Politics in Malaysia has always been noisily adversarial, as was shown when the country’s parliament met for the first time this year on Monday, after a state of emergency was declared in January. MPs talked over each other, the speaker of the lower house received a verbal battering from the opposition, and some observers described the session as ending in chaos when the government refused to allow a full debate on its Covid-19 recovery plan.
While politicians rarely agree on anything, one thing that did unite them earlier this month was a Bloomberg opinion piece. Titled “Malaysia is staggering down the road to failed statehood”, the outrage at the slur on national dignity was felt across the spectrum. It wasn’t just the government fighting back, led by Finance Minister Tengku Zafrul Aziz, who wrote a rebuttal that was widely published, including in The Straits Times in neighbouring Singapore.
The sting was perceived by government critics as well, including one analyst who, referring to Bloomberg’s American origins and headquarters, messaged me her irritation: “Did anybody in the West come to the failed state conclusion when the US was in the throes of the pandemic?”
Tengku Zafrul pointed to the signs of Malaysia’s good standing. In June, the ratings agencies Moody’s and Standard and Poor’s had retained Malaysia’s ratings as A3 and A- respectively. “Such ratings are not typical of a ‘failed state’,” he wrote. The vaccination programme has been revved up (close to half a million people per day are getting the jab now) with the country doing “five to 10 times more testing than our neighbours”, he said, going on to praise the “outstanding” volunteers who have been helping out at medical centres.
In the US-based Index of Fragile States, Malaysia is listed in the one-third of least fragile – or most stable – countries. Tengku Zafrul was justified in countering that the Bloomberg writer had ignored Malaysia’s “strong medium-term growth prospects, resilient capital markets, deep liquidity and capital buffers of the financial sector and other traits of our well-diversified economy that has weathered past crises and remains poised to do so with this current one".
It is perfectly true that the country has been very badly hit by the pandemic, but Tengku Zafrul was also right to say that “impacted businesses, struggling households and a government working under imperfect political conditions” made up a scenario hardly unique to Malaysia.
Another of the many who reacted to the insult was Dr Hazmi Rusli of Universiti Sains Islam Malaysia. He pointed out that it has been reported that “about 700,000 UK citizens were driven into poverty due to the pandemic” in 2020. “Based on this data, is it fair to conclude that the UK is a failed state?”
Others managed to find some humour in the brouhaha. Referencing a veteran opposition leader who has been making doomsday predictions about Malaysia – including that it was becoming a "failed state" – for as long as anyone can remember, one online commenter wrote: “Oh please tell me Lim Kit Siang is the owner of Bloomberg now.”
What prompted this strange – and offensive – judgement on the country’s health appears to have been that Malaysians who are in dire need of food and money have taken to waving white flags outside their homes. This, the writer thought, was “a shorthand for discontent at the atrophying state and troubled economy”.
It is tragic that many Malaysians have lost jobs and income through the pandemic. It is also the case that the government’s response has been mixed. But few developing countries have the wherewithal or capacity to provide for absolutely everyone in the face of such an unexpected catastrophe. The truly uplifting side to all this is the way that so many Malaysians have been coming forward to help.
Civil society figures such as Dr Hartini Zainudin, the country’s leading child activist, have leveraged their contacts so that those who can afford to send money can buy meals for families who are going hungry. A major web portal, Free Malaysia Today, has a tab for “the White Flag campaign”, which lists individuals and organisations around the country who are providing assistance.
In my own neighbourhood in Kuala Lumpur, many cafes have signs indicating times of the day when they will give out free food. Ordinary people are buying sacks of rice, bottles of oil and other essentials that those in hardship can collect from petrol stations. This is a Malaysia to be proud of and a society that is showing resilience and a sense of community in exceedingly trying times.
After the despair of lockdown, a glimmer of hope is now on the horizon
This all seemed to escape Bloomberg’s columnist, who also bizarrely characterised key infrastructure projects of the last century, such as Kuala Lumpur International Airport and the Petronas Twin Towers, as “boondoggles” that “suggested waste”. Being married to a Malaysian, I may be biased, but the sparkling and spacious international airport is far superior to Singapore’s Changi in my opinion, while the population takes deserved pride in how the stunning Twin Towers have become world-renowned.
