When he became Prime Minister seven months ago, Datuk Seri Najib Razak came out with the slogan of 1Malaysia.
It was an admission of the failure of 52-year nation-building to create a Malaysian citizenry forged by a common Malaysian consciousness and identity, transcending their ethnic, religious, cultural and linguistic differences.
The Biro Tata Negara (BTN) is one important factor for this failure in Malaysian nation-building.
In Parliament in March this year, I read out an indignant email from a recent participant in BTN course, on how BTN operated as the propaganda arm of UMNO, pumping communal poison instead of spreading the message of national unity.
The complaints against the BTN included:
Their purpose is to convey THEIR Message to us but I think they are absolutely wrong. It made us more irritable towards BN government and make us more stronger to vote opposition.
Here are their messages:
Kontrak sosial about Kerakyatan and Hak Istimewa Orang Melayu Effects : Non Malay should appreciate and cannot expect more. They use Malay toleransi us and also “Terhutang Budi terhadap mereka”
The country is not safe after 308. The government is not strong enough to maintain the safety. The oppositions is creating chaos in the country . They give a lot of examples. If we continues like this, it might explode another 513 or war in Malaysia like in Iraq. They shows us the pictures and videos of Iraq. Therefore we need to vote BN for the peace
To protect Islam and Malay special rights Malays have to bersepadu for Ketuanan Melayu
Indians and Chinese contribute nothing to this country. It is the non Malays who wants to join the pakatan that time and we beg for that. Throughout the course they only emphasize on Malay’s contribution and say nothing on Non Malay.
their perpaduan means Ketuanan Malay and never sama rata because they said this is according to Kontrak Sosial. They conducted every facts on Chinese Malay and Indian and not mentioning Malaysian.
they claim oppositions is a spy from America and going to attack Malaysia soon
It is most shocking that the Deputy Prime Minister, Tan Sri Muhyiddin Yasin could defend such communal poison in BTN courses as fostering “nationalism in line with 1Malaysia concept and instilling patriotism”, when responding to the Selangor Pakatan Rakyat government’s decision to bar its civil servants and students from state-owned institutions from the BTN’s racist “political indoctrination” and “brainwashing”.
Seven Selangor Pakatan Rakyat legislators have spoken up against the BTN courses for promoting hatred among the races, which is contrary to its original purpose as well as the Constitution.
Seri Setia Selangor State Assemblyman Nik Nazmi Nik Ahmad, speaking from his own experience, said they were told that PKR members were Jewish agents, that DAP was a Singapore party, while PAS was labelled a deviant movement.
Batu Caves Selangor State Assemblyman Amirudin Shari said a big part of the programme had nothing to do with nation building or education but was an Umno and BN race-based programme where participants are indoctrinated with propaganda about “Ketuanan Melayu”.
If Najib is serious, sincere and genuine about the 1Malaysia concept, the first thing he must do is to close down the BTN as it is the biggest obstacle to 1Malaysia nation-building.
The BTN is the litmus test whether Najib’s 1Malaysia slogan is just empty rhetoric or whether he is really prepared to “walk the talk” of creating a united, harmonious and progressive Malaysia.
The BTN courses have been shrouded in great secrecy. Not only are participants not allowed their mobile phones and other electronic media gadgets, lectures and course notes are also not allowed to be taken away after the indoctrination.
Is the Cabinet prepared to order a full public inquiry into running of the BTN so that Malaysians can know the truth about the BTN courses and how it deviated from its original purpose to foster nationalism to become a great obstacle to national unity by pumping communal poison and promoting racial ill-will and hatred?
#1 by Prasad on Friday, 27 November 2009 - 11:49 am
No Element Of Racism In Civics Courses – Zahid Hamidi,
If so let the students in with the HP and Vid cams. Let them record it. But from what I heard they do metal detector screening and take any recording devise before allowing them into the lecture halls.
#2 by k1980 on Friday, 27 November 2009 - 1:03 pm
Jib: Goodness me, close down Biro Tata Negara? Then how am I going to win the 13 GE? This like like blowing up Altantoo with firecrackers! No can do!
#3 by tenaciousB on Friday, 27 November 2009 - 1:13 pm
LOL, The first bugger to come on TV and defend BTN was muhyiddin yassin! These racists ministers together with every one of them from UMNO have been at it for ages. Why suddenly the revelations? the awareness?
