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090505-P-Malaysia

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					This is product of the Virtual Information Center (VIC). As such it represents the opinions of the various authors involved and not the
                       opinions, assessments or positions of the DoD or any other government agency or entity.



                                   Malaysia Primer




                          Sources: Flag: http://www.cia.gov/cia/publications/factbook/geos/my.html
                               Map: http://www.lib.utexas.edu/maps/cia03/malaysia_sm03.gif


                                         Virtual
                                             Information
                                                 Center
                                         Answering tomorrow’s questions today!


              Prepared by: Virtual Information Center, (808) 477-3661 ext. 2100 on 19 September 2000
                                            Updated on: 05 May 2009


                                                                  1
This is product of the Virtual Information Center (VIC). As such it represents the opinions of the various authors involved and not the
                       opinions, assessments or positions of the DoD or any other government agency or entity.


                                                   Malaysia Primer
                                                        Executive Summary
        1. Assessment: Viewing regional cooperation as its foreign policy cornerstone, Malaysia is a relatively
        powerful regional state; although chronic tensions remain with all five neighboring countries that include
        territorial disputes, water-sharing issues, cross-border violations, and illegal workers. Despite these
        tensions, cooperation with Singapore, Indonesia and Thailand has greatly reduced piracy along the
        Malacca Strait. Domestically, Malaysia‘s primary security concern is racial tension between its
        economically powerful Chinese minority and the Malay majority population. Although no Malaysian
        government has ever been replaced by an opposition movement, the March 2008 elections results have led
        to a period of low-level political instability. Although Malaysia‘s broad economy (encompassing
        manufacturing, plantation agriculture and oil and gas production) offers some strength against uncertain
        trading conditions, the global economic crisis has put Malaysia on the edge of recession.
        2. Background: Consisting of two regions (separated by some 640 miles in the South China Sea),
        Malaysia is a federation of 13 states and three federal territories. One region, peninsular Kuala Lumpur,
        abuts southern Thailand; the other, east Malaysia, abuts Indonesia and Brunei on northern Borneo Island.
        Its combined total land area, 127,316 square miles, is slightly larger than New Mexico. Malays comprise
        just over half of the population, Chinese one-quarter, Indians a little of 7%, and indigenous tribes the
        balance. Racial tension between the politically-dominant Malays and the economically-dominant Chinese
        population remains a source of friction. The U.S. has maintained friendly relations with Malaysia since its
        independence in 1957; establishing a record of cooperation in many areas, including trade and investment,
        defense, counter-terrorism, and counter-narcotics.
        3. Discussion: A founding member of the Association of Southeast Asian Nations (ASEAN), Malaysia
        strives to resolve disputes via diplomatic means; however, regional tensions with China and each of its
        five neighbors, Brunei, Indonesia, Philippines, Singapore, and Thailand, exist in varying intensities. A
        May 2008 verdict by the International Court of Justice awarded the disputed islet of Pulau Batu Puteh to
        Singapore, spurring Malaysia to conduct an audit of its numerous islands, reefs and rocks in a bid to
        prevent further incidents that can be portrayed as losses of sovereign territory and that can serve as
        catalysts to nationalist outbursts. Beijing's claims to huge areas of the South China Sea include some of
        Malaysia's most important oil and natural gas fields. Although none of these disputes are likely to lead to
        conflict in the near future, they form a background to regional arms proliferation, in which Malaysia
        participates (which has witnessed a resurgence since the economic crisis of the 1990s). A weak terrorist
        presence is well-contained by the government, although insurgent conflict in the Philippines and southern
        Thailand raises concern over spillover violence on Malaysia‘s borders. Malacca Strait Piracy remains an
        international concern as the waterway carries more than a quarter of the world‘s trade and nearly all of
        Japan‘s and China‘s crucial oil imports. Malaysia‘s joint anti-piracy/terrorism patrols in the Straits with
        Indonesia, Singapore and Thailand have proved successful partially due to genuine domestic concerns but
        also because of U.S. pressure. Piracy and armed attacks in the Straits of Malacca have declined radically
        since the patrols began in 2005. Corruption is also a problem within the established political system,
        partly rooted in the policy that enshrines discrimination in favor of the ethnic Malay majority. Political
        corruption and patronage could deepen under new Prime Minister Najib Tun Razak, who took office in
        April 2009. Najib's priority is to improve the standing of the ruling coalition, which lost its two-thirds
        parliamentary majority in the elections of March 2008 for the first time since 1969.
        4. Prepared by: Virtual information Center; (808) 477-3661 ext. 2100 on 05 May 2009




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This is product of the Virtual Information Center (VIC). As such it represents the opinions of the various authors involved and not the
                       opinions, assessments or positions of the DoD or any other government agency or entity.


                                                          Malaysia Primer
                                                              Table of Contents
        Executive Summary .................................................................................................................2
        1. Introduction.......................................................................................................................5
           A. Overview .......................................................................................................................5
           B. History ...........................................................................................................................5
        2. Travel Information ...........................................................................................................9
           A. Orientation....................................................................................................................9
               General......................................................................................................................... 9
               Travel Documents........................................................................................................ 9
               Holidays ..................................................................................................................... 10
           B. Crime ...........................................................................................................................11
           C. Transportation, Traffic Safety and Road Conditions ............................................14
           D. Health ..........................................................................................................................15
               Medical Care.............................................................................................................. 24
        3. At A Glance .....................................................................................................................25
           A. Population ...................................................................................................................26
           B. Ethnic Groups, Religions and Language .................................................................26
           C. Geography, Climate and Topography .....................................................................27
        4. Government .....................................................................................................................27
           A. Executive Branch .......................................................................................................28
               Head of State: Sultan Mizan Zainal Abidin ............................................................... 29
               Prime Minister of Malaysia – Dato' Sri Mohd Najib Bin Tun Abdul Razak ............ 31
               Cabinet ....................................................................................................................... 34
           B. Legislative Branch .....................................................................................................40
           C. Judicial Branch ..........................................................................................................40
           D. Political Parties and Leaders ....................................................................................42
           E. Political Pressure Groups and Leaders....................................................................48
           F. Foreign Affairs ...........................................................................................................48
        5. International Organization Participation.....................................................................62
        6. Diplomatic Representation in the United States ..........................................................62
        7. U.S. Diplomatic Representation ....................................................................................63
        8. Economy ..........................................................................................................................63
        9. Infrastructure ..................................................................................................................72
           A. Transportation ...........................................................................................................72
           B. Communication ...........................................................................................................81
        10. Military ............................................................................................................................84
           A. Leadership ..................................................................................................................84
               Minister Of Defense - Y.B. Dato' Seri Dr. Ahmad Zahid Bin Hamidi ..................... 84
               Chief of the Defense Force - Jen Datuk Seri Abdul Aziz Zainal .............................. 85
               Chief of the Army - Gen Datuk Muhammad Ismail Jamaluddin .............................. 86
               Chief of the Air Force - General Datuk Seri Azizan Ariffin ..................................... 86
               Chief of the Navy - Admiral Dato' Sri Abdul Aziz Bin Haji Jaafar .......................... 87
           B. Armed Forces Overview ............................................................................................88
           C. Army............................................................................................................................93
           D. Air Force ...................................................................................................................104


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

           E. Navy...........................................................................................................................111
           F. Defense Spending .....................................................................................................119
           G. Procurement .............................................................................................................121
        11. Security and Foreign Forces ........................................................................................138




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This is product of the Virtual Information Center (VIC). As such it represents the opinions of the various authors involved and not the
                       opinions, assessments or positions of the DoD or any other government agency or entity.


                                                 Malaysia Primer
        1. Introduction
                 A. Overview

        Centrally located in Southeast Asia, Malaysia lies close to the equator between 1º and 7º north
        and 98º and 120º east. Its territory is made up of two distinct regions: Peninsular Malaysia,
        which has 11 states - Johor, Kedah, Kelantan, Malacca (or Melaka), Negeri Sernbilan, Pahang,
        Penang, Perak, Perlis, Selangor and Terengganu - and the Federal Territory of Kuala Lumpur
        (the island of Labuan forms a second federal territory); and East Malaysia, comprising the states
        of Sabah and Sarawak. Peninsular Malaysia, which was previously known as Malaya, is an
        extension of the isthmus of Kra south of Thailand. Sabah and Sarawak, separated from
        Peninsular Malaysia by more than 600 km of the South China Sea, lie along the northern and
        northwestern coasts of the large island of Borneo and share land boundaries with Indonesian
        Kalimantan and Brunei.

        Much of the country inland is mountainous, with dense tropical jungles and swamps but most of
        western Peninsular Malaysia has been cleared and developed.

        The capital of Malaysia is Kuala Lumpur, situated some 48 km inland from Port Klang on the
        west coast of the peninsula.

        Sources: http://news.bbc.co.uk/1/hi/world/asia-pacific/country_profiles/1304569.stm
        Jane‘s Information Group
            B. History

        The early Buddhist Malay kingdom of Srivijaya, based at what is now Palembang, Sumatra,
        dominated much of the Malay peninsula from the 9th to the 13th centuries AD. The powerful
        Hindu kingdom of Majapahit, based on Java, gained control of the Malay peninsula in the 14th
        century. Conversion of the Malays to Islam, beginning in the early 14th century, accelerated with
        the rise of the state of Malacca under the rule of a Muslim prince in the 15th century. Malacca
        was a major regional commercial center, where Chinese, Arab, Malay, and Indian merchants
        traded precious goods.

        Drawn by this rich trade, a Portuguese fleet conquered Malacca in 1511, marking the beginning
        of European expansion in Southeast Asia. The Dutch ousted the Portuguese from Malacca in
        1641. The British obtained the island of Penang in 1786 and temporarily controlled Malacca with
        Dutch acquiescence from 1795 to 1818 to prevent it from falling to the French during the
        Napoleonic war. The British gained lasting possession of Malacca from the Dutch in 1824,
        through the Anglo-Dutch treaty, in exchange for territory on the island of Sumatra in what is
        today Indonesia.

        In 1826, the British settlements of Malacca, Penang, and Singapore were combined to form the
        Colony of the Straits Settlements. From these strongholds, in the 19th and early 20th centuries
        the British established protectorates over the Malay sultanates on the peninsula. During their rule
        the British developed large-scale rubber and tin production and established a system of public


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This is product of the Virtual Information Center (VIC). As such it represents the opinions of the various authors involved and not the
                       opinions, assessments or positions of the DoD or any other government agency or entity.

        administration. British control was interrupted by World War II and the Japanese occupation
        from 1941 to 1945.

        Popular sentiment for independence swelled during and after the war. The territories of
        peninsular Malaysia joined together to form the Federation of Malaya in 1948 and eventually
        negotiated independence from the British in 1957. Tunku Abdul Rahman became the first prime
        minister. In 1963 the British colonies of Singapore, Sarawak, and Sabah joined the Federation,
        which was renamed Malaysia. Singapore's membership was short-lived, however; it left in 1965
        and became an independent republic.

        Neighboring Indonesia objected to the formation of Malaysia and began a program of economic,
        political, diplomatic, and military "confrontation" against the new country in 1963, which ended
        only after the fall of Indonesia's President Sukarno in 1966. Internally, local communists, nearly
        all Chinese, carried out a long, bitter insurgency both before and after independence, prompting
        the imposition of a state of emergency from 1948 to 1960. Small bands of guerrillas remained in
        bases along the rugged border with southern Thailand, occasionally entering northern Malaysia.
        These guerrillas finally signed a peace accord with the Malaysian Government in December
        1989. A separate, small-scale communist insurgency that began in the mid-1960s in Sarawak
        also ended with the signing of a peace accord in October 1990.

        Source: http://www.state.gov/r/pa/ei/bgn/2777.htm#history

        In the 1980s, Dr. Mohamad Mahathir succeeded Datuk Hussein as prime minister. Mahathir
        instituted economic reforms that would transform Malaysia into one of the so-called Asian
        Tigers. Throughout the 1990s, Mahathir embarked on a massive project to build a new capital
        from scratch in an attempt to bypass congested Kuala Lumpur.

        Beginning in 1997 and continuing through the next year, Malaysia suffered from the Asian
        currency crisis. Instead of following the economic prescriptions of the International Monetary
        Fund and World Bank, the prime minister opted for fixed exchange rates and capital controls. In
        late 1999, Malaysia was on the road to economic recovery, and it appeared Mahathir's measures
        were working.

        In Oct. 2003, Mahathir retired after 22 years in office. His rule led to his country's enormous
        economic growth but was also characterized by repression and human rights abuses. Malaysia's
        new prime minister, Abdullah Badawi, had a more statesmanlike reputation, and in his first year
        in office he made headway on reducing corruption and instituting reforms. In March 2004, the
        ruling National Front coalition won an astonishing 90% of parliamentary seats, and Abdullah
        was reelected on his own merits.

        The governing coalition under Prime Minister Badawi suffered a stunning defeat in March
        2008's parliamentary elections. Opposition parties quadrupled their representation in Parliament,
        and Badawi's coalition, although it won 136 of 222 seats in Parliament, lost its two-thirds
        majority, which is necessary to amend the Constitution, and control of five state assemblies. It
        was the worst showing for the National Front coalition in four decades. Shortly after the election,




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Badawi trimmed his cabinet, removing several ministers who had been accused of corruption,
        and appointed a prominent lawyer to oversee judicial reform.

        Leading opposition figure Anwar Ibrahim was arrested and jailed on suspicion of sodomy in July
        2008—for a second time. Ten years earlier, when he was serving as deputy prime minister, he
        was convicted of sodomy and corruption. The conviction was overturned after he spent six years
        in jail. Anwar denied the charges both times, claiming to have been set up by the government—
        allegations that had a broad base of supporters, both domestically and abroad. Prior to each
        arrest, Anwar's political challenge to the governing party had been gaining momentum. Indeed,
        days before his arrest, he had announced plans to run for Parliament. In August, Anwar won a
        by-election to return to Parliament after a 10-year absence. He defeated the government party's
        candidate, 31,196 to 15,524.

        In March 2009, the ruling United Malays National Organization chose Najib Razak to succeed
        Abdullah Badawi as Prime Minister of the nation and leader of the party. Razak has promised to
        make big changes in the ruling party, which is facing renewed competition. However, Razak is
        largely viewed as an insider who is too entrenched in party politics to follow through on his
        promises of reform.

        Source: http://infoplease.com/ipa/A0107751.html

        Historical Background

        Date    Event
        1948    Communist insurgency led to declaration of state of emergency.
        1957    Federation of Malaya gained Merdeka (independence) from Britain.
        1960    'Emergency' declared over.
        1963    Formation of Federation of Malaysia.
        1965    Singapore separated from federation.
        1969    Race riots in Kuala Lumpur and elsewhere between Chinese and Malays.
        1969- Rule by National Operations Council (NOC).
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        1971    Pro-Malay New Economic Policy (NEP) launched.
        1976- Limited resurgence of communist insurgency.
        78
        1977    PAS expelled from BN coalition.
        1981    Mahathir Mohamad became prime minister.
        1983    Constitutional crisis over powers of King.
        1987    106 people detained under ISA.
        1989    Communist Party of Malaya surrendered.
        1990    Surrender of Sarawak communists.
        1995    Largest ever election victory of UMNO-led ruling coalition.
        1998    Deputy Prime Minister Anwar Ibrahim charged with abuse of power and other offences.
        1999    Anwar sentenced to six years in jail for corruption. UMNO won snap election, with Mahathir gaining a fifth


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                term in office.
        2000    Anwar sentenced to nine years in prison on sodomy charge and a further disqualification to run for any
                political office for five years. Sentence triggered widespread local and limited international protest.
        2001    Race riot between ethnic Malays and ethnic Indians in Kuala Lumpur suburb (March).
                Potential Mahathir heir Daim Zainuddin resigned as finance minister; Mahathir took over the finance
                portfolio (June).
        2002    National Justice Party (Parti Keadilan Nasional: PKN) led by Anwar Ibrahim's wife merged with the
                Malaysian People's Party (Parti Rakyat Malaysia: PRM) to form the People's Justice Party (Parti Keadilan
                Rakyat: PKR) (July).
        2003    Mahathir relinquished post of prime minister in favor of Abdullah Badawi (October).
        2004    Abdullah Badawi gained strong mandate in general elections that saw Islamic political opposition almost
                destroyed at the polls (March).
                Anwar won appeal against sodomy conviction and released from prison, six years to the day after Mahathir
                dismissed him from his post as deputy prime minister. However, the Federal Court later refused to hear an
                appeal on Anwar's corruption conviction, which prevented him from political office until 2008 (September).
                Indian Ocean tsunami struck the west coast of Malaysia, killing 68 (December).
        2005    An amnesty on illegal migrant workers ended, leading to an exodus of low-paid employees (February).
                The government allowed the re-migration of workers formerly expelled under tourist visas as the agricultural
                and palm oil industries suffered (March).
                Arsonists attacked the base of an inter-faith spiritual group, Sky Kingdom, causing damage but no casualties
                (July).
                PAS lost Pelangkar Pasir by-election, reducing the party to a single-seat majority in the only state assembly
                it controls. Anwar had vocally supported PAS (December).
        2006    The government announced decision not to build bridge to Singapore (April).
                12 alleged members of an Indonesian-based militant Islamic group Dar al-Islam were arrested in Sabah, in
                eastern Malaysia (May).
        2007    Hindu Rights Action Forces (HINDRAF) organized a demonstration to protest against the government's
                policy over the past 30 years of affirmative action favoring the ethnic Malay majority. Approximately
                10,000 ethnic Indians attended the rally in downtown Kuala Lumpur, which police subsequently dispersed
                with tear gas (November).
        2008    The Malaysian ruling BN coalition suffered its biggest electoral setback since 1969 in the early general
                elections (March).
                Malaysian Prime Minister Abdullah Badawi said that he would step down in the middle of 2010, before the
                end of his term in 2013, and hand power to his deputy prime minister Najib Tun Razak, who lacks political
                legitimacy (July).
                Anwar Ibrahim was formally charged with sodomizing a former male aide (August) but was released on bail.
                Anwar secured a landslide victory in a by-election in the northern state of Penang, returning him to
                parliament after a 10-year absence from politics (August).
        2009    BN lost a key by-election in Terengganu (January).
                Malaysia's High Court said Anwar Ibrahim would go on trial for sodomy in July after pleading not guilty
                (March).
                Najib Razak won UMNO party leadership elections (March).
                Najib assumed office of prime minister and appointed new cabinet (April).
        Source: Jane‘s information Group




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                       opinions, assessments or positions of the DoD or any other government agency or entity.


        2.    Travel Information
             A. Orientation

                 General

        Telephone Codes: 60, country code

        Time Zone: 8 hours ahead of Greenwich Mean Time (+8 GMT). Daylight Saving Time is not
        observed

        Tipping Overview: It's not customary in Malaysia to leave a tip. There may be a 10% service
        charge on your bill in more expensive hotels and restaurants. This is usually indicated with the
        ++ symbol (Note: ++ indicates + tax and + service charge and is often more than 10%
        depending on taxes (usually 15%)). You do not need to tip beyond the service charge. Taxi and
        rickshaw drivers will accept a small tip.

        Voltage Requirements: 220 volts
        Source: http://travel.yahoo.com/p-travelguide-519573-malaysia_basics-i


                 Travel Documents
        American citizens are required to have a passport valid for at least six months to enter
        Malaysia, but Americans do not need to obtain a visa in advance for a pleasure or business
        trip if their stay in Malaysia is 90 days or less. Immigration officials will then place an entry
        stamp in their passport. While in Malaysia, Americans should carry their passports with
        them at all times.

        Travelers are required to carry their passports for travel from peninsular Malaysia to eastern
        Malaysia (on the island of Borneo) and between the provinces of Sabah and Sarawak, both
        of which are on Borneo. Social visit passes (visas) issued at immigration points such as
        KLIA airport, Johor Bahru, and Kota Kinabalu (Sabah) for entry into peninsular Malaysia
        are not valid for entry into the state of Sarawak and usually have three months‘ validity.
        New social visit passes must be obtained upon arrival at Kuching or Miri airports in
        Sarawak. In most cases, social visit passes issued by Sarawak immigration officials are
        valid for any part of Malaysia and usually have one month‘s validity.

        The Malaysian Passport is not valid for travel to the State of Israel. However, travelers with
        Israeli entry or exit stamps in their American passports do not encounter difficulty at
        Malaysian Immigration.

        For more information on the latest entry procedures and requirements, contact the Embassy
        of Malaysia, 3516 International Court NW, Washington, DC 20008, telephone: (202) 572-
        9700, email: malwashdc@kln.gov.by; the Malaysian consulates located in New York,
        telephone: (212) 490-2722, email: malnyc@yahoo.com; or Los Angeles, telephone: (213)


                                                                  9
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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        892-1238, e-mail: mwla@pacbell.net; or visit the Malaysian government‘s web site, which
        has information on Malaysian embassies and consulates abroad at www.kln.gov.my.

