COMMENT Lately, never before in the history, the subject matter of whether Malaysia is failed state or moving in the direction of one has emerged.

It is obvious that the question of Malaysia becoming a failed state seems to be rooted in Prime Minister Najib Abdul Razak’s fallout in the 1MDB scandal and the consequent depreciation of the Malaysian ringgit, the flight of foreign capital in the region of RM12 billion and the lack of confidence in the Malaysian economy.

However, this is not to speak of the serious social and ethnic tensions that are emerging in the absence of visible authority.

States fail or get into the direction of failure due to  a combination of factors. The concept of failed state that was  used to denote regimes in Africa and Latin America, seems to have found its way into Southeast Asia recently.

About three or four decades or so, Malaysia earned the distinction of an economic “tiger”, along with countries like Thailand, Taiwan, Singapore and South Korea, due to its economic and financial performance.

However, recently, Malaysia seems on the road to receive the stigma of “failed state”!

Malaysia, like other countries, had its own share of political, economic and social problems in the past, but it was never labelled as failed one. But lately however, this notion has been used quite often to describe Malaysia as either a failed state, or moving in the direction of one. 

In reality, there are no absolute categories as there are different degrees of failed states. Perhaps it would be more accurate to talk about Malaysia along a continuum, to what extent it exhibits the features of a failed state and in what direction the country is heading to.

A failed state might conjure up the image of a total failure of institutions, but in reality, a collapse could be triggered by combination of factors, all interacting with one another.

The concept of failed states might denote different degrees and different areas in which states fail or do not live up to the expectations of their citizens. Problems do not happen in a vacuum as they spread to other areas to produce a combined total effect of a serious nature.

For instance, political and administrative failure might result in economic collapse and social disorder. Vice-versa, economic and financial problems could bring about political, administrative and social problems.

The question is, how do the states manage the problems in the interests of their people?

No steam without 1MDB fund debacle

In Malaysia, the argument that Malaysia is failed state would not have gathered steam without the debacle associated with the 1MDB funds.

More importantly, the steam was raised with reports that Najib had received RM2.6 billion in his private bank accounts, and his subsequent defence of this money as "donation" for Umno.

In the process, the situation was made worse when there were attempts to cripple the investigation process resulting in the removal of the former attorney-general, the harassment of the MACC officers and the sacking of deputy prime minister Muhyiddin Yassin and minister Shafie Apdal from the cabinet.

While Najib might think that he has surmounted the crises associated with 1MDB funds temporarily, there are heavy costs to the country.

First, Umno, the dominant political party and the party that controls the BN coalition, is  in tatters. Serious cracks have appeared in Umno, indicating that its members are not happy with the crime allegedly committed by Najib.

Second, what is  unforgivable is the fact that the enforcement agencies of the government, particularly the police, are being used and manipulated to save Najib from being prosecuted for corruption.

The police have rendered the MACC, the Attorney-General’s Chambers and possibly Bank Negara Malaysia without any power or muscle to investigate those involved in the 1MDB scandal.

Third, the lack of clear lines of political and administrative authority has caused ripples in the functioning of the economy. The ringgit has dropped to levels unimaginable. Local and foreign investors have lost confidence in the Malaysian economy and word is going around about flight of capital from the country.

Fourth, on the social and cultural sphere, there is lack of national cohesion and inter-racial understanding and unity.

Najib’s government has used whatever at its disposal to stay in power and, as consequence, racial and religious hatred have reared their ugly heads.

It is not that Najib was responsible for creating the social and cultural hatred, but his actions in the last few years have created immense problems for Malaysia. Forget about the national transformation plan and the idea to take the country to new economic heights.

When a PM exhibits no leadership abilities...

When a prime minister exhibits little or no leadership abilities, other than relying on the powers of the enforcement agencies bent on intimidation and fear, then the power of leadership and authority to bring about unity and social well-being that are much desired in a multi-racial country like Malaysia is lost.

Malaysia might not be a failed state yet. But, however, there are features that, if not effectively managed, might push the country in the direction of regime failure sooner or later.

First, there is growing crises of political legitimacy. It appears that Najib has “lost” his mandate to govern the country as result of serious allegations that he is involved in corruption. The fact that corruption money is interpreted as a donation has not gone well with the public.

Second, there are grounds to indicate that Umno members at the various levels are re-thinking about  supporting Najib. They  are not happy with his involvement in the 1MDB scandal, which most describe as corruption of the highest order.

Third, there is gross abuse of administrative power by Najib and his cronies. The police are being blatantly used to intimidate other agencies,  such as the MACC, which are  keen on investigating the sources of the funds that Najib has received.

Fourth, the absence of political and administrative authority has created a situation where confidence in the economy and the financial sector  have been seriously eroded.

Fifth, the vacuum in political and administrative authority has given rise to serious extreme ethnic and religious politicking in the country.

Malaysia might not be failed state yet. But there are indications that if legitimacy is not restored to the political and administrative institutions, we might be heading towards a total paralysis.

A good start will be for the enforcement agencies to be restored the full power and authority to begin a comprehensive investigative process that might even result in the arrest of Najib and those involved in the 1MDB scandal.

Faith has to be restored to our political system.

 

 

P RAMASAMY is Deputy Chief Minister II of Penang and the state assemblyperson for Perai.