This publication was produced by the USAID/OTI Malaysia Program – Malaysia Reform Initiative (MARI) Project under Contract NoAID-OAA- I-14-00010/7200AA19F00003 at the request of the United States Agency for International Development. This document is made possible by the support of the American people through the United States Agency for International Development. Its contents are the sole responsibility of the author or authors and do not necessarily reflect the views of USAID or the U.S. Government. USAID/OTI MALAYSIA PROGRAM – MALAYSIA REFROM INITIATIVE (MARI) Semi-Annual Report (October 1, 2019 – March 31, 2020)
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This publication was produced by the USAID/OTI Malaysia Program – Malaysia Reform Initiative (MARI) Project under Contract NoAID-OAA-I-14-00010/7200AA19F00003 at the request of the United States Agency for International Development. This document is made possible by the support of the American people through the United States Agency for International Development. Its contents are the sole responsibility of the author or authors and do not necessarily reflect the views of USAID or the U.S. Government.
USAID/OTI MALAYSIA PROGRAM – MALAYSIA REFROM INITIATIVE (MARI)
Semi-Annual Report (October 1, 2019 – March 31, 2020)
This publication was produced by the USAID/OTI Malaysia Program – Malaysia Reform Initiative (MARI) Project under Contract NoAID-OAA-I-14-00010/7200AA19F00003 at the request of the United States Agency for International Development. This document is made possible by the support of the American people through the United States Agency for International Development. Its contents are the sole responsibility of the author or authors and do not necessarily reflect the views of USAID or the U.S. Government.
USAID/OTI MALAYSIA PROGRAM – MALAYSIA REFORM INITIATIVE (MARI)
Semi-Annual Report (October 1, 2019 – March 31, 2020)
Program Title: USAID/OTI Malaysia Program
Sponsoring USAID Office: Office of Transition Initiatives
activities are developed and implemented in close collaboration with Malaysian government, civil society,
and USG partners.
From program inception through June 2019, MARI worked toward three initial key program objectives
derived from the RPO:
Support the Government’s implementation of priority reforms;
Facilitate civic engagement in the reform process;
Consolidate post-election gains for free media.
Employing OTI’s programming model of ‘Act, Assess and Adapt’, in July 2019, the MARI team
considered shifts in the political landscape and analyzed program results to date at a three-day Strategy
Review Session (SRS). The MARI team articulated a program goal and revised and condensed its three
previous program objectives into two. With the goal to support Malaysians’ aspirations for a more
democratic society, the team articulated two issue-focused (rather than actor-focused) objectives:
Objective 1: to assist the Malaysian government in enhancing standards of transparency,
accountability, and responsiveness to the public
Objective 2: to empower voices to engage more meaningfully on issues important to the people
To focus efforts, the team actively pursued the following issue areas: parliamentary reform; supporting
amendments to arbitrary detention laws; labor rights; anti-corruption initiatives; and freedom of
expression and preventing government censorship of information.
In November 2019, the program held a Rolling Assessment (RA) to again assess shifts in context and activity progress, producing further-defined sub-objectives as follows:
o Sub-objective 1.1: Increase technical capacity of government reformers to advance
democratic reform
o Sub-objective 1.2: Strengthen coalitions of support to help government reformers
prioritize democratic change
o Sub-objective 2.1: Increase target actors’ capacity to act in expanded political space
o Sub-objective 2.2: Increase potential actors’ motivation to act in expanded political
space
In March 2020, the MARI team convened DAI Home Office and OTI Washington Corners with the field
team to participate in a Strategic Review Session (SRS). The team reviewed first-year activity outcomes,
analyzed achievements to date aligned with sub-objectives and considered prospective partners for
future engagement. At the SRS, the team determined it was in the best interest of the program to forgo
sub-objective 2.2 to focus on capacity building to advance political engagement.