The reality is that while many structural weaknesses have been near impossible to address politically for decades, Malaysia has and continues to do well. Like many governments around the world, the current administration has bungled some aspects of the pandemic and performed quite well in others. If Prime Minister Muhyiddin Yassin’s target of immunising the whole population by October is reached, that will be a real achievement.
Opposition politicians have been invited to join the government’s new National Recovery Council, which also includes corporate titans such as AirAsia Group chief executive Tony Fernandes and independent figures whose voices will not be silenced, such as Dr Hartini. After the desolations and despair of lockdown, endured particularly harshly by lower socio-economic groups, a glimmer of hope is now on the horizon.
That cautious optimism is justified above all by the actions of a citizenry that has displayed solidarity and compassion under the severest of strains. Malaysia a failed state? Not if its magnificent people have anything to do with it.
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.”
Results
4.30pm Jebel Jais – Maiden (PA) Dh60,000 (Turf) 1,000m; Winner: MM Al Balqaa, Bernardo Pinheiro (jockey), Qaiss Aboud (trainer)
5pm: Jabel Faya – Maiden (PA) Dh60,000 (T) 1,000m; Winner: AF Rasam, Tadhg O’Shea, Ernst Oertel
5.30pm: Al Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 2,200m; Winner: AF Mukhrej, Tadhg O’Shea, Ernst Oertel
6pm: The President’s Cup Prep – Conditions (PA) Dh100,000 (T) 2,200m; Winner: Mujeeb, Richard Mullen, Salem Al Ketbi
6.30pm: Abu Dhabi Equestrian Club – Prestige (PA) Dh125,000 (T) 1,600m; Winner: Jawal Al Reef, Antonio Fresu, Abubakar Daud
7pm: Al Ruwais – Group 3 (PA) Dh300,000 (T) 1,200m; Winner: Ashton Tourettes, Pat Dobbs, Ibrahim Aseel
7.30pm: Jebel Hafeet – Maiden (TB) Dh80,000 (T) 1,400m; Winner: Nibraas, Richard Mullen, Nicholas Bachalard
SPECS
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Awar Qalb
Director: Jamal Salem
Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman
Two stars
Best Foreign Language Film nominees
Capernaum (Lebanon)
Cold War (Poland)
Never Look Away (Germany)
Roma (Mexico)
Shoplifters (Japan)
Mohammed bin Zayed Majlis
The biog
Mission to Seafarers is one of the largest port-based welfare operators in the world.
It provided services to around 200 ports across 50 countries.
They also provide port chaplains to help them deliver professional welfare services.
ILT20%20UAE%20stars
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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
The specs
Engine: 6.2-litre V8
Power: 502hp at 7,600rpm
Torque: 637Nm at 5,150rpm
Transmission: 8-speed dual-clutch auto
Price: from Dh317,671
On sale: now
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
PAKISTAN SQUAD
Pakistan - Sarfraz Ahmed (captain), Azhar Ali, Fakhar Zaman, Imam-ul-Haq, Babar Azam, Shoaib Malik, Mohammad Hafeez, Haris Sohail, Faheem Ashraf, Shadab Khan, Mohammad Nawaz, Mohammad Amir, Hasan Ali, Aamer Yamin, Rumman Raees.
Results
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Breast cancer in men: the facts
1) Breast cancer is men is rare but can develop rapidly. It usually occurs in those over the ages of 60, but can occasionally affect younger men.
2) Symptoms can include a lump, discharge, swollen glands or a rash.
3) People with a history of cancer in the family can be more susceptible.
4) Treatments include surgery and chemotherapy but early diagnosis is the key.
5) Anyone concerned is urged to contact their doctor
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
In Full Flight: A Story of Africa and Atonement
John Heminway, Knopff
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
Gully Boy
Director: Zoya Akhtar
Producer: Excel Entertainment & Tiger Baby
Cast: Ranveer Singh, Alia Bhatt, Kalki Koechlin, Siddhant Chaturvedi
Rating: 4/5 stars
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EDate%20started%3A%3C%2Fstrong%3E%202020%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Khaldoon%20Bushnaq%20and%20Tariq%20Seksek%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%20Global%20Market%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20HealthTech%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%20100%3Cbr%3E%3Cstrong%3EFunding%20to%20date%3A%3C%2Fstrong%3E%20%2415%20million%3C%2Fp%3E%0A