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OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHKL #0964/01 3080924
ZNR UUUUU ZZH
O 030924Z NOV 08
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1845
INFO RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS SECTION 01 OF 03 KUALA LUMPUR 000964 
 
SIPDIS 
 
FOR INL/JOHN LYLE AND EAP/MTS 
 
E.O. 12958: N/A 
TAGS: SNAR PREL PGOV MY
SUBJECT: MALAYSIA 2008-2009 INTERNATIONAL NARCOTICS CONTROL 
STRATEGY REPORT (INCSR), PART 1 
 
REF: STATE 100989 
 
¶1. Per reftel instructions, Post submits the following text 
for the 2008-2009 INCSR, Part 1. 
 
BEGIN TEXT: 
 
Malaysia 
 
¶I. Summary 
 
Malaysia is not a significant source country or transit point 
for U.S.-bound illegal drugs; however, domestic drug abuse in 
Malaysia remains on the rise, and Malaysia is increasingly 
being used as a regional hub for methamphetamine production. 
The government continues promoting its "drug-free by 2015" 
policy.  Malaysia's counter-narcotics officials and police 
officers have the full support of senior government 
officials, but instances of corruption hindered adequate 
enforcement and interdiction.  Malaysia has a low conviction 
rate for arrested drug traffickers, and the country relies 
heavily on preventive detention under the Dangerous Drugs Act 
(Special Preventive Measures 1985) rather than active 
prosecution.  The extensive use of preventive detention in 
narcotics cases in lieu of prosecution is due in large part 
to an extremely high burden of proof required for narcotics 
trafficking cases which would result in a death sentence in 
the case of a guilty verdict.  As there are no alternative 
sentences, authorities rely on preventive detention without 
trial. 
 
II. Status of Country 
 
Malaysia is not a significant source country or transit point 
for U.S.-bound illegal drugs.  Nevertheless, regional and 
domestic drug-trafficking remains a problem and international 
drug syndicates are increasingly turning to Malaysia as a 
regional production hub for crystal methamphetamine and 
Ecstasy (MDMA).  Narcotics imported to Malaysia include 
heroin and marijuana from the Golden Triangle area (Thailand, 
Burma, Laos), and other drugs such as amphetamine type 
stimulants (ATS). Small quantities of cocaine are smuggled 
into and through Malaysia from South America.  Local demand 
and consumption of drugs is very limited in Malaysia; 
however, crystal methamphetamine, ecstasy, and ketamine 
mostly from India, are smuggled through Malaysia en route to 
consumers in Thailand, Singapore, China, and Australia. 
Ketamine from India continues to be an increasingly popular 
drug in Malaysia.  Since 2006, Malaysia has also been a 
location where significant quantities of crystal 
methamphetamine are produced.  This trend continued in 2008, 
with a large methamphetamine laboratory seized in Southern 
Malaysia, and frequent police reports of ethnic Chinese 
traffickers setting up labs in Malaysia. 
 
Between January and July 2008, police encountered and 
identified 7,992 addicts, of whom 3,584 were new cases. 
Since 1988 the Malaysian Government cumulatively has 
identified 308,233 drug addicts, and the government-linked 
Malaysia Crime Prevention Foundation and other NGO's estimate 
that there are currently some 900,000 to 1.2 million drug 
addicts in Malaysia.  Statistics continue to show that the 
majority of the nation's drug addicts are between 19 and 39 
years of age and have not completed high school. 
 
III. Country Actions Against Drugs in 2007 
 
Policy Initiatives:  Malaysia continues a long-term effort 
launched in 2003 to reduce domestic drug use to negligible 
levels by 2015.  Senior officials including the Prime 
Minister speak out strongly and frequently against drug 
abuse.  The Prime Minister chairs the Cabinet Committee on 
Eradication of Drugs, composed of 20 government ministers. 
The National Anti-Drugs Agency (NADA) is the policy arm of 
Malaysia's counter-narcotics strategy, coordinating demand 
reduction efforts with various cabinet ministries.  Malaysian 
law stipulates a mandatory death penalty for major drug 
traffickers, with harsh mandatory sentences also applied for 
possession and use of smaller quantities.  In practice 
however, many minor offenders are placed into treatment 
programs instead of prison.  Convictions for trafficking are 
extremely rare, as they would require the defendant to 
receive a death sentence.  Consequently, most major 
traffickers are placed in preventive detention. 
 
