Malaysia's new Prime Minister Mahathir Mohamad, center, speaks to staffs from Prime Minister office during his first monthly assembly as prime minister in Putrajaya, Malaysia on Monday, May 21, 2018. Mahathir has unveiled a mix of senior politicians, lawyers and a lecturer in his new Cabinet after a stunning electoral victory last week. (AP Photo/Vincent Thian)
Malaysia's new Prime Minister Dr Mahathir Mohamad speaks to staff from Prime Minister office during his first monthly assembly as prime minister in Putrajaya. Vincent Thian / AP

In the transition of power in Malaysia, Mahathir's party must eschew vengeance



It has been another tumultuous week in Malaysian politics. On Wednesday, Anwar Ibrahim walked free from prison, having been granted a full royal pardon at the urging of new Prime Minister, Dr Mahathir Mohamad – who is also the man under whom Anwar, his deputy back in the 1990s, had been originally jailed.

Then late that same evening, police began raids on the main residence and other houses connected to Najib Tun Razak. Until just a week before, Mr Najib had been Malaysia’s leader. Now pictures are circulating of him dozing on a sofa because the search – said to be connected to suspected money-laundering – went on almost until morning.

Many are jubilant at Anwar's release while others have been transfixed by the details of the ongoing raids on the homes of Mr Najib, his children and a close associate, which produced lorryloads of handbag boxes, huge amounts of cash (which Mr Najib said was not his but donations for the election), and a safe which hadn't been unlocked for 20 years as the key had been lost, and which took most of a day to drill open.

The initial 13 members of Dr Mahathir's new cabinet were also announced, heralding the first Malaysian Chinese finance minister – Lim Guan Eng – in 44 years. It also produced a brief stir after the Pakatan Harapan (PH) administration realised that Dr Mahathir couldn't be education minister as well as prime minister. Their manifesto had specifically pledged that the PM would not take any other portfolio but everyone had forgotten (they thought it merely banned him from also being finance minister).

The small hiccups are mostly not minded. If the new cabinet has taken some time to form, well, the falling of the Barisan Nasional (BN) government for the first time since independence in 1957 was an unprecedented change and if PH hadn't finalised the line-up before the election, that only went to show they hadn't really expected to win – and neither had anyone else.

The goodwill that is tangible towards the new government is still very much in evidence and doubtless will remain so for months to come. But the new government must make sure that it works to keep it.

It was not just Mr Najib’s friends who objected to the timing of the police raids, for instance. Even Anwar's daughter Nurul Izzah thought it was over the top. “As former victims of early dawn police raids, I must stress my disagreement in ransacking any home at such an ungodly hour,” she tweeted. In another search, complained Mr Najib, the shoes of his nine-month-old grandchild were taken.

PH offered a new and better kind of politics. Now they have to follow through. Practices and tactics that they condemned in opposition cannot now be used against their foes if they are to live up to their promise to be different.

Prosecutions over 1MDB – the state development fund from which $3.5 billion was allegedly misappropriated – and other matters are clearly in the offing, and they are widely welcomed. But there is a balance to be struck too.

While there are senior voices warning against the excessive treatment of members of the former government, cautioning that the principle of “innocent until proven guilty” must be upheld, there are also those who are clearly out for revenge.

In a country still scarred by the race riots of 1969, which caused hundreds of deaths and the declaration of a state of emergency, there is a justifiable wariness about a small spark risking a greater conflagration.

On the economy, reducing the goods and services tax to zero per cent from June 1 is affordable now because of the high oil prices – but what happens when they go down again? The new administration will have to be financially responsible while simultaneously fulfilling the high expectations they have stoked on issues such as rising costs of living, which is not an easy problem to turn round quickly.

But PH have some very experienced people on their bench, such as the well-regarded former central bank governor Zeti Akhtar Aziz and Daim Zainuddin, twice finance minister during Dr Mahathir’s previous premiership, which should reassure markets that have been jittery since the shock election result.

There was a strong sense during the campaign of what PH was against; less what it was for. Some of the promises, such as repealing the anti-fake news bill, may now not be kept.

Similarly, suggestions that Malaysia will now pivot completely away from China are almost certainly wrong. Dr Mahathir has always had a very strong pragmatic streak under his fiery rhetoric. Some of his actions in office may be more incremental than anticipated. Radical supporters might have to be patient and wait for Anwar to take up the baton in two or three years’ time.

From his time in office so far, people (such as myself) who said that Dr Mahathir was surely too old to be premier again have to admit that he displays extraordinary energy and determination for a 92-year-old. He is the victor and he deserves his chance to put his stamp on the direction of the administration.

Anwar has also displayed remarkable forgiveness to Dr Mahathir and Mr Najib, both of whom he accuses of having jailed him unjustly and that is to be admired.

Although the new government didn't win an overall majority in the popular vote – not surprising in what is now a three-plus party system – there is a general feeling of wishing them well. That is a precious sensation after such a bitter and divisive campaign.

The PH administration needs to hold onto it so that all Malaysians, even those who were defeated, can continue to celebrate a peaceful, first-time democratic transition of power that could be an example to the world – but only if they eschew vengeance and keep that sense of difference and promise.

Sholto Byrnes is a senior fellow at the Institute of Strategic and International Studies Malaysia

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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.”

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England's lowest Test innings

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- 46 v West Indies in Port of Spain, March 25, 1994

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Going grey? A stylist's advice

If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
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All kick-off times UAE (+4 GMT)

Friday
Sevilla v Levante (midnight)

Saturday
Athletic Bilbao v Real Sociedad (7.15pm)
Eibar v Valencia (9.30pm)
Atletico Madrid v Alaves (11.45pm)

Sunday
Girona v Getafe (3pm)
Celta Vigo v Villarreal (7.15pm)
Las Palmas v Espanyol (9.30pm)
Barcelona v Deportivo la Coruna (11.45pm)

Monday
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