1A Happy New Year to
all. This year, 2013 is asignificant year. It marks 50 years of the formation of
Malaysia. It is therefore appropriate to look back over this half a century to
see whether developments and progress have met the aspirations and dreams of
the people of Malaya, Sabah and Sarawak when they agreed to form a nation.If
not,we need to know what is to be done. We are looking back for the future.
Basis for Malaysia
2What were the dreams
and aspirations? What did the people of Malaya, Sabah and Sarawak in 1963 think
of the proposalto form Malaysia? Brunei pulled out on the eve of the
proclamation and Singapore left in 1965. Thethinking is summed up in words of
Lord Cobbold, head of the Commission set up to determine whether the people of
North Borneo and Sarawak supported the proposal to create Malaysia. He said at
paragraph 144 of the Cobbold Commission Reportas follows:
one-third of the population of each territory strongly favours early
realization of Malaysia without too much concern about the terms and
one-third, many of them favourable to the Malaysia project ask, with varying
degrees of emphasis, for conditions and safeguards varying in nature and
extent: the warmth support among this category would be markedly influenced by
a firm expression of opinion by the Governments that the detailed arrangements
eventually agreed upon are in the best interestof the territories.
remaining third is divided between those who insist on independence before
Malaysia is considered and those who strongly prefer to see British rule
continue for some years to come.If the conditions and reservations which they have
put forward could be substantially met, the second category referred to above
would generally support the proposals. Moreover, once a firm decision was
taken, quite a number of the third category would likely to abandon their
opposition and decide to make the best of a doubtful job.
will remain a hard core, vocal and politically active, which will oppose
Malaysia on any terms unless it is preceded by independence and
self-government: this hard core might amount to near 20 percent of the population
of Sarawak and somewhat less in North Borneo.”
3It is clear from this
that about 70 percent of the population of Sabah and Sarawak were in favour of
Malaysia provided the terms and conditions were in the best interest of the
4It was also made clear
that the people of Sabah and Sarawak did not agree to Malaya “taking-over” the
territories. This is set forth in paragraph 237 of the Report as follows:-
“…It is a necessary condition from the
outset, Malaysia, should be regarded by all concerned, as an association of
partners, combining in the common interest to create a new nation but retaining
their own individualities. If any idea were to take root that Malaysia would
involve a “take-over” of the Borneo territories by the Federation of Malaya and
the submersion of the individualities of North Borneo and Sarawak, Malaysia
would not, in my judgment, be generally acceptable or successful. I recommend
that in the forthcoming negotiations, Governments should pay close attention to
this point, both in its psychological and in its practical aspects.”
5This gave rise to the
20 Point Agreement for Sabah and 18 Point Agreement for Sarawak that formed the
basis of the negotiations that culminated in the Malaysia Agreement, amendments
to the Federal Constitution of Malaya to become the Federal Constitution of
Malaysia and the Proclamation of Malaysia. Therefore the spirit in which
Malaysia was formed should be safeguarded and honoured to ensure a progressive,
united and harmonious multi-racial nation.
happened after Malaysia was formed? Sabah from the 2nd Richest became
the Poorest State
6What happened after
Malaysia was formed was certainly not what the people of Sabah and Sarawak
intended. In 1970, Sabah was the 2nd richest state after Selangor.
Sabah had the 3rd highest real GDP growth per capital after Wilayah
Persekutuan and Selangor. They were far above the national average. By 2000,
Sabah was lagging 35% behind the national average for real GDP growth per
capital. Sabah was 12th with Kedah 13th and Kelantan 14th.
7By 2010, the World Bank
reported in the Malaysian Economic Monitor that Sabah had the largest number of
poor thereby confirming it was the poorest state in Malaysia. The deep levels
of poverty in Sabah could be seen from the fact that Sabah with only 10% of the
country’s population had 40% of the poverty-stricken. This is compared to
Selangor with a quarter of the population and less than 10% of the poor. The
World Bank identified that most of the poor in Sabah is found in the rural
areas. Some of the areas of deep concern were health, education, social
facilities and services and human resource development. Deep pockets of poverty
exist in certain social economic groups as well as in certain areas where the
poor have the least access to services and employment opportunities.
