapore’s political establishment, clinched a landslide victory in the city-state’s first contested presidential election in more than a decade on Friday, comfortably beating two other candidates with a record 70.4% of the vote.

Though Singapore’s presidency is a largely ceremonial role as the non-partisan head of state, analysts widely viewed the contest as a barometer of support for the long-ruling People’s Action Party (PAP), to which Tharman, 66, had belonged for more than two decades before resigning from all party positions and posts in June to be eligible to contest the presidency.

Amid cost-of-living challenges and a slew of recent high-profile scandals implicating PAP leaders, the wide margin of victory for Tharman caught some analysts by surprise. The results have sparked debate as to whether they truly reflect unvarnished public support for the PAP, or are instead a reflection of Tharman’s formidable personal popularity.

“This election is at least in part a referendum on the PAP. Of course, the caveat is that Tharman is more popular than his former party. I think that is undeniable,” said Walid Jumblatt Abdullah, an assistant professor in social sciences at Nanyang Technological University, in reference to Tharman’s past track record of delivering general-election landslides for the PAP in his Jurong constituency.

Read the full story at Asia Times.

Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.

An electoral season of distrust in Singapore

City-state’s presidential election is meant to be above the fray of party politics but the three-way race has been anything but

A three-way electoral contest for Singapore’s largely ceremonial presidency will come to a head when voters go to the polls on September 1. The race to clinch the non-partisan office has been notable for the emphasis that presidential contenders have placed on asserting their “independence” from the city-state’s long-ruling People’s Action Party (PAP).

The elected president exercises limited custodial powers as the head of state and is expected to remain above the political fray. Yet analysts have observed rising anti-establishment sentiment in the campaign, with rival candidates accusing one another of polarizing voters by attempting to politicize what is supposed to be a staid exercise in national unity.

Former deputy prime minister Tharman Shanmugaratnam, 66, is widely regarded as the frontrunner and choice candidate of the PAP, which does not extend official endorsements as a matter of practice. Others in the race include Ng Kok Song, 75, the former chief investment officer at sovereign wealth fund GIC, and Tan Kin Lian, 75, a former chief executive of insurer NTUC Income.

“This election has largely been driven by strong candidates with rather disparate views on the role of the presidency, [with] some unfortunately [displaying] less understanding of the office of the presidency,” said Felix Tan, a political analyst at Nanyang Technological University (NTU) about policy changes advocated on the hustings which go beyond the president’s ambit.

Read the full story at Asia Times.

Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.

State polls highlight Anwar government weakness

Voters widely reject Anwar’s corruption-tainted UMNO coalition partner while ultraconservative PAS gains more grassroots ground

Malaysian Prime Minister Anwar Ibrahim’s administration survived a key electoral test over the weekend, losing support to a conservative opposition bloc but maintaining its incumbency of state governments in midterm polls that nonetheless served as a sobering early referendum on his nine-month-old “unity” government.

The August 12 state elections resulted in a “3-3” outcome, meaning the Pakatan Harapan-led (PH) government and right-wing opposition alliance Perikatan Nasional (PN) each clinched three states out of the six that were up for election, with the latter making significant inroads nationwide in key Malay Muslim majority constituencies.

The results had broader implications, especially for the Barisan Nasional (BN) coalition and its main party, the United Malays National Organization (UMNO), which won only 19 of the 108 seats it contested. Analysts see the electoral drubbing as further proof of UMNO’s diminished role as a national political force after its previous six decades of uninterrupted rule.

Calls for reform within UMNO have resurfaced amid its lackluster performance, which saw the party’s share of seats across six states fall by more than half from 41 with no wins in Malay-majority Terengganu or Kedah. The dismal showing has stoked speculation that deputy premier Ahmad Zahid Hamidi, UMNO’s embattled president, could face a leadership challenge.

Read the full story at Asia Times.

Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.

Singapore hints at global chip market rebound

Trade data from bellwether city-state point to rebound from the worst of the global electronics downturn

June marked another dismal spell for Singapore’s manufacturing sector, with factory output falling 4.9% in the ninth consecutive month of contraction. But a shallower decline in electronics saw semiconductors and components revert to positive growth, stoking optimism that the global memory chip market is beginning to recover.

Data released by the Singapore Economic Development Board (EDB) on July 26 showed electronics output contracting by 2.9% in June versus minus-23.7% in May. Though the numbers showed year-on-year declines for all clusters except transport engineering, electronic modules and components and semiconductors grew 7.5% and 3.1% year on year respectively.

The publication of Singapore’s factory results was coincident with an announcement by South Korea’s SK Hynix, the world’s second-biggest memory-chip maker, which said it saw early signs of the chip sector beginning to recover from a deep downturn amid robust demand for artificial-intelligence (AI) capacity, with rising interest in OpenAI’s ChatGPT seen as the main driver of demand.

“The worst of the global electronics downturn may be behind us,” said senior economists Chua Hak Bin and Brian Lee Shun Rong of Maybank Investment Banking Group. “A modest export boost from China’s reopening and possible stabilization in global electronics demand” could bring about a fourth-quarter manufacturing recovery in Singapore, they said in a research note sent to Asia Times.

Read the full story at Asia Times.

Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.