Between the program’s inception in February 2019 and March 2020, MARI has concluded 31 activities,
continues to implement 30, and has 13 in pending status.
unions and associations, academics, and civil society as members of its pro-tem [sic] committee. The
committee was tasked with drafting operational guidelines, a code of ethics, and a framework of the self-
regulatory body with the aim of establishing the Media Council by the end of 2020. In tandem, CSOs and
journalist groups continue to advocate for the repeal of the Printing Presses and Publications Act (PPPA)
1984, in which the Home Minister is given the discretion to impose bans on media.
However, advancements were often overshadowed by the increasing racial and religious polarization,
exacerbated by government missteps and voiced opposition party resistance. For example, in October
2019, then Prime Minister Dr Mahathir Mohamad delivered a speech at the Malay Dignity Congress, jointly
organized by conservative Malay organizations and academic institutions including the Universiti Malaya
(UM). Non-Malays criticized the congress’s strong resonance with Malay supremacy and Malays found
Mahathir’s speech disparaging in its apparent attempt to foster greater unity between different classes of
the Malay community. The non-Malay political party in the PH coalition, Democratic Action Party (DAP),
sustained heavy criticism when a former member issued a comic book supporting China’s Belt and Road
Initiative. The book was distributed to select schools and later banned by the Home Ministry under the
PPPA, claiming it promotes communism and disrupts social harmony.
Following the constitutional change of the voting age from 21 to 18 in July 2019 (despite the fact that they
still cannot register to vote), university students became visibly more vocal in challenging the status quo.2
During a convocation ceremony in UM in October, an engineering graduate student publicly protested
the UM Vice Chancellor’s involvement in the Malay Dignity Congress. In response, the university lodged
a police report against the graduate and barred a fellow student supporter from receiving their graduation
scroll.3 This sparked a debate among the general public and academics on tertiary institution’s authoritative
measures and the Ministry of Education’s role in safeguarding or limiting university students’ participation
in political discourse. Further, in November’s Tun Perak debate tournament for secondary school
students, two university student debate coaches were arrested under the state’s Islamic Religious Affairs
Department for tabling religiously-controversial motions. The probing of delicate religious topics within
higher education, as well as social media regulation, caused widespread uneasiness among both Muslims
and non-Muslims students across university campuses and on social media.4
Despite the availability of alternative legislation, the government continued using controversial laws
including the 2012 Security Offences (Special Measures) Act (SOSMA) to address potential “terrorism.”
In October 2019, twelve individuals, including two leaders from the Chinese-majority political party DAP
and two assemblymen, were arrested over suspected links with the now defunct Liberation Tigers of
Tamil Eelam (LTTE). Civil society demanded authorities reveal criteria used to legitimize the arrests, as
they suspected that they were politically motivated. Requests went unanswered.5 However, the Federal
Court ruled on November 29, 2019 that judges can consider bail applications for those charged with a
terrorism-related offence, noting the judiciary is an independent arm of the government that exists to
2 However, the process could only be implemented once the Electoral Commission has established the automatic registration mechanism
online, which is still in in development. 3 The Star, Oct 15 2019. UM graduate barred from convocation for supporting protest.
https://www.thestar.com.my/news/nation/2019/10/15/um-graduate-barred-from-convocation-for-supporting-protest 4 On February 4, Islamic Affairs Minister in the Prime Minister’s Department, Mujahid Yusof Rawa, urged the Malaysian Communications and
Multimedia Commission (MCMC) to probe social media postings by controversial entrepreneur Nur Sajat, indicating that MCMC has the power to monitor and bar social media content which causes unease among Muslims. https://www.malaysiakini.com/news/509454
5 SUARAM’s executive director was questioned by the Bukit Aman police on December 17 under Section 505 (b) of the Penal Code, referring
to “statements conducing to public mischief” for the forum “The LTTE conundrum and SOSMA as a draconian law” held on November 25.