Accomplishments:  Malaysia authorities seized an operational 
methamphetamine laboratory in 2008, and had numerous other 
successful investigations, confiscating large quantities of 
methamphetamine, ketamine, and ecstasy (MDMA).  They have 
also initiated investigations of police corruption, in one 
 
KUALA LUMP 00000964  002 OF 003 
 
 
case transferring an entire unit, and have transferred 
numerous officers suspected of corruption. Some of these 
officers have been detained under the SPMA, while several 
others remain under investigation. 
 
Law Enforcement Efforts:  Police and Customs Officers 
arrested 41,146 people for drug-related offenses between 
January and July 2008, an increase of 26%.  Enforcement 
officials continued to show successes in ATS-related seizures 
and have also recorded a higher level of heroin seizures over 
the same period last year.  The Royal Malaysian Police 
recorded a forty-six percent increase in confiscated property 
derived from drug related cases in 2007. 
 
Malaysian police are generally effective in arresting 
small-time drug offenders but have shown limited success in 
arresting mid to upper level syndicate members.  The Royal 
Malaysian Police have acknowledged these short comings and 
have begun implementing training plans to improve their 
investigations and procedures.  Prosecutorial successes are 
generally of even quality with police investigations. 
Accordingly, Malaysian prosecutors have shown only limited 
success in prosecuting and convicting drug traffickers. 
Prosecutors are limited in their ability to charge and 
prosecute regular drug trafficking cases as Malaysia does not 
have an effective drug conspiracy law, thus limiting charging 
decisions against major traffickers.  In addition, there are 
limited sentencing alternatives if a subject is charged and 
convicted of drug trafficking.  Consequently, Malaysia police 
almost always use the Special Preventive Measures Act (SPMA) 
to arrest and detain drug traffickers.  The SPMA allows for 
the detention without trial of suspects who pose a threat to 
public order or national security.  The systemic use of the 
SPMA to arrest drug traffickers stems from the extremely high 
burden of proof required for a drug trafficking conviction, 
which would then require a mandatory death sentence.  Police 
and prosecutors are limited in their ability to prosecute 
such cases and preventive detention is therefore common. 
There is very limited judicial oversight for subjects 
arrested under preventive detention. 
 
Corruption:  As a matter of government policy, Malaysia does 
not encourage or facilitate illicit production or 
distribution of narcotic or psychotropic drugs or other 
controlled substances, or the laundering of proceeds from 
illegal drug transactions.  While Malaysian and foreign media 
organizations continued to highlight cases of government 
corruption both specifically and in general, no senior 
officials were arrested for drug-related corruption in 
2007-2008.  Malaysia's Anti-Corruption Agency (ACA) 
investigated competing complaints filed against several 
senior police officers and one deputy cabinet minister for 
corruption involving known drug trafficking syndicates, 
including allegations of corruption concerning the release of 
suspects from preventive detention.  The ACA's shortened 
investigations found no evidence to substantiate any of the 
competing allegations, and all parties remained in office. 
 
Agreements and Treaties:  Malaysia is a party to the 1988 UN 
Drug Convention, the 1961 UN Single Convention as amended by 
its 1972 Protocol, and to the 1971 UN Convention Against 
Psychotropic Substances.  Malaysia signed an MLAT with the 
U.S. in July 2006.  The U.S. - Malaysian MLAT has not yet 
entered into force (as of November 2008).  Malaysia also has 
a multilateral MLAT with seven Southeast Asian nations, and 
an MLAT with Australia.  Malaysia is a party to the ASEAN 
MLAT.  The U.S.-Malaysia Extradition Treaty has been in 
effect since 1997, and in 2007 the first successful 
extradition was completed for Wong Wok Wing who was 
extradited to stand trial in the Eastern District of New York 
for heroin trafficking. 
 
