VZCZCXRO5058
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHKL #0268/01 1000721
ZNY CCCCC ZZH
P 100721Z APR 09
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC PRIORITY 2584
INFO RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUCNASE/ASEAN MEMBER COLLECTIVE
RHHMUNA/CDR USPACOM HONOLULU HI
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C O N F I D E N T I A L SECTION 01 OF 05 KUALA LUMPUR 000268 
 
SIPDIS 
 
FOR EAP/MTS AND INR 
 
E.O. 12958: DECL: 04/10/2029 
TAGS: PGOV PINR PINS ECON MY
SUBJECT: NAJIB'S NETWORK - A PRELIMINARY LOOK 
 
REF: A. KL 266 - NAJIB UNVEILS CABINET 
     ¶B. KL 253 - NAJIB SWORN IN AS PM 
     ¶C. KL 78 - NAJIB LEADS TAKEOVER OF PERAK 
     ¶D. 08 KL 193 - NEW MINISTER PORTFOLIOS 
     ¶E. 08 KL 192 - MALAYSIA'S NEW CABINET 
 
Classified By: Political Counselor Mark D. Clark for reasons 1.4 (b and 
 d). 
 
Summary 
------- 
 
¶1.  (C) This cable provides a preliminary review of Prime 
Minister Najib Razak's close aides and political associates, 
known associated companies, and business contacts, as well as 
summary information on Najib's four brothers.  The review is 
based on information available prior to Najib's confirmation 
as Prime Minister on April 3 and his formation of his Cabinet 
on April 9.  Najib's aides could find themselves in positions 
of influence with the PM's office, while four political 
associates from his inner circle have taken positions in 
Najib's cabinet.  Post identified 16 companies with strong 
links to Najib and his family, with many of the companies 
having substantial business interaction with the government. 
Among the 19 key business leaders listed, Rohana Mahmood 
stands out as deeply embedded in the Najib family's 
commercial interests.  Najib's family has personal links to 
the Sultan of Perak, of note given Najib's involvement in 
wresting control of the state from opposition hands in 
February (ref B).  Syed Mokhtar Albukharry, a major Malaysian 
investor in Iran, has significant business operations in 
Najib's constituency and in the defense sector.  The Embassy 
provides this information, not as a definitive study, but to 
help guide Department offices as they examine Najib's 
emerging administration and policy decisions, and identify 
actors of influence.  End Summary. 
 
Political Aides 
--------------- 
 
¶2.  (C) According to Embassy's information, including one 
well-placed source, Najib's three closest advisors are 
Shahlan Ismail, Alias Anor, and Shafie Mohd Abdullah. 
Previously, Alias was Najib's political secretary, but has 
since assumed the role of a key advisor.  Shahlan and Shafie 
are Najib's current political secretaries, with Shahlan 
filling the position since April 2008. 
 
Political Associates 
-------------------- 
 
¶3.  (C) Post developed the following list of close political 
associates by speaking with informed observers, including 
those on Najib's current political team, and by identifying 
individuals who have worked closely with Najib, some since he 
was the UMNO Youth Chief from 1988-1993. 
 
-- Hishamuddin Tun Hussein, named Home Minister in Najib's 
new cabinet.  He was the former UMNO Youth Chief and Minister 
of Education under PM Abdullah Badawi.  Najib and Hishamuddin 
are cousins (their mothers are sisters).  Hishamuddin was 
elected to one of three UMNO Vice President posts during the 
March party elections. 
 
-- Ahmad Zahid Hamidi, Najib's choice as Defense Minister. 
He was a Minister in the PM's Department for religious 
affairs under PM Abdullah Badawi.  He was also a former 
political secretary to Najib and former UMNO Youth Chief. 
Ahmad was elected to one of three UMNO Vice President posts 
during the March UMNO party elections. 
 
-- Nazri Abdul Razak, retained by Najib as Minister in the 
PM's Department in charge of parliamentary affairs, a 
position he also held under former PM Abdullah Badawi. 
Former UMNO Perak Youth Chief and was the UMNO International 
Bureau Chief when Najib was the Youth Chief.  Nazri had 
lobbied for the position of Foreign Minister in Najib's new 
cabinet. 
 
-- Shafie Apdal, named by Najib as Rural Development 
Minister.  He was Minister of National Unity, Culture, Arts, 
and Heritage under former PM Abdullah.  He is Najib's point 
man in Sabah, former UMNO Youth Sabah chief and was Najib's 
deputy at the Ministry of Defense (1999-2004).  Shafie was 
elected to one of three UMNO Vice President posts during the 
 
KUALA LUMP 00000268  002 OF 005 
 
 
recently concluded party elections in March. 
 
