VZCZCXRO6039
OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHKL #0886/01 3061010
ZNR UUUUU ZZH
O 021010Z NOV 09
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3355
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY

UNCLAS SECTION 01 OF 02 KUALA LUMPUR 000886 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV ECON MY
SUBJECT: SARAWAK: NATIONAL FRONT'S "SAFE DEPOSIT" SECURE 
FOR NOW 
 
¶1. (SBU) SUMMARY: An October 12-14 visit by Pol counselor to 
Sarawak -- known as a ruling National Front's (BN) "safe 
deposit" because BN can count on retaining political control 
of its 31-member Parliamentary delegation -- reinforced the 
view that Sarawak remains firmly in the ruling coalition's 
hands.  On BN's side of the ledger, Chief Minister Taib 
Mahmud remains unchallenged after 27 years in office, his 
government doles out timber-cutting permits while patrolling 
the under-developed state using 14 helicopters, and his 
family's companies control much of the economy.  On the 
opposition side, the Democratic Action Party (DAP) holds only 
one Parliamentary seat and is quarreling with the People's 
Justice Party (PKR), which has none, while the Peoples 
Islamic Party (PAS) lacks any presence in Sarawak at all.  BN 
interlocutors expressed confidence, and opposition 
interlocutors did not dispute, that BN would retain 
overwhelming control of the state in the next state 
elections, to be held by 2011, and beyond.  END SUMMARY. 
 
¶2. (SBU) PolCouns and PolSpecialist visited the East 
Malaysian (Borneo) state of Sarawak, known for its extensive, 
endangered rainforests and its diverse indigenous population, 
during October 12-14.  The state, geographically the largest 
among the 13 states in Malaysia with a population of only 2 
million, is politically significant for the ruling National 
Front (BN) because it is seen as guaranteeing the BN's 
majority in Parliament.  In the March 2008 general election, 
for example, BN needed the 30 seats it won in Sarawak to 
ensure its majority in Parliament (Note: BN captured 140 out 
of 222 seats; 110 would have left it short of a majority. 
End Note.)  Neighboring Sabah's 24 BN seats were critical 
too.  Hence, Prime Minister Najib Tun Razak has described the 
two states as the BN's "safe deposits."  Acknowledging East 
Malaysia's political significance, on October 19 Prime 
Minister Najib declared September 16, the day Sarawak and 
Sabah joined the Federation of Malaya to form Malaysia, to be 
a national public holiday as of 2010. 
 
Federal Government Giving Millions 
---------------------------------- 
 
¶3. (SBU) On October 12, PolCouns and PolSpecialist met 
Sarawak Deputy Chief Minister George Chan, who is also 
President of the Sarawak United People's Party (SUPP), which 
is Sarawak's version of the Malaysian Chinese Association 
(MCA).  During the meeting at his newly built mansion next to 
Kuching's most exclusive golf course, Chan said that since 
the March 2008 general election, the Federal Government has 
been "pouring millions of ringgit" for development into the 
state. He described the allocation as a form of "gratitude" 
to the Sarawak state government for "delivering the seats to 
secure the BN's majority at the Federal level."  Chan noted 
that preserving Sarawak's rainforests was an important 
international issue for Malaysia, but said that the state 
government was also under pressure to develop the state, 
including building roads to remote longhouses.  Development 
meant more logging and palm oil plantations. 
¶4. (SBU) At a separate meeting on October 12, United 
Traditional Bumiputra Party (PBB) Supreme Council Member and 
Member of Parliament Wan Junaidi agreed that since the March 
2008 general election, the Federal government "has been 
generous" in providing funds to the state.  He acknowledged 
that Sarawak's role as a "kingmaker" in national politics had 
significantly increased its importance in the eyes of Federal 
leaders.  Furthermore, the staunch loyalty shown to the BN by 
the 30 BN Sarawakian Members of Parliament, some of whom were 
initially rumored to have agreed to crossover to the 
opposition People's Alliance (PR), has also boosted Sarawak's 
BN fortunes. 
 