check any excesses of authority by the executive branch. The Ministry of Home Affairs also announced
that they are interested in reviewing SOSMA by reducing the 28-day detention period to 14 days, followed
by possibility of 14-day extension application to the court.6
The public’s waning approval of PH was reflected in by-election losses in two federal constituencies,
Tanjung Piai and Kimanis districts. The greatest public concern regarding the government’s trajectory was
the coalition’s ambiguous plan for Prime Ministerial succession. Although the stakes at the time were
between Parti Keadilan Rakyat (PKR) Chief Anwar Ibrahim and Minister of Economic Affairs Azmin Ali,
no successor was explicitly named, and the coalition was offered the verbal assurance that Mahathir would
step down “sometime” after the Asia-Pacific Economic Co-operation (APEC) Summit in November 2020.
Maszlee Malik’s sudden resignation from the position of the Education Minister as advised by Mahathir on
January 3, 2020 however, raised speculation of a looming Cabinet reshuffle. Throughout his term,
Maszlee’s policies, statements and actions were often clouded by criticisms of the Minister, condoning
mainstream racial sentiments from the public and from his own coalition. Mahathir took on the role of
acting Education Minister and made a unilateral decision to reinstate the policy of teaching Mathematics
and Science in English (PPSMI) without consulting the Cabinet.
Mahathir’s use of his executive power ignited criticism from his own party, signifying further entrenchment
of PH’s internal struggles.7 On February 20, news outlet Malaysiakini reported two ongoing initiatives to
secure sworn statements from PKR’s Members of Parliament (MPs), with one supporting Mahathir to
serve full term as a PM, and another reaffirming PH’s agreement on transitioning of power from Mahathir
to Anwar, illustrating inconsistency across the coalition.8
THE NEW GOVERNMENT AND THE GLOBAL PANDEMIC
On February 23, 131 cross-party MPs, including key players from the PH coalition, the political party Parti
Pribumi Bersatu (BERSATU), Azmin Ali and several representatives from PKR, as well as opposition parties
including Barisan Nasional (BN) and Malaysian Islamic Party (PAS) attended a dinner at Sheraton Petaling
Jaya. Dubbed the “Sheraton Move,” the gathering raised the suspicion of toppling PH by creating a new
alliance. Mahathir, who did not attend the Sheraton meeting, resigned from his position as PM the next
day. Soon after, Bersatu also renounced PH affiliation, causing the ruling coalition to lose its majority in
Parliament.
Mahathir, who was soon appointed interim PM by the King, alluded to the formation of a unity government
with himself at the helm. The BN opposition coalition, on the other hand, suggested holding snap elections.
The media was swamped with reports of MPs and party leaders crossing alliances, swinging between
support to Mahathir or Anwar as the next prime minister – or jumping to the opposition. PKR, or what
was left of it, announced that they fully supported Anwar Ibrahim as the next PM.
However, the nation was taken by surprise when the King selected Muhyiddin Yassin, president of
BERSATU, as the 8th PM. On March 1, 2020, Muhyiddin was sworn in to lead a new coalition Perikatan
6 At the time, Muhyiddin Yassin was the Minister of Home Affairs. He had affirmed that Pakatan Harapan’s manifesto on SOSMA is to amend,
not abolish it. https://www.nst.com.my/news/nation/2019/11/536928/amended-sosma-will-be-more-effective-ensuring-security 7 PKR leaders had also accused Mahathir, the BERSATU leader, for picking his Cabinet without full consent from the coalition
https://www.malaymail.com/news/malaysia/2020/02/02/pakatan-leaders-were-not-consulted-about-ppsmi-suggests-dap-man/1833729 8 This was gathered from individual interviews with PKR MPs. https://www.malaysiakini.com/news/511580
Nasional (PN), consisting of BERSATU, Azmin Ali and his 10 supporters, BN coalition, and PAS, supported
by Gabungan Parti Sarawak (GPS), Gabungan Bersatu Sabah (GBS) and independent MPs. The newly-
appointed Cabinet introduced several new positions and added five additional ministers in the Prime
Minister’s Department, featuring some of the old guard personalities from the BN administration. To
stabilize the PN coalition, the PM took the unconventional approach of removing the Deputy PM position
and, in its place, established four senior ministers to take up major portfolios – International Trade and
Industry, Defense, Works, and Education. Notably, two non-politician technocrats were appointed to
coveted positions; former CIMB Group chief executive as finance minister and Federal Territories mufti
(religious leader) as the minister in charge of religious affairs. Muhyiddin’s Cabinet marks the first time
that the Islamist Party PAS holds a Cabinet position in the Federal government. The civil service continued
serving as usual even during the change of the executive.