-- Jamaluddin Jarjis, former UMNO Youth Chief for the state 
of Pahang.  He was Najib's chief campaign strategist during 
the party's elections in March.  Jamaluddin is a member of 
UMNO's Supreme Council.  Some observers expected Jamaluddin 
to be included in Najib's Cabinet, but he was not. 
 
-- Johan Jaafar, former editor in chief of Utusan Malaysia 
newspaper owned by the ruling party, is Najib's media point 
man.  According to sources, Johan will be appointed as 
executive director of The New Straits Times Press Berhad 
(NSTP) (the publisher of the government-dominated mainstream 
newspapers New Straits Times, Berita Harian and Harian Metro) 
as well as chair of Media Prima Berhad, which operates all of 
Malaysia,s private television stations and two private radio 
stations. 
 
-- Mohd Zin Mohamed, Minister of Works under PM Abdullah and 
former UMNO Youth leader.  He is a member of UMNO's Supreme 
Council. 
 
Political Ally 
-------------- 
 
¶4.  (C) Newly-named Deputy Prime Minister Muhyiddin Yassin 
emerged as a key Najib ally over the past year.  Muhyiddin 
was the most prominent UMNO leader responsible for forcing 
former Prime Minister Abdullah Badawi to agree to step down 
in favor of Najib after the March 2008 elections.  Najib 
personally but quietly supported Muhyiddin as the choice for 
Deputy UMNO President after Ali Rustam, Melaka Chief Minister 
and former UMNO Senior Vice President, was barred from 
contesting for the post for corruption.  During the March 24 
- 28 UMNO General Assembly, Muhyiddin pledged to be "ultra 
loyal" to Najib.  Muhyiddin won the UMNO deputy president 
post, which by tradition carries with it the Deputy Prime 
Minister position.  In addition, Najib made Muhyiddin 
Education Minister, an important patronage position but 
without access to the central levers of power.  Observers 
debate how close Muhyiddin really is to Najib as some 
consider him as ambitious and a possible rival to Najib under 
certain circumstances.  Some observers have indicated 
Muhyiddin has yet to completely satisfy Najib of the new 
DPM,s loyalty.  Their relationship bears watching before we 
can draw firm conclusions. 
 
Associated Companies 
-------------------- 
 
¶5.  (C) Post used both open as well as informed sources to 
build an initial picture of the companies associated with 
Najib and or his family members.  The companies listed below 
all have Najib or one of his immediate family members on 
their executive boards.  Most of the companies listed also 
hold government contracts or are believed to have substantial 
business interaction with the government. 
 
-- Commercial International Merchant Bankers (CIMB) Group: 
Malaysia's second largest financial services provider and the 
fifth largest in Southeast Asia.  It is owned by 
Bumiputra-Commerce Holding Berhad (BCHB), which is listed on 
Malaysia's stock exchange, the Bursa Malaysia, with a market 
capitalization of 26.6 Billion ringgit (about USD7.4 billion). 
 
-- Symphony House Berhad: A publicly listed company mainly 
involved in business process outsourcing. 
 
-- Johan Holdings: A publicly listed company involved in 
manufacturing ceramic tiles, distribution and sale of health 
foods and supplements, property development, and resorts and 
hotels. 
 
-- Sapura Group: Has businesses interests in the secured 
communications and oil & gas industries with investments in 
Australia, Singapore, Brunei, Thailand, Sri Lanka, 
Philippines, Pakistan and China. 
 
-- Hong Leong Group: A Malaysian-based conglomerate with 
investments in financial services, manufacturing, and 
property and infrastructure development.  The group's shares 
are listed on the stock exchanges of Malaysia, Singapore, 
Hong Kong, the Philippines, and Europe. 
 
-- Paramount Corporation Berhad: A publicly listed company 
 
KUALA LUMP 00000268  003 OF 005 
 
 
with diverse interests in property development and 
investment, construction, and educational services. 
 
-- TH Group Berhad: A publicly listed company involved in 
plantations, contracting, biohealth care and information 
technology. 
 
-- Dijaya Berhad: A publicly listed company involved in 
property development, investment, and management as well as 
investment holding and manufacturing. 
 
-- MMC Group: A utilities and infrastructure group with 
interests in transportation and logistics, energy and 
utilities, engineering, and construction.  Its international 
business dealings focus on the Middle East, with investments 
in utilities and logistics in that region. 
 