Street protests and dethrone BN if words are to be made into action, because mere discussions achieve nothing in this country. Take Hindraf as a role model, they overthrew MIC and caused significant damage to the BN coalition in march’08.
#4 by Bigjoe on Friday, 27 November 2009 - 1:31 pm
Actually I keep wondering how Mahathir thought this was a good idea. From a colonialist and hegemonist point of view, it makes sense to divide and conquer BUT spreading hate and racism does not divide but rather galvanise the opposition against you. It comes down to whether you have enough resources to wipe out the opposition which is NEVER enough.
I tend to think he thought it was divide and conquer and he just did not have the intellect to see that it was not…
#5 by Godfather on Friday, 27 November 2009 - 1:38 pm
Be grateful, folks, just be grateful. Grateful that they have allowed us to stay here. Grateful that we are paying for subsidised fuel, subsidised flour, sugar and cooking oil. Grateful that they use C4 on foreigners, and not on us – for the time being. It could have been worse – like in Rwanda-Burundi.
#6 by lowxinpui on Friday, 27 November 2009 - 1:42 pm
I would not want to use this language to the non-malays business people but I would want to say they are the traitors to the Malaysians because they are supporting this racist UMNO/BN. Equally goes to MCA MIC GERAKAN PPP and the rest of parties in Sabah and Sarawak.
Not one of them voiced anything!
ALL THESE UMNO/BN ARE TRAITORS TO MALAYSIA!
#7 by pwcheng on Friday, 27 November 2009 - 1:48 pm
Closing down such institution that create hatred among the races is a timid request. We should gather all the evidences, exposed it to the people and charge the people who is responsible (UMNO’s henchmen )nder ISA, that is if we still have faith in the court. The whole country is in shambles and UMNO is slowly killing all of us , Malays and non Malays alike. In 10 years time , if we still wants UMNO we will be a nett exporter of maids or we will have worst pirates than in Somlia on the Starits of Melaka
#8 by undertaker888 on Friday, 27 November 2009 - 1:58 pm
Should bring this up to the United Nations. They are promoting hatred which could lead to genocide in the future.
#9 by Emily Pratt on Friday, 27 November 2009 - 2:27 pm
Abdul Rahman (1957 -71)- Bapa Kemerdekaan (Father of Independence)
Abdul Razak (1971 – 76) – Bapa Pembangunan (Father of Development)
Hussain (1976 -81) – Bapa Bersatupadu (Father of Unity)
Mahathir (1981 -2003) – Bapa Kemodenan (Father of Modernization)
Badawi (2003 – 08) – Bapa Mertua kepada KJ (Father in law to KJ) or Bapa Sentiasa Tidur (Father Sleepyhead)
Najib (2008 – max Mar’2013) – Bapa Cakap Tak Serupa bikin (Father of Talking cork)
Emily Pratt
#10 by frankyapp on Friday, 27 November 2009 - 3:32 pm
Umno/Bn used BTN to poison the minds and hearts of the vast majority malays civil servants.The most racist statement was ” no umno,no muslim,no malays ” This tactic works pretty well too in the malays heart land ie Pahang,Trengganu,Kelantan,Kedah,and Perlis.Since TDM time,malays racism have been played pretty well and ketuanan malayu was the trade mark of Umno Baru.Unfortunately,even the most modern and most moderate thinking muslim/malays still feel that without Umno,it’s all back to kampong.This myth must be provened wrong should we wish to destroy Umno.
#11 by ReformMalaysia on Friday, 27 November 2009 - 3:55 pm
Perhaps the people should ‘close down’ the government which is led by UMNO/Barisan Nasional i the next General Election, as this tyrant government would never learn to treat human beings equally!
Supporting a government which commits sins is sinful!
#12 by Bigjoe on Friday, 27 November 2009 - 4:06 pm
BTN is absolute proof that BN is a fascist party…
#13 by boh-liao on Friday, 27 November 2009 - 4:31 pm
As expected, no msm dare 2 comment on de truth of de racist BTN
Also de complete silence of our msm on de exposure by Bala
While de cyberspace is full of de sh!t done by NR, RM, Dfark, n NR’s brother
De deafening sound of silence – admission of guilt
#14 by yhsiew on Friday, 27 November 2009 - 5:53 pm
MCA and MIC, what think ye of Biro Tata Negara?
