Riot police walk to block demonstrators gathering during a protest in Almaty, Kazakhstan, on January 5. Demonstrators denouncing the doubling of prices for liquefied gas have clashed with police and held protests in about a dozen cities in the country. AP
Riot police walk to block demonstrators gathering during a protest in Almaty, Kazakhstan, on January 5. Demonstrators denouncing the doubling of prices for liquefied gas have clashed with police and held protests in about a dozen cities in the country. AP
Riot police walk to block demonstrators gathering during a protest in Almaty, Kazakhstan, on January 5. Demonstrators denouncing the doubling of prices for liquefied gas have clashed with police and held protests in about a dozen cities in the country. AP
Riot police walk to block demonstrators gathering during a protest in Almaty, Kazakhstan, on January 5. Demonstrators denouncing the doubling of prices for liquefied gas have clashed with police and h


Kazakhstan differs from Singapore and Malaysia in crucial ways


  • English
  • Arabic

January 11, 2022

The recent violent unrest in Kazakhstan, during which 164 people were killed and thousands have been detained, has brought unwelcome attention to a country that may be the size of western Europe but which normally attracts few headlines. President Kassym-Jomart Tokayev’s command for security forces to “shoot to kill without warning” and the appearance of soldiers from the Russian-led Collective Security Treaty Organisation that he requested to restore order have led some people to assume this is familiar: another instance of an authoritarian leader of a former Soviet republic struggling to deal with popular opposition to his rule.

The reality may be very different and much more complicated. There may quite possibly have been “an attempted coup d’etat” as Mr Tokayev, who some believe to be a real reformist, put it on Monday. Either way, any genuine popular discontent may also be aimed far more at Mr Tokayev’s predecessor, Nursultan Nazarbayev, the “First President”, as Kazakhstani state-aligned media call him, who led the country from 1990-2019 and who for good or ill is most responsible for the state it is in today.

Kazakhstan's President Kassym-Jomart Tokayev, right, and Former Kazakh President Nursultan Nazarbayev in Nur-Sultan, the capital city of Kazakhstan, on June 7, 2019. AP
Kazakhstan's President Kassym-Jomart Tokayev, right, and Former Kazakh President Nursultan Nazarbayev in Nur-Sultan, the capital city of Kazakhstan, on June 7, 2019. AP

Mr Nazarbayev made much over the years of how he was following the model of Singapore and Malaysia – multiracial countries that nevertheless built stable democracies, stressing order and harmony and making huge economic progress. Mr Nazarbayev first asked Singapore’s founding father Lee Kuan Yew and long-time prime minister for advice in 1993, and in his 2007 book, The Kazakhstan Way, he wrote that Mr Lee was one of his two role models.

Ahead of the 30th anniversary of Kazakhstan’s independence on 16 December last year, Astana Times published a lengthy essay praising Mr Nazarbayev’s nation-building and the dominant role of his Nur Otan party. It said that politicians had been willing “to unite for the sake of further progressive transformations of the country laid out on the contours of a multiparty model with a dominant political force based on the experience of the so-called Asian Tiger states, such as Singapore… Malaysia, etc.”

But there are very big differences between the courses broadly followed in Singapore and Malaysia and that advanced by Mr Nazarbayev.

Kazakh policemen retreat during rally over a hike in energy prices in Almaty, Kazakhstan, January 5. EPA
Kazakh policemen retreat during rally over a hike in energy prices in Almaty, Kazakhstan, January 5. EPA

First of all, while Singapore and Malaysia were dominated by strong leaders in Mr Lee and Dr Mahathir Mohamad for decades, neither man encouraged the kind of cult of personality that is synonymous with Mr Nazarbayev. When first prime minister (1981-2003) Dr Mahathir refused to allow any buildings to be named after him, while Mr Lee stated that he wanted his house to be demolished after his death as he did not want it to become a shrine to his memory (the fact that it still stands has led to a family feud).

In Kazakhstan, however, December 1st is a national holiday in honour of the “First President”. Mr Nazarbayev’s life has been celebrated in film, theatre, music, art and most famously, statues; while the capital he built, Astana, was renamed Nur-Sultan after him just three days after he stepped down from office, and he still officially remains “Elbasy” or leader of the nation.

Secondly, leaders in Singapore and Malaysia are accountable and have to win fiercely fought elections. In both countries leading ministers have lost their seats, and in 2018 Malaysia’s “dominant political force”, the Barisan Nasional, found itself out of government. Singapore’s ruling PAP has never lost at the polls, but when it secured “only” 60 per cent in the 2011 general election it led to very searching questions and an urgent realisation that the party needed to connect more closely with the electorate.

A woman places flowers at the entrance of the Kazakh embassy in Moscow, for the 164 people killed during the riots in Kazakhstan, in Russia, January 10. EPA
A woman places flowers at the entrance of the Kazakh embassy in Moscow, for the 164 people killed during the riots in Kazakhstan, in Russia, January 10. EPA

Mr Nazarbayev won his last presidential election in 2015, on the other hand, with 98 per cent of the vote. Far from all of his record is bad, and he may have enjoyed significant support, but let’s just say that 98 per cent is a surprisingly high figure.

Thirdly, Singapore and Malaysia have both prepared cadres of capable and experienced younger leaders; successions have been planned (exhaustively, in the case of Singapore); and transitions have been smooth. Recent events have shown this is not the case in Kazakhstan, not least as Mr Nazarbayev stayed on as chairman of his Nur Otan party until last November and as chairman of the powerful national Security Council until he was removed by Mr Tokayev on January 5th.