Flagging ringgit bodes ill for Malaysia’s Anwar

Local currency tumbles amid rising investor perceptions ‘unity’ government hasn’t kept its word on reforming the economy

Prime Minister Anwar Ibrahim began his tenure with a pledge to enact structural reforms and boost investor confidence in Malaysia. But after eight months on the job, the veteran politician is finding it hard to pull the Southeast Asian nation out of a years-long economic funk.

The local stock market saw foreign outflows of 4.19 billion ringgit (US$920 million) in the first half of 2023, with a benchmark gauge that is among the worst global performers so far this year. The Malaysian ringgit has likewise tumbled, making it among the worst performers in Asia’s currency markets.

On the other hand, Malaysia’s economy grew above market expectations at 5.6% in the first quarter of the year, during which approved foreign direct investment (FDI) reportedly rose 60% year-on-year to 71.4 billion ringgit. Inflation moderated to a one-year low with the consumer price index coming in at 2.8% in May compared to last year, its slowest monthly pace in 2023.

Yet cost-of-living pressures and political dissatisfaction persists, with economic headwinds and external cyclical factors weighing on the government ahead of state elections in August that are seen as an early referendum on Anwar’s “unity” government, a multi-party alliance that sits uneasily with the long-rivaled political camps’ grassroots support bases.

Read the full story at Asia Times.

Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.

Singapore winning on inflation, losing on growth

City-state contains price surge with aggressive exchange rate policy but likely slipped into a technical recession in the second quarter

Singapore’s central bank this week delivered a sobering economic assessment amid sluggish near-term growth prospects, ongoing inflationary challenges and predictions the economy is already in a technical recession. The Monetary Authority of Singapore (MAS) also emphasized that despite revising its 2023 headline inflation forecast downward, its battle against rising consumer prices is far from won.

The city-state’s trade-reliant economy faces mounting headwinds as external demand weakens amid a global economic slowdown. Earlier this year, there were certain hopes that a post-pandemic economic rebound in China would lift Singapore above its tepid current growth forecast of between 0.5% to 2.5%.

Those hopes have since faltered as China’s economic recovery loses steam, with fewer and fewer independent economists predicting Beijing will hit its 5% economic growth target for 2023. Singapore’s economy contracted in the first quarter, falling to -0.4% from the previous quarter’s growth of just 0.1%.

Economists believe that sluggish trade and industrial performance, driven partly by China’s faltering recovery, likely dragged Singapore into a technical recession in the second quarter, preliminary estimates for which are due later this month. 

Read the full story at Asia Times.

Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.

Najib looms large over Anwar’s first electoral test

Malaysian leader faces Faustian choice ahead of state elections his UMNO coalition partner believes could be won by setting jailed ex-PM free

Malaysian Prime Minister Anwar Ibrahim is intensifying efforts to appeal to Malay Muslim conservatives ahead of key state elections, a lurch to the right that risks alienating his ruling Pakatan Harapan’s (PH) multiracial and mainly liberal support base within his months-old “unity” government.

While the ethno-nationalist opposition bloc accuses the governing coalition of going soft on ethnic Malay rights and upholding Islam, progressives increasingly see Anwar as failing to walk the talk on clean governance and reform as his key political ally, graft-accused deputy premier Ahmad Zahid Hamidi, continues to agitate for the pardon of incarcerated ex-premier Najib Razak.

Zahid, president of the United Malays National Organization (UMNO), had been a key target of PH’s anti-corruption messaging on the campaign trail ahead of November’s general election. Though the once-hegemonic party delivered its worst-ever result at the polls, Zahid himself emerged as a kingmaker after agreeing to partner with the party’s decades-old foes in an Anwar-led administration.

UMNO is the governing coalition’s sole ethnic Malay party, but it remains to be seen whether it can muster the support of the key demographic, who account for around 60% of Malaysia’s 33 million people, at state polls expected to be held in August. Having purged detractors, UMNO’s top leadership appears insistent that pardoning Najib for his corruption conviction is the ticket to electoral success.

Read the full story at Asia Times.

Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.

US-China handshake but no dialogue at Shangri-La

Superpower rivalry ran on high at Singapore defense forum where everyone agreed that armed confrontation would be catastrophic

United States-China tensions were on full display at the Shangri-La Dialogue, Asia’s premier security summit held in Singapore from June 2-4, with Chinese Defense Minister Li Shangfu refusing a formal meeting with his US counterpart even as he acknowledged the dangers of open confrontation between the two superpowers.

“It is undeniable that a severe conflict or confrontation between China and the US will be an unbearable disaster for the world,” said Li, who was appointed China’s highest-ranking defense official in March. He added in his June 4 speech that bilateral ties were at a “record low” and said the US needed to act with sincerity to prevent a further worsening of relations.

“Attempts to push for NATO-like [alliances] in the Asia-Pacific is a way of kidnapping regional countries and exaggerating conflicts and confrontations,” Li added, echoing long-held Chinese criticism of Washington’s efforts to establish alliances in the region as part of what it views as a containment strategy to thwart China’s geopolitical rise.

Li also struck a moderate tone, though, saying his country sought dialogue over confrontation and that the world was big enough for China and the US to grow and co-exist together. Reports suggest that Li declined a formal meeting with US Secretary of Defense Lloyd Austin in principle as he has been subject to US sanctions since 2018 for his role in procuring Russian military equipment.

Read the full story at Asia Times.

Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.