#15 by undertaker888 on Friday, 27 November 2009 - 6:08 pm
MSM-Media Spinning of Malaysia where got balls to report on ills of BTN? No datukship u know.
Makes you wonder why malaysia did not sign UN charter on against all forms of racial discrimination.
#16 by baochingtian on Friday, 27 November 2009 - 6:54 pm
Calling people involved in designing such a program be brave enough to step forward and explain the intention of such messages to our future scholars. Otherwise, you have just done PR a favor by telling rakyat that 1M is a bul@sh!t Do not underestimate these participants as they are supposed to be the cream of the whole lot out there. They can differentiate what’s ethical and what’s not. You’ll see the effect in the coming GE. One may project how good he is, but never defame others in a suicidal manner. Again, tks for doing PR a favor, hahaha!
#17 by yhsiew on Friday, 27 November 2009 - 7:59 pm
See these video clips. These ‘patriotic songs’ were created by people such as Nordin Kardi of BTN. Note the lyrics that are meant to inflame the Malays at their ‘loss’ of their country to the non-Malays. Any wonder why the Malays hate and distrust the non-Malays after 52 years of indoctrination and brainwashing by Umno?
http://www.malaysia-today.net/index.php?option=com_content&view=article&id=28732:this-is-what-btn-is-all-about&catid=20:no-holds-barred&Itemid=100087
#18 by cheng on on Friday, 27 November 2009 - 9:15 pm
This must be the only govt indoctrination in the modern world which teaches its citizen to hate one another.
#19 by alaneth on Friday, 27 November 2009 - 9:41 pm
I went for Biro Tatanegara twice. During college & later in a govt university in Selangor.
The first was OK. But the second was during the Anwar uprising time in 1998/99. All the students were lambesting the course conductor until he got no face to talk.
#20 by ktteokt on Friday, 27 November 2009 - 11:10 pm
Is Najis ever serious about his 1 MALAYSIA programme? If he was, the very first thing he should do is to announce doing away with Bumi and Non-bumi classification! How to achieve 1 MALAYSIA when Malaysians are divided this way????
This is equivalent to slapping his own face! Of course BTN is another hurdle to clear. Brainwashing others to put oneself above them amounts to SUPPRESSION! If at all Bumis or better still Malays want to show that they are TUANs, then they should act like one by convincing others that they are indeed one step ahead of others while the others are willing to succumb to this type of inferiority! By just declaring that they are superior without actually showing superior quality amounts to cheating and suppression of the other races!
#21 by Jeffrey on Saturday, 28 November 2009 - 12:09 am
The complaints against Biro Tata Negara (BTN) – that it is indoctrinating civil servants and students with divisive Ketuanan ideology – are, I would expect, legitimate. Why else would Minister in the Prime Minister’s Department cum CEO of the Performance Management and Delivery Unit (Idris Jala) in charge of assisting Koh Tsu Koon (responsible for national unity and performance management) reportedly pushed and proposed the revamping of BTN courses as part of initiatives to being them in line with Najib’s motto “1 Malaysia”?
It would appear then that Muhyiddin’s defense of BTN is apparently contrary to Najib’s position. This is also expected. Najib is not just UMNO’s president but also the country’s PM. As head of govt Najib has to manage the public perception that he is “inclusivist”. Muhyiddin however is wearing the other hat and speaking from stance as Deputy President of UMNO committed to uphold its ideology of Ketuanan based on “Social Contract”. He is not seeking to be inclusivist. He is playing the gallery to be popular amongst warlords and party members who have vested interest in perpetuating UMNO’s traditional politics of ethnicity.
It is a very good thing that the Pakatan Rakyat-led Selangor government has ordered that its civil servants & students in state-owned universities, and workers with the state subsidiaries be banned from attending BTN’s nation-divisive rather than building programmes.
The cause that enlightened Malaysians are engaged in is to arrest the country’s downward slide and to take it to a higher level of organization – and to do that, the specific problem of BTN’s programmes should be addressed as part of the larger effort to unwind the dark legacy of Mahathirism. One recalls this agency started off as the Youth Research Unit (Unit Penyelidikan Belia) under the Youth Ministry in 1974 but in 1981 it was renamed Biro Tata Negara and transferred to PM’s department. (Coincidentally Tun Dr Mahathir became the Prime Minister of Malaysia on 16 July 1981.)