To be fair to Mr Nazarbayev, there were many achievements under his rule. In a 2019 report the London think tank Chatham House labelled Kazakhstan “an upper middle income” state, “one of the most successful economies in the region and… among the best-performing of the post-Soviet resource exporters.”

He did institute significant economic reforms, it continued, but added that “political reforms conspicuously lagged during his presidency – with Mr Nazarbayev choosing not to establish an independent judiciary, a parliament with meaningful oversight powers, or even a constitution that is respected by the authorities themselves.” This is not even to mention the allegations of civil liberties and the documented killing of demonstrators by state police in what became known as the Zhanaozen massacre in 2011.

By contrast the freedoms, the protections under the law, and the ability to raise – if not always effectively redress – perceived wrongs enjoyed by Malaysians and Singaporeans are immense.

The problem is not that the “First President” followed the models of Singapore and Malaysia. It is that he did not follow them properly

Neither Singapore nor Malaysia are western-style liberal democracies (I mean no criticism by that), and the idea has often been raised that their populations were willing to live under a less freewheeling political climate than in the west in exchange for the state ensuring rapid economic growth that benefitted all. If so, to a great extent their governments have delivered.

Singapore has some of the best social provision and one of the highest gross domestic product per capita in the world. Inequality is still high in Malaysia, but there have been countless programmes, from the land development provided to rural workers in the '60s and '70s to the 1Malaysia clinics established in 2010 which provided services for RM1, that have demonstrated that governments have been trying to reach out to all citizens.

In Kazakhstan, however, this “bargain” has not been kept. The wealth gap as grown, with some elites becoming among the super-wealthy, while the reality for many, as University of Toronto professor Edward Schatz recently put it, has been that “the gap between the promise of becoming middle class and the reality of living with barely enough became harder to bear over the past decade.”

Mr Tokayev may be harvesting the discontent sowed by the failure of the seeds planted by his predecessor, Mr Nazarbayev. But the problem is not that the “First President” followed the models of Singapore and Malaysia. It is that he did not follow them properly across the board. If his hero Lee Kuan Yew was still alive, he would tell him so in typically robust language.

Student Of The Year 2

Director: Punit Malhotra

Stars: Tiger Shroff, Tara Sutaria, Ananya Pandey, Aditya Seal 

1.5 stars

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Cape Town Sevens on Saturday and Sunday: Pools A – South Africa, Kenya, France, Russia; B – New Zealand, Australia, Spain, United States; C – England, Scotland, Argentina, Uganda; D – Fiji, Samoa, Canada, Wales

HSBC World Sevens Series standing after first leg in Dubai 1 South Africa; 2 New Zealand; 3 England; 4 Fiji; 5 Australia; 6 Samoa; 7 Kenya; 8 Scotland; 9 France; 10 Spain; 11 Argentina; 12 Canada; 13 Wales; 14 Uganda; 15 United States; 16 Russia

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A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank

RuPay process payments between banks and merchants for purchases made with credit or debit cards

It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.

In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments

The name blends two words rupee and payment

Some advantages of the network include lower processing fees and transaction costs

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9,000 tonnes: The amount of steel used to construct the project.

5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place

192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.

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Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

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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

T20 World Cup Qualifier

October 18 – November 2

Opening fixtures

Friday, October 18

ICC Academy: 10am, Scotland v Singapore, 2.10pm, Netherlands v Kenya

Zayed Cricket Stadium: 2.10pm, Hong Kong v Ireland, 7.30pm, Oman v UAE

UAE squad

Ahmed Raza (captain), Rohan Mustafa, Ashfaq Ahmed, Rameez Shahzad, Darius D’Silva, Mohammed Usman, Mohammed Boota, Zawar Farid, Ghulam Shabber, Junaid Siddique, Sultan Ahmed, Imran Haider, Waheed Ahmed, Chirag Suri, Zahoor Khan

Players out: Mohammed Naveed, Shaiman Anwar, Qadeer Ahmed

Players in: Junaid Siddique, Darius D’Silva, Waheed Ahmed

Torbal Rayeh Wa Jayeh
Starring: Ali El Ghoureir, Khalil El Roumeithy, Mostafa Abo Seria
Stars: 3

Brief scoreline:

Wales 1

James 5'

Slovakia 0

Man of the Match: Dan James (Wales)

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The more you save, the sooner you can retire. Tuan Phan, a board member of SimplyFI.com, says if you save just 5 per cent of your salary, you can expect to work for another 66 years before you are able to retire without too large a drop in income.

In other words, you will not save enough to retire comfortably. If you save 15 per cent, you can forward to another 43 working years. Up that to 40 per cent of your income, and your remaining working life drops to just 22 years. (see table)

Obviously, this is only a rough guide. How much you save will depend on variables, not least your salary and how much you already have in your pension pot. But it shows what you need to do to achieve financial independence.

 

COMPANY PROFILE

Name: Rain Management

Year started: 2017

Based: Bahrain

Employees: 100-120

Amount raised: $2.5m from BitMex Ventures and Blockwater. Another $6m raised from MEVP, Coinbase, Vision Ventures, CMT, Jimco and DIFC Fintech Fund

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

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Scores

Oman 109-3 in 18.4 overs (Aqib Ilyas 45 not out, Aamir Kaleem 27) beat UAE 108-9 in 20 overs (Usman 27, Mustafa 24, Fayyaz 3-16, Bilal 3-23)

Updated: January 11, 2022, 3:10 PM