The formation of what some parts of civil society have detrimentally termed a ‘backdoor government’
received mixed reactions from the public. While progressives, civil society organizations and activists
criticized the move as highly nondemocratic, the Malay majority defended it for upholding the royalty’s
supremacy and for following the Federal Constitution.9 Civil society also voiced reservations in working
with the new government, suspecting that doing so would legitimize the nondemocratic move and that
the PN coalition will return to BN’s limiting reforms. This was evident when some activists were called
for questioning under the Sedition Act and the Communications and Multimedia Act for propagating online
and offline protests in early March 2020. Several officers and chiefs, including Attorney-General Tommy
Thomas and MACC chief Latheefa Koya, resigned from their politically-appointed positions. The new
government also announced delaying the first parliament sitting, initially planned for March 9, to May 18,
2020.
Simultaneously, the COVID-19 outbreak impacted communities across Malaysia. In February, under the
helm of PH’s Dr Dzulkefly Ahmad, the Ministry of Health attempted to contain the first wave of cases
while debunking disinformation on social media.10 The situation was still under control with only 23 cases
reported at the time. The second wave of infections began on February 27 via two large outbreak clusters,
one of which was the dubbed the “tabligh cluster” which began at a religious event attended by 16,000 in
Kuala Lumpur. The outbreak has been a critical test for the PN government to form a cohesive plan,
especially when it announced the MCO, a partial lockdown in which the public is ordered to practice self-
quarantine and only essential services operate. 11 Although the National Security Council (NSC) is the
designated secretariat of the MCO, it initially struggled to establish proper communication channels. News
reports offered conflicting directives which led to situations where large crowds gathered at borders and
police stations to obtain interstate travel permission. Relevant ministries also struggled to play their roles
effectively; the Ministry of Women, Family, and Community Development courted backlash from
Malaysians and found international ridicule when it released controversial statements on women’s role at
home in the lockdown. The Health Minister, Adham Baba, who is a medical doctor, was asked to take a
back seat when he promoted false information on how to minimize the threat of COVID-19 virus. All
9 The King was required to make a judgment call to appoint an MP who is likely to command the confidence of the majority of MPs as required
under Article 43 (2)(a) of the Federal Constitution. 10
A journalist was charged under Section 505(b) of the Penal Code on February 5 for three statements on her personal Facebook account for causing disruption of public peace, which critics say were disproportionate.
11 Essential services, as of the Federal Government Gazette dated March 18, include supermarkets and stores selling essential goods, banking
and finance, port, dock and airport services, e-commerce and postal services, petrol stations, telecommunications, public transport, prisons
health updates are now steered by the Director General of Health. The number of total cases reported
as of March 31 is 2,766, with 537 recovered cases and 43 deaths.
To address economic uncertainty, the PM unveiled a RM250 billion economic stimulus package for
COVID-19 relief on March 27, which provided support for workers in the lower-income groups and those
employed in industries including small and medium enterprises (SMEs). The stimulus package, however,
was critiqued for not sufficiently addressing the needs of small and medium enterprises.12 Senior Defense
Minister Ismail Sabri Yaakob also announced that the army will assist the police to enforce the order, with
certain locations receiving enhanced measures to contain a high number of cases. As of March 31, there
has been 3,627 arrests, with more than 1,200 charged for failure to abide by the MCO.13
With a new government in place, immediately faced with a combined health and economic crisis, the
reform agenda remains to be seen.
