When Tan Sri Michelle Yeoh – to use her Malaysian title – became the first Asian to win the Best Actress Oscar on Sunday night, no one was prouder than her mother, Janet. Watching the ceremony live at a viewing party in Kuala Lumpur, she said: “She's a very hardworking girl and I love her very much. Malaysia boleh!” The last words, which loosely translate as “Malaysia can do it!”, are a slogan from the 1990s that were used whenever the country achieved another breakthrough – building the tallest twin towers in the world, getting the first Malaysian astronaut into space and so on.
Just days before, another milestone was marked when the other TSMY – as both are known on social media – Tan Sri Muhyiddin Yassin, became only the second former prime minister in the country’s history to be charged in court. If found guilty of abuse of power and money-laundering during his 17 months in office (2020-21), he faces up to 20 years in jail. This raises a number of issues, but prime among them is just how important the independence of the judiciary is, and if certainty about that independence disappears, how difficult it is to win it back.
Mr Muhyiddin proclaims his innocence and said the accusations were “organised political persecution”. Prime Minister Anwar Ibrahim and his colleagues reject this, saying they have nothing to do with the investigation and the charges, which are under the purview of the Malaysian Anti-Corruption Commission (MACC) and the Attorney General’s Chambers (AGC). “MACC and the AGC have stated that they have conducted this move independently and without any instruction, based on the facts that they have,” Communications Minister Fahmi Fadzil said. It is worth noting that the head of the MACC and the Attorney General were both appointed by Mr Muhyiddin when he was in office, so if anything they might be presumed to be well disposed towards him.
Either way, it will be for the courts to decide. The problem there is that ever since the judicial crisis of 1988, when the Lord President of the Supreme Court was dismissed because then prime minister Dr Mahathir Mohamad wanted to make the judiciary subject to the executive (ie, him), there have been question marks over their independence. In 2008, Dr Mahathir’s successor, Abdullah Badawi, said: “I feel it was a time of crisis from which the nation never fully recovered.”
There are certainly many fine jurists in Malaysia, but it is widely believed that there are some who are malleable. Mr Anwar made that very accusation when he was jailed in 2015, telling the judges who heard his case (for which he was later pardoned): “You have become partners in crime in the murder of judicial independence.” So where are the courts today? Nobody can be 100 per cent certain. The high regard in which the country’s judiciary was held prior to 1988 has been hard to regain.
Of course, the principle that no one should be above the law is a good one. But if it appears that one of the surest ways to end up behind bars is to have been a country’s leader, that isn’t necessarily healthy either. “Half of all living former South Korean presidents are now in prison,” began a 2018 report by the American Enterprise Institute. Referring to former leaders Lee Myung-bak and Park Geun-hye, it continued: “Lee and Park’s lengthy prison sentences may seem striking for an established democracy. But the reality is these sentences are not anomalies; rather, they reveal how tenuous South Korea’s hold on democracy really is.” The report concluded that there was a worrying trend combining “enthusiasm for the ‘lock him up’ school of politics and clear apathy toward democratic institutions”.
There are certainly many fine jurists in Malaysia, but it is widely believed that there are some who are malleable
Alleged interference in the judiciary is the root of the EU’s dispute with Poland’s Law and Justice party government. Critics say the country’s Constitutional Court has been packed with loyalists, and judges have been wrongly disciplined based on their rulings. The European Commission has been holding up €35.4 billion ($38bn) in recovery grants and loans until reforms are made.
Lastly, there can be little doubt that one of the issues that has contributed to the breakdown of civility and norms in American political discourse has been the over-politicisation of the judiciary. Judges have records and particular views on the constitution: it is inevitable that that history will lead them in the particular American context to be regarded as generally “liberal” or “conservative”. But the refusal by Republicans to confirm the respected moderate Merrick Garland to the Supreme Court in Barack Obama’s last year as president, and the intensely partisan nature of Donald Trump’s appointments to all courts, have led to a drastic drop in faith in the Supreme Court’s impartiality. In one poll last year, only 25 per cent said they had confidence in it.
That is devastating, considering that of the three branches of government – the executive, legislature and judiciary – it is the last in which the public ought to have the greatest trust.
There is another way. A Malaysian man I used to work with – let’s call him “M” – was one of the country’s top civil servants, and then ran a government-linked organisation dedicated to dispassionate policy analysis and development. I sat in probably hundreds of meetings with him, in which he would outline the official positions, and then look at the possible ramifications, positive and negative, and ways forward.
He knew former prime minister Najib Razak (2009-18) well, and met him regularly. He had also worked with Dr Mahathir during his first stint as prime minister, from 1981-2003. I have often wondered how “M” voted in the 2018 general election in which the two sought to vanquish the other. But so scrupulous was “M”, a man of evident principle and integrity, in never, ever, making a party political point; so perfectly did he fit the civil service ideal of serving the “government of the day”, of whatever stripe; that till this day I have no idea for whom he cast his ballot in the most important election of his lifetime.
That is exactly how it should be. He would make a good judge. Your honours, your worships, justices and judges: take note. That is how you build confidence in the judiciary.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Gulf rugby
Who’s won what so far in 2018/19
Western Clubs Champions League: Bahrain
Dubai Rugby Sevens: Dubai Hurricanes
West Asia Premiership: Bahrain
What’s left
UAE Conference
March 22, play-offs:
Dubai Hurricanes II v Al Ain Amblers, Jebel Ali Dragons II v Dubai Tigers
March 29, final
UAE Premiership
March 22, play-offs:
Dubai Exiles v Jebel Ali Dragons, Abu Dhabi Harlequins v Dubai Hurricanes
March 29, final
MAIN CARD
Bantamweight 56.4kg
Abrorbek Madiminbekov v Mehdi El Jamari
Super heavyweight 94 kg
Adnan Mohammad v Mohammed Ajaraam
Lightweight 60kg
Zakaria Eljamari v Faridoon Alik Zai
Light heavyweight 81.4kg
Mahmood Amin v Taha Marrouni
Light welterweight 64.5kg
Siyovush Gulmamadov v Nouredine Samir
Light heavyweight 81.4kg
Ilyass Habibali v Haroun Baka
MATCH INFO
Champions League quarter-final, first leg
Ajax v Juventus, Wednesday, 11pm (UAE)
Match on BeIN Sports
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
More from Aya Iskandarani
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Killing of Qassem Suleimani
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