        Information about dual nationality or the prevention of international child abduction can be
        found on our web site. For further information about customs regulations, please read our
        Customs Information sheet.

        VISA OVERSTAYS: Malaysian immigration authorities routinely have detained
        foreigners who overstay their social visit passes (visas). In light of the arrests of several
        American citizens in connection with immigration sweeps conducted by Malaysian police
        and immigration authorities, American citizens should carry their passports (containing the
        Malaysian entry stamp) with them at all times. Depending upon the nature of the violation,
        detentions may last from a few hours to several weeks, pending a formal hearing. American
        citizens are urged to check their visa status periodically while in Malaysia and strictly follow
        immigration laws and regulations.

        REGISTRATION / EMBASSY LOCATION: Americans living or traveling in Malaysia
        are encouraged to register with the nearest U.S. Embassy or Consulate through the State
        Department‘s travel registration web site so that they can obtain updated information on
        travel and security within Malaysia. Americans without Internet access may register directly
        with the nearest U.S. Embassy or Consulate. By registering, American citizens make it
        easier for the Embassy or Consulate to contact them in case of emergency. The U.S.
        Embassy is located at 376 Jalan Tun Razak 50400, Kuala Lumpur. The local mailing
        address is P.O. Box No. 10035, 50700 Kuala Lumpur. The U.S. Embassy‘s telephone (60-3)
        2168-5000 is available 24 hours a day for emergencies such as arrests, serious illness/injury,
        or death of Americans, (after business hours, please press 1 at the recording). The ACS
        Unit‘s telephone number is (60-3) 2168-4997/4979, and the Consular section‘s fax number
        is (60-3) 2148-5801. The U.S. Embassy‘s general fax number is (60-3) 2142-2207 and web
        site is http://malaysia.usembassy.gov. The Consular section‘s e-mail is
        klconsular@state.gov.

        Source: http://travel.state.gov/travel/cis_pa_tw/cis/cis_960.html


                 Holidays

        2009
        1 Jan New Year's Day.
        26 Jan Chinese New Year.
        1 Feb* Federal Territory Day.
        9 Mar Mawlid al-Nabi (Birth of Prophet Muhammad).
        1 May Labor Day.
        9 May Wesak Day (Birth of Buddha).
        6 Jun King's Birthday.
        31 Aug Merdeka Day (National Day).
        21 Sep Hari Raya Puasa (End of Ramadan).
        17 Oct** Deepavali.


                                                                  10
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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        27-28 Nov Hari Raya Qurban (Feast of the Sacrifice).
        18 Dec Awal Muharram (Islamic New Year).
        25 Dec Christmas.

        2010
        1 Jan New Year's Day.
        1 Feb* Federal Territory Day.
        14 Feb Chinese New Year.
        26 Feb Mawlid al-Nabi (Birth of Prophet Muhammad).
        28 Apr Wesak Day (Birth of Buddha).
        1 May Labor Day.
        5 Jun King's Birthday.
        31 Aug Merdeka Day (National Day).
        10 Sep Hari Raya Puasa (End of Ramadan).
        5 Nov** Deepavali.
        16-17 Nov Hari Raya Qurban (Feast of the Sacrifice).
        7 Dec Awal Muharram (Islamic New Year).
        25 Dec Christmas.

        *Putrajaya, Kuala Lumpur and Labuan only.
        **Except Labuan and Sarawak.

        Note
        (a) Muslim festivals are timed according to local sightings of various phases of the moon and the
        dates given above are approximations. During the lunar month of Ramadan that precedes Hari
        Raya Puasa, Muslims fast during the day and feast at night and normal business patterns may be
        interrupted. Some restaurants are closed during the day and there may be restrictions on smoking
        and drinking. Some disruption may continue into Hari Raya Puasa itself and Hari Raja Qurban
        may last anything from two to 10 days, depending on the region. (b) Buddhist festivals are also
        timed according to phases of the moon and variations may occur.

        http://www.worldtravelguide.net/country/159/public_holidays/South-East-Asia/Malaysia.html

            B. Crime

        CRIME:

        Violent crime involving tourists and expatriates in Malaysia is relatively uncommon. Petty
        theft, particularly purse snatching and pick-pocketing, and residential burglaries are the most
        common criminal activity directed against foreigners. Other types of non-violent criminal
        activity include credit card fraud and automobile theft. Malaysia‘s national emergency
        number is 999 (equivalent to the U.S. 911). An alternate number is the Royal Malaysia
        Police Operations Center in Kuala Lumpur, 2115-9999. In tourist areas such as Bukit
        Bintang, Petaling Street (Chinatown) and Bangsar, Kuala Lumpur, and the main square in
        Malacca, the police have established small "Tourist Police‖ stations.



                                                                  11
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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Purse-Snatching: In most incidents, two men on a motorcycle speed up from behind a
        victim and the passenger on the back snatches a purse, handbag, or cellular phone. Thieves
        have also conducted snatch-thefts while leaning out of the passenger side of moving
        vehicles. These thefts occur at all hours and often in front of large groups of witnesses, even
        in upscale neighborhoods frequented by expatriates. Women walking by themselves or with
        small children are the most common targets. Victims have been injured and even killed after
        falling and being dragged by thieves in cars or on motorcycles.

        To avoid becoming the victim of a purse snatching, be alert and aware of your
        surroundings. Pedestrians should walk facing traffic and keep a close eye on all vehicular
        traffic, particularly motorcycles. If possible, try to walk on the sidewalk away from the
        curb. Avoid poorly lit streets, shortcuts, and narrow alleys. Purses or shoulder bags should
        be closed and tucked under the arm. Do not wrap the strap around your arm or shoulder.
        People have been injured or killed by being pulled to the ground by their purse straps as the
        thieves speed off. If your purse or bag is snatched, report the incident as soon as possible to
        the police.

        Smash and Grab Robberies: The targets in these crimes, which are on the rise, are
        motorists who are stuck in traffic or stopped at a light. The usual scenario is that a pair of
        men on a motorcycle identifies a car with a lone passenger (male or female) and with
        valuables (purse, bag) visible. The men use a hammer or crowbar to smash the window of
        the car, grab the bag and speed off. When the motorist‘s windows are already open, the
        motorcyclists simply reach in and take bags off the seat of the car. These crimes can be
        prevented by keeping valuables out of sight.

        Scams: An increasing number of Americans have been victims of scams originating in
        Malaysia. Confidence artists contact Americans through the internet, including dating web
        sites. These confidence artists almost always pose as American citizens who have
        unexpectedly experienced a medical, legal, financial or other type of ―emergency‖ in
        Malaysia that requires the immediate financial assistance of the American citizen in the
        United States. Co-conspirators pose as Malaysian ―lawyers‖ or medical professionals to
        verify the story and the supposed urgent need for cash. We strongly urge the American
        citizen in the United States to be very cautious about sending money to people who claim to
        be Americans in trouble in Malaysia. For additional information on these types of scams,
        see the Department of State's publication, International Financial Scams.

        Credit Card Fraud: Travelers in Malaysia should avoid using credit cards, except at
        reputable establishments, and credit card numbers should be closely safeguarded at all
        times. Credit card fraud continues to be a serious problem in Malaysia, although enhanced
        technology has somewhat reduced reported instances of fraud. Unauthorized charges may
        not show on a credit card account for several months, but can unexpectedly appear in
        amounts of $5,000 or more. One of the more common methods is for retailers to swipe the
        credit card under the counter where account information is received into a machine
        containing a mobile phone SIM card and is transmitted to a criminal organization for
        reproduction. Travelers should watch retailers closely and any ―under the table‖ transactions
        should be reported to the local police. In some cases sophisticated criminal organizations
        have tapped into data lines emanating from retail establishments. Credit card information is


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        then stolen while it is being transmitted to financial institutions. If you must use a credit
        card in Malaysia, you are advised to check your account information frequently for
        fraudulent charges. ATM cards are safer as long as the machines where they are used are
        associated with reputable Malaysian banks.

        In many countries around the world, counterfeit and pirated goods are widely available.
        Transactions involving such products may be illegal under local law. In addition, bringing
        them back to the United States may result in forfeitures and/or fines. More information on
        this serious problem is available at http://www.cybercrime.gov.

        INFORMATION FOR VICTIMS OF CRIME: The loss or theft abroad of a U.S.
        passport should be reported immediately to the local police and the nearest U.S. Embassy or
        Consulate. If you are the victim of a crime while overseas, in addition to reporting to local
        police, please contact the nearest U.S. Embassy or Consulate for assistance. The
        Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to
        contact family members or friends and explain how funds could be transferred. Although
        the investigation and prosecution of the crime is solely the responsibility of local authorities,
        consular officers can help you to understand the local criminal justice process and to find an
        attorney if needed.

        The local equivalent to the ―911‖ emergency line in Malaysia is ―999‖.

        See our information on Victims of Crime.

        CRIMINAL PENALTIES: While in a foreign country, U.S. citizens are subject to that
        country‘s laws and regulations, which sometimes differ significantly from those in the
        United States and do not afford the protections available to the individual under U.S. law.
        Penalties for breaking the law can be more severe than in the United States for similar
        offenses. Persons violating the law, even unknowingly, may be fined, expelled, arrested or
        imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Malaysia are
        severe, and convicted offenders can expect long jail sentences and heavy fines. Malaysia
        strictly enforces its drug laws. Malaysian legislation provides for a mandatory death penalty
        for convicted drug traffickers. Individuals arrested in possession of 15 grams (1/2 ounce) of
        heroin or 200 grams (seven ounces) of marijuana are presumed by law to be trafficking in
        drugs.

        The Malaysian criminal code includes a provision for a sentence of caning for certain white-
        collar crimes, including criminal misappropriation, criminal breach of trust and cheating.
        Unauthorized collection and/or removal of local flora and fauna may be prosecuted as a
        crime and can result in heavy fines, expulsion, and/or imprisonment. Distribution of
        religious leaflets or books of another faith to Malaysian Muslims is illegal and may result in
        arrest and imprisonment.

        Although access to prisoners is permitted, the U.S. Embassy may not learn of the arrest of
        U.S. citizens in smaller, more remote areas until several days after the incident. Prison
        conditions are harsh. American citizens are encouraged to carry a copy of their U.S.
        passports and of their current social visit pass (visa) with them at all times, so that, if



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        questioned by local officials, proof of identity, U.S. citizenship and legal status in Malaysia
        is readily available.

        Engaging in sexual conduct with children or using or disseminating child pornography in a
        foreign country is a crime, prosecutable in the United States. Please see our information on
        Criminal Penalties.

        Source: http://travel.state.gov/travel/cis_pa_tw/cis/cis_960.html

            C. Transportation, Traffic Safety and Road Conditions
        While in a foreign country, U.S. citizens may encounter road conditions that differ
        significantly from those in the United States. The information below concerning Malaysia is
        provided for general reference only, and may not be totally accurate in a particular location
        or circumstance.

        Traffic in Malaysia moves on the left side of the road, and most vehicles use right-hand
        drive. Seat belts are mandatory. Cell phones cannot be used while driving. Laws against
        drinking and driving are strictly enforced with stiff penalties. Motorcyclists attempt to
        circumvent traffic blockage by weaving in and out of traffic, temporarily using vacant
        oncoming traffic lanes, and running through red lights. This poses a hazard for both drivers
        and pedestrians unfamiliar with such traffic patterns. Drivers should use their turn signals
        well in advance of turning to alert motorcycles of their intent to turn. There has been a recent
        rise in the reported number of incidents involving late-night road rage. The majority of
        these violent incidents occur after midnight. Drivers are advised to avoid confrontational
        behavior if involved in an accident, especially with a motorcyclist. If threatened, drivers
        should leave the scene and file a report with the local police within 24 hours. Traffic is
        heavy during the morning and afternoon rush hours and slows down considerably when it
        rains; monsoon rains can quickly flood roads located in low lying areas. Bottlenecks are
        common in major cities. Development of the infrastructure has not kept pace with the
        proliferation of motorized vehicles. Multi-lane highways often merge into narrow two-lane
        roads in the center of town and cause added congestion. Many streets are narrow and
        winding. Taxis are metered, but some drivers charge a rate much higher than the metered
        rate during peak hours, when it is raining, or when the passenger‘s destination is to or
        through a heavily congested area.

        Sobriety checkpoints: Police operate sobriety checkpoints in many entertainment districts
        frequented by expatriates. At these checkpoints, all drivers are required to submit to alcohol
        breath tests. A failure of the breath test results in an arrest. Laws against drinking and
        driving are strictly enforced with serious penalties.

        Visit the web site of the country‘s national tourist office http://www.tourism.gov.my and
        national authority responsible for road safety at http://www.jpj.gov.my.

        Back to Top

        AVIATION SAFETY OVERSIGHT: The U.S. Federal Aviation Administration (FAA)
        has assessed the Government of Malaysia‘s Department of Civil Aviation as being in


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        compliance with International Civil Aviation Organization (ICAO) aviation safety standards
        for oversight of Malaysia‘s air carrier operations. For more information, travelers may visit
        the FAA‘s web site at http://www.faa.gov/safety/programs_initiatives/oversight/iasa.

        Source: http://travel.state.gov/travel/cis_pa_tw/cis/cis_960.html



             D. Health

                                  Health Information for Travelers to Malaysia

        On This Page

                Travel Notices in Effect
                Safety and Security Abroad
                Preparing for Your Trip to Malaysia
                Other Diseases Found in Southeast Asia
                Staying Healthy During Your Trip
                After You Return Home




                                                  Travel Notices in Effect

                Human Infection with Avian Influenza A (H5N1) Virus: Advice for Travelers November
             03, 2008
               Guidelines and Recommendations: Interim Guidance about Avian Influenza (H5N1) for
             U.S. Citizens Living Abroad November 03, 2008


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This is product of the Virtual Information Center (VIC). As such it represents the opinions of the various authors involved and not the
                       opinions, assessments or positions of the DoD or any other government agency or entity.

                2009 Measles Update March 05, 2009
                Update: Dengue, Tropical and Subtropical Regions April 02, 2009

        Top of Page

                                                Safety and Security Abroad

                Registration of Traveler Emergency Contact and Itinerary Information June 18, 2007
                Transportation Security Administration
                U.S. Department of State

                                          Preparing for Your Trip to Malaysia

        Before visiting Malaysia, you may need to get the following vaccinations and medications
        for vaccine-preventable diseases and other diseases you might be at risk for at your
        destination: (Note: Your doctor or health-care provider will determine what you will need,
        depending on factors such as your health and immunization history, areas of the country you will
        be visiting, and planned activities.)

        To have the most benefit, see a health-care provider at least 4–6 weeks before your trip to allow
        time for your vaccines to take effect and to start taking medicine to prevent malaria, if you need
        it.

        Even if you have less than 4 weeks before you leave, you should still see a health-care provider
        for needed vaccines, anti-malaria drugs and other medications and information about how to
        protect yourself from illness and injury while traveling.

        CDC recommends that you see a health-care provider who specializes in Travel Medicine. Find
        a travel medicine clinic near you. If you have a medical condition, you should also share your
        travel plans with any doctors you are currently seeing for other medical reasons.

        If your travel plans will take you to more than one country during a single trip, be sure to let your
        health-care provider know so that you can receive the appropriate vaccinations and information
        for all of your destinations. Long-term travelers, such as those who plan to work or study abroad,
        may also need additional vaccinations as required by their employer or school.

        Although yellow fever is not a disease risk in Malaysia, the government requires travelers
        arriving from countries where yellow fever is present to present proof of yellow fever
        vaccination. If you will be traveling to one of these countries where yellow fever is present
        before arriving in Malaysia, this requirement must be taken into consideration. See Yellow Fever
        Vaccine Requirements and Information on Malaria Risk and Prophylaxis, by Country for more
        information.


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Be sure your routine vaccinations are up-to-date. Check the links below to see which
        vaccinations adults and children should get.

        Routine vaccines, as they are often called, such as for influenza, chickenpox (or varicella),
        polio, measles/mumps/rubella (MMR), and diphtheria/pertussis/tetanus (DPT) are given at all
        stages of life; see the childhood and adolescent immunization schedule and routine adult
        immunization schedule.

        Routine vaccines are recommended even if you do not travel. Although childhood diseases, such
        as measles, rarely occur in the United States, they are still common in many parts of the world. A
        traveler who is not vaccinated would be at risk for infection.

        Vaccine-Preventable Diseases

        Vaccine recommendations are based on the best available risk information. Please note that the
        level of risk for vaccine-preventable diseases can change at any time.

         Vaccination or
                                Recommendations or Requirements for Vaccine-Preventable Diseases
            Disease


        Routine                 Recommended if you are not up-to-date with routine shots such as,
                                measles/mumps/rubella (MMR) vaccine, diphtheria/pertussis/tetanus
                                (DPT) vaccine, poliovirus vaccine, etc.


        Hepatitis A or          Recommended for all unvaccinated people traveling to or working in
        immune                  countries with an intermediate or high level of hepatitis A virus infection
        globulin (IG)           (see map) where exposure might occur through food or water. Cases of
                                travel-related hepatitis A can also occur in travelers to developing
                                countries with "standard" tourist itineraries, accommodations, and food
                                consumption behaviors.


        Hepatitis B             Recommended for all unvaccinated persons traveling to or working in
                                countries with intermediate to high levels of endemic HBV transmission
                                (see map), especially those who might be exposed to blood or body fluids,
                                have sexual contact with the local population, or be exposed through
                                medical treatment (e.g., for an accident).


        Typhoid                 Recommended for all unvaccinated people traveling to or working in
                                Southeast Asia, especially if visiting smaller cities, villages, or rural areas
                                and staying with friends or relatives where exposure might occur through



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                       opinions, assessments or positions of the DoD or any other government agency or entity.



         Vaccination or
                                Recommendations or Requirements for Vaccine-Preventable Diseases
            Disease


                                food or water.

        Japanese                Recommended if you plan to visit rural farming areas and under special
        encephalitis            circumstances, such as a known outbreak of Japanese encephalitis, see
                                country-specific information.
        Rabies vaccination is only recommended for certain travelers, including:
                travelers with high occupational risks, such as veterinarians
                long-term travelers and expatriates living in areas with a high risk of exposure
                travelers involved in any activities that might bring them into direct contact with bats,
                carnivores, and other mammals, such as wildlife professionals, researchers, veterinarians,
                or adventure travelers visiting areas where bats, carnivores, and other mammals are
                commonly found

        Note: Rabies vaccine is temporarily in limited supply. For updates on the rabies vaccine
        supply, please check the Rabies News and Highlights page regularly.

        Malaria

        Malaria Contact for Health-Care Providers
        For assistance with the diagnosis or management of suspected cases of malaria, call the CDC
        Malaria Hotline: 770-488-7788 (M-F, 8 am-4:30 pm, Eastern time). For emergency consultation
        after hours, call 770-488-7100 and ask to speak with a CDC Malaria Branch clinician.


        Drugs to Prevent Malaria (antimalarial drugs)
        If you will be visiting a malaria risk area in Malaysia, you will need to take one of the following
        antimalarial drugs: atovaquone/proguanil, doxycycline, or mefloquine (primaquine in special
        circumstances and only after G6PD testing).

        Note: Chloroquine is NOT an effective antimalarial drug in Malaysia and should not be
        taken to prevent malaria in this region.

        Malaria risk area in Malaysia: Risk in rural areas, particularly in the forested, hilly, and
        underdeveloped interior areas. No risk in urban and coastal areas. Note: No risk in Republic of
        Singapore.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        To find out more information on malaria throughout the world, you can use the interactive CDC
        malaria map. You can search or browse countries, cities, and place names for more specific
        malaria risk information and the recommended prevention medicines for that area.
        A Special Note about Antimalarial Drugs

        You should purchase your antimalarial drugs before travel. Drugs purchased overseas may not be
        manufactured according to United States standards and may not be effective. They also may be
        dangerous, contain counterfeit medications or contaminants, or be combinations of drugs that are
        not safe to use.

        Halofantrine (marketed as Halfan) is widely used overseas to treat malaria. CDC recommends
        that you do NOT use halofantrine because of serious heart-related side effects, including deaths.
        You should avoid using antimalarial drugs that are not recommended unless you have been
        diagnosed with life-threatening malaria and no other options are immediately available.

        For detailed information about these antimalarial drugs, see Information for the Public:
        Prescription Drugs for Malaria.