-- DRB Hicom: The largest totally integrated automotive 
company in Malaysia, with operations in the manufacturing, 
assembly, and distribution of passenger and commercial 
vehicles.  It also is involved in property and infrastructure 
development, and provides the Malaysian military land-based 
vehicles. 
 
-- Hiap Teck Venture Berhad: A publicly listed company, it is 
the leading manufacturer of steel products in the country. 
 
-- Mamee Double Decker Berhad: A publicly listed company 
involved in the manufacturing and marketing of a wide range 
of soft drinks, food and dairy products; other activities 
include property development. 
 
-- Delloyd Ventures Berhad: An investment holding company 
with subsidiaries engaged in the manufacture and sale of 
automobile parts and accessories, palm oil plantations, 
repair and maintenance of motor vehicles, manufacture and 
export of agrichemicals, and magazine publishing. 
 
-- Yeo Hiap Seng Berhad: Principally involved in the 
production, marketing, and sale of food, beverages, and 
sweetened condensed milk. 
 
-- Nylex Berhad: Manufactures and markets vinyl-coated 
fabrics, calendered film and sheeting, and other plastic 
products, including geotextiles and prefabricated sub-soil 
drainage systems. 
 
-- Daiman Development Berhad: Principally involved in 
property development and trading. 
 
-- Ethos Capital: A boutique investment company chaired by 
Rohana Mahmood. 
 
Business Leaders 
----------------- 
 
¶6.  (C) Post compared the executive boards, used open 
sources, and spoke with informed contacts to identify key 
individuals within businesses that are linked to Najib and 
his family. 
 
-- Rohana Mahmood, Chairman and partner of Ethos Capital, a 
RM200 million (about USD56 million) private equity firm. 
Rohana also sits on the boards of Paramount Corp Bhd, TH 
Group Bhd and Dijaya Corp Bhd.  She and another close aide of 
Najib, Abdul Razak Baginda, co-founded an independent 
think-tank, the Malaysian Strategic Research Centre 
(currently dormant).  (Note: Razak was acquitted in October 
2008 of abetting the murder of Mongolian national Altantuya. 
End note.)  Rohana appears connected in some manner to most 
of the companies associated with Najib. 
 
-- Azman Mokhtar, the managing director of Khanazah Nasional 
Bhd. He has been playing a prominent role in the reforms of 
government-linked companies (GLCs). 
 
-- Mohamed Azman Yahya, director of Khazanah, and founder and 
group chief executive officer of Symphony House Bhd, an 
outsourcing firm.  He is also the ex-CEO of Pengurusan 
Danaharta Bhd and sits on several advisory panels for the 
development of the capital market, venture capital, and 
public service delivery system. 
 
-- Tan Kay Hock, chair and chief executive of Johan Holdings 
Berhad.  Najib and Tan Kay Hock have known each other for a 
 
KUALA LUMP 00000268  004 OF 005 
 
 
long time and are golfing buddies.  Tan is also a member of 
the Iskandar Regional Development Authority (IRDA). 
 
-- Shahril Shamsuddin of Sapura Group, which has interests in 
communications, information technology, and oil and gas. 
 
-- Syed Mokhtar Albukharry, whose privately owned company, 
SKS Ventures Sbd Bhd, has announced involvement in major oil 
and gas deals with Iran's National Iranian Oil Company, 
including to develop Iran's southern Golshan and Ferdos gas 
fields.  He also controls DRB-HICOM, and is one of the 
largest employers in Pekan, Pahang, Najib's parliamentary 
constituency, and political base.  Syed operates a huge 
vehicle assembly plant there.  He also owns Defense 
Technologies Sdn Bhd or Deftech a DRB subsidiary and 
Malaysia,s leading supplier of land-based defense vehicles. 
Syed Mokhtar also is believed to have a good (and some say 
stronger) relationship with Deputy Prime Minister Muhyiddin. 
 
-- Danny Tan Chee Sing, Group Chief Executive Officer of 
Dijaya Berhad and Vincent Tan's brother. 
 
-- Nor Yusof, an ex-banker, who was the former managing 
director of Malaysia Airlines and past chair of the 
Securities Commission.  He is currently director and chair of 
Khazanah's executive committee.  He has a wealth of 
experience in banking and a keen insight on capital markets. 
 
-- Mohd Nadzmi Mohd Salleh, chair and MD of express bus 
operator Konsortium Transnational Bhd.  The former Proton 
boss was called upon by the Government in 1996 to revive the 
ailing public transport company.  He was former PM Mahathir's 
prodigy and has expertise in transportation. 
 