Today as people complain about privatization or piratisation of public assets and socialization of losses (eg the NAZA’s MATRADE Expo building for land deal) whose legacy is that? When people talk of abuse of power by security agencies (eg TBH’s mysterious death), again whose legacy is that when the chief of police (IGP) could go to the cell and directly assault a blinded ex deputy PM Anwar? When Bar Council forum on Article 11 to resolve issues of body snatching conversion cases was disrupted by a mob, whose legacy was that? When people express doubts that a particular judge will deliver a fair judgment in accordance to Rule of Law, again whose legacy is that? When Sabahans complain about influx of foreigners out numbering locals due to Project IC, again whose legacy is that? When kataks hopped parties, again whose legacy is that?
When Abdullah Badawi became Prime Minister what were his first watchwords/motto to distinguish/demarcate his administration from his predecessor? He mentioned ‘First World Infrastructure and Third World Mentality’. That, in a cut shell, captures succinctly the legacy of the predecessor. So why do we think his predecessor continually criticised Pak Lah and galvanise forces to retire him? Because he was perceived a threat to the eventual unwiding of that legacy if allowed to carry on.
The larger picture: Today whether the country could turn the corner and avert the destiny of a failed state depends on whether it could dismantle chip by chip and block by block the legacy of Mahathirism and all it stands for and place it at the appropriate place in the dustbin of history….
#22 by ENDANGERED HORNBILL on Saturday, 28 November 2009 - 12:11 am
Any decent human being will understand that BTN is filth. Exceptions, of course, PM and DPM.
BTN taught me the Chinese are the Jews of Asia’
Muhyiddin has defended the BTN courses. — File pic
By Asrul Hadi Abdullah Sani
KUALA LUMPUR, Nov 27 — I am one of the privileged few to have attended a local public university and learned the meaning of hate, thanks to the ever popular Biro Tata Negara.
All undergraduates were forced to attend this programme or else they would not be eligible for graduation.
The BTN under the Prime Minister’s Department brought in “intellectual” speakers who were supposed to enlighten the students about the meaning of being a Malaysian but instead it felt more like a communist propaganda camp brainwashing those attending about the importance of “Ketuanan Melayu”.
The camp would usually take place during the weekends. Students would have to register early in the morning and the programme would last the whole day.
The organisers were always on their guard, asking participants to show their student identification cards each time they entered the hall, fearing the presence of outsiders.
In the hall, students were asked to turn off their mobile phones.
During the lectures, questions were planted among the audience and the students were advised not to ask any other questions.
One speaker began with the history of Malaysia and how much the country had gone through, always emphasising the May 13 riots.
He stressed the point of how much the Malays had sacrificed and how the community should be united especially from outside threat — the Chinese community.
He said that the Chinese community were “the Jews of Asia” and were just itching to take over when Malays were disunited and broken.
The speaker also revealed a greater Chinese conspiracy where the Chinese Malaysians were working together with Singapore to topple the Malay government.
“Do you want to become like the Malays in Singapore?” he asked.
He also went so far as to criticise Malay girls for dating boys from other races.
He added that they should not be cheap and embarrass their families.
Once, a student told the speaker that as Muslims, we should also respect other races who are also Muslims.
“All Muslims are Malays so it does not matter if they are Chinese or Indians. If they are Muslims then they are Malays,” the speaker replied.
This is why I was relieved when I learned that the Selangor government had moved to ban its civil servants, employees of state subsidiaries and students at state-owned education institutions from attending any BTN courses with immediate effect.
However I believe racism in varsities does not end at BTN because classrooms have also become victims of ignorant scholars.
My friend was verbally abused during his sociology class when he did not agree with the points made by his lecturer.
“You must be DKK,” the lecturer told him.
“What is DKK?” he asked.
“You must be darah keturunan keling (descendents of Indians),” the lecturer said, pointing to his dark skin.
My Saudi friend was also shocked by the comments made by his lecturer in his Islamic civilisation class.
“We should save our Orang Asli from the Chinese people. They are like the Palestinians and the Chinese are Israel. We must fight the Jews,” the lecturer told his students.
The lecturer even failed one of his students in his oral exam when he quoted a Western scholar in his presentation.
“You should be ashamed of yourselves. You are a Muslim and should only use Islamic scholars,” he scolded the student.