        More Information About Malaria

        Malaria is always a serious disease and may be a deadly illness. Humans get malaria from the
        bite of a mosquito infected with the parasite. Prevent this serious disease by seeing your health-
        care provider for a prescription antimalarial drug and by protecting yourself against mosquito
        bites (see below).

        Travelers to malaria risk-areas in Malaysia, including infants, children, and former residents of
        Malaysia, should take one of the following antimalarial drugs listed above.

        Symptoms

        Malaria symptoms may include

                fever
                chills
                sweats
                headache
                body aches
                nausea and vomiting
                fatigue




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This is product of the Virtual Information Center (VIC). As such it represents the opinions of the various authors involved and not the
                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Malaria symptoms will occur at least 7 to 9 days after being bitten by an infected mosquito.
        Fever in the first week of travel in a malaria-risk area is unlikely to be malaria; however, you
        should see a doctor right away if you develop a fever during your trip.

        Malaria may cause anemia and jaundice. Malaria infections with Plasmodium falciparum, if not
        promptly treated, may cause kidney failure, coma, and death. Despite using the protective
        measures outlined above, travelers may still develop malaria up to a year after returning from a
        malarious area. You should see a doctor immediately if you develop a fever anytime during the
        year following your return and tell the physician of your travel.

        Items to Bring With You

        Medicines you may need:

                The prescription medicines you take every day. Make sure you have enough to last
                during your trip. Keep them in their original prescription bottles and always in your carry-
                on luggage. Be sure to follow security guidelines, if the medicines are liquids.
                Antimalarial drugs, if traveling to a malaria-risk area in Malaysia and prescribed by your
                doctor.
                Medicine for diarrhea, usually over-the-counter.

        Note: Some drugs available by prescription in the US are illegal in other countries. Check the US
        Department of State Consular Information Sheets for the country(s) you intend to visit or the
        embassy or consulate for that country(s). If your medication is not allowed in the country you
        will be visiting, ask your health-care provider to write a letter on office stationery stating the
        medication has been prescribed for you.

        Other items you may need:

                Iodine tablets and portable water filters to purify water if bottled water is not available.
                See Preventing Cryptosporidiosis: A Guide to Water Filters and Bottled Water and Safe
                Food and Water for more detailed information.
                Sunblock and sunglasses for protection from harmful effects of UV sun rays. See Skin
                Cancer Questions and Answers for more information.
                Antibacterial hand wipes or alcohol-based hand sanitizer containing at least 60% alcohol.
                To prevent insect/mosquito bites, bring:
                   o      Lightweight long-sleeved shirts, long pants, and a hat to wear outside, whenever
                        possible.
                   o      Flying-insect spray to help clear rooms of mosquitoes. The product should contain
                        a pyrethroid insecticide; these insecticides quickly kill flying insects, including
                        mosquitoes.


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                   o      Bed nets treated with permethrin, if you will not be sleeping in an air-conditioned
                        or well-screened room and will be in malaria-risk areas. For use and purchasing
                        information, see Insecticide Treated Bed Nets on the CDC malaria site. Overseas,
                        permethrin or another insecticide, deltamethrin, may be purchased to treat bed nets
                        and clothes.

        See other suggested over-the-counter medications and first aid items for a travelers' health kit.

        Note: Check the Air Travel section of the Transportation Security Administration website for the
        latest information about airport screening procedures and prohibited items.

                              Other Diseases Found in Southeast Asia
           Risk can vary between countries within this region and also within a country; the
                            quality of in-country surveillance also varies.

        The following are disease risks that might affect travelers; this is not a complete list of diseases
        that can be present. Environmental conditions may also change, and up to date information about
        risk by regions within a country may also not always be available.

        Dengue, chikungunya, filariasis, Japanese encephalitis, and plague are diseases carried by insects
        that also occur in this region. Protecting yourself against insect bites (see below) will help to
        prevent these diseases.

        Highly pathogenic avian influenza (H5N1) continues to cause outbreaks in domestic and wild
        bird populations and has caused human cases in several countries in Southeast Asia. In 2006, the
        virus continued to spread in poultry populations in Indonesia. Avoid all direct contact with
        birds, including domestic poultry (such as chickens and ducks) and wild birds, and avoid places
        such as poultry farms and bird markets where live birds are raised or kept. For a current list of
        countries reporting outbreaks of H5N1 among poultry and/or wild birds, view updates from the
        World Organization for Animal Health (OIE), and for total numbers of confirmed human cases
        of H5N1 virus by country see the World Health Organization (WHO) Avian Influenza website.

        Do not swim in fresh water (except in well-chlorinated swimming pools) to avoid infection with
        schistosomiasis. Leptospirosis, a bacterial infection often contracted through recreational water
        activities in contaminated water, such as kayaking, is common in tropical areas of Southeast
        Asia. (For more information, please see Swimming and Recreational Water Safety.) An outbreak
        was reported in Borneo among expedition travelers in 2000.

        Measles transmission persists in the region, although vaccination coverage is improving in some
        countries in Southeast Asia. Influenza infections can occur throughout the year in tropical areas.

        Polio resurfaced in Indonesia in 2005. Imported cases in neighboring countries have
        occasionally occurred.



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        For more information, see the Geographic Distribution of Potential Health Hazards to Travelers
        and Goals and Limitations in determining actual disease risks by destination.

                                           Staying Healthy During Your Trip

        Prevent Insect Bites

        Many diseases, like malaria and dengue, are spread through insect bites. One of the best
        protections is to prevent insect bites by:

                Using insect repellent (bug spray) with 30%-50% DEET. Picaridin, available in 7% and
                15% concentrations, needs more frequent application. There is less information available
                on how effective picaridin is at protecting against all of the types of mosquitoes that
                transmit malaria.
                Wearing long-sleeved shirts, long pants, and a hat outdoors.
                Remaining indoors in a screened or air-conditioned area during the peak biting period for
                malaria (dusk and dawn).
                Sleeping in beds covered by nets treated with permethrin, if not sleeping in an air-
                conditioned or well-screened room.
                Spraying rooms with products effective against flying insects, such as those containing
                pyrethroid.

        For detailed information about insect repellent use, see Insect and Arthropod Protection.

        Prevent Animal Bites and Scratches

        Direct contact with animals can spread diseases like rabies or cause serious injury or illness. It is
        important to prevent animal bites and scratches.
                Be sure you are up to date with tetanus vaccination.
                Do not touch or feed any animals, including dogs and cats. Even animals that look like
                healthy pets can have rabies or other diseases.
                Help children stay safe by supervising them carefully around all animals.
                If you are bitten or scratched, wash the wound well with soap and water and go to a
                doctor right away.
                After your trip, be sure to tell your doctor or state health department if you were bitten or
                scratched during travel.
        For more information about rabies and travel, see the Rabies chapter of the Yellow Book or
        CDC's Rabies homepage. For more information about how to protect yourself from other risks
        related to animals, see Animal-Associated Hazards.


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Be Careful about Food and Water

        Diseases from food and water are the leading cause of illness in travelers. Follow these tips for
        safe eating and drinking:
                Wash your hands often with soap and water, especially before eating. If soap and water
                are not available, use an alcohol-based hand gel (with at least 60% alcohol).
                Drink only bottled or boiled water, or carbonated (bubbly) drinks in cans or bottles.
                Avoid tap water, fountain drinks, and ice cubes. If this is not possible, learn how to make
                water safer to drink.
                Do not eat food purchased from street vendors.
                Make sure food is fully cooked.
                Avoid dairy products, unless you know they have been pasteurized.

        Diseases from food and water often cause vomiting and diarrhea. Make sure to bring diarrhea
        medicine with you so that you can treat mild cases yourself.

        Avoid Injuries

        Car crashes are a leading cause of injury among travelers. Protect yourself from these injuries by:

                Not drinking and driving.
                Wearing your seat belt and using car seats or booster seats in the backseat for children.
                Following local traffic laws.
                Wearing helmets when you ride bikes, motorcycles, and motor bikes.
                Not getting on an overloaded bus or mini-bus.
                Hiring a local driver, when possible.
                Avoiding night driving.

        Other Health Tips

                To avoid animal bites and serious diseases (including rabies and plague) do not handle or
                pet animals, especially dogs and cats, If you are bitten or scratched, wash the wound
                immediately with soap and water and seek medical attention to determine if mediation or
                anti-rabies vaccine is needed.
                To avoid infections such as HIV and viral hepatitis do not share needles for tattoos, body
                piercing, or injections.
                To reduce the risk of HIV and other sexually transmitted diseases always use latex
                condoms.


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                To prevent fungal and parasitic infections, keep feet clean and dry, and do not go
                barefoot, especially on beaches where animals may have defecated.

                                                  After You Return Home

        If you are not feeling well, you should see your doctor and mention that you have recently
        traveled. Also tell your doctor if you were bitten or scratched by an animal while traveling.

        If you have visited a malaria-risk area, continue taking your antimalarial drug for 4 weeks
        (doxycycline or mefloquine) or seven days (atovaquone/proguanil) after leaving the risk area.

        Malaria is always a serious disease and may be a deadly illness. If you become ill with a
        fever or flu-like illness either while traveling in a malaria-risk area or after you return home (for
        up to 1 year), you should seek immediate medical attention and should tell the physician your
        travel history.

        Important Note: This document is not a complete medical guide for travelers to this region.
        Consult with your doctor for specific information related to your needs and your medical history;
        recommendations may differ for pregnant women, young children, and persons who have
        chronic medical conditions.


        Map Disclaimer - The boundaries and names shown and the designations used on maps do not
        imply the expression of any opinion whatsoever on the part of the Centers for Disease Control
        and Prevention concerning the legal status of any country, territory, city or area or of its
        authorities, or concerning the delimitation of its frontiers or boundaries. Approximate border
        lines for which there may not yet be full agreement are generally marked.

        Source: http://wwwn.cdc.gov/travel/destinationMalaysia.aspx

        Medical Care
        MEDICAL FACILITIES AND HEALTH INFORMATION: Medical facilities and
        services are adequate in the larger cities, where Western-trained doctors can be found. The
        U.S. Embassy can provide a list of English-speaking doctors and hospitals upon request.
        Psychological and psychiatric medical and counseling services are limited. Serious medical
        problems requiring hospitalization and/or medical evacuation to the United States can cost
        thousands of dollars or more. Doctors and hospitals often expect immediate cash payment
        for health services although major credit cards are acceptable.

        Malaysian ambulance attendants lack training equivalent to U.S. standards. Callers to
        Malaysia's "999" emergency number (equivalent to the U.S. 911) are connected to the Red
        Crescent, and patients are directed to whichever hospital the dispatcher chooses. Americans
        staying in Malaysia for extended periods, especially those who have known health problems,
        are advised to investigate private ambulance services in their area and to provide family and
        close contacts with the direct telephone number(s) of the service they prefer.


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Air quality in Malaysia is acceptable most of the time. However, when burning of
        vegetation occurs in Malaysia and nearby countries, especially from March through June and
        during September and October, air quality can range from ―unhealthy for sensitive groups‖
        to ―unhealthy.‖

        For information on avian influenza (bird flu), please refer to the Department of State's Avian
        Influenza Fact Sheet.

        The U.S. Department of State is unaware of any HIV/AIDS entry restrictions for visitors to
        or foreign residents of Malaysia.

        Information on vaccinations and other health precautions, such as safe food and water
        precautions and insect bite protection, may be obtained from the Centers for Disease Control
        and Prevention‘s hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or
        via the CDC‘s web site at http://wwwn.cdc.gov/travel/default.aspx. For information about
        outbreaks of infectious diseases abroad consult the World Health Organization‘s (WHO)
        web site at http://www.who.int/en. Further health information for travelers is available at
        http://www.who.int/ith/en.

        Back to Top

        MEDICAL INSURANCE: The Department of State strongly urges Americans to consult
        with their medical insurance company prior to traveling abroad to confirm whether their
        policy applies overseas and whether it will cover emergency expenses such as a medical
        evacuation. Please see our information on travel.state.gov

        Source: http://travel.state.gov/travel/cis_pa_tw/cis/cis_960.html


        3. At A Glance
                                    14 equal horizontal stripes of red (top) alternating with white (bottom); there is a blue
               Flag description:    rectangle in the upper hoist-side corner bearing a yellow crescent and a yellow fourteen-
                                    pointed star; the crescent and the star are traditional symbols of Islam. Malaysia's flag is
                                    based on that of the United States, a country whose democratic ideals the young nation
                                    sought to emulate upon gaining independence from Great Britain in 1957. The 14 stripes
                                    represent Malaysia's states, while the square in the upper left contains the moon and sun
                                    of Islam.

        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html

        http://www.geographia.com/malaysia/




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                       opinions, assessments or positions of the DoD or any other government agency or entity.



            A. Population
                Population:      25,715,819 (July 2009 est.)
              Age structure:     0-14 years: 31.4% (male 4,153,621/female 3,914,962)
                                 15-64 years: 63.6% (male 8,210,373/female 8,143,043)
                                 65 years and over: 5% (male 569,245/female 724,575) (2009 est.)
                Median age:      total: 24.9 years
                                 male: 24.3 years
                                 female: 25.6 years (2008 est.)
         Population growth       1.723% (2009 est.)
                       rate:
                 Birth rate:     22.44 births/1,000 population (2008 est.)
                Death rate:      5.02 deaths/1,000 population (2008 est.)
         Net migration rate:     NA
                                 note: does not reflect net flow of an unknown number of illegal immigrants from other
                                 countries in the region (2009 est.)
               Urbanization:     urban population: 70% of total population (2008)
                                 rate of urbanization: 3% annual rate of change (2005-2010)
                   Sex ratio:    at birth: 1.07 male(s)/female
                                 under 15 years: 1.06 male(s)/female
                                 15-64 years: 1.01 male(s)/female
                                 65 years and over: 0.79 male(s)/female
                                 total population: 1.01 male(s)/female (2009 est.)
            Infant mortality     total: 15.87 deaths/1,000 live births
                       rate:     male: 18.32 deaths/1,000 live births
                                 female: 13.24 deaths/1,000 live births (2009 est.)
          Life expectancy at     total population: 73.29 years
                      birth:     male: 70.56 years
                                 female: 76.21 years (2009 est.)
         Total fertility rate:   2.95 children born/woman (2009 est.)
          HIV/AIDS - adult       0.5% (2007 est.)
           prevalence rate:
         HIV/AIDS - people       80,000 (2007 est.)
                 living with
                 HIV/AIDS:
                HIV/AIDS -       3,900 (2007 est.)
                      deaths:
           Major infectious      degree of risk: high
                    diseases:    food or waterborne diseases: bacterial diarrhea
                                 vectorborn diseases: dengue fever and malaria
                                 note: highly pathogenic H5N1 avian influenza has been identified in this country; it poses a
                                 negligible risk with extremely rare cases possible among US citizens who have close contact
                                 with birds (2009)
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html

            B. Ethnic Groups, Religions and Language
                 Nationality:    noun: Malaysian(s)
                                 adjective: Malaysian
              Ethnic groups:     Malay 50.4%, Chinese 23.7%, indigenous 11%, Indian 7.1%, others 7.8% (2004 est.)
                  Religions:     Muslim 60.4%, Buddhist 19.2%, Christian 9.1%, Hindu 6.3%, Confucianism, Taoism, other
                                 traditional Chinese religions 2.6%, other or unknown 1.5%, none 0.8% (2000 census)
                 Languages:      Bahasa Malaysia (official), English, Chinese (Cantonese, Mandarin, Hokkien, Hakka,
                                 Hainan, Foochow), Tamil, Telugu, Malayalam, Panjabi, Thai



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                                note: in East Malaysia there are several indigenous languages; most widely spoken are Iban
                                and Kadazan
                    Literacy:   definition: age 15 and over can read and write
                                total population: 88.7%
                                male: 92%
                                female: 85.4% (2000 census)
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html

            C. Geography, Climate and Topography
                                   Location:    Southeastern Asia, peninsula bordering Thailand and northern one-third of
                                                the island of Borneo, bordering Indonesia, Brunei, and the South China Sea,
                                                south of Vietnam
                   Geographic coordinates:      2 30 N, 112 30 E
                          Map references:       Southeast Asia
                                    Area:       total: 329,750 sq km
                                                land: 328,550 sq km
                                                water: 1,200 sq km
                       Area - comparative:      slightly larger than New Mexico
                         Land boundaries:       total: 2,669 km
                                                border countries: Brunei 381 km, Indonesia 1,782 km, Thailand 506 km
                                 Coastline:     4,675 km (Peninsular Malaysia 2,068 km, East Malaysia 2,607 km)
                           Maritime claims:     territorial sea: 12 nm
                                                exclusive economic zone: 200 nm
                                                continental shelf: 200 m depth or to the depth of exploitation; specified
                                                boundary in the South China Sea
                                    Climate:    tropical; annual southwest (April to October) and northeast (October to
                                                February) monsoons
                                   Terrain:     coastal plains rising to hills and mountains
                        Elevation extremes:     lowest point: Indian Ocean 0 m
                                                highest point: Gunung Kinabalu 4,100 m
                         Natural resources:     tin, petroleum, timber, copper, iron ore, natural gas, bauxite
                                 Land use:      arable land: 5.46%
                                                permanent crops: 17.54%
                                                other: 77% (2005)
                           Irrigated land:      3,650 sq km (2003)
         Total renewable water resources:       580 cu km (1999)
                   Freshwater withdrawal        total: 9.02 cu km/yr (17%/21%/62%)
        (domestic/industrial/agricultural):     per capita: 356 cu m/yr (2000)
                         Natural hazards:       flooding, landslides, forest fires
            Environment - current issues:       air pollution from industrial and vehicular emissions; water pollution from
                                                raw sewage; deforestation; smoke/haze from Indonesian forest fires
               Environment - international      party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol,
                              agreements:       Desertification, Endangered Species, Hazardous Wastes, Law of the Sea,
                                                Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Tropical
                                                Timber 83, Tropical Timber 94, Wetlands
                         Geography - note:      strategic location along Strait of Malacca and southern South China Sea
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html

        4. Government
          Government type:      constitutional monarchy
                                note: nominally headed by paramount ruler (commonly referred to as the King) and a
                                bicameral Parliament consisting of a nonelected upper house and an elected lower house; all



                                                                  27
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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                                Peninsular Malaysian states have hereditary rulers (commonly referred to as sultans) except
                                Melaka and Pulau Pinang (Penang); those two states along with Sabah and Sarawak in East
                                Malaysia have governors appointed by government; powers of state governments are limited
                                by federal constitution; under terms of federation, Sabah and Sarawak retain certain
                                constitutional prerogatives (e.g., right to maintain their own immigration controls)
                     Capital:   name: Kuala Lumpur
                                geographic coordinates: 3 10 N, 101 42 E
                                time difference: UTC+8 (13 hours ahead of Washington, DC during Standard Time)
                                note: Putrajaya is referred to as administrative center not capital; Parliament meets in Kuala
                                Lumpur
             Administrative     13 states (negeri-negeri, singular - negeri) Johor, Kedah, Kelantan, Melaka, Negeri
                 divisions:     Sembilan, Pahang, Perak, Perlis, Pulau Pinang, Sabah, Sarawak, Selangor, and Terengganu;
                                and one federal territory (wilayah persekutuan) with three components, city of Kuala
                                Lumpur, Labuan, and Putrajaya
             Independence:      31 August 1957 (from the UK)
           National holiday:    Independence Day/Malaysia Day, 31 August (1957)
               Constitution:    31 August 1957 (amended many times, latest in 2007)
              Legal system:     based on English common law; judicial review of legislative acts in the Supreme Court at
                                request of supreme head of the federation; Islamic law is applied to Muslims in matters of
                                family law and religion; has not accepted compulsory ICJ jurisdiction
                    Suffrage:   21 years of age; universal
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html

            A. Executive Branch
          Executive branch:     chief of state: King - Sultan MIZAN Zainal Abidin (since 13 December 2006); (the position
                                of the king is primarily ceremonial)

                                head of government: Prime Minister Mohamed NAJIB bin Abdul Razak (since 3 April
                                2009); Deputy Prime Minister MUHYIDDIN bin Mohamed Yassin (since 9 April 2009)

                                cabinet: Cabinet appointed by the prime minister from among the members of Parliament
                                with consent of the king

                                elections: kings are elected by and from the hereditary rulers of nine of the states for five-
                                year terms; election last held on 3 November 2006 (next to be held in 2011); prime minister
                                designated from among the members of the House of Representatives; following legislative
                                elections, the leader who commands the support of the majority of members in the House
                                becomes prime minister (since independence this has been the leader of the UMNO party)

                                election results: Sultan MIZAN Zainal Abidin elected king; in practice, selection is based on
                                principle of rotation among rulers of states
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html


        Executive

        Executive authority is vested in the Supreme Head of the Federation (Yang di-Pertuan Agong),
        commonly referred to as the king, who is elected by the nine hereditary rulers of the Malay states
        from among their number for a term of five years. He carries out his duties under the
        constitution, which are largely ceremonial, on the advice of the prime minister (Perdana
        Menteri), who must be a member of the lower house of parliament, and the cabinet of ministers



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        (Jemaah Menteri) chosen from among members of both houses of parliament to which it is
        collectively responsible.