8What has gone wrong? How
could Sabah with vast resources of oil and gas, timber, cocoa, palm oil and
other commodities performed so badly? Where have the benefits from these resources
gone? If Malaysia was formed as associates in partnership between Malaya,
Singapore, Sabah and Sarawak, why is Sabah with all its richest the poorest
after 50 years?
Reasons for the Fall
9The poor performance of the Sabah
economy had been recognized by the government of Sabah in the Outline
Perspective Plan Sabah 1995. They revealed the following facts:-
1)The State’s economy had been growing out
of tandem with the national economy;
2)The growth of the State’s economy had
3)The economy is still dominated by the
4)Unemployment remains persistently high;
5)The investment ratio is low by national
standard with a massive outflow of funds from Sabah;
6)Rapidly, depleting timber and petroleum
7)Limited sources of economic growth; and
8)Low value-added economic activities.
and Illicit Outflow
10How can there be low
economic growth below the national average while the rich resources have become
depleted with massive outflow of funds from Sabah? The answer is corruption.
11The case of Michael
Chia is illustrative. Michael Chia was detained by the Hong Kong ICAC for
possession of Singapore Dollars 16 million equivalent of RM40 million. He said
it did not belong to him and that he was holding for someone else. The ICAC
asked MACC for assistance to investigate whether the funds were proceeds from
corrupt timber practices.The Minister in the Prime Minister’s Department, Datuk
Seri Nazri informed Parliament that MACC informed ICAC that the money was a
political donation for UMNO Sabah.ICAC had to close its file.
12It later turned out
Datuk Nazri’s son is driving a luxurious Humvee car owned by Michael Chia. The
Chief Prosecutor of Hong Kong in a rare interview said he was prepared to
reopen the investigation if there are fresh leads. Rafizi and I together with
others have provided ICAC with documents for them to reopen the investigation.
13Sabahans are well
acquainted with the politics of plunder which was one of the catalysts for the several
changes in the state government.
Low Value Added
Economic Activity in Sabah
14One of the reasons in
the Sabah 1995 Outline Perspective Plan for the poor economic performance is
the low value added economic activity. The culprit here is the 1981 Cabotage
Policy. It is in fact a Sabah sabotage policy.Under this Cabotage policy, goods
cannot be shipped from foreign countries directly to Sabah and Sarawak. They
have to be shipped from foreign countries to West Malaysian ports and
trans-shipped by domestic ships to Sabah and Sarawak. This obviously increased
the transportation cost. It is estimated that 46% of the transportation cost for
goods is shipping freight which translates into an increase of 5-7% of the
consumer price of goods in Sabah and Sarawak.
15The Cabotage policy is implemented for
the benefit of 200 domestic shipping companies owning about 4,500 ships. This
is done at the cost of the entire population of Sabah and Sarawak. There is
thus no surprise that there is low value added economic activity in Sabah and
Sarawak. No manufacturer will invest in Sabah where the transportation costs of
his materials and final products make his goods uncompetitive.
16This is a policy of burdening the many
for the benefit of a few.
Cast Your Eyes Over the
South China Sea
17 I understand Sabahans’ feeling of being
disenfranchised by West Malaysians and the suspicions Sabahans have of West
Malaysian or national political parties. However, I ask Sabahans not to just
look inward but cast your eyes over the South China Sea.You will see the same
poverty, oppression, corruption, plunder and abuse. The problem is not the people in West Malaysia
it is the BN holding power in Putrajaya.
18Corruption and misuse of the nation’s
resources are not confined to Sabah alone. Recently, we saw the public
spectacle of Deepak Jaikishan holding the Prime Minister and his wife to ransom
through the media.
19Deepak thought he was the best friend of
the wife of the Prime Minister. Documents have been produced to show Deepak
paid USD3.9 million for 19 pieces of jewelry said to be for the Prime
Minister’s wife.Deepak forgot that
while a dog is man’s best friend, diamond is a woman’s best friend. Rosmah took
the diamonds and then treated Deepak like a dog.