Cultivation/Production:  While there is no notable 
cultivation of U.S.-listed drugs in Malaysia, local officials 
report significant cultivation/presence of a local plant 
known as ketum (Mitragyna speciosa) with known psychoactive 
properties and used for its narcotic effects throughout the 
region.  ATS production has shown a marked increase since 
2006 and Malaysian authorities admit that international drug 
syndicates are using Malaysia as a base of operations.  All 
methamphetamine labs seized in Malaysia since 2006 were 
financed by ethnic Chinese traffickers from Singapore, 
Taiwan, Thailand, or other countries.  In 2008, a lab was 
seized in Malaysia in which the chemists were from Mexico. 
 
Drug Flow/Transit:  Drugs transiting Malaysia do not appear 
to make a significant impact on the U.S. market.  However, 
Malaysia's proximity to the heroin production areas and 
methamphetamine labs of the Golden Triangle (Thailand, Burma, 
Laos) leads to smuggling across Malaysian borders, destined 
 
KUALA LUMP 00000964  003 OF 003 
 
 
for Australia and other markets.  Ecstasy from Amsterdam is 
flown into Kuala Lumpur International Airport (KLIA) for 
domestic use and distribution to Thailand, Singapore, and 
Australia.  Ketamine comes from Tamil Nadu, India and is 
exported to several countries in the region.  There is 
evidence of increased transit of cocaine from South America. 
In 2008, several Peruvian couriers and one Bolivian courier 
were arrested with cocaine upon arrival in Malaysia.  In 
nearly every case the cocaine was destined for Thailand. 
Large scale production of ATS in Malaysia remains a 
significant problem.  There were three large labs seized in 
2007, one large lab seized in 2008, and there are other cases 
in which traffickers sought chemicals to set up 
methamphetamine labs in Malaysia. 
 
Domestic Programs (Demand Reduction):  The NADA targets its 
demand reduction efforts toward youth, parents, students, 
teachers, and workers, with extensive efforts to engage 
schools, student leaders, parent-teacher associations, 
community leaders, religious institutions, and workplaces. 
Government statistics indicate that 6,968 persons were 
undergoing treatment at Malaysia's 28 public rehabilitation 
facilities as of July 2008, indicating over a 30% percent 
increase from last year.  Another 32,696 persons were 
undergoing "in community" treatment and rehabilitation and 
are used as role models for relapse cases. 
 
IV. U.S. Policy Initiatives and Programs 
 
Bilateral Cooperation:  U.S. counter-narcotics training 
continued in 2008 via the International Law Enforcement 
Academy (ILEA) in Bangkok and the "Baker-Mint" program 
sponsored by the U.S. Department of Defense.  Baker-Mint aims 
to raise the operational skill level of local 
counter-narcotics law enforcement officers.  In 2008, U.S. 
officials from the Department of Justice, DEA, and FBI 
presented a training workshop for Malaysian counter-narcotics 
investigators on intelligence analysis and other drug 
investigative techniques.  In addition, senior Malaysian 
counter-narcotics officials traveled to the United States and 
visited DEA Headquarters and DEA's New York Field Division in 
an effort to expand their international cooperative efforts. 
 
 
Road Ahead.  United States goals and objectives for the year 
2009 are to improve coordination and communication between 
Malaysian and U.S. law enforcement authorities in 
counter-narcotics efforts.  United States law enforcement 
agencies will utilize better coordination with Malaysian 
authorities to interdict drugs transiting Malaysia, and to 
follow regional and global leads.  U.S.-funded 
counter-narcotics training for Malaysian law enforcement 
officers will continue and U.S. agencies will continue 
working with Malaysian authorities to improve Malaysia's 
investigative and prosecutorial processes.  U.S. agencies are 
also seeking additional operational engagement of Malaysian 
counter-narcotics officials who have expressed an interest in 
greater regional cooperation. 
 
END TEXT. 
 
¶2. POC for this report is Deputy Political Counselor Jeremy 
Nathan, nathanjp@state.gov. 
KEITH