-- Dr. Gan Wee Beng, the executive director of CIMB Group 
(the CEO is Najib's brother Nazir Abdul Razak).  Gan was a 
consultant to Bank Negara (the central bank), the Economic 
Planning Unit, Finance Ministry, and the World Bank. 
 
-- Omar Mustapha Ong, a former special assistant to Najib, is 
the co-founder of Ethos Capital with Rohana Mahmood.  His 
father, Mustapha Ong, was the diplomat in Washington who 
allegedly tried to bribe a limousine driver in Washington to 
fabricate evidence against deposed Deputy Prime Minister (and 
current opposition leader) Anwar Ibrahim in 1998. 
 
-- Quek Leng Chan, Chairman and Chief Executive of Hong Leong 
group of Companies. 
 
-- Teo Chiang Quan, Group Managing Director and Group Chief 
Executive Officer, Paramount Corporation Berhad. 
 
-- Lei Lin Thai, Group Managing Director, TH Group Berhad. 
 
-- Pang Tee Chew, Chief Executive Officer, Mamee Double 
Decker Berhad. 
 
-- Kenneth Eswaran, CEO Multi Vest Resources Bhd (MVest), 
whose primary business interest is the palm oil sector. 
Informed sources say he is close to Rosmah Mansor, Najib's 
wife. 
 
-- Vincent Tan, Berjaya Group, a former Mahathir crony who is 
now close to Najib.  Tan managed to obtain a lucrative 
license to conduct additional lottery draws after Najib 
became Finance Minister in October 2008.  He is also rumored 
to be close to Rosmah Mansor. 
 
-- Bakke Salleh, CEO of Federal Land Development Authority 
(FELDA) Holdings Berhad.  Najib is the Chairman of the 
Cabinet Committee on FELDA, the land authority established by 
his father. 
 
-- Lodin Wok Kamarudin, Chief of Armed Forces Fund Board. 
 
Najib and his Brothers 
---------------------- 
 
¶7.  (C) Najib, who is the eldest son of former Prime Minister 
Abdul Razak, is said to consult closely with his four 
brothers, who all have extensive commercial ties. 
 
-- Johari Razak, the second eldest brother and a close friend 
of Perak Crown Prince Raja Nazrin Shah.  He is a lawyer and 
senior partner at Shearn Delamore & Co, a large law firm in 
 
KUALA LUMP 00000268  005 OF 005 
 
 
Kuala Lumpur.  His areas of practice include corporate and 
commercial joint ventures, mergers and acquisitions; 
corporate restructuring; and the listing of public companies. 
 He is also the Chairman of Courts Mammoth Pte Ltd and Daiman 
Development Berhad, a director of Hong Leong Industries 
Berhad, Nylex Berhad, Daiman Golf Berhad, and Deutsche Bank 
(Malaysia) and a non-executive director in several publicly 
listed companies. 
 
-- Mohamed Nizam Razak studied politics, philosophy, and 
economics at Oxford University.  He was a stockbroker and CEO 
of PB Securities Sdn Bhd in the 1990s.  He is currently a 
non-executive director in several publicly listed companies 
including Hiap Teck Venture Bhd, Mamee Double-Decker (M) Bhd, 
Delloyd Ventures Bhd, and Yeo Hiap Seng (M) Bhd.  Like 
Johari, Nizam is also a director of Deutsche Bank. 
 
-- Mohamed Nazim Razak, the fourth brother, studied 
architecture in the UK.  He is Chairman of Meru Utama an 
outdoor advertising company that received a seven-year 
advertising concession in 2007 to advertise the Kuala Lumpur 
International Airport and Low-cost Carrier Terminal (LCCT). 
He is also Chairman of the Governing Council of Masterskill, 
a private University/College (the Pro Chancellor is Raja 
Azureen Raja Azlan Shah, the daughter of the Sultan of Perak) 
and Director of OYL Industries (a subsidiary of Hong Leong 
Group of Companies). 
 
-- Nazir Razak, the youngest brother, is the most well known. 
 He obtained a Master of Philosophy at Cambridge University. 
He is a career banker, joining CIMB Investment Bank almost 20 
years ago and rising through its executive ranks to become 
its CEO in 1999.  Following the merger of CIMB and 
Bumiputra-Commerce Bank, to become Bumiputra-Commerce 
Holdings Bhd (BCHB), Nazir became CEO of the merged group. 
Under his watch, the BCHB group, which is branded as CIMB 
group, was transformed into a GLC bank that could compete 
with its peers in the private sector regionally.  Informed 
observers widely believe Nazir advises Najib on finance and 
economic policy issues. 
 
KEITH