I was personally saddened when my Islamic law lecturer compared Christianity to Head & Shoulder’s 3 in 1 shampoo in referring to the religion’s Holy Trinity.
I feel that racism has been institutionalised in our country and that BTN is only the tip of the iceberg.
Deputy Prime Minister Tan Sri Muhyiddin Yassin defended BTN yesterday and claimed that it was not racist but is line with the 1 Malaysia concept.
I have to humbly disagree and would like to suggest maybe the ministers should bring their overseas children home and let them have a taste of what BTN is.
#23 by Jeffrey on Saturday, 28 November 2009 - 12:15 am
Sorry two typo errors – (1) “…directly assault a BLIND FOLDED (not blinded) ex deputy PM Anwar..and (2) “in a nut shell” not “a cut shell”.
#24 by yhsiew on Saturday, 28 November 2009 - 1:00 am
Najib’s 1Malaysia is the greatest joke of the century!
How can a minister unite the people at one end and disunite them at the other end?
#25 by patrickdejavu on Saturday, 28 November 2009 - 2:21 am
In fact,when I was initially aware of this BTN issue,I was not entirely surprised.Speaking from the standpoint of a local university student,I would like to say that BTN isn’t the only subject that is incorporated by the government into the curriculum of local undergraduates.For instance,under the subject of “Hubungan Etnik”,another subject that is compulsory to be taken by local undergraduates irregardless of the courses that the undergraduates are enrolling.Under this subject- “Hubungan Etnik”,the undergraduates are assigned into groups where each group will be given a specific topic and timeframe to discuss and present them during the presentation day.As a matter of fact,most of the topics that are distributed to the groups are politically inclined.I still remember the topic that was assigned to my group which was “Sejarah Parti Keadilan Rakyat dan sumbangan Parti Keadilan Rakyat(PKR) terhadap Malaysia”.
Some got the topics associated with MCA and UMNO regarding their contributions and history.Well,perhaps one may say that the government just want to see or hear views or feedbacks from the undergraduates regarding the political scenario in our country.But is that necessary??In this case,it is very clear that the government has misused its power in the field of education to politically orchestrate the minds of the local undergraduates whom are the pillar of strength of our country.Under desperate time,desperate measures are imposed.Perhaps after the last general election,the government will resort to whatever sordid measures even if it means to bring about disunity among Malaysians in order to desperately retain their position which
grants them the vast administrative power in the cabinet.This elucidates why that bizarre DPM of ours,Tan Sri Muhyiddin peculiarly defended the BTN which obviously deviates from the 1Malaysia principle.So is Muhyiddin actually making a mockery of the PM’s slogan by defending BTN which is highly unparallel to 1Malaysia tagline??
niamah!!!!
#26 by monsterball on Saturday, 28 November 2009 - 4:02 am
When Mahathir took over as PM…MCA..Gerakan and MIC had dozens of opportunities to prove they are champions for democracy and their races.
Supporting Mahathir wholesale and now Najib….contributed very much to the daring mentalities and attitudes of UMNO politicians to be such racists..keeping both eyes closed.
Why so..simple.
These MCA and Gerakan politicians never had it so good…so comfortable lifestyle…all so rich…and getting deeper in debt to UMNO.
MIC is a useless party headed by the lowest class to his own race…..the Indians.
There is noting to say about Samy.
Najib is an extention of Mahathir’s voice…and most BN buggers voted out..back in cabinet is much much more deeper in debt to UMNO and Najib.
All have long list of records being kept by Mahathir and now passed over to Najib…these MCA…Gerakan…MIC…crooks are but real puppets on the string.
Therefore..we can understand..why Najib dares to try fool everyone…with his ‘1Malaysia”…IGP gang as protector of UMNO…not the public…all indirectly encouraged by MCA ..MIC and Gerakan who claims to represent their races.
Gerakan claims to be the conscience of BN…have no conscience at all.
12th GE did shock UMNO and MCA MIC and Gerakan..the most.
Why still no changes…and infact supporting race separations politics of UMNO to the fullest…why?
They know too well….People’s Power…the mighty voters…are no more easy meat for them to fool around.
They know…out they come…under those parties…all finished.
Therefore….you see lots of resignations..especially from Gerakan..completely wiped out…and MCA….with die hard racist from Chinese Associations chiefs ….cannot and will not change..for these are blinded racists…feeling so proud with so many Chinese schools and temples approved…..living in coocoons..knowing next to nothing.depending on reading newspapers and TV news.