12
Many were perplexed over the one-off payment to civil servants who are grade 56 and below (earning close to RM9,000 per month) while businesses are not getting any assistance from the stimulus. https://www.thestar.com.my/business/business-news/2020/03/30/smes-vent-out-on-stimulus
13 All arrests were taken under Section 7(1) of the Prevention and Control of Infection Diseases (Measures within Infected Local Areas)
Regulations 2020. The offender could be charged RM1000 or jail term up to six months. http://www.federalgazette.agc.gov.my/outputp/pua_20200318_PUA91_2020.pdf
OBJECTIVE 1: TO ASSIST THE MALAYSIAN GOVERNMENT IN ENHANCING STANDARDS OF TRANSPARENCY, ACCOUNTABILITY, AND RESPONSIVENESS TO THE PUBLIC
SUB-OBJECTIVE 1.1: INCREASE TECHNICAL CAPACITY OF GOVERNMENT REFORMERS TO ADVANCE DEMOCRATIC REFORM
PROVIDING TECHNICAL SUPPORT TO GOVERNMENT INSTITUTIONS The Malaysian Parliament’s establishment of six Parliamentary Select Committees (PSCs) in November
2018, under the leadership of the honorable Speaker Tan Sri Mohamad Arif Md Yusof, was a marked
step in parliament’s efforts to provide detailed governance and oversight of public policy. Their role was
specified to provide clause-by-clause scrutiny of bills before adoption and oversight of public activities
and expenditures. In their infancy, however, the PSCs lacked a legal mandate, resourcing, staffing and
procedures to conduct business. These gaps were identified by a Senior Parliamentary Advisor an early
STTA in the program who reported directly to the Speaker. In the absence of standard operating
procedures (SOPs) to review bills, PSCs rely on relevant existing provisions in the Standing Orders of
the Malaysian Parliament. In consultation with the Speaker and other international parliamentary reform
best practices, MARI undertook the development of SOPs through a targeted STTA activity to identify
and outline procedures in expectation of the upcoming contentious IPCMC bill, the first piece of
legislation to be tasked to the Consideration of Bills Committee in October 2019.
Building on the previous work with the Parliament of Malaysia in July 2019, MARI again deployed the
Senior Parliamentary Advisor to engage with committee members in advance of, and to observe
hearings of, the IPCMC Bill by the Considerations of Bills Committee held in Kuala Lumpur (for the
Central region) and Kuala Terengganu (for the East Coast region). The STTA observed and reported
that the hearing sessions provided ample opportunity for stakeholders and citizens to discuss the bill
substantively. The STTA also noted that although the hearings were well-organized, SOPs would be
needed to ensure a robust and replicable process for future legislative reviews. From his research and
interviews with committee members, he provided a “menu” of 42 SOPs for the Speaker, who
subsequently requested all to be drafted in detail. Two STTAs (one international and one Malaysian)
drafted and submitted these to the Speaker in April 2020 for further consideration and adoption.
Similarly, MARI provided technical assistance to other institutions, with the intention of supporting
reformers within their institutions to increase accountability and responsiveness to public demand and
adherence to international governance standards. During this reporting period, MARI facilitated
technical assistance to the National Centre for Governance, Integrity and Anti-Corruption (GIACC),
established in 2018 under the Prime Minister’s Department, on institutional reforms for functional
political financing oversight and monitoring, and provided an independent researcher on a proposed
Ombudsman’s service, the first of its kind in Malaysia. MARI similarly provided social media regulatory
advisors to the Ministry of Communications and Multimedia (MCM), who conducted comparative
research to support the Ministry’s exploration on regulating hate speech and disinformation.