        His Royal Highness is the commander-in-chief of the armed forces and has the power to
        safeguard the customs and traditions of the Malay people and the administration of the Islamic
        religion in each state. The federal government exercises authority over a wide range of issues
        including external affairs, defense, internal security, justice (except civil law cases dealt with
        under Islamic and traditional law), federal citizenship, finance, commerce, industry,
        communications, and transportation.

        Under the constitution, the armed forces - like the civil service - owe their loyalty to the king and
        other rulers rather than the government of the day. While the armed forces have never displayed
        any inclination to intervene in politics, senior military officers played an important role in the
        National Operations Council (NOC), which governed Malaysia on a day-to-day basis between
        1969 and 1971, following the May 1969 racial disturbances. The security functions of the NOC
        were subsequently continued by a National Security Council and the NOC could be reactivated
        in an emergency.




                 Head of State: Sultan Mizan Zainal Abidin


        Sultan Mizan Zainal Abidin was installed as Malaysia's 13th
        king in December 2006.

        The sultan is a former ruler of oil-rich Terengganu state. He was
        44 when he was sworn in.

        The king's role is largely ceremonial, although he is nominal
        head of the armed forces and all laws and the appointment of
        every cabinet minister require his assent.

        Under Malaysia's constitutional monarchy, the position of king                  Sultan Mizan Zainal Abidin's
        is rotated every five years between each of the nine hereditary                 role is mainly ceremonial
        state rulers.

        Malaysia's first prime minister, Tunku Abdul Rahman, himself a prince, devised the system after
        independence in 1957 to spread power among the sultans and rajas who had ruled over fiefdoms
        on the Malay peninsula for hundreds of years.

        Source: BBC
        http://news.bbc.co.uk/2/hi/asia-pacific/country_profiles/1304569.stm




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        His Royal Highness Sultan Mizan Zainal Abidin Ibni Almarhum Al-Sultan Mahmud Al-Muktafi
        Billah Shah was born on 22nd January 1962 in the city of Kuala Terengganu.

        Receiving his early education at Sultan Sulaiman Primary School and later at Sultan Sulaiman
        Secondary School, Kuala Terengganu, he then went oversea to extend his study at Geelongs
        Grammar in Melbourne, Australia. In 1988, he finished his study at U.S. International
        University-Europe in London, obtaining his Bachelor of Arts Degree in International
        Relationship on 9th June 1988.

        His Royal Highness had participated in the military course PRE SMC ( E ) 33 at the Army
        School of Languages from 2nd November 1982 to 31st May 1983, and then followed the military
        course SMC 33 at Royal Military Academy, Sandhurst, England from 3rd May 1983, finishing
        the course of Cadet Officer on 9th December 1983. He was commissioned the rank of Honorary
        Lieutenant on 1st March 1984 and put in his services in the Royal Cavalry.

        His Royal Highness was appointed the Crown Prince of the State of Terengganu Darul Iman on
        6th November 1979, and much later, the Acting Sultan of Terengganu from 20th October to 8th
        November 1990.

        On 15th September 1981, he was appointed as Assistant Land Levy Collector, working for a
        period of about a year at the District Land Office in Kuala Terengganu, prior to his departure
        oversea to attend the military course in England. His next appointment on 11th July 1988 was as
        State Administrative Officer at the State Economic Planning Unit (UPEN) in Wisma Darul Iman,
        Kuala Terengganu. Besides working for UPEN, he was also handling the job as Assistant District
        Land Officer at the Kuala Terengganu District Land Office. He was President of the Council for
        Islam and Malay Culture of Terengganu from 1st June 1991 till December 1995.

        His Royal Highness married Her Royal Highness Queen Nur Zahirah on 28th March 1996 in
        Kuala Terengganu. The Royal Couple was blessed with a princess and a prince. Her Highness,
        the Princess Tengku Nadhirah Zaharah was born on 18th December 1996, while His Highness,
        the Prince Tengku Muhammad Ismail was born on 1st March 1998.

        In accordance to the will of Allah The Almighty, on 15th May 1998 (18th Muharram 1419 H.),
        His Royal Highness was commemorated as Sultan for the State of Terengganu and all the areas
        under her dominion.

        His Royal Highness was conferred the dignitary titles of the Darjah Utama Kerabat Terengganu
        (D.K.T.) on 15th May 1998 and, before this, the Darjah Kerabat Terengganu Yang Amat Mulia
        Darjah yang Pertama (D.K.) on 9th March 1981. Other honors and titles he has also received
        include the Darjah Seri Setia Sultan Mahmud Terengganu Yang Amat Terpuji (S.S.M.T) on 12th
        February 1989, the Darjah Seri Paduka Mahkota Terengganu Yang Amat Dihormati ( S.P.M.T.)
        on 6th March 1982, the Darjah Kerabat Baginda Tuanku Syed Putra Jamalulail (D.K.) on 28th
        May 1998, the Darjah Kerabat Johor Yang Amat Dihormati ( D.K. ) and the Darjah Seri Paduka
        Mahkota Johor ( S.P.M.J.) on 8th April 1986. He received the esteemed Darjah Seri Mahkota
        Negara (DMN) on 27th February 1999.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        His hobby includes golf, soccer and scuba diving.

        http://www.muzium.terengganu.gov.my/web/king.htm


                 Prime Minister of Malaysia – Dato' Sri Mohd Najib Bin Tun Abdul Razak


        Dato' Sri Mohd Najib Bin Tun Abdul Razak became the 6th Prime Minister of
        Malaysia on the 3rd of April 2009. He was born on 23rd July 1953 in Kuala
        Lipis, Pahang. Currently, Dato' Sri Mohd Najib is the Member of Parliament for
        Pekan, Pahang.

        Dato' Sri Mohd Najib received his early education at St. John Institution Kuala
        Lumpur. Later on, he pursued his education at Melverns Boys' College,
        Worcestershire, England and then attended the University Of Nottingham,
        England.

        Experience
                Year                                          Post Held
        3rd April 2009        Prime Minister
        Jan 2004 - April 2009 Deputy Prime Minister
        Sept 2008 - Present Minister of Finance
        1999 - 2008           Minister of Defense
        1995 - 1999           Minister of Education
        1990 - 1995           Minister of Defense
        1987 - 1990           Minister of Youth and Sports
        1986 - 1987           Minister of Culture, Youth and Sports
        1982 - 1986           Menteri Besar Pahang
        1982 - 1986           Member, State Assembly (Bandar Pekan)
        1981 - 1982           Deputy Minister of Finance
        1980 - 1981           Deputy Minister of Education
        1978 - 1980           Deputy Minister of Energy, Telecommunications and Posts
        1976 - 1982           Member of Parliament (Pekan)
        1974 - 1976           Executive, Petronas

        Education and Qualifications
        St John's Institution, Kuala Lumpur
        Malven Boy's College, Worchestershire, England
        1974
        BA (Hons) (Econs) - University Of Nottingham, England




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Involvement In Politics
        1976 - 1980
        Head, UMNO Youth (Pekan Division)
        1980 - 1982
        Deputy Head, Pekan UMNO Division
        1982 - present
        Head, Pekan UMNO Division
        1982 - 1983
        Deputy Chairman, Pahang UMNO Liaison Committee
        1983 - 1988
        Chairman, Pahang UMNO Liaison Committee
        1978 - 1986
        EXCO Member, UMNO Youth
        1981 - 1984
        Member, UMNO Supreme Council
        1986 - 1987
        Deputy Head, UMNO Youth
        April 1987
        Acting Head, UMNO Youth
        1988 - 1993
        Head, UMNO Youth
        1993 - present
        UMNO Vice President
        Former Posts
        1977 - 1979
        Chairman, Malaysian Livestock Authority
        President, Malaysian Association Of Youth Hostel
        Chairman, Pahang Unit Trust Berhad
        1982 - 1986
        Chairman, Pahang Development Corporation
        1982 - 1986
        Chairman, Pahang Foundation
        1988 - 1996
        Chairman, Yayasan Gerakbakti Kebangsaan
        Awards
        1976
        Orang Kaya Indera Shahbandar
        1978
        Darjah Sultan Ahmad Shah (DSAP)


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        1983
        Seri Indera Mahkota Pahang
        1985
        Darjah Kebesaran Seri Sultan Ahmad Shah (SSAP)
        1988
        Grand Order Of Youth, Republic Of Korea
        1989
        Special Testimony, United Nations Program On Youth
        1990
        Man Of The Year Award, Timesports, New Straits Times
        1990
        Panglima Negara Bintang Sarawak (PNBS)
        Ph.D. (Honoris Causa)
        1991
        Sports Science, U.S. Academy Of Sports
        1992
        Dato Paduka Mahkota Selangor (DPMS)
        1992
        Knight Grand Cross "First Class" Of The Most Noble Order
        Of The Crown Of Thailand
        1994
        Bintang Yudha Dharma Utama (Indonesia)
        1995
        Distinguished Service Order (Military) - Singapore
        1995
        DUBC (Thailand

        Source: http://www.pmo.gov.my/?menu=page&page=1926
        http://www.pmo.gov.my/?menu=page&page=1930
        http://news.bbc.co.uk/1/hi/world/asia-pacific/country_profiles/1304569.stm#facts
        http://www.mod.gov.my/sub2_page_eng.php?maincode=mind-main001&&sub1code=mind-
        sub1-004&&sub2code=mind-sub2-002




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                       opinions, assessments or positions of the DoD or any other government agency or entity.


                 Cabinet

                                             MEMBERS OF CABINET - MINISTERS

                                Y.A.B. DATO' SRI MOHD. NAJIB BIN TUN HAJI ABDUL RAZAK
                                PRIME MINISTER, MINISTER OF FINANCE

                                Prime Minister's Office,
                                Main Block, Perdana Putra Building,
                                Federal Government Administrative Centre,
                                62502 PUTRAJAYA.

                                   ppm@pmo.gov.my, ybmk@treasury.gov.my
                                   http://www.pmo.gov.my/, http://www.treasury.gov.my

                                Y.A.B. TAN SRI DATO' HAJI MUHYIDDIN BIN MOHD. YASSIN
                                DEPUTY PRIME MINISTER, MINISTER OF EDUCATION

                                Deputy Prime Minister's Office,
                                Level 4 West Block, Perdana Putra Building,
                                Federal Government Administrative Centre,
                                62502 Putrajaya, MALAYSIA

                                   tpm@pmo.gov.my,
                                   http://www.pmo.gov.my/tpm, http://www.moe.gov.my

                                Y.B. DATO' SRI ONG TEE KEAT
                                MINISTER OF TRANSPORT

                                Ministry of Transport,
                                Level 7, Block D5, Parcel D,
                                Federal Government Administrative Centre,
                                62502 PUTRAJAYA.

                                   menteri@mot.gov.my
                                   http://www.mot.gov.my

                                Y.B. SENATOR TAN SRI DR. KOH TSU KOON
                                MINISTER IN THE PRIME MINISTER'S DEPARTMENT

                                Minister in The Prime Minister's Department,
                                Perdana Putra Building,
                                Federal Government Administrative Centre,
                                62502 PUTRAJAYA.

                                   kohtsukoon@pmo.gov.my




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                                Y.B. TAN SRI BERNARD GILUK DOMPOK
                                MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES

                                Ministry of Plantation Industries and Commodities,
                                Level 13, Lot 2G4,Presint 2,
                                Federal Government Administrative Centre,
                                62502, PUTRAJAYA.

                                   pybm@kppk.gov.my
                                   http://www.kpkk.gov.my

                                Y.B. DATO' SERI MOHAMED NAZRI BIN ABDUL AZIZ
                                MINISTER IN THE PRIME MINISTER'S DEPARTMENT

                                Minister in The Prime Minister's Department,
                                Level 15,
                                Menara Parlimen,
                                Jalan Parlimen,
                                50680 KUALA LUMPUR.

                                   padangrengas@parlimen.gov.my
                                   http://www.parlimen.gov.my

                                Y.B. DATO' SERI HISHAMMUDDIN BIN TUN HUSSEIN
                                MINISTER OF HOME AFFAIRS

                                Ministry of Home Affairs,
                                Level 12, Block D1, Parcel D,
                                Federal Government Administrative Centre,
                                62502, PUTRAJAYA.

                                   hishammuddin@moha.gov.my
                                   http://www.moha.gov.my

                                Y.B. DATO' SERI UTAMA DR. RAIS YATIM
                                MINISTER OF INFORMATION, COMMUNICATION AND CULTURE

                                Ministry of Information, Communication and Culture,
                                Level 1, Minister's Office,
                                Sultan Abdul Samad Building,
                                Jalan Raja,
                                50506 KUALA LUMPUR

                                   drrais@heritage.gov.my
                                   http://www.heritage.gov.my

                                Y.B. TAN SRI NOR MOHAMED BIN YAKCOP
                                MINISTER IN THE PRIME MINISTER'S DEPARTMENT

                                Minister in The Prime Minister's Department,
                                Economic Planning Unit,
                                Prime Minister's Department,
                                Block B5 & Block B6,
                                Federal Government Administrative Centre,
                                62502 PUTRAJAYA

                                   normohamed@epu.gov.my
                                   http://www.epu.gov.my/



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                                Y.B. DATUK PETER CHIN FAH KUI
                                MINISTER OF ENERGY, GREEN TECHNOLOGY AND WATER

                                Ministry of Energy, Green Technology and Water,
                                Level 6, Block E4/5, Parcel E,
                                Federal Government Administrative Centre,
                                62668, PUTRAJAYA.

                                   peterchin@ktak.gov.my
                                   http://www.ktak.gov.my/

                                Y.B. DATO' SERI HJ. MOHD SHAFIE BIN HAJI APDAL
                                MINISTER OF RURAL AND REGIONAL DEVELOPMENT

                                Ministry of Rural And Regional Development,
                                Level 9, Block D9, Parcel D,
                                Federal Government Administrative Centre,
                                62606 PUTRAJAYA.

                                   dshafie@rurallink.gov.my
                                   http://www.rurallink.gov.my/

                                Y.B. DATO' SERI MOHAMED KHALED BIN NORDIN
                                MINISTER OF HIGHER EDUCATION

                                Ministry of Higher Education,
                                Level 7, Block E3, Parcel E,
                                Federal Government Administrative Centre,
                                62505 PUTRAJAYA.

                                   mkhaled@mohe.gov.my
                                   http://www.mohe.gov.my/

                                Y.B. DATO' MUSTAPA BIN MOHAMED
                                MINISTER OF INTERNATIONAL TRADE AND INDUSTRY

                                Ministry of International Trade and Industry,
                                Level 15, Block 10,
                                Government Office Complex,
                                Jalan Duta,
                                50622 KUALA LUMPUR.

                                   mustapa@miti.gov.my
                                   http://www.miti.gov.my

                                Y.B. DATUK DR. MAXIMUS JOHNITY ONGKILI
                                MINISTER OF SCIENCE, TECHNOLOGY AND INNOVATION

                                Ministry of Science, Technology And Innovation,
                                Level 7, Block C5, Parcel C,
                                Federal Government Administrative Centre,
                                62662 PUTRAJAYA.

                                   ongkili@mosti.gov.my
                                   http://www.mosti.gov.my/




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                                Y.B. DATUK DOUGLAS UGGAH EMBAS
                                MINISTER OF NATURAL RESOURCES AND ENVIRONMENT

                                Ministry of Natural Resources and Environment,
                                Level 17, lot 4G3,
                                Precint 4,
                                Federal Government Administrative Centre,
                                62514 PUTRAJAYA.

                                   uggah@nre.gov.my
                                   http://www.nre.gov.my/

                                Y.B. DATO' SRI DR NG YEN YEN
                                MINISTER OF TOURISM

                                Ministry of Tourism,
                                Level 36, Menara Dato' Onn,
                                Putra World Trade Centre,
                                45, Jalan Tun Ismail,
                                50695 KUALA LUMPUR.

                                   menteri@motour.gov.my
                                   http://www.motour.gov.my/

                                Y.B. DATO' HAJI NOH BIN OMAR
                                MINISTER OF AGRICULTURE AND AGRO-BASED INDUSTRY

                                Ministry of Agriculture And Agro-Based Industry,
                                Level 17, Wisma Tani,
                                No.28, Persiaran Perdana, Presint 4,
                                62624 PUTRAJAYA

                                   noh@moa.gov.my
                                   http://www.moa.gov.my

                                Y.B. DATO' SERI DR. AHMAD ZAHID BIN HAMIDI
                                MINISTER OF DEFENCE

                                Ministry of Defense,
                                Wisma Pertahanan,
                                Jalan Padang Tembak,
                                50634 KUALA LUMPUR.



                                   http://www.mod.gov.my/

                                Y.B. DATO' SHAZIMAN BIN ABU MANSOR
                                MINISTER OF WORKS

                                Ministry of Works,
                                Level 5, Block A, Kompleks Kerja Raya,
                                Jalan Sultan Salahuddin,
                                50580 KUALA LUMPUR

                                   shaziman@kkr.gov.my
                                   http://www.kkr.gov.my




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                                Y.B. DATO' SRI LIOW TIONG LAI
                                MINISTER OF HEALTH

                                Ministry of Health,
                                Level 13, Block E7, Parcel E,
                                Federal Government Administrative Centre,
                                62590 PUTRAJAYA.

                                   tionglai@moh.gov.my
                                   http://www.moh.gov.my/

                                Y.B. DATO' AHMAD SHABERY CHEEK
                                MINISTER OF YOUTH AND SPORTS

                                Ministry of Youth And Sports,
                                Level 17, Menara KBS,
                                No 27 Persiaran Perdana, Presint 4
                                62570 PUTRAJAYA.



                                   http://www.kbs.gov.my/

                                Y.B. DATUK DR. S. SUBRAMANIAM
                                MINISTER OF HUMAN RESOURCES

                                Ministry of Human Resources,
                                Level 9, Block D3, Parcel D,
                                Federal Government Administrative Centre,
                                62502 PUTRAJAYA.

                                   s.subra@mohr.gov.my
                                   http://www.mohr.gov.my/

                                Y.B. DATO' SRI ISMAIL SABRI BIN YAAKOB
                                MINISTER OF DOMESTIC TRADE AND CONSUMER AFFAIRS

                                Ministry of Domestic Trade and Consumer Affairs,
                                Level 13 (tower), No. 13,
                                Persiaran Perdana, Presint 2,
                                62623 PUTRAJAYA.

                                   ismailsabri@kpdnhep.gov.my
                                   http://www.kpdnhep.gov.my

                                Y.B. DATO' SERI HAJI AHMAD HUSNI BIN MOHAMAD HANADZLAH
                                MINISTER OF FINANCE (II)

                                Ministry of Finance,
                                Level 11, Centre Block, Precint 2,
                                Federal Government Administrative Centre,
                                62592 PUTRAJAYA.

                                   husni@treasury.gov.my
                                   http://www.treasury.gov.my/




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                                Y.B. DATO' SERI KONG CHO HA
                                MINISTER OF HOUSING AND LOCAL GOVERNMENT

                                Ministry of Housing and Local Government,
                                Level 5 North, Block K,
                                Pusat Bandar Damansara,
                                50644, KUALA LUMPUR.

                                   kongchoha@kpkt.gov.my
                                   http://www.kpkt.gov.my/

                                Y.B. SENATOR DATO' SRI SHAHRIZAT ABDUL JALIL
                                MINISTER OF WOMEN, FAMILY AND COMMUNITY DEVELOPMENT

                                Ministry of Women, Family And Community Development,
                                Level 3, Block E,
                                Bukit Perdana Government Office Complex,
                                Jalan Dato' Onn,
                                50515 KUALA LUMPUR



                                   http://www.kpwkm.gov.my/

                                Y.B. DATUK ANIFAH BIN HJ. AMAN
                                MINISTER OF FOREIGN AFFAIRS

                                Ministry of Foreign Affairs,
                                Level 3, Wisma Putra, Presint 2,
                                Federal Government Administrative Centre,
                                62602 PUTRAJAYA.

                                   anifah@kln.gov.my
                                   http://www.kln.gov.my/

                                Y.B. SENATOR DATO' RAJA NONG CHIK BIN DATO' RAJA ZAINAL ABIDIN
                                MINISTER OF FEDERAL TERRITORIES

                                Ministry of Federal Territories,
                                Level 4, Block B2,
                                Menara PJH, Presint 2,
                                Federal Government Administrative Centre,
                                62100 PUTRAJAYA.