So you can challenge Najib to do this or that…he will never change.
He has to fight and defend Malays and Islam which really needs no defending at all.
It is personified by Mahathir for 22 years…to throw RM billions upon billions each year…to buy up Malaysia…by buying up MCA.MIC and Gerakan…successfully…..therefore establishing race and religion plus corruptions must be the on going formulas to win 13th GE.
Everything said and done are for shows and win votes.
None is done to really benefit Malaysians… long term.
It will be lots of short term good news…to bankrupt our country….no problem..as long as UMNO can find a formula to win 13th GE.
We need to be alert for signs and symptoms leading to Emergency Rule…which UMNO is capable of…to stay in power..by proxy or any which way they can think of……all taught by Mahathir…”Money is Power” so said the devil reincarnated man.
#27 by ringthetill on Saturday, 28 November 2009 - 6:09 am
Our PM was quoted as having said ‘No man is an island’ at the CHOGM. If my memory serves me right, didn’t LKY said this many years ago.
Strange for our PM to use this when within the country UMNO and BN think they can isolate themselves from the mainstream thinking, i.e. the people in authority only care for themselves and their kindred, while the people see their situation getting more desperate.
#28 by ktteokt on Saturday, 28 November 2009 - 7:24 am
I thought only the communists carry out BRAINWASHING!!!!!!
#29 by HJ Angus on Saturday, 28 November 2009 - 7:40 am
Courses like BTN can be useful if it is properly administered and the materials are helpful for our young citizens. Of course if they learned to mix and socialise at a young age peacefully, we would not need such courses. I support BTN if it is really free of BIAS with respect to race, religion or politics.
http://malaysiawatch4.blogspot.com/2009/11/syabas-malaysiakini-may-you-grow-old.html
#30 by ENDANGERED HORNBILL on Saturday, 28 November 2009 - 7:49 am
Sorry,….off-course.
Just wondering if any GLCs, EPF or Khazanah exposed to Dubai World?
Hello, Finance Minister, Deputy Finance Minister..can u please check & make an announcement? I want to know before I sell my shares on Monday-lah.
#31 by limkamput on Saturday, 28 November 2009 - 8:34 am
Sdr Lim, I wish to highlight two issues which I think are important for discussion:
1. Why have we not considered or discussed the High Court’s decision making summons issued by local authorities invalid or not prosecutable? I see none of such post here. Some of us may feel happy about it – no need to take responsibility of the summons, but have we considered the implication or the intention of such a decision. I think it is more than the rights or the constitution the court is trying to protect.
2. Transfer of money abroad through money changers to circumvent BNM regulations and supervision.
#32 by yhsiew on Saturday, 28 November 2009 - 8:52 am
PR should not just complain but offer civil servants and tertiary students of PR-led states an alternative course, which stresses on the importance of unity among all the races of Malaysia and explains the true history of Malaysia – how the Chinese and Indians came to this country and how they, together with the Malays, have contributed to nation-building.
#33 by limkamput on Saturday, 28 November 2009 - 8:58 am
When DPM openly said courses at BTN are meant for nation building and in line with 1Malaysia, it clearly showed how adamant UMNO is in adhering to “ketuanan Melayu” and how hollow the reforms that are being tossed around. Since March 8, 2008, we can see the dual tracks being pursued to confuse, divide and hoodwink to the people. In the past, at least they were honest and blatant in being racists. Now, in essence they are even more desperate and racist, but have changed their image to buy time to truncate the demand for change and equality. Sometimes I feel so sad. I thought fighting for racial equality is something that belongs to the last century. Here we are in the 21st century but the nation is still ruled by cavemen with tribal mentality.
#34 by Jeffrey on Saturday, 28 November 2009 - 9:44 am
//Just wondering if any GLCs, EPF or Khazanah exposed to Dubai World? Hello, Finance Minister, Deputy Finance Minister..can u please check & make an announcement? I want to know before I sell my shares on Monday-lah.//#28 by ENDANGERED HORNBILL
It may or may not well be time bomb. I am not talking about Dubai World pulling out of its MOU with MMC to develop a M$16bn maritime centre / city in the area close to the Port of Tanjung Pelepas.
