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Wednesday September 8, 2010

Bloomberg

Malaysia’s Anwar Targets Ruling Party Stronghold (Update1)

March 11, 2010, 11:21 PM EST

(Adds consultant’s comment in sixth paragraph.)

By Ranjeetha Pakiam      March 12 (Bloomberg) -- Malaysia’s opposition leader Anwar Ibrahim said he is targeting the ruling party stronghold of Johor along with Sabah and Sarawak to boost support for his three-party coalition before a general election that he expects may come next year.

“The whole focus now is the next elections,” said Anwar in an interview at his party headquarters in Petaling Jaya, outside Kuala Lumpur yesterday. He said he saw growing disappointment with the ruling party in his visits last week to the southern state of Johor and the eastern state of Sabah.

Anwar, 62, is campaigning to renew support after three lawmakers from his People’s Justice Party left to become independents, while another was sacked following a disciplinary hearing. The former deputy prime minister is also on trial a second time on sodomy charges in a case set to resume March 25.

“What’s encouraging is that the departure of these few MPs has not particularly affected the base,” he said. “In fact you can see growing anger and certainly clearly more enthusiasm to support the reform agenda.”

After being shut out from politics for almost a decade, Anwar in 2008 led the opposition alliance of his People’s Justice Party, the Pan-Malaysian Islamic Party and the Democratic Action Party to win a record number of parliamentary seats, denying the ruling National Front coalition a two-thirds majority. Malaysia must hold elections by 2013.

Anwar’s bid to build support in the three targeted areas may take time, said Khoo Kay Peng, an independent political consultant based near Kuala Lumpur.

“There is a lack of strong local opposition leadership in Johor, Sabah and Sarawak, which could be a hindrance,” Khoo said.

Ending Preferences

The opposition has pledged to end Malaysia’s system of preferences in employment and education for ethnic Malays and to reduce corruption. Prime Minister Najib Razak’s ruling National Front, headed by the United Malays National Organization, adopted a race-based system known as the New Economic Policy in 1971.

Najib has rolled back decades-old protectionist policies, opening up service industries to foreign investors and easing rules on ethnic-Malay ownership in companies. He is expected to unveil the first phase of the “new economic model,” designed to turn Malaysia into a high-income nation, on March 30.

In October, Najib said his party needs to change its image as a corrupt and elitist institution.

“UMNO must not be regarded as a party that only fights for a small group of people,” he said at an extraordinary meeting of party members. “The perception that UMNO is a party to enrich its members must be thrown away.”

New Economic Policy

Anwar yesterday said Najib won’t follow through with the plan to end policies that favor ethnic Malays.

“A major chunk is going to be revised because the Malay supremacists want to defend their rights,” said Anwar, referring to the new economic model. It will be “just a revision of what he has done in the past. I don’t believe that Najib is serious.”

“Wait until details of the new economic model is made public on March 30 before passing judgment,” said an aide to Najib, who declined to be named, when called for comment.

In 1998, Anwar was tried for abuse of power and for having sex with a man, which is an offense in Malaysia, and served six years in jail before the sodomy charge was overturned. He was also barred from politics for four years after being released from jail.

He is currently facing sodomy charges after a 24-year-old former male aide filed a complaint with police in June 2008, and could be jailed for as long as 20 years if found guilty.

Nineteen days after he was most recently charged, Anwar stood for a regional poll in his former constituency which was helmed by his wife during his incarceration, and was elected to parliament by a margin of 16,000 votes.

--Editor: Dave McCombs, John Brinsley

To contact the reporter on this story: Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net

To contact the editor responsible for this story: Barry Porter in Kuala Lumpur at bporter10@bloomberg.net. Bill Austin at billaustin@bloomberg.net

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