                                   datoraja@kwp.gov.my
                                   http://www.kwp.gov.my

                                Y.B. SENATOR MEJAR JENERAL DATO' JAMIL KHIR BIN BAHAROM (B)
                                MINISTER IN THE PRIME MINISTER'S DEPARTMENT

                                Minister in The Prime Minister's Department,
                                Level 9, Block D7, Parcel D,
                                Federal Government Administrative Centre,
                                62519 PUTRAJAYA.

                                   menteri@islam.gov.my
                                   http://www.islam.gov.my

        Source: http://www.pmo.gov.my/?menu=cabinet&page=1797


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                       opinions, assessments or positions of the DoD or any other government agency or entity.



            B. Legislative Branch

         Legislative branch:    bicameral Parliament or Parlimen consists of Senate or Dewan Negara (70 seats; 44
                                appointed by the king, 26 elected by 13 state legislatures; serve three-year terms with limit
                                of two terms) and House of Representatives or Dewan Rakyat (222 seats; members elected
                                by popular vote; serve up to five-year terms)

                                elections: House of Representatives - last held on 8 March 2008 (next to be held by June
                                2013)

                                election results: House of Representatives - percent of vote - BN coalition 50.3%,
                                opposition parties 46.8%, others 2.9%; seats - BN coalition 140, opposition parties 82
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html


        Federal legislative authority is vested in a parliament comprising the Dewan Rakyat (lower
        house) and the Dewan Negara (senate). The King calls for parliamentary proceedings, ends
        parliamentary sessions (on the advice of the cabinet) and dissolves parliament.

        The senate is made up of two members for each state, elected by their own legislatures, plus two
        members representing the territory of Kuala Lumpur and one each from Labuan and Putrajaya,
        appointed by the King. He also appoints a further 40 members from citizens who, in his opinion,
        have distinguished themselves in public service, the professions or community service, or are
        representative of racial minorities, or capable of representing the interests of aborigines. Senators
        serve for a term of three years, which is not affected by a dissolution of parliament, and may only
        hold office for a maximum of two terms.

        The lower house consists of 219 members elected through universal adult suffrage for a five-year
        term in single-seat constituencies. Legislative power is divided between federal and state
        legislatures, with each of the 13 states having its own unicameral state assembly and government
        headed by a chief minister.

        Source: Jane‘s Information Group
            C. Judicial Branch

            Judicial branch:    Civil Courts include Federal Court, Court of Appeal, High Court of Malaya on peninsula
                                Malaysia, and High Court of Sabah and Sarawak in states of Borneo (judges are appointed
                                by the king on the advice of the prime minister); Sharia Courts include Sharia Appeal Court,
                                Sharia High Court, and Sharia Subordinate Courts at state-level and deal with religious and
                                family matters such as custody, divorce, and inheritance only for Muslims; decisions of
                                Sharia courts cannot be appealed to civil courts
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html

        The Supreme Court (formerly the Federal Court) is the highest court of appeal, having replaced
        the right of appeal to the Privy Council in London in 1983. However, there is a limited right of
        appeal from the Supreme Court to the King. The Supreme Court has exclusive jurisdiction over



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        appeals from the High Courts and also arbitrates in disputes between state and federal
        governments or between state governments.

        Below the Supreme Court, there are two High Courts (one for Peninsular Malaysia and the other
        for Sabah and Sarawak in East Malaysia). Inferior courts include Sessions Courts, Magistrates'
        Courts, Penghulu's Courts (in Peninsular Malaysia) and Native Courts (in Sabah and Sarawak).
        There are also Juvenile Courts. The legal system is loosely based on English common law;
        although Islam is Malaysia's official religion, federal laws are secular.

        At the state level, there are also religious Kadi courts, which implement sharia (Islamic law).
        Since the 1980s, Islamic laws have been enforced more rigorously in relation to the observation
        of fasting rules during Ramadan, sexual behavior, mosque attendance and the collection of
        obligatory alms taxes.

        Since the late 1980s, the executive has significantly undermined the independence and power of
        the judiciary. Legislation in 1988 amended the constitution to allow the state to choose judges for
        particular cases and to restrict the role of judges and magistrates to apportioning guilt and to
        assigning precise penalties. The Supreme Court is apparently exempt from the provisions of the
        constitutional amendments.

        The judiciary has been under considerable pressure since the 1990s, notably since former deputy
        prime minister Anwar Ibrahim was detained on charges widely believed to be fabricated. Many
        of the judicial decisions on political detentions tarnished the reputation of the judiciary, which
        had maintained British traditions of rule of law, fairness and justice in the first three decades of
        the country's independence.

        Several rulings over the past decade have raised doubts over the government's action in detaining
        individuals without trial, notably through use of the Internal Security Act (ISA). When the
        country's chief justice, Mohammed Dzaiddin Abdullah, assumed office in 2001 he promised to
        bring about major judicial reforms, but quickly found himself in a delicate situation when he
        agreed to head the three-man panel of Federal Court judges appointed to hear Anwar's appeal.

        The country's Federal Court faced several potential confrontations between the executive and the
        judiciary in 2002. In February 2002, the Federal Court took up a habeas corpus appeal by several
        leaders of the Reformasi movement (which began in the wake of Anwar's detention) held under
        the ISA without trial. Anwar was convicted on charges of corruption in April 1999 and sentenced
        to six years' imprisonment, and on charges of sodomy in August 2000 and sentenced to nine
        years' imprisonment. The Federal Court heard an appeal from Anwar in March 2002, which was
        dismissed in July, causing public anger. On 2 September 2004 the Federal Court ruled that the
        High Court had misdirected itself in convicting and sentencing Anwar and that the evidence of
        the prosecution's main witness was uncorroborated and ordered him to be freed. Despite this
        positive step, the court refused to hear an appeal by Anwar against his original corruption
        conviction, thus barring him from formal political activity until 14 April 2008 and suggesting the
        continued influence of the executive.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Malaysia's parliament passed two reform bills aimed at tackling the country's entrenched culture
        of political corruption in December 2008. One of the bills was the Judicial Appointments
        Commission Bill, ostensibly aimed at restoring the independence of the judiciary and improved
        transparency in the appointment and promotion of senior judges. However, the prime minister
        retains the authority to appoint and sack the majority of the members on the commission.
        Source: Jane‘s Information Group


            D. Political Parties and Leaders

             Political parties   National Front (Barisan Nasional) or BN (ruling coalition) consists of the following parties:
                and leaders:     Gerakan Rakyat Malaysia Party or PGRM [KOH Tsu Koon]; Liberal Democratic Party
                                 (Parti Liberal Demokratik - Sabah) or LDP [LIEW Vui Keong]; Malaysian Chinese
                                 Association (Persatuan China Malaysia) or MCA [ONG Tee Keat]; Malaysian Indian
                                 Congress (Kongres India Malaysia) or MIC [S. Samy VELLU]; Parti Bersatu Rakyat Sabah
                                 or PBRS [Joseph KURUP]; Parti Bersatu Sabah or PBS [Joseph PAIRIN Kitingan]; Parti
                                 Pesaka Bumiputera Bersatu or PBB [Abdul TAIB Mahmud]; Parti Rakyat Sarawak or PRS
                                 [James MASING]; Sarawak United People's Party (Parti Bersatu Rakyat Sarawak) or SUPP
                                 [George CHAN Hong Nam]; United Malays National Organization or UMNO [NAJIB bin
                                 Abdul Razak]; United Pasokmomogun Kadazandusun Murut Organization (Pertubuhan
                                 Pasko Momogun Kadazan Dusun Bersatu) or UPKO [Bernard DOMPOK]; People's
                                 Progressive Party (Parti Progresif Penduduk Malaysia) or PPP [M.Kayveas]; Sarawak
                                 Progressive Democratic Party or SPDP [William MAWAN])

                                 People's Alliance (Pakatan Rakyat) or PR (opposition coalition) consists of the following
                                 parties: Democratic Action Party (Parti Tindakan Demokratik) or DAP [KARPAL Singh];
                                 Islamic Party of Malaysia (Parti Islam se Malaysia) or PAS [Abdul HADI Awang]; People's
                                 Justice Party (Parti Keadilan Rakyat) or PKR [WAN AZIZAH Wan Ismail]; Sarawak
                                 National Party or SNAP [Edwin DUNDANG]

                                 independent party: Sabah Progressive Party (Parti Progresif Saban) or SAPP [YONG Teck
                                 Lee]
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html

        Political Parties

        Malaysian politics have been dominated since independence by the United Malays National
        Organization (UMNO) and its coalition partners, principally the Malaysian Chinese Association
        (MCA) and Malaysian Indian Congress (MIC), grouped together within the National Front
        (Barisan Nasional: BN) coalition.

        The ruling parties and their allies have long benefited from the industrialization of the Malaysian
        economy and the movement of people from the countryside to the cities. The BN, which
        encompasses a large number of small and ethnically-specific parties, has built on these trends to
        win elections with huge majorities.

        The absence of any credible opposition allowed Malaysia to build a reputation as a successful
        moderate Muslim 'managed' democracy. The New Economic Policy (NEP) introduced in 1971
        ensured Malays controlled or benefited from at least one third of the national economy in an
        attempt to redress the imbalance that saw wealth concentrated in the hands of urban ethnic


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Chinese. The NEP has led to the creation of a large ethnic Muslim Malay middle class, rooted
        mainly in the public sector. The rise of this largely urban group has been matched by the decline
        in the political significance of the previously important rural Malay population. These trends
        have been complemented by an increasing secularization among urban Malays and a greater
        emphasis of Islamic cultural and religious observances (often 'imported' from the Middle East)
        among rural Malays.

        This has led to the Malay vote being divided between those who support a vision of the country's
        future as a modern and dynamic industrial-based economy and those who seek the certainties of
        social continuity and dependence on the land. It also helped engender resentment within the
        Malay community towards the small elite who had prospered under the NEP. Such tensions
        found their expression in the March 2008 elections, when a combination of urban and traditional
        Malays and ethnic Chinese and Indian voters ended, for the first time since 1969, the BN's two-
        thirds majority in parliament, bringing Malaysia into a new and perhaps more unstable era.

        March 2008 election

        Malaysian voters sent a sharp message to the ruling BN coalition in the 8 March general
        elections. The poll results revealed both widespread dissatisfaction with the government and
        signaled that the country's ethnic-based power-sharing model based on the majority Malay
        community retaining political hegemony may be coming to an end. The BN won 140 seats of the
        222-member federal parliament while the opposition, comprising the Democratic Action Party
        (DAP), the Islamic Party of Malaysia (Parti Islam se-Malaysia: PAS) and People's Justice Party
        (Parti Keadilan Rakyat: PKR/Keadilan), won 82 seats. The opposition also won control of the
        states of Kedah, Perak, Selangor and Penang. The PAS strengthened its hold over Kelantan,
        which before the election was the only state controlled by the opposition, highlighting the
        country's radically different political landscape. The 2008 results stand in stark contrast to the
        2004 general elections when the BN secured 199 seats of the 219-member parliament, while the
        opposition only managed to win 21 seats.

        The key outcome of the polls was the BN's loss of its two-thirds majority that had allowed the
        government to alter the constitution at will. This was only the second time this had happened
        since independence in 1957. The previous occasion was in 1969 when the threatened loss of
        power in elections saw sections within the Malay community launch a brief but bloody assault
        on the ethnic Chinese - and to a lesser extent Indian - communities. The official death toll was
        around 200 - the unofficial estimate in the low thousands.

        The challenge now is for both sides to hold together their coalitions under what are certain to be
        testing political and economic conditions. The ruling United Malays National Organization and
        the wider BN coalition face internal pressures that could create deep and perhaps generational
        rifts which would erode their capacity to govern effectively. The opposition is united principally
        by the shared desire of removing the BN rather any coherent alternative strategy for government.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.




        March 2008 elections

        Election results by parliamentary seats

        Political Party                                                              Seats in 2004 Seats in 2008
        Barisan Nasional:
        United Malays National Organization (UMNO)                                   109            79
        Malaysian Chinese Organization (MCA)                                         31             15
        Pesaka Bumiputera Bersatu (PBB)                                              11             14
        Sarawak United People's Party (SUPP)                                         6              6
        Parti Sarawak Rakyat (Sarawak People's Party - PRS)                          6              6
        Malaysian Indian Congress                                                    9              3
        Gerakan Rakyat Malaysia (Malaysian People's Movement Party - Gerakan) 10                    2
        Sarawak Progressive Democratic Party (SPDP)                                  4              4
        Parti Bersatu Sabah (PBS)                                                    4              3
        United Pasok Momogun Kadazandusun Organization (UPKO)                        4              3
        Sabah Progressive Party (SAPP)                                               2              3
        Parti Bersatu Rakyat Sabah (Sabah People's United Party - PBRS)              1              1
        Parti Liberal Demokratik (Liberal Democratic Party)                          0              1
        People's Progressive Party (PPP)                                             1              0
        Pakatan Rakyat (opposition coalition):
        Parti Keadilan Rakyat (People's Justice Party - PKR/Keadilan)                1              31
        Democratic Action Party (DAP)                                                12             28
        Parti Islam se Malaysia (Islamic Party of Malaysia- PAS)                     7              23
        Independent                                                                  1              0


        United Malays National Organization (UMNO)

        UMNO was formed in May 1946 as a moderate anti-colonial political movement. The party, as
        its name implies, is intended to further the interest of the country's Malay population. UMNO has
        remained the dominant political party since the country's first post-independence general election
        in 1959. Since inception the party has been riven by factions, drawn from the more powerful
        states such as Johor and Selangor and from generational groups either seeking to gain or
        maintain power. The UMNO-led coalition's de facto monopoly on power has prevented any
        meaningful ideological agenda from emerging, and power is sought broadly to maintain the
        communal status quo and for commercial advantage.

        Efforts to alter this nexus have been dealt with harshly, particularly by former prime minister
        Mahathir Mohamad. A self-described champion of Malay rights and aspirations, Mahathir ruled
        UMNO with a combination of greed and fear. Those who accepted Mahathir's position were
        rewarded with office and, it is alleged, commercial advantages. Those, like Anwar Ibrahim and


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        his predecessors as deputy prime minister, who failed to show total loyalty to their patron were
        removed. Anwar's fall was particularly shocking to senior UMNO members since he had been
        extremely close to Mahathir and yet found himself facing a 15-year prison sentence.

        Mahathir's successor, Abdullah Badawi, attempted to move away from the former's model of
        authoritarian party control. In September 2004, Anwar was able to appeal his sodomy conviction
        and was released from prison (although an extant corruption conviction kept him out of formal
        politics until April 2008). Although such moves were popular with voters, Abdullah was unable
        to prevent the rise of an increasingly cohesive and powerful opposition movement.

        The result of the March 2008 election stunned the UNMO leadership. The ruling National Front
        (Barisan Nasional: BN) coalition had failed to recognize the depth of anger building among
        lower income Malaysians over the excesses of the Malay/UMNO elite. This ill-feeling coincided
        with internal party divisions in the BN, and the emergence of a credible opposition in the
        Pakatan Rakyat (PR) coalition. Abdullah was widely blamed for the poor results and moves were
        initiated to replace him, revealing internal fissures within the party. Abdullah was forced to
        announce that he would not see out his full term. On 26 March 2009, Najib Razak, who had been
        deputy prime minister, was elected president of UMNO, and thereby automatically became
        prime minister. Najib assumes the premiership with a murky reputation resulting from his
        alleged connection to a series of scandals involving murder and corruption.

        Najib was elected to re-establish UMNO's dominance and to this end he is likely to try to woo
        ethnic minorities and members of the Islamic Party of Malaysia (Parti Islam se-Malaysia: PAS)
        to the BN coalition. He has also chosen to restore the Mahathir-era economic pattern of directing
        public funds to favored corporations. The BN has been taking an aggressive approach in 2009,
        using dubious constitutional means to wrest control of the Perak state legislature even though the
        opposition had won control of the state the year before, and attempting to destabilize the PR's
        governments in Kedah and Selangor. Such moves are likely to see increasing tensions between
        the government and Anwar's opposition movement.


                                         Former prime minister Abdullah Badawi delivers a speech at the 59th
                                         UMNO party congress in Kuala Lumpur, July 2005. (EMPICS)

                                                                                                                   1150459


        Peoples' Justice Party (Parti Keadilan Rakyat: PKR, or Keadilan)

        The Peoples' Justice Party was launched in August 2003 as a result of the merger between the
        multi-ethnic leftist Malaysian People's Party (Parti Rakyat Malaysia: PRM) and the National
        Justice Party (Parti Keadilan Nasional: PKN). It was established in April 1999 by the wife of
        Anwar Ibrahim, Wan Azizah Wan Ismail. The PKR was created after Anwar's incarceration on
        corruption charges in order to capitalize on the burgeoning Reformasi movement (formed in
        support of Anwar, who was widely seen as a victim of political machinations). In March 2004
        the PKR virtually ceased to exist, losing four of its five parliamentary seats; only Wan Azizah


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        held on to her constituency. The defeat appeared to signal the end of the political campaign to
        secure Anwar's release.

        Anwar's release in September 2004 reinvigorated the flagging party, which quickly gathered
        support in anticipation of a political confrontation with the ruling BN coalition. In the event the
        government gave the party further credibility by calling the March 2008 election a week before
        Anwar was entitled to once again run for public office. This convinced many voters that the
        United Malays National Organization (UMNO) was worried by Anwar's appeal among the
        Malay community, and that a vote for Anwar's allies served as an effective form of protest.
        Despite being barred from public office, Anwar travelled the country addressing often huge
        crowds. The PKR ended up with 31 seats, while its allies in the Pakatan Rakyat (PR) coalition
        more than doubled their presence in parliament.

        In late June 2008, in a move that startled most Malaysians, the police announced it was
        investigating new allegations of sodomy against Anwar - who denied the charges and claimed
        they were politically motivated. Much of the population agreed with Anwar's interpretation and
        the episode only increased his popularity, presaging an overwhelming by-election victory when
        he stood his wife's former seat in Penang state in August 2008. He declared that he would,
        through defections of BN members of parliament, topple the government by 16 September 2008,
        the Malaysia Day holiday. The government responded by sending around 50 members on a
        'research' mission to Taiwan - many of them from the small east Malaysian parties that were
        likely to defect from the ruling coalition and join Anwar (he required around 30 defectors in
        order to end the BN's parliamentary majority). In the event the date passed without incident, and
        Anwar by early 2009 appeared to have been largely unsuccessful in encouraging defections.

        Malaysian Chinese Association (MCA)

        The MCA's principal purpose is to deliver the Chinese vote for the BN coalition. The Malaysian
        Indian Congress (MIC) has the same function within the country's Indian community. Efforts to
        remove or circumvent the ethnic basis of national politics have largely failed, and the MCA
        continues to serve as the principal political conduit of Chinese influence within the BN.

        This near monopoly has made the MCA vulnerable to criticism from its many detractors within
        the Chinese community, where many view it as conservative and authoritarian. The MCA's
        senior leadership is routinely accused of corruption and association with suspected organized
        crime leaders. The MCA's lack of influence on the BN's political agenda is also frequently
        criticized by its two main Chinese-based political rivals, the Penang-based Gerakan Rakyat
        Malaysia, which is also a member of the coalition and one of the few Malaysian parties that
        seeks to attract multi-ethnic support, and the more left-leaning opposition Democratic Action
        Party (DAP).

        The MCA's representation in parliament was halved in March 2008 elections to 15 MPs, almost
        exactly the number of seats gained by the DAP. In part, the poor results reflected a broader
        mistrust of the BN as a whole, but within the ethnic Chinese community it also pointed to an
        impatience with the MCA's lack of influence over dominant Malay elements within the coalition.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        The Chinese community is increasingly concerned, and angered, by the rise in racial tension
        since the elections. Many view this as a tactic by certain Malay politicians to create a sense of
        menace that will force the Chinese community to support the BN and avoid political action that
        disadvantages the Malays. Chauvinistic remarks have entered the public discourse, such as the
        comment by one local United Malays National Organization leader that the Chinese community
        were "squatters" with no permanent ties to the country. The government's response to this
        example emphasizes that Chinese suspicions are not unfounded: although the politician was
        admonished for his remarks, the ethnic Chinese journalist who reported the story was arrested
        and detained under the Internal Security Act (ISA).

        Democratic Action Party (DAP)

        The DAP was founded in March 1966 and is closely identified with the urban ethnic-Chinese
        community. The party, originally the Malaysian branch of Singapore's People's Action Party
        (both parties continue to share the 'blue circle' symbol), follows a moderate left-wing agenda.