20Deepak said he paid money to obtain a deal
to buy a piece of land in Klang from Awan Megah Sdn Bhd. He guaranteed a RM100
million loan taken by his company to buy the land. Awan Megah owned by UMNO
Wanita Selangor chief, obtained the land from the Ministry of Defence. The land
is meant for a military camp but the Ministry of Defence agreed to transfer the
land to Awan Megah for commercial and mixed development.Awan Megah reneged on the deal and Deepak’s
friend refused to help. Thus Deepak threatened to reveal all. Boustead then came
in the nick of time to buy Deepak silence. Boustead, a Government GLC paid RM260
million: buying Deepak’s company’s share for RM 30 million, taking over his
company’s loan of RM100 million and buying the UMNO Wanita Selangor Chief’s
share in Awan Megah for RM130 million.
21The Government though a GLC paid RM260
million to buy a piece of land originally owned by the Government. This can
only happen in Malaysia.
GFI Illicit Outflow and
Wall Street Journal Report
22The massive outflow of funds from Sabah
referred in the 1995 Outline Perspective Plan Sabah is nothing compared to the
illicit outflow from Malaysia. According to a Washington watch dog, Global
Financial Integrity report in December 2012, Malaysia had the second highest
amount of illicit outflow of funds in the world after China in 2010. The
illicit outflow for Malaysia increased by 111.8% from USD30.4 billion in 2009 to
USD 64.38 billion in 2010. Malaysia won the bronze medal for overall illicit
outflow for the ten years from 2001 to 2010. China came in first with USD2.74
trillion, Mexico second with USD 475 billion and Malaysia third with USD 286
billion. This is equivalent to RM876 billion.
23Malaysia won the dubious honour of being
the champion of corruption in the 11 December 2012 Wall Street Journal article
that reported Transparency International Bribe Payers Survey 2012 findings. In
a survey of 3000 executives over 30 countries as to the country they believed
they lost a contract bid because of bribery; 50% named Malaysia making it the
worst in the world with Mexico second at 48% and Japan the least with 2%.
24Corruption and illicit outflow are
problems that are not only endemic in Sabah but also the whole country.
25Sabahans realized they have to change
their government. Sabah is the only state to have changed its government four
times. However, Sabah’s problems have not been resolved despite the bravery and
courage of the people for change.The reason is because changing the state
government is not enough. Sabahans must also change the Federal Government. The
cancer is in the heart of power centralized in Putrajaya.
26I therefore urge all Sabahans to unite
together with West Malaysia and not repeat the mistake of changing the state
government while maintaining BN in Putrajaya. It has been said that repeating a
mistake each time in the hope of a different result is the height of insanity.
We must come to our senses and realize the root cause of the problems lies in
BN holding the reins of Federal power.
27Pakatan Rakyat will restore the equal
partnership with Sabah and Sarawak that formed the basis for Malaysia. Pakatan
Rakyat has a programme for Sabah and Sarawak.
28Pakatan will provide an equitable share
of the oil and gas revenue from 5% to 20%. The funds will be used to improve
the economy, provide education and eradicate poverty.
29Pakatan will build and improve the roads
and infra-structure, upgrade ports and airports as well as build communication
and transport facilities in Sabah and Sarawak. Pakatan will ensure that there
are adequate water and electricity supply.
30Pakatan will appoint Sabahans to
Federal, State and other government positions in line with the Borneonisation
31Pakatan will establish a Royal Commission
of Inquiry to resolve the issue of illegal immigrants being given ICs and put
on the electoral rolls. The repeated calls for a Royal Commission of Inquiry
have not been heeded and the present slow pace of the inquiry confirms the lack
of sincerity and urgency by the BN government to resolve this critical issue.
This is among the reasons for SAPP, Wilfred Bumburing and Lajim Ukin to leave
BN. You have heard earlier this evening, Yang Berhormat Datuk Seri Panglima
Lajim Ukin giving the reasons for his leaving UMNO and BN.
To Save Malaysia Is To
32The problems faced by Sabahans and
Sarawakians are also problems faced by Malaysians in the Peninsula. We are all
in this together. Malaysia is in the midst of a crisis. Malaysians both in the
West and in the East have slept on their rights for 50 years. It is time we
wake up and arise together. I urge Sabahans to join hands with your brothers in
West Malaysia to save our nation. This is because to save Malaysia is to save