¶5. (SBU) Chan and Junaidi said the BN's ability to deliver a 
large number of Parliament seats was due to Sarawak Chief 
Minister Taib Mahmud's (who has held the chief minister's 
post since 1981) "iron grip" on the state.  (Note:  Taib's 
son is married to one of Chan's daughters.  End Note.) 
Furthermore the state,s control over immigration (one of the 
significant issues negotiated when Sarawak joined the 
Federation) also helped keep "opposition troublemakers" out 
of Sarawak. (Note: Several opposition leaders including 
Democratic Action Party (DAP) senior advisor Lim Kit Siang, 
People's Justice Party (PKR) leaders and Members of 
Parliament Sivarasa Rasiah and Gopalakrishnan have recently 
been refused entry into the state.  End Note.) 
 
Opposition in Disarray in Sarawak 
--------------------------------- 
 
¶6. (SBU) While BN holds all the cards, the opposition's DAP 
and PKR are weak and in disarray in Sarawak, both BN and 
opposition interlocutors told us.  In the March 2008 general 
election, Sarawak was the only state where the opposition 
 
KUALA LUMP 00000886  002 OF 002 
 
 
failed to reach a consensus on which party would compete for 
which seats, to avoid splitting the opposition votes, and the 
issue remains open for state elections to be held by 2011. 
(Note: opposition leaders are expecting the next state 
election to be held in the latter part of 2010.  Sarawak is 
the only state which does not hold both state and 
parliamentary elections simultaneously, for historical 
reasons. End Note.) In addition, DAP and PKR state 
representatives have filed several defamation suits against 
each other in the state, in each case resulting in unhelpful 
media reports. 
 
¶7. (SBU) In an October 13 meeting, the sole DAP Member of 
Parliament from Sarawak, Chong Chieng Jen, in his 
mid-thirties, saw DAP's upside potential in future elections 
as limited.  He shared Deputy Chief Minister Chan,s view 
that the opposition coalition might only win 10 to 11 seats, 
up from 9 now, in the next state election, leaving the 
opposition with a fraction of the 71 state seats. 
Furthermore, Chong expected DAP to win only one or two 
additional seats at the Parliament level in the next national 
elections (to be held by early 2013), because BN controls the 
resources and airwaves.  In addition, internet penetration, 
crucial for the opposition, since the government-controlled 
media rarely covers opposition politicians, is very low in 
Sarawak (estimated to be around 13.6 percent in 2008). He 
also downplayed the possibility that the Peoples Alliance 
coalition would come up with a common platform in December 
that would heal the rifts between the opposition parties in 
Sarawak, noting sarcastically, "What common platform.  Such 
platforms are only for the peninsula." 
 
PKR Sees Potential in Sarawak 
----------------------------- 
 
¶8. (SBU) Also on October 13, PKR Central Committee members 
Baru Bian (since named as PKR Liaison Chief for Sarawak) and 
Baharuddin Moksin lamented the opposition's inability to 
reach voters, even though the one million indigenous people 
(collectively called "Dayaks") could amount to a powerful 
bloc supporting the opposition, since they oppose rampant 
logging.  Moksin said that even when the opposition parties 
managed to rent a helicopter during the Batang Ai district of 
Sarawak by-election in April, the state government refused to 
give their helicopter landing rights. 
 
¶9. (SBU) Nonetheless PKR leaders were more optimistic than 
DAP's Chong that the March 2008 "political tsunami" that hit 
the Peninsula could sweep Sarawak in the next state election. 
Bian said that the people are fed up with Taib,s 27-year 
administration, seen as only enriching his family and a small 
coterie of cronies.  Baharuddin explained that in Sarawak 
only three companies, Chahaya Mata Sarawak (which locals 
jokingly claim stands for "Chief Minister,s Sons"), Naim 
Cendera Holdings  and Titanium Management Berhad, all 
associated with the Chief Minister,s family, are the only 
"big players in the state."  All major contracts and a 
significant portion of land to be converted to palm oil 
plantations (including on indigenous "customary rights lands" 
that the state government has refused to recognize) are given 
to these three companies. 
KEITH