        In a bid to offer a greater challenge to the BN coalition and take advantage of the popular
        opposition to the arrest of Anwar Ibrahim in 1999, the DAP made the ill-judged decision to join
        the Barisan Alternatif (BA) alliance, linking it to the Islamic Party of Malaysia (Parti Islam se
        Malaysia: PAS). The DAP's many Chinese supporters reacted to this move by failing to return
        the DAP's chairman Lim Kit Siang in the 1999 general election. In 2001 the DAP left the BA
        after a series of disputes with PAS. In the March 2004 elections the DAP added two
        parliamentary seats for a total of 12, including one gained by Lim with a majority of around
        10,000 votes. Following PAS' loss of 19 seats in the 2004 polls, the DAP's 12 members of
        parliament make the party Malaysia's formal parliamentary opposition.

        In March 2008 the DAP more than doubled their number of members of parliament to 28, almost
        all at the expense of the Malaysian Chinese Association (MCA).

        In early February 2009, Karpal Singh, head of the DAP, which is a member of the PR opposition
        bloc, called for Anwar to step down. Singh accused Anwar of creating a political party that
        "promotes party hopping". Singh's charge came after the PR lost control of the Perak state
        assembly following the defection of four lawmakers from the opposition bloc to the ruling BN
        coalition. These defections overturned the PR's slim parliamentary majority in the state assembly
        in favor of the BN. While tensions between the leaders and Anwar have since eased, there is a
        risk that the opposition alliance will increasingly suffer from a lack of cohesion, given its internal
        political, cultural and religious contradictions.

        Islamic Party of Malaysia (Parti Islam se Malaysia: PAS)

        The results of the March 2004 general election largely removed PAS from the country's short- to
        medium-term political equation. With only seven parliamentary seats (down from 26), PAS has
        relinquished its role as Malaysia's formal opposition party to the ethnic-Chinese based
        Democratic Action Party (DAP). The loss of the state government in Terengganu has further
        eroded PAS' east coast power base, leaving it with only a single-seat majority in Kelantan's state
        assembly.


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        PAS' fortunes were regenerated by Anwar's decision to engage the party and bring it into his
        opposition coalition, the Pakatan Rakyat (PR). Anwar verbally supported PAS in the Pelangkar
        Pasir by-election in December 2005, which the party narrowly lost. Nevertheless, his
        involvement with PAS appeared to have an impact when in June 2006 the party announced it
        was seeking non-Muslim members. PAS also actively toned down its Islamic message, albeit at
        the risk of alienating its core supporters, in order to win over non-Muslim opponents of the BN.

        In March 2008 PAS increased its parliamentary representation from seven to 23 seats. The party
        also took the largest number of seats in state assembly elections in its Kelantan stronghold and
        Kedah. However, PAS is likely to find it increasingly difficult to balance the interests of its
        traditional rural-based Malay supporters with the largely urban preoccupations of the other PR
        parties. PAS will also be seen as the weakest link in the opposition by the United Malays
        National Organization, who will seek to exploit any divisions or contradictions in the party's
        Islamic credentials and its alliance with either 'liberal' or non-Muslims.

        Source: Jane‘s Information Group

             E. Political Pressure Groups and Leaders

          Political pressure    Bar Council BERSIH (electoral reform coalition); PEMBELA (Muslim NGO coalition)
        groups and leaders:     other: religious groups; women's groups; youth groups
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html

            F. Foreign Affairs

        Foreign Policy Overview

        In the years since independence in 1957, Malaysia has moved from overt support for pro-
        Western, anti-communist foreign policy to its present position centered on a more assertive
        domestic political and economic nationalism coupled with identification with the developing
        world. Malaysia has also increasingly identified with the Muslim world while accepting the
        central role of the UN. Both concerns combined when the government sent mechanised infantry
        units and supporting arms to serve in Somalia (1993-95) and Bosnia (1993-98).

        Tension with developed nations regularly came to a head under former prime minister Mahathir
        Mohamad, with occasional bouts of nationalistic rhetoric and anti-colonial criticism of leading
        nations. Malaysian and Western pragmatism has largely allowed such moments not to distort the
        generally good relationship between the country and its main trading partners, neighbors and
        strategic allies. However, this inconsistency and Mahathir's public anti-Semitic outbursts have
        certainly harmed Malaysia's international standing. Prime Minister Abdullah Badawi, who came
        to power in 2003, has established a more low-key and emollient diplomatic profile during his
        tenure, with a greater emphasis on pragmatism and less on passion.

        Nevertheless, Abdullah's government has faced pressure from all its immediate neighbors and
        fellow Association of Southeast Asian Nations (ASEAN) members. In 2005 Indonesia suddenly
        raised the ante on a summering maritime demarcation dispute in contested waters off Sabah, a


                                                                  48
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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        move that helped reignite a claim to the state by the Philippines . Since then, Malaysian-
        Indonesian relations have oscillated between indifference and often heated exchanges over
        seemingly trivial issues, such as the row in 2007, when Indonesia claimed Malaysia had stolen
        one of their folk songs for use in a tourism campaign. Deeper problems in the relationship are set
        to be exposed following the Malaysian government's decision in 2008 to repatriate hundreds of
        thousands of Indonesian nationals working both legally and illegally in the country. Ties with the
        Philippines may also suffer due a similar campaign aimed at repatriating thousands of Filipino
        residents of Sabah. Further, Malaysia's decision in 2008 to withdraw its military monitors from
        Mindanao, where they had served as a de facto buffer between Muslim separatists and the
        Philippine military, has also strained relations between the two governments.

        To the north, the actions of the Thai authorities in the Muslim-dominated southern provinces just
        across the Malaysian border have raised emotions among sections of the Malay population and
        strained relations between Putrajaya and Bangkok. Bangkok has been alarmed by the rise of the
        Islamic Party of Malaysia (Parti Islam se-Malaysia: PAS) in 2008 as a component of the
        powerful opposition coalition. PAS' heartlands include Malaysia's northern states that border
        Thailand, and there are concerns in Bangkok that its increasing influence may damage the
        previously high degree of cross-border cooperation.

        Relations with Singapore remain complex, with periods of relative calm interspersed with often
        bellicose antipathy that reveal potentially destabilizing levels of animosity between the
        neighboring countries. This was highlighted in early 2008 following the International Court of
        Justice (ICJ) ruling that Singapore had a legitimate claim to the disputed Batu Puteh/Pedra
        Branca islet at the eastern end of the Johor Straits. Malaysia's was partly mollified by ICJ's
        finding that other associated reefs and rocks either belonged to Malaysia or remained
        contentious. The ICJ ruling also triggered a search in Malaysia for other potential sovereignty
        issues among the country's numerous offshore islands, reefs and sandbanks that may be subject
        to dispute. All these disputes point to unresolved and often previously unacknowledged issues
        that can fuel suspicion and even animosity between Malaysia and its immediate neighbors.

        Multilateral Relations

        Association of Southeast Asian Nations (ASEAN)

        Malaysia was a founding member of ASEAN in 1967 and the organization has subsequently
        provided a framework for developing political, economic and bilateral security co-operation
        measures with neighboring countries. However, largely because of its geographical location and
        former prime minister Mahathir Mohamad's assertive leadership style, Malaysia has often caused
        bilateral tension within ASEAN. Mahathir's failure to gain sufficient ASEAN support for his
        proposed East Asian Economic Caucus (EAEC) strained the country's ties with key neighbors,
        notably Singapore.

        Malaysia's EAEC proposal, based around an annual dialogue between ASEAN's 10 members and
        three north Asian states of China, Japan and South Korea, survived as 'ASEAN plus three'. The
        group has met annually since 2000 to discuss political, economic, security and tourism issues. At
        a recent meeting in Bali in October 2003, China acceded to ASEAN's Treaty of Amity and Co-



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        operation that binds signatories to the peaceful resolution of territorial disputes, which holds
        particular relevance for China's ongoing claims of large swaths of the South China Sea and the
        entirety of the Spratly Islands archipelago. ASEAN's core member states also signed a
        declaration agreeing to the establishment of a free trade zone among the association members by
        2020.

        ASEAN is also seeking to establish an anti-terrorism treaty among its members. At the Bali
        conference ASEAN leaders agreed that the grouping should use all existing institutions, agencies
        and mechanisms to strengthen national and collective counter-terrorism efforts. A great deal
        more work is necessary, however, before such an initiative produces a coherent and mutually
        acceptable region-wide anti-terrorism framework that can achieve more than existing and
        invariably discrete co-operation.

                                ASEAN leaders at the start of the 11th ASEAN summit in Kuala Lumpur,
                                December 2005. (EMPICS)

                                                                                                                   1150456


        Five Power Defense Arrangement (FPDA)

        The FPDA, established in 1971, is a low-key, consultative defense pact involving Australia,
        Malaysia, New Zealand, Singapore and the UK. The FPDA provides a context for continuing
        defense co-operation between the Commonwealth powers, and also for military confidence-
        building between the two Southeast Asia and three extra-regional countries. Malaysia hosts or
        participates in regular FPDA exercises ('Flying Fish', 'Starfish', 'Major Adex' and 'Suman
        Warrior'). In June 2003 a 15-day 'Flying Fish' exercise was held in the South China Sea
        involving 24 warships and more than 70 aircraft from all participating countries.

        FPDA defense ministers agreed in early 2004 to restructure the grouping and focus greater
        attention on terrorism, maritime security and other non-conventional threats. In September 2004
        a week-long exercise ('Bersama Lima') involving 31 warships, two submarines, 60 aircraft and
        more than 3,500 personnel took place off Malaysia and Singapore. The exercise, the largest
        conducted by FPDA forces in recent years, was also the first to involve maritime counter-
        terrorism training in the group's 33-year history. Bersama Lima exercises have been held to test
        FPDA air and naval forces in the defense of Malaysia and Singapore as well as meeting such
        non-state maritime security threats as terrorism and piracy. The latest took place in the South
        China Sea in October 2008.

                                FPDA representatives during Bersama Lima 2005 in Kuantan airbase,
                                Malaysia, September 2005. (EMPICS)

                                                                                                                   1134620


        Non-Aligned Movement (NAM)


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Malaysia held the chair of the NAM between 2003 and 2006 before handing over to Cuba.
        Malaysia was initially a strong supporter of the grouping, particularly under the premiership of
        Mahathir Mohamad who viewed the organization as a useful forum in which to criticize the West
        without openly aligning with the USSR. However, Putrajaya achieved little during its
        stewardship of NAM, principally because the 116-strong organization‘s purpose and direction
        has been in doubt since the end of the Cold War and the emergence of other economic and
        regional groupings offering more specific and less aspirational benefits.

        Organization of the Islamic Conference (OIC)

        Under Mahathir's leadership, Malaysia played an active role in the OIC, notably over the plight
        of Muslims in the Palestinian Occupied Territories, Bosnia-Herzegovina and the Russian
        Federation autonomous republic of Chechnya. Malaysia has provided development assistance to
        OIC countries through the Malaysian Technical Co-operation Program and maintains cordial
        links with Saudi Arabia and Iran. It has refused to open diplomatic relations with Israel. One of
        Mahathir's last roles in office was to officiate over the 10th OIC summit in Putrajaya, outside
        Kuala Lumpur, in October 2003, where he delivered a speech claiming that Jews ran the world,
        sparking international condemnation.

        Malaysia can be expected to maintain a generally moderate position on Islamic issues during the
        tenure of Prime Minister Abdullah Badawi and this stance is unlikely to change in the event that
        the opposition Pakatan Rakyat (PR) coalition led by Anwar Ibrahim comes to power. While the
        three-party PR coalition includes the Islamic Party of Malaysia (Parti Islam se-Malaysia: PAS),
        there would be little political incentive for a multi-ethnic PR government to harden its position
        on Muslim issues.

        United Nations

        Malaysia completed a two-year period as a member of the UN Security Council at the end of
        2000. As with other supranational organizations, Malaysia has traditionally valued the UN as a
        forum in which smaller, less powerful countries can air grievances and put across opinions,
        although the various failings and limitations of the organization are not lost on Putrajaya.
        Malaysian troops have served in UN operations in the Democratic Republic of Congo, Namibia,
        Cambodia, Somalia and Bosnia since joining the world body upon independence.

        Relations with Australia

        Malaysia's relations with Australia are generally good, particularly their economic relationship.
        Malaysia is Australia's 11th largest trading partner, with total trade in 2007 of USD8.81 billion (a
        slight decline on the USD10.03 billion of 2006).. However, the association is subject to sporadic
        political disputes. Previously these tensions have been linked to former premier Mahathir
        Mohamad's efforts to reinforce his credentials as an independent Asian nationalist. Although
        Prime Minister Abdullah Badawi is unlikely to actively seek such confrontations, these mild
        tensions will always plague the bilateral relationship.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Mahathir often highlighted the lack of cultural or racial ties between Australia and Southeast
        Asia. Although Australia views Malaysia as a valuable market for its service and agricultural
        sectors and tries to shrug off such criticism, there are occasional signs of Australia's low-level
        resentment and animosity.

        Earlier tension created by Australia's burgeoning interventionist role in the region appear to have
        eased. However, Australian Prime Minister Kevin Rudd announcement in September 2008 that
        Canberra intended to increase defense expenditure in order to match a regional arms build-up
        may reignite latent suspicions. In September 2004, then prime minister John Howard angered
        Malaysia by reiterating that Australia would be prepared to launch pre-emptive strikes on
        terrorist targets in the region. Nevertheless, Prime Minister Abdullah visited Australia in April
        2005, the first by a Malaysian prime minister in more than 20 years, indicated that diplomatic
        pragmatism and trade would remain a stronger bond than suspicion and animosity.

        Australia continues to maintain a significant military presence in Malaysia under the Five Power
        Defense Arrangement (FPDA). The Royal Australian Air Force deploys F/A-18A/B and F-
        111A/C aircraft to the Malaysian air base at Butterworth for several months each year. There is
        also a long-term Australian detachment of AP-3C maritime patrol aircraft and an infantry
        company at Butterworth. Bilateral exercises under the FPDA include the Bersama Lima (tri-
        service), 'Stardex' (triservice),'Suman Warrior' (army), IADS (navy) and 'Flying Fish' (air force
        and navy) series. In addition, Australian and Malaysian forces conduct bilateral exercises,
        notably 'Mastex' (navy) and 'Haringaroo' (army).

                              Prime Minister Abdullah Badawi and then Australian prime minister John
                              Howard announce the opening of negotiations for a bilateral free trade
                              agreement in Canberra in April 2005 (EMPICS)

                                                                                                                   1134189

        Relations with Brunei

        Relations between Brunei and Malaysia appear to have improved since the strain over the
        demarcation of territorial rights to oil and gas fields around their respective sea and land borders.
        A rise in tension was triggered by an offshore oil find at Kikeh, about 100 miles off the Sabah
        coast and close to an area where Malaysia and Brunei have overlapping maritime claims. In
        April 2003, the dispute led both countries to deploy naval forces to reinforce their claims. The
        situation was defused, but not resolved, when Abdullah Badawi, then deputy prime minister,
        discussed the issue in Brunei in July 2003. In August 2005, Abdullah briefly visited Brunei and
        discussions were aimed at resolving the dispute. Some progress was reported but no timetable
        was given for the completion of talks.

        Abdullah's close association with the dispute may prove to be of benefit in its eventual
        resolution. The contested claims will do little to settle the Limbang salient issue based on
        competing claims over a section of Malaysian-occupied land that divides Brunei in two. These
        issues are set to cloud relations between the neighbors, but are unlikely to lead to any serious
        breakdown in diplomatic ties. This was illustrated by the holding of a routine 'Hornbill' exercise


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        in July 2004 by Malaysian and Brunei warships in Brunei's home waters, despite the naval
        tension between the two countries.

        Relations with China

        Relations between Malaysia and China are cordial and, at least at the governmental level, based
        principally on economic ties. China's burgeoning role as the dominant Asian power, while
        tempered by diplomacy and apparent willingness to make concessions over trade access at the
        October 2003 meeting of the Association of Southeast Asian Nations in Bali, has had some
        success in improving ties with regional countries such as Malaysia. In September 2003, Abdullah
        used a visit to Beijing to dismiss the idea that China posed a military threat to either Malaysia or
        the region. While such sentiments form a necessary part of routine diplomacy, they have not
        shifted ingrained suspicions and concerns over China's ability to ensure that its interests in the
        region prevail. Indeed, it is just such concern over China's growing power-projection capabilities
        and long-term intentions in the South China Sea that have been a significant driver for Malaysia's
        defense modernization program. For the time being, a focus on trade is obscuring potential
        tensions, with a bilateral trade target of USD50 in 2010 announced during a visit by Premier
        Wen Jiabao to Malaysia in December 2005, but in the long term strategic co-operation may make
        way for competition or wariness.

        Relations with Indonesia

        Malaysia's relationship with Indonesia is complex - defined chiefly by issues of sovereignty,
        economic migration and cultural sensitivities. The two countries share common ethnic, religious
        and linguistic bonds and co-operate in many political and economic areas. However, few
        Malaysian leaders are likely to forget the boast of former Indonesian president Sukarno that he
        would 'crush' the new nation in 1963. They are equally aware that any major political or social
        upheaval in Indonesia could swiftly impact on Malaysia. .

        A bout of gunboat diplomacy in February and March 2005 over disputed waters off the east coast
        of Sabah (a state in East Malaysia) demonstrated how quickly tensions could escalate to military
        brinkmanship. In December 2005, the Indonesian navy staged one of its largest peacetime
        deployments, sending 36 warships and more than 1,000 marines for a series of exercises close to
        the Sabah border and adjacent to the disputed zone. While both countries have since taken part in
        joint military exercises, the risks of tension arising over offshore claims remains high. These
        events exposed a depth of resentment in Indonesia, reflecting both nationalist sentiment over the
        allocation of the Sipadan and Ligitan islands to Malaysia by the International Court of Justice in
        December 2002, and anger towards Malaysia's periodic campaigns to purge the country of illegal
        Indonesian migrant workers.

        These minor issues escalate because they exist in a context of long-running disputes, including
        the alleged Malaysian support for Aceh-based separatists, cross-border violations by nationals
        from both countries in Borneo, and pollution ('haze') through the illegal forest burning in
        Indonesia. As a result, minor quibbles become heated confrontations - for example, the
        accusation in 2007 that the Malaysian tourist board had illegitimately claimed a popular Javanese
        song as its own. This latter case illustrated deeper divisions within what should be a relationship



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        based on shared faith and cultural references. Instead, Indonesia has adopted a 'elder brother'
        approach to Malaysia that fails to reflect the economic disparities between the two countries
        while providing a source of grievance for any perceived slight or lack of respect.

        Illegal migrants

        Malaysia's treatment of Indonesian legal and illegal workers remains a permanent abrasive in the
        relationship. The introduction of new immigration laws in August 2002 affected at least 350,000
        illegal Indonesian workers in the country and increased tension between the two states.
        According to official Malaysian data, there were some 1.5 million foreign workers in the
        country, of whom around 1.2 million are Indonesians. Of these, between 650,000 (Jakarta's
        estimate) and 850,000 (Putrajaya's count) are illegal workers. In 2002 Malaysia ordered
        hundreds of thousands of Indonesian workers to leave the country, or face flogging and
        imprisonment, which had a short term effect on migrants in the country, but the workers soon
        returned. By 2004 Indonesian illegal migrants were entering Malaysia at the rate or more than
        1,000 per day according to one estimate.

        In July 2004 the Malaysian authorities announced another purge of illegal workers, but relented
        after the Indonesian government - in the midst of elections - intervened. This amnesty on illegal
        workers was extended in November 2004, without a given deadline, after Indonesian requests
        and a meeting between Abdullah and Indonesian Minister for Labor and Transmigration Fahmi
        Idris. This amnesty was extended again after the December 2004 tsunami but was ended in
        February 2005. However, within months Putrajaya was presenting a confused policy, suggesting
        in May 2005 that Indonesian workers could return to the country on tourist visas without
        guarantees of work. Farmers, rubber or palm oil plantation owners and construction firms
        complained that the exodus of migrant workers restricted their ability to function, with all these
        industries key to Malaysia's economy.

        In July 2006, the government announced its plans to renew a campaign against an estimated
        500,000 mainly Indonesian illegal immigrants, some of whom have been blamed for
        involvement in crime. Then home affairs minister Radzi Sheikh Ahmad announced that new
        detention centers had been built to hold the suspects, and police, immigration officers and over
        100,000 members of the People's Volunteer Corps alerted to take part in the operation to detain
        illegal migrant workers.