I am not even referring to Dubai World’s current US$59 billion debt – to which European & Japanese banks are exposed – of which the request of 6 months standstill/moratorium of a comparatively paltry US$1.9 billion loan from Abu Dhabi bank has caused Europeans and Asian equity markets to skid on Friday. (This Arab Monetary Fund can bail Dubai World out).
What is of concern is Islamic finance legal and security documents much of which is crafted by expert Western bankers and lawyers (in conjunction with so called Sharia lawyers) to secure Islamic finance esp the Islamic bond sukuk, an instrument invented by bankers and Islamic scholars for financial expedience to integrate Western common law loan and securitisation covenants with Sharia principles against charging interest….Arguably they are neither here nor there – a conventional common law loan covenant package to cover loan and security obligations camouflaged by sharia profit element (as distinct from interest element) under a “sham” sale and purchase of assets agreements…so that it is really neither a sale nor a loan!
It is a classic request for rescheduling/standstill of debt of the kind made by Dubai World that will put everything to test. Basically the Islamic borrower (Dubai world) will tell its lenders – you either reschedule and give me time or we won’t and cannot pay. Lenders will say if you don’t pay, we call default and foreclose on all security. But can they legally? We know there so many different interpretations of what is real sharia in the Muslim World. All we need is some Sharia courts in Middle East to say this or that sukuk documentation is sham sharia and therefore legally void and unenforceable to shake up the world financial system and financial institutions wondering what to do with the US$822 billion (an estimate by HSBC Amanah) outstanding Islamic finance/sukuk world wide and whether it is adequately secured for satisfaction of its international lenders.
Sorry for disgression/out of topic.
The default by Dubai World may (or may not) put the world of Islamic finance to the test at a time when hard questions are being asked by international bankers and lawyers about the protection afforded by financial instruments based on sharia law.
#35 by limkamput on Saturday, 28 November 2009 - 9:59 am
Let it fails, let the lenders and the borrowers sort out whatever the methods of financing. All these baloneys must stop. No government bail out of banks that has exposure there except those related to UAE government. Don’t give a damn. It is time all these dealers and wheelers take responsibility. Can’t all of us see the bulk of the world misery is created by this group of caviar craving and french wine drinking asses. Yes, why don’t they build another 5 palm islands and another 5 skiing resort right in the middle of the desert. F them. They should die.
Sorry for the disgression too.
#36 by taiking on Saturday, 28 November 2009 - 12:41 pm
Pharking-no-brainers. Yes thats wot umno is saying. And saying it to all of you malays. And umno is telling you all pharking-no-brainers that you fellas must be led by your nose-rings. Otherwise you pharking-no-brainers will stray from their path and will forget your masters.
#37 by taiking on Saturday, 28 November 2009 - 12:50 pm
Hmmmmm. I wonder if the international index guys knew about the existence of btn in malaysia and the sort of pharking stupid sheeet umno through the btn imparted into the minds of participants (participate under compulsion). I am pretty sure our ranking would nose-dive if the pharking stupid btn thingy was taken into consideration by those index guys.
#38 by k1980 on Saturday, 28 November 2009 - 1:16 pm
Don’t worry, the great Chan KC is going to issue letters of support to Dubai to enable them to get unlimited loans from Malaysia.
#39 by taiking on Saturday, 28 November 2009 - 2:28 pm
Crazy buggers those jokers in dubai. Look at their dubai world project. The shape of a palm – a man-made palm-shaped island. Wonder how they deal with sand migration & settlement issues. Continuous sea-bed dredging? Actually, umno is no smarter. This is my real point.
#40 by cjwayn on Sunday, 29 November 2009 - 6:41 am
no offence, but if the chinese and indians pack up and go, I’m sure the only result to Malaysia would be the loss of talents. They are still playing the racialism card even though Malaysia is now under pressure to be more competent than neighboring countries..
#41 by HJ Angus on Sunday, 29 November 2009 - 8:50 am
I don’t think the world of finance is going to let DW go down as the economic cost will be too high and that is why Jeffrey’s comments are interesting. Already the neighbour Abu Dhabi is stepping up to pick up the best pieces.
I think Singapore is also doing a similar exercise in Iskandar.
As for the international banks, sometimes a bank like HSBC will take a stakeholding to ensure a project is properly completed to protect their intersts. The story of DW is similar to any company that takes too many risks in a particular sector and relies too heavily on loans.