As a jury in Brooklyn, New York, weighed the fate of a former banker accused of conspiring to loot a Malaysian state fund, villagers about an hour’s drive from the country’s power center, Kuala Lumpur, had a more parochial concern.
A bridge in a coastal settlement in Kuala Selangor — a politically contested region — had collapsed in 2019. Despite politicians’ promises, it lies in ruin.
That bridge is vital to the fishing community, said Muhammad Zabar bin Arssad, who has lived in the area for all his 63 years.
Photo: Bloomberg
Far more important to livelihoods than anything transpiring in a New York courtroom.
“1MDB is an urban conversation, something for people in KL to talk about,” he said, referring to Kuala Lumpur. “It doesn’t really matter here. The bridge does matter.”
His perspective is vital to understanding the disconnect between worldwide disgust at the scandal — in which billions of dollars were looted from 1Malaysia Development Bhd — and recent gains by the party that governed Malaysia when the pillaging occurred.
Those electoral advances reflect the current state of ambivalence in the Southeast Asian nation. What was once frustration has given way to resignation: COVID-19 persists and the economic recovery has lagged behind neighbors. Clean government matters, but jobs and healthcare matter more. Handouts come with the territory.
The 1MDB scandal was about as consequential as you could get in 2018, when opposition parties joined forces and swept then-Malaysian prime minister Najib Razak’s United Malays National Organization (UMNO) from power for the first time in seven decades. Najib, who was subsequently convicted of corruption and is appealing, has rebuilt his base and is again a plausible candidate for high office.
1MDB is increasingly yesterday’s news. The bloc elected in 2018 amid a flowering of reformist hopes splintered two years later and, in a twist of parliamentary intrigue, was returned to the opposition. UMNO is back in office as part of a new conservative coalition. Recent contests in the states of Johor and Melaka produced strong results. Najib starred in those campaigns.
The trial of Roger Ng, the former Goldman Sachs Group Inc banker who was found guilty last week, was dutifully reported by Malaysian media. (Goldman arranged some bond deals for 1MDB.)
However, the coverage had a perfunctory feel to it. Front pages in the domestic press last week expressed outrage not at the people behind 1MDB, but at Singaporeans driving across the border to fill up on subsidized gas. Najib has latched on to the issue.
“Najib has created an aura or an impression that the wind is blowing his way,” said Ei Sun Oh, principal adviser at Pacific Research Center, and a former aide to Najib. “After the pandemic, people are poor and his message is: ‘I will take care of you.’”
Although long an UMNO backer, Muhammad in Kuala Selangor said people were prepared to give the opposition a chance in 2018, because it was led by Mahathir Mohamad, the nonagenarian former prime minister who came out of retirement to challenge Najib.
“People thought Mahathir did a good job the first time. I liked him myself, but I was shocked at the chaos that followed his resignation,” Muhammad said.
A few hundred meters away, Lim Chon Kiat, a fishmonger of Chinese descent, lamented the fall of the Mahathir coalition two years ago.
“There are some villagers who don’t know what 1MDB is, but most people have heard of it,” said Lim, a supporter of what is now the opposition. “Corruption was an issue then. It still matters now.”
Without Mahathir at the helm, the opposition does have a harder sell, he said.
That bloc’s current leader, Anwar Ibrahim, is now the politician under pressure. Anwar claimed in late 2020 that he had the numbers to form a government. He never got the chance to test that assertion on the floor of the lower house, where the person who commands a majority gets to lead the country. Anwar’s Pakatan Harapan alliance, or PH, has struggled in recent state polls.
Barring an upset, the government assembled after the next election would be composed of UMNO and at least one other major party. The chances of an outright win by the opposition are slim unless something major happens to alter the dynamics.
That is bad news for Kuala Selangor incumbent member Dzulkefly Ahmad, who won the seat for PH in 2018, wresting it from Najib’s UMNO.
It is one thing to have an issue that galvanizes voters. It is quite another to be able to peddle it. Najib, ultimately, is proving a better salesman. Even after his national defeat four years ago, he matters to conservative ethnic Malay voters in the way former US president Donald Trump remains a force after his 2020 loss.
Unlike Trump, though, Najib still holds electoral office. I would not bet against him.
Daniel Moss is a Bloomberg Opinion columnist covering Asian economies. Previously he was executive editor of Bloomberg News for global economics, and has led teams in Asia, Europe and North America.
This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) secured a record 70.2 percent share of the global foundry business in the second quarter, up from 67.6 percent the previous quarter, and continued widening its lead over second-placed Samsung Electronics Co, TrendForce Corp (集邦科技) said on Monday. TSMC posted US$30.24 billion in sales in the April-to-June period, up 18.5 percent from the previous quarter, driven by major smartphone customers entering their ramp-up cycle and robust demand for artificial intelligence chips, laptops and PCs, which boosted wafer shipments and average selling prices, TrendForce said in a report. Samsung’s sales also grew in the second quarter, up
LIMITED IMPACT: Investor confidence was likely sustained by its relatively small exposure to the Chinese market, as only less advanced chips are made in Nanjing Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) saw its stock price close steady yesterday in a sign that the loss of the validated end user (VEU) status for its Nanjing, China, fab should have a mild impact on the world’s biggest contract chipmaker financially and technologically. Media reports about the waiver loss sent TSMC down 1.29 percent during the early trading session yesterday, but the stock soon regained strength and ended at NT$1,160, unchanged from Tuesday. Investors’ confidence in TSMC was likely built on its relatively small exposure to the Chinese market, as Chinese customers contributed about 9 percent to TSMC’s revenue last
With this year’s Semicon Taiwan trade show set to kick off on Wednesday, market attention has turned to the mass production of advanced packaging technologies and capacity expansion in Taiwan and the US. With traditional scaling reaching physical limits, heterogeneous integration and packaging technologies have emerged as key solutions. Surging demand for artificial intelligence (AI), high-performance computing (HPC) and high-bandwidth memory (HBM) chips has put technologies such as chip-on-wafer-on-substrate (CoWoS), integrated fan-out (InFO), system on integrated chips (SoIC), 3D IC and fan-out panel-level packaging (FOPLP) at the center of semiconductor innovation, making them a major focus at this year’s trade show, according
DEBUT: The trade show is to feature 17 national pavilions, a new high for the event, including from Canada, Costa Rica, Lithuania, Sweden and Vietnam for the first time The Semicon Taiwan trade show, which opens on Wednesday, is expected to see a new high in the number of exhibitors and visitors from around the world, said its organizer, SEMI, which has described the annual event as the “Olympics of the semiconductor industry.” SEMI, which represents companies in the electronics manufacturing and design supply chain, and touts the annual exhibition as the most influential semiconductor trade show in the world, said more than 1,200 enterprises from 56 countries are to showcase their innovations across more than 4,100 booths, and that the event could attract 100,000 visitors. This year’s event features 17
RSS