        In June 2008 Human Resources Minister S Subramaniam announced that the government
        intended to reduce the number of foreign workers in the country from an estimated 2.2 million at
        present to 1.8 million by the end of 2009. A second annual reduction would aim to reduce the
        numbers to 1.2 million by the end of 2010. While it remains to be seen whether such a dramatic
        cut in imported labor is feasible, the stated intention to introduce a policy that could erode the
        living standards of potentially millions of Indonesians remains an obvious source of friction
        between the two countries. This could be further exacerbated as Indonesia's 2009 general
        election campaign gathers pace.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                               Indonesian illegal migrants wait outside a courthouse in March 2005 to
                               prevent deportation (EMPICS)

                                                                                                                   1134188


        Relations with the Philippines

        Relations between Malaysia and the Philippines are overshadowed by a series of territorial
        disputes. A dispute over ownership of the East Malaysian state of Sabah has often defined
        relations since the creation of Malaysia in 1963, pointing to underlying animosities between a
        predominately Muslim and a mainly Catholic country.

        Sabah was leased to the British North Borneo Company in 1878 in return for weapons and an
        annual retainer of 5,000 silver Mexican dollars. The rent continues to be paid to the sultan's
        heirs, but Malaysia has made it clear that it has no intention of returning Sabah to the
        Philippines. The strength with which the Philippines pursues the issue is a useful gauge over both
        the general state of relations with Malaysia and the need to rally nationalist opinion. Attention
        was brought to the issue once again in June 2004 by the reopening of a 'Sabah desk' by the
        Philippine Department of Foreign Affairs (DFA). The Philippines were also quick to ensure that
        its unresolved territorial claim over Sabah was not ignored when Malaysian and Indonesia
        sparred over maritime boundaries in February and March 2005. For the moment, the issue
        remains relatively quiet, but as with Indonesia other bilateral issues could be raised by proxy
        through this dispute.

        From a Malaysian perspective the maze of Philippine islands stretching from Sabah to Mindanao
        across the Sulu Sea also present a security threat as they allow easy access to Philippine-based
        and often indistinguishable insurgents, pirates, smugglers and illegal immigrants. This threat was
        made manifest in the April 2000 raid on Sipadan island off Sabah's east coast in which more than
        20 hostages, 10 of them foreign tourists, were abducted by the Abu Sayyaf Group (ASG). The
        hostages were taken to the ASG heartland in the Sulu archipelago in the southern Philippines.
        The area between the Philippines and Sabah has also become the cockpit of a barely reported
        campaign between Malaysian, US and Philippine forces and a mix of Islamic extremists and
        opportunistic criminal gangs.

        Sabah is also the centre of a continuing tension over migrant workers. When Malaysia's new
        immigration laws took effect on 1 August 2002, an estimated 150,000 Filipinos in Sabah were
        affected and relations between Kuala Lumpur and Manila strained. Since then thousands have
        returned home or been deported, but with the near certainty that many will seek employment in
        East Malaysia when they judge it safe to do so. If they fail to find work, a significant minority
        may be forced to seek an income in more traditional regional trades, which could see a
        significant increase in a wide varieties of crime in Sabah.

        In June 2008 the Malaysian government announced plans for a renewed purge against tens of
        thousands of illegal immigrants, many of them Filipinos, in Sabah. The campaign reflects efforts
        by the National Front (Barisan Nasional: BN) government to retain the support of East


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Malaysia's small political parties that are seen as holding the key to the survival of the present
        administration. Anwar Ibrahim has claimed that he will garner the votes of sufficient BN MPs to
        topple Abdullah's government. Virtually all of these 'defectors' would have to come from East
        Malaysia, which gives them great leverage in securing funding and pushing through policies that
        enhance their position among their constituents. Reducing the large Filipino presence would be
        welcomed by many Sabahans. It is unclear how the Philippine government would react to such a
        move.

        The last occasion when the two countries' armed forces are known to have come even close to a
        confrontation occurred in October 1999 when Manila reported fighter aircraft from the
        Philippine and Malaysian air forces nearly engaged over a Malaysian-occupied reef. Malaysia
        has also offered its good offices to help the Philippine government try and reach a peace accord
        with Muslim separatists in Mindanao, so far without any success.

        Malaysia and the Philippines also contest ownership of at least three of the Spratly islands
        (Amboyna Cay, Commodore Reef and Falt). In October 1999, the Philippine military reported
        that two Malaysian air force fighters and two Philippine air force aircraft nearly engaged over a
        Malaysian-occupied reef.

        Yet despite these security-related issues, and notwithstanding the Spratly Islands confrontation,
        the two countries have managed to co-exist with the minimum of military posture. There have
        been no further recorded confrontations between national units since 1999. In a sign of an
        eagerness to co-operatively resolve security issues, Malaysia has also offered its offices to help
        the Philippine government try and reach a peace accord with Muslim separatists in Mindanao, so
        far without any success.

                           Prime Minister Abdullah with Philippine President Gloria Macapagal-Arroyo at
                           the ASEAN summit in Kuala Lumpur, December 2005. (EMPICS)

                                                                                                                   1150454


        Relations with Singapore

        Relations with Singapore are, in the Chinese adage, as 'close as lips and teeth'. But while the
        history and future of both are inextricably linked, a deep-seated mix of ethnic, cultural and
        aspirational values serve to ensure that the relationship remains complex and at times fraught.
        Prime Minister Abdullah Badawi's appointment and subsequent election was viewed in
        Singapore as an opportunity to rebalance the relationship after Mahathir's often combative
        attitude toward the country. Abdullah made his first overseas visit as prime minister to Singapore
        in January 2004. However, while the relationship can be eased through a greater respect for
        moderate dialogue, fundamental differences and interests between and within the two countries
        will ensure the relationship remains dynamic.

        Two broad trends have emerged over the past decade that point to the likely direction of the
        relationship and its potential to either improve or deteriorate further. The first is Malaysia's


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        efforts to replicate or challenge Singapore's position as a major trade conduit through developing
        its own maritime, aviation and related infrastructure. The second is Singapore's decision to seek
        a security alliance with the US as a key element in its defense from regional threats. In addition,
        Malaysia's unilateral decision to declare an internationally recognized treaty regarding the sale of
        its water to Singapore as re-negotiable have heightened tensions between the two countries.

        Nevertheless, an indication that ties may be maturing was shown in early 2008 following the
        International Court of Justice (ICJ) ruling that Singapore had a legitimate claim to the disputed
        Batu Puteh/Pedra Branca islet at the eastern end of the Johor Straits. Malaysia, which also
        claimed the tiny outcrop, was partly mollified by the ICJ's finding that other associated reefs and
        rocks either belonged to Malaysia or remained contentious. Although the ICJ ruling triggered a
        search in Malaysia for other potential sovereignty issues among the country's numerous offshore
        islands, reefs and sandbanks that may be subject to dispute, there was no evidence any serious or
        widespread anti-Singapore sentiment over the verdict. However, Singapore's hunger for land
        reclaimed from the sea means that the seeds for further disputes are ever present. For example,
        any development on either side of the narrow Johor Straits that separate the two countries can be
        construed to have an impact on the opposite shore. This was evident in an agreement signed
        between Singapore and Malaysia in April 2005 that recognized this principle.

        Singapore's perception that is a significant target for Islamic terrorists has also had an impact on
        relations with Malaysia. In December 2001 Singapore announced that it had uncovered an
        alleged plot by local Islamist extremists to carry out a series of terrorist attacks against key
        foreign and local targets. This claim altered Singapore's relationship with its predominately
        Muslim neighbors. It also brought the structure and doctrine of the country's armed forces into
        clearer focus as their role appears primarily intended to ensure the swift deployment of large
        numbers of troops and equipment beyond Singapore's borders. From Malaysian defense planners'
        perspective, this policy must be assumed to include an attack on their country. As a result, a great
        deal of the expansion of the Malaysian armed forces over the past decade may be viewed as a
        deterrent to any such action.

        It is extremely difficult to imagine a realistic scenario under which these two countries could
        ever engage in open hostilities across their common border. However, both governments appear
        to encourage this low-level antagonism for internal political gains, either to strengthen
        Singapore's sometimes strained domestic bonds or to pander to Malaysian nationalism.

        Relations with Thailand

        Relations between Malaysia and Thailand have been tempered by territorial issues reaching back
        to the colonial era. The Kingdom of Siam ceded Malaysia's four northern states of Kelantan,
        Terengganu, Kedah and Perlis to British protection under the 1909 Bangkok Treaty as part of its
        efforts to retain independence from the colonial powers. Security and sovereignty issues centered
        on the border continue to affect relations between the two countries. During the Emergency
        (1948-60) the Communist Party of Malaya (CPM) used sanctuaries in Thailand to regroup and
        sporadic clashes continued into the 1970s. The threat finally ended when the CPM signed a truce
        in 1989. At the same time, Muslim separatists opposed to Buddhist Thai domination of the
        southern provinces waged a low-level insurgency with tacit Malaysian support. This formally



                                                                  57
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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        ended in the mid-1990s after Malaysia abruptly pushed a number of Muslim guerrilla leaders
        across the border and into the custody of the Thai authorities, signaling an end to any backing for
        the rebellion.

        During 2004 two incidents in southern Thailand involving the security forces and the local
        Muslim population led to the deaths of almost 200 civilians. The Thai authorities failure to
        adequately explain the circumstances surrounding the killing of more than 100 alleged Islamic
        militants by the security forces in Pattani province on 28 April 2004 and the deaths of 78
        protestors who died of suffocation after being transported in poor conditions in trucks and seven
        others shot by security forces in late October 2004 have raised tensions along the border with
        Malaysia, reigniting suppressed tensions and old antagonisms. The situation worsened in August
        2005 when 131 southern Thai residents crossed the border into Malaysia and claimed amnesty
        owing to an apparent fear of violence from the security forces. Bangkok subsequently blamed
        Malaysia for supporting the southern insurgents, leading to a malicious quarrel between the two
        countries. Although conciliatory rhetoric was later employed, Thai suspicion of Malaysian
        complicity in the violence and Malay displeasure at heavy handed Thai counter-insurgency
        tactics continue to sour the relationship.

        Bangkok has been alarmed by the growth in support for Islamic Party of Malaysia (Parti Islam
        se-Malaysia: PAS) in 2008. PAS' heartlands include Malaysia's northern states that border
        Thailand, and there are concerns in Bangkok that its increasing influence may damage the
        previously high degree of cross-border cooperation.

                               Thai demonstrators protest outside the Malaysian embassy following bellicose
                               bilateral rhetoric in Bangkok, October 2005. (EMPICS)

                                                                                                                   1150453


        Relations with the US

        Malaysian relations with the US under former prime minister Mahathir Mohamad were
        becoming increasingly strained when the 11 September 2001 terrorist attacks re-ordered
        Washington's priorities. Malaysia's human rights record, the imprisonment of his former deputy
        Anwar Ibrahim, Mahathir's anti-Semitic outbursts and his seeming preference for provocation
        over pragmatism had begun to do some serious damage to previously strong links prior to the
        World Trade Centre attacks.

        In May 2002, Mahathir's links with the US were fully restored when he held bilateral talks with
        then president George W Bush in the US. Mahathir's rehabilitation stemmed from his support for
        the US-led war on terrorism, drawing the accolade of being a "beacon of stability" in the region.
        Whatever past issues that may have clouded the relationship were rapidly shelved by the US in
        favor of expediency.

        In February 2003, Mahathir denounced the US at a summit of the 116-member Non-Aligned
        Movement (NAM) in Kuala Lumpur. He charged that the US-led war against Iraq was part of a


                                                                  58
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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        campaign to dominate non-white nations and urged NAM member states to stage anti-war
        protests. He also warned the US action to overthrow Saddam Hussein "will fuel an upsurge in
        terror attacks worldwide".

        Despite this turbulent history, relations between the countries almost immediately improved with
        Mahathir's departure. The main source of any future animosity is likely to stem from the latest
        Malaysian administration's concern that it not appear to be too close to the US for fear of
        exposing itself to attack from Malay nationalists and the Islamic parties. The Malaysian
        government, for example, strongly opposed plans for US forces to be deployed in the Strait of
        Malacca as part of Washington's anti-terrorist posture in mid-2004. However, Malaysia's
        willingness to join Singapore, Indonesia and Thailand in mounting joint naval and air anti-
        piracy/terrorist patrols in the region have mollified the US, while Anwar's release from prison in
        September 2004 was warmly applauded by US officials.

        Malaysia and the US began negotiations over a free trade agreement in early 2006. By late 2008
        there was no sign that Malaysia could accept Washington's conditions on the agreement. The
        Malaysian government remains wary of the impact the accord could have on the country's efforts
        to balance the economic interests of the Malay majority and the commercial power of the ethnic
        Chinese minority. This is likely to lead to protracted talks between the two countries.

                               An armed guard patrols the US embassy in Kuala Lumpur following its six-
                               day closure in December 2005 owing to a perceived security threat.
                               (EMPICS)

                                                                                                                   1150452


        Trade and External Assistance

        A five per cent fall in exports of electrical and electronics products in 2007 saw Malaysia's
        exports grow more slowly than forecast at 2.7 per cent. This represented a sharp decline on
        2006's 10.3 per cent growth in exports, mainly due to falling demand from the US (which
        dropped by 14.5 per cent). Overall, exports totaled USD187 billion in 2007, boosted by
        increasing sales to China and other emerging markets. The US may well lose its status as
        Malaysia's top trading partner in 2008 to Singapore. Imports climbed 4.9 per cent in 2007 to
        USD158 billion, giving a USD31 billion trade surplus. Total trade reached a record USD342
        billion, up 3.7 per cent from 2006. Manufactured goods account for around 75 per cent of
        Malaysia's total exports in 2007. Crude oil and other mineral fuels contributed 14 per cent, while
        palm oil and other agriculture products accounted for another nine per cent. Exports showed
        signs of strong recovery in the first half 2008, with growth at a four-year high in July. Much of
        this increase came from a surge in orders for electronics goods and high commodity prices that
        have exceeded earlier expectations. However, analysts have warned that the overall picture for
        2008 will reflect the impact of the global financial crisis and its effect on consumer and industrial
        demand. Exports may weaken in the coming months as prices of crude and palm oil ease. Palm
        oil prices highlight the volatility of at least some commodities, with prices trading in a 45 per



                                                                  59
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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        cent range between March and July 2008 as earlier concerns about supply were quickly replaced
        by fears of a glut of the commodity.

        The government is keen to smooth the cyclical nature of electronics and electrical exports, as
        well as meet the expectations of the country's rural population and develop a buffer against
        competition within the Association of Southeast Asian Nations and the looming specter of
        China's effectively limitless economic capacity. The government is seeking to make agricultural
        produce the third largest foreign exchange earner after manufactured goods and tourism.
        However, the country's key palm oil sector, the world's largest, is being challenged by lower-cost
        producers and competition from soya-based oils and fats. There are concerns that palm oil, which
        accounts for around five per cent of the country's exports by value but dominates the rural
        economy, may follow the rubber industry and shift operations to countries with lower labor and
        land costs. Emphasis is now being given to higher-value non-plantation crops, such as fruits,
        vegetables and cut flowers.

        Exports by destination

                                              Exports, per cent of total (2006) Exports, per cent of total (2007)
        United States                         18.8                               15.6
        Singapore                             15.4                               14.6
        Japan                                 8.9                                9.1
        Hong Kong SAR                         4.9                                4.6
        China (excl Hong Kong and Macau) 7.2                                     8.8
        South Korea                           3.6                                3.8
        India                                 3.2                                3.3
        Netherlands                           3.6                                3.9
        Australia                             2.8                                3.4
        Taiwan                                2.7                                n/a
        Source



        Imports by origin

                                              Imports, per cent of total (2006) Imports, per cent of total (2007)
        Japan                                 13.2                               13.0
        United States                         12.5                               10.8
        China (excl Hong Kong and Macau) 12.1                                    12.9
        Singapore                             11.7                               11.5
        Thailand                              5.5                                5.3
        Taiwan                                5.5                                5.7
        South Korea                           5.4                                4.9
        Germany                               4.4                                4.6
        Indonesia                             3.8                                4.2



                                                                  60
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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Hong Kong                              2.6                                 2.9
        Source



        Historical Events

        Date     Event
        1941- Japanese invasion and occupation of British colonies of Malaya and Borneo.
        45
        1948     Federation of Malaya established.
        1957     Federation of Malaya became independent.
        1961- Water agreements established pricing formula for sale of water to Singapore until 2059. Water sale issue
        62    remained point of friction between two countries.
        1963     Formation of Federation of Malaysia.
                 Beginning of konfrontasi (confrontation) with Indonesia.
        1965     Singapore withdrew from Malaysia.
        1967     End of konfrontasi.
                 ASEAN created, with Malaysia as a founder member.
                 British government announced military withdrawal from 'east of Suez'
        1971     British forces withdrew from Malaysia. Five Power Defense Arrangement (FPDA) implemented.
        1974     Diplomatic relations with China established.
        1981     Newly elected Prime Mahathir Mohamad announced 'Buy British Last' campaign in response to British
                 government decision to increase overseas student fees.
        1982     Prime Minister Mahathir Mohamad announced 'Look East' policy intended to realign Malaysia's economic
                 towards Japan and South Korea and away from the UK.
        1984     First joint annual naval exercise (Malapura) with Singapore launched.
        1989     First joint annual army exercise with Singapore.
        1997- Asian economic crisis. Malaysia pegged ringgit to US dollar.
        98
        2000     Abu Sayyaf Group abducted foreign tourists and local workers from Sipadan island off Sabah and took them
                 to the Philippines until a ransom was paid. Government deployed more forces to East Malaysia as a result of
                 the incident.
        2002     Large numbers of foreign workers left Malaysia en masse following the introduction of punishment for
                 illegal immigrants. Nonetheless, numbers continued to increase.
        2003     Malaysia purchased 18 Su-30 fighters from Russia.
                 Malaysia and Brunei engaged in naval confrontation in disputed waters off northern Borneo (April).
        2004     Philippines foreign office reopened a 'Sabah desk', increasing attention on the dispute (July).
                 Australian Prime Minister John Howard stated that Australia would be prepared to launch pre-emptive
                 strikes on terrorist targets in the region (September).
                 Indian Ocean tsunami struck the west coast of Malaysia, killing 68 (December).
        2005     Singapore and Malaysia reached agreement on a land reclamation dispute (January).
                 Putrajaya ended an amnesty on illegal migrants in the country (February).
                 Tension with Indonesia over disputed maritime boundary in Sabah, East Malaysia (February-March).
                 During a visit to Australia Prime Minister Abdullah agreed to open negotiations for a bilateral free trade
                 agreement (April).
                 Malaysia stated that Indonesian workers could return under tourist visas (May).



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                State of emergency proclaimed in Malaysia owing to 'haze' from forest fires in Sumatra (August).
                131 southern Thai residents crossed the border into Malaysia, claiming a fear of violence from security
                forces. Bellicose bilateral rhetoric followed between Thailand and Malaysia (August-November).
                FPDA exercise Bersama Lima 2005 held in Malaysia, focusing on counter-terrorism and counter-piracy
                (September).
                Premier Wen Jiabao visited Malaysia, with talks concentrated on trade (December).
        2006    Malaysia and the US began talks on establishing a free trade agreement (June).
                Malaysia-Japan free trade agreement came into effect (July).
                Malaysia held talks with India over defense co-operation and training involving Sukhoi-30MK fighter pilots
                and Scorpene-class submarines (June).
        2007    Indonesia's House of Representatives called on the government to take action over continued immigration
                raids against Indonesians in Malaysia. The wife of an Indonesian diplomat was detained in a raid (October).
                EU envoy to Malaysia Thierry Rommel said the country was living under an effective state of emergency
                after police used tear gas and water cannons to break up the biggest anti-government protest in a decade.
                Rommel left his post a few days later (November).
                India's Prime Minister Manmohan Singh voiced concern over the treatment of ethnic Indians in Malaysia
                following their involvement in anti-government protests in Kuala Lumpur (December).
        2008    India vowed to help train Malaysian pilots and maintain Sukhoi-30MK fighters under an agreement signed
                in Putrajaya (January).
                The International Court of Justice ruled that Singapore had sovereignty over the disputed Batu Puteh/Pedra
                Branca islet in the eastern Johor Straits (May).


        Source: Jane‘s Information Group

        5. International Organization Participation

               International    ADB, APEC, APT, ARF, ASEAN, BIS, C, CP, EAS, FAO, G-15, G-77, IAEA, IBRD,
                organization    ICAO, ICC, ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol,
               participation:   IOC, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURSO, MONUC, NAM, OIC, OPCW,
                                PCA, PIF (partner), UN, UNCTAD, UNESCO, UNIDO, UNIFIL, UNMIL, UNMIS,
                                UNMIT, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO
        Source: https://www.cia.gov/cia/publications/factbook/geos/my.html

        6. Diplomatic Representation in the United States

                 Diplomatic     chief of mission: Ambassador (vacant); Charge d'Affaires Ilango KARUPPANNAN
           representation in    chancery: 3516 International Court NW, Washington, DC 20008
                    the US:     telephone: [1] (202) 572-9700
                                FAX: [1] (202) 572-9882
                                consulate(s) general: Los Angeles, New York
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html




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                       opinions, assessments or positions of the DoD or any other government agency or entity.


        7. U.S. Diplomatic Representation
                 Diplomatic     chief of mission: Ambassador James R. KEITH
              representation    embassy: 376 Jalan Tun Razak, 50400 Kuala Lumpur
               from the US:     mailing address: US Embassy Kuala Lumpur, APO AP 96535-8152
                                telephone: [60] (3) 2168-5000
                                FAX: [60] (3) 2142-2207
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html


        James R. Keith - U.S. Ambassador to Malaysia

        James R. Keith was sworn in as the United States Ambassador to Malaysia
        on July 24, 2007. Ambassador Keith came to Kuala Lumpur from
        Washington, D.C. where he held several positions including Deputy
        Assistant Secretary of State for China, Mongolia, Taiwan, Hong Kong and
        Macau at the U.S. Department of State. Prior to becoming Deputy
        Assistant Secretary, Ambassador Keith served numerous tours of duty in
        Washington working on Asian Affairs, and has also served as U.S. Consul
        General in Hong Kong and at U.S. Embassies in Beijing, Jakarta and
        Seoul. In addition to his Foreign Service postings, Ambassador Keith was
        a member of the National Security Council under President Bush in the
        early 1990s and President Clinton in the late 1990s.

        Mr. Keith was born in Virginia and his family comes from Georgia and Florida. While he was
        growing up he lived in Tokyo, Jakarta, Hong Kong, and Taipei. He joined the U.S. Foreign
        Service in 1980 after graduating with a B.A. degree in English from the College of William and
        Mary in Williamsburg, Virginia. He has studied Mandarin Chinese, Korean, Malaysian and
        Indonesian.

        Mr. Keith is married to the former Jan Carter; he and his wife have six children.
        Source: http://malaysia.usembassy.gov/amblafleur.html


        8. Economy
                  Economy -     Malaysia, a middle-income country, has transformed itself since the 1970s from a producer
                   overview:    of raw materials into an emerging multi-sector economy. Since coming to office in 2003,
                                Prime Minister ABDULLAH has tried to move the economy farther up the value-added
                                production chain by attracting investments in high technology industries, medical
                                technology, and pharmaceuticals. The Government of Malaysia is continuing efforts to boost
                                domestic demand to wean the economy off of its dependence on exports. Nevertheless,
                                exports - particularly of electronics - remain a significant driver of the economy. As an oil
                                and gas exporter, Malaysia has profited from higher world energy prices, although the rising
                                cost of domestic gasoline and diesel fuel forced Kuala Lumpur to reduce government
                                subsidies. Malaysia "unpegged" the ringgit from the US dollar in 2005 and the currency
                                appreciated 6% per year against the dollar in 2006-08. Although this has helped to hold
                                down the price of imports, inflationary pressures began to build in 2007 - in 2008 inflation
                                stood at nearly 6%, year-over-year. The government presented its five-year national



                                                                  63
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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                                  development agenda in April 2006 through the Ninth Malaysia Plan, a comprehensive
                                  blueprint for the allocation of the national budget from 2006-10. ABDULLAH has unveiled
                                  a series of ambitious development schemes for several regions that have had trouble
                                  attracting business investment. Real GDP growth has averaged about 6% per year under
                                  ABDULLAH, but regions outside of Kuala Lumpur and the manufacturing hub Penang have
                                  not fared as well. The central bank maintains healthy foreign exchange reserves and the
                                  regulatory regime has limited Malaysia's exposure to riskier financial instruments and the
                                  global financial crisis. Decreasing worldwide demand for consumer goods is expected to
                                  hurt economic growth, however.
           GDP (purchasing        $386.6 billion (2008 est.)
             power parity):       $367.8 billion (2007)
                                  $346 billion (2006)
              GDP (official       $214.7 billion (2008 est.)
            exchange rate):
          GDP - real growth       5.1% (2008 est.)
                       rate:      6.3% (2007 est.)
                                  5.8% (2006 est.)
           GDP - per capita       $15,300 (2008 est.)
                    (PPP):        $14,800 (2007 est.)
                                  $14,200 (2006 est.)
         GDP - composition        agriculture: 9.7%
                 by sector:       industry: 44.6%
                                  services: 45.7% (2008 est.)
               Labor force:       11.2 million (2008 est.)
            Labor force - by      agriculture: 13%
                occupation:       industry: 36%
                                  services: 51% (2005 est.)
              Unemployment        3.7% (2008 est.)
                        rate:
          Household income        lowest 10%: 1.4%
          or consumption by       highest 10%: 39.2% (2003 est.)
           percentage share:
              Distribution of     46.1 (2002)
             family income -
                 Gini index:
           Investment (gross      20.7% of GDP (2008 est.)
                      fixed):
                     Budget:      revenues: $44.32 billion
                                  expenditures: $55.01 billion (2008 est.)
                 Public debt:     42.7% of GDP (2008 est.)
                Inflation rate    5.8%
          (consumer prices):      note: approximately 30% of goods are price-controlled (2008 est.)
           Commercial bank        6.41% (31 December 2007)
         prime lending rate:
             Stock of money:      $49.41 billion (31 December 2007)
               Stock of quasi     $187.6 billion (31 December 2007)
                       money:
           Stock of domestic      $220 billion (31 December 2007)
                        credit:
             Market value of      $325.7 billion (31 December 2007)
              publicly traded
                       shares:
                Agriculture -     Peninsular Malaysia - rubber, palm oil, cocoa, rice; Sabah - subsistence crops, rubber,
                    products:     timber, coconuts, rice; Sarawak - rubber, pepper, timber
                  Industries:     Peninsular Malaysia - rubber and oil palm processing and manufacturing, light



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                                 manufacturing, electronics, tin mining and smelting, logging, timber processing; Sabah -
                                 logging, petroleum production; Sarawak - agriculture processing, petroleum production and
                                 refining, logging
                   Industrial    4% (2008 est.)
         production growth
                         rate:
                 Electricity -   102.9 billion kWh (2007 est.)
                 production:
                 Electricity -   95.98 billion kWh (2006 est.)
               consumption:
                 Electricity -   2.524 billion kWh (2006 est.)
                      exports:
                 Electricity -   0 kWh (2007 est.)
                     imports:
           Oil - production:     753,700 bbl/day (2008 est.)
         Oil - consumption:      501,100 bbl/day (2006 est.)
               Oil - exports:    546,300 bbl/day (2005)
               Oil - imports:    308,500 bbl/day (2005)
                 Oil - proved    4 billion bbl (1 January 2008 est.)
                    reserves:
                Natural gas -    64.5 billion cu m (2007 est.)
                 production:
                Natural gas -    32.9 billion cu m (2007 est.)
               consumption:
                Natural gas -    31.6 billion cu m (2007 est.)
                      exports:
                Natural gas -    0 cu m (2007 est.)
                     imports:
                Natural gas -    2.35 trillion cu m (1 January 2008 est.)
           proved reserves:
           Current account       $27.44 billion (2008 est.)
                     balance:
                     Exports:    $195.7 billion f.o.b. (2008 est.)
                    Exports -    electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm
               commodities:      oil, rubber, textiles, chemicals
         Exports - partners:     US 15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand 5%, Hong Kong 4.6%
                                 (2007)
                    Imports:     $156.2 billion f.o.b. (2008 est.)
                   Imports -     electronics, machinery, petroleum products, plastics, vehicles, iron and steel products,
              commodities:       chemicals
         Imports - partners:     Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan 5.7%, Thailand 5.3%, South
                                 Korea 4.9%, Germany 4.6%, Indonesia 4.2% (2007)
         Reserves of foreign     $104.4 billion (31 December 2008 est.)
         exchange and gold:
             Debt - external:    $54.11 billion (31 December 2008 est.)
              Stock of direct    $92.76 billion (2008 est.)
          foreign investment
                   - at home:
              Stock of direct    $50.08 billion (2008 est.)
          foreign investment
                    - abroad:
             Exchange rates:     ringgits (MYR) per US dollar - 3.33 (2008 est.), 3.46 (2007), 3.6683 (2006), 3.8 (2005), 3.8
                                 (2004)
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html


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                       opinions, assessments or positions of the DoD or any other government agency or entity.


        Assessment

        The Malaysian economy in late 2008 faced a series of challenges and some advantages. In
        common with most trading economies, Malaysia is confronted with the impact of tightening
        global credit on its domestic economy and trading prospects. Some commodity exports, notably
        natural gas, have helped to balance the negative consequences of falling demand in other areas,
        such as electronics and palm oil (due mainly to over production and cyclical factors). However,
        there exist other more systemic problems that may cause deeper and longer term problems. The
        political upheaval that followed the end of the United Malays National Organization (UMNO)
        near-monopoly on political power in the March 2008 general election will reverberate through
        society and the economy for the foreseeable future. The poll results have implicitly challenged
        more than 30 years of orthodoxy that the economy be partly reserved for the ethnic Malay
        majority and partly allowed to trade freely.

        Any widespread adverse reaction to such a change in status from the Malay community, for
        example, would have an immediate and deleterious impact on both foreign and non-state
        domestic investment, leading to rising unemployment and associated social and political stresses.
        Efforts to address such a threat could also deter investment as they would require either the
        continuation of special economic rights for Malays, or increased public spending and likely
        budget deficits.

        Early forecasts for 2008 indicate a slight fall in growth as a result of rising commodity prices and
        limited domestic spending. Growth in 2007 reached 6.3 per cent, with the World Bank initially
        forecasting 2008 growth at 5.5 per cent, climbing to 5.9 per cent in 2009. Later government
        figures forecast growth at 5.7 per cent in 2008, falling to 5.4 per cent in 2009. However, the
        primacy of political needs over economic probity - coupled with deteriorating and volatile
        trading conditions - may undermine these assumptions. The government's 2009 budget, unveiled
        end-August 2008, accepted a deficit that would reach 4.8 per cent of gross domestic product
        (GDP) in 2008, before easing to 3.6 per cent of GDP in 2009. These numbers reflected concerns
        over political stability and had an immediate impact by weakening the ringgit and increasing the
        risk of importing further inflation at a time of rising domestic prices.

        Domestic inflation in July 2008 reached 8.5 per cent, against 7.7 per cent in June, in the sharpest
        rise since 1981. The rise followed a government decision to reduce fuel subsidies in June - a
        measure that was partly reversed once the government recognized how politically damaging the
        move had been. Under the proposed USD62 billion 2009 budget, the government will spend
        RM33.8 billion (USD9.77 billion) on subsidies in 2009, of which RM21 billion (USD 6.07
        billion) were earmarked for fuel. Subsidies in 2008 are projected to reach RM34.1 billion
        (USD9.85 billion), with fuel accounting for RM18.1 billion (USD 5.23 billion).

        Historical Background

        Malaysia has taken 50 years to move from a predominately commodity- and agrarian-based
        economy at independence in 1957 to its present largely manufacturing- and service-based
        economy. Inter-communal unrest in 1969 between the ethnic Malay and Chinese communities



                                                                  66
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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        led to the introduction of the New Economic Policy (NEP) in 1971, which has since distorted
        liberal market operations. Under the NEP the Malay majority were allocated a 30 per cent share
        in the economy, mainly held 'in trust' by large state-run or politically linked corporations and
        companies.

        Wealth of oil and gas revenues have helped sustain the NEP, while also allowing massive state
        spending on infrastructure and other pump priming projects during former prime minister
        Mahathir Mohamad's 22-year period in office. The 1997-98 Asian economic crisis threatened to
        engulf Malaysia, but the refusal of Mahathir to accept International Monetary Fund advice and
        instead peg the ringgit to the US dollar enabled the country to ride out the aftermath in relative
        ease. Mahathir's replacement by Abdullah Badawi was marked by a less ambitious economic
        program, based on consolidation and a greater emphasis on agriculture.

        Workforce

        According to official data, the national labor force was 10.89 million in 2007, a marked fall from
        2006's 11.55 million. The unemployment rate in 2007 was 3.2 per cent, against 3.4 per cent in
        2006. Almost 50 per cent of the active workforce was employed in the service sector and 29 per
        cent in manufacturing. Agriculture accounted for over 13 per cent and construction around 7.5
        per cent.

        Malaysia's rapid growth has created unprecedented upward mobility for millions of the country's
        citizens, leaving a huge labor shortage in less attractive and more physically demanding work.
        Legal and illegal migrants have been attracted to Malaysia by such opportunities over the past
        few decades. The presence of millions of foreign workers, mainly from Indonesia but
        increasingly form the sub-continent and Myanmar, has led to periodic purges by the government.

        In January 2008 a senior government official reportedly said that Malaysia planned to send home
        up to 500,000 foreign workers by 2009 in an attempt for force employers to hire nationals. Home
        ministry figures in 2008 estimate that 2.2 million foreign nationals are working in Malaysia,
        mainly in manufacturing, agriculture and as domestic helpers. The government's longer term
        target is to cut the number of foreign workers to 1.5 million by 2015, and have them
        concentrated in construction, manufacturing and plantation industries.

        However, by June 2008 - following the political upheaval of the March 2008 elections - the
        government had hardened its stance with new plans to halve the number of foreign nationals
        employed in the plantation and manufacturing sectors by 2010. Human Resources Minister S
        Subramaniam said the government wanted to cut the number of foreign workers from 2.2 million
        to 1.8 million by 2009. A further annual reduction of 400,000 foreign workers would cut
        numbers to 1.2 million by the end of 2010. Government orders that foreign nationals should not
        be employed in work that may 'confuse' overseas visitors - such as in airports and hotels - has
        raised concerns over the rationale for such policies. Malaysia risks damaging economic growth
        and straining diplomatic ties with key neighbors in Indonesia and the Philippines without greatly
        increasing credible employment opportunities to the local population.




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        Policy

        Malaysia intends to become a developed nation by 2020, and the National Mission is the
        country's long-term blueprint for implementing several initiatives in order to realize this vision.
        Similar to the Eighth Malaysia Plan (8MP) that outlined the 2001-06 phase of the National
        Mission, the Ninth Malaysia Plan (9MP), released in March 2006 and outlining the 2006-10
        period, aims to "increase national competitiveness and resilience" by pursing several goals.

        According to the Economic Planning Unit of the Prime Minister's Department, the goals for the
        9MP correspond with those of the National Mission and include:

                Restructuring and improving performance in various sectors of the Malaysian economy;
                Developing Malaysia's human capital, thereby cultivating a knowledge-based society and
                 economy, primarily by improving and increasing educational opportunities;
                Addressing socioeconomic imbalances;
                Increasing the standard and sustainability of the quality of life by improving basic public
                 services (housing, health care, transport, energy supply and availability, resource
                 management etc) as well as nurturing cultural pursuits and healthy active living; and
                Ensuring that all branches of the government operate with the utmost efficiency and to
                 their fullest potential, by encouraging internal cooperation and promoting good
                 governance.

        Fiscal Policy

        Government policy, reiterated under the 9th Malaysia Plan, is to ensure that fiscal policy
        continues to support growth. The management of fiscal objectives is the responsibility of the
        Treasury, which monitors the expenditure of all ministries and government departments and all
        matters regarding financial procedures and accounting.

        However, by July 2008 inflation had reached 8.5 per cent, a 27-year high that forced the
        government to raise its average target for the year from 4.2 per cent to 4.4 per cent. The surge in
        inflation reflected higher oil, energy and staple prices - exacerbated by the government's
        decision, since partly reversed, to cut fuel subsidies.

        Monetary Policy

        A key change in monetary policy made in 2005 continues to reverberate through the economy. In
        July 2005 the peg with the US dollar introduced during the 1997-98 Asian financial crisis was
        replaced by a managed currency float against a basket of currencies. Monetary policy in 2007
        focused on attaining an appropriate balance between maintaining price stability and achieving
        the maximum sustainable level of economic growth. Inflation, driven higher by rising energy and
        commodity prices, proved a challenge for Bank Negara, the central bank. In the event, Bank
        Negara succeeded in stabilizing inflation by manipulating various rate-based instruments.




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        Currency Reform

        Malaysia's decision in September 1998 to peg the local currency at RM3.80 to USD1 as a
        measure to deter capital flight during the Asian economic crisis led to widespread condemnation
        from other national governments, international financial institutions and economists. The move
        is now widely, if sometimes grudgingly, acknowledged to have buffered Malaysia from the full
        impact of the crisis that did deep and lasting damage to many other regional economies.

        In late July 2005 Malaysia scrapped the peg, replacing it with a managed float system. The
        decision came less than an hour after China dropped its own fixed exchange-rate peg. It was
        widely accepted in Malaysia that the peg undervalued the ringgit by at least four per cent against
        the US dollar. The swift decision to end the peg reflected concerns that the currency would be
        threatened by speculative and destabilizing inflows following China's decision to devalue its
        currency.

        A combination of factors, including the high 2009 budget deficit, political uncertainty, weak
        global trading conditions and the strengthening US dollar saw the ringgit rapidly weaken in the
        second half of 2008. By mid-September the currency was trading at around RM3.43 to USD1, a
        sharp fall on RM3.38 in late August before the budget was announced. Some analysts believe it
        could be at least three years before the ringgit reaches its 'fair value' of RM2.8 to USD1 - or
        close to the RM2.5 to USD1 rate recorded before the currency was pegged.

        Sector Analysis

        Agriculture

        Agriculture's role in the economy has come under fresh scrutiny since Prime Minister Abdullah
        Badawi came to power, for political reasons as well as the need for greater economic diversity.
        The outcome of the March 2008 election, which saw the government's share of the crucial ethnic
        Malay vote fall, has seen the government re-emphasizing rural expenditure. The 2009 budget has
        allocated RM5.6 billion (USD1.6 billion) for a number of two-year agriculture food security
        programs. About 350,000 vegetable and fruit growers, as well as aquaculture and livestock
        breeders, will benefit from these incentives. A further RM300 million (USD86.7 million) has
        been allocated to support the country's fishery, which employs around 100,000 people. Malaysia'
        220,000 padi farmers will also receive RM1 billion (USD289 million) in incentives to increase
        rice production. Other measures include RM475 million (USD137.3 million) in subsidized
        agricultural inputs, such a fertilizers and pesticides, to assist padi farmers. In addition, the
        government plans to abolish import duty on fertilizers and pesticides.

        The government has also studied the experience of neighboring countries, notably Indonesia and
        Thailand, when faced with a major economic downturn on their often narrow industrial and
        manufacturing sectors. The Thai and Indonesian governments were quick to re-emphasize the
        importance of the agricultural sector, not least because it serves as a social safety net for those
        who have lost their jobs in urban areas and have the option to return to their home villages and
        towns.




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        Oil and Gas

        Malaysia's status as a major international gas supplier was strengthened in 2003 with the
        completion of the Bintulu liquefied natural gas (LNG) complex in Sarawak. Bintulu is now the
        world's largest integrated LNG facility, with eight production trains capable of processing 23
        million tons of LNG a year. In 2007 the complex produced 23 million tons of LNG, all of which
        was shipped to utilities in China, Japan and South Korea under long-term contracts. In July 2005,
        Malaysia LNG Tiga Sdn Bhd (MLNG Tiga), a Petronas subsidiary, signed an agreement with
        Korea Gas Corp (KOGAS) to supply up to two million tons of LNG a year for 20 years, starting
        in 2008, with an option to extend for another five years. With the deal KOGAS will take 6.7
        million tons per annum, making the company Malaysia's largest single LNG importer. In
        October 2006 Malaysia entered into its first LNG deal with China. The Southeast Asian country
        will supply gas to a Chinese firm, Shanghai LNG, for 25 years. The contract is reportedly worth
        approximately USD25 billion.

        The opening of new deepwater concession blocks off East Malaysia will also prove to be crucial
        for the oil and gas sector and the country as whole. Present proven oil reserves will be exhausted
        by 2016 at the present rate of extraction, while natural gas will run out in around 33 years. In
        June 2006, Malaysia's state oil firm Petronas announced that it would drill 10 exploration wells
        off Borneo island during the year in a bid to tap the estimated eight billion barrels of oil believed
        to lie beneath deepwater areas.

        However, developing the deepwater blocks may lead to an increased risk of confrontation with
        neighboring countries as the exploration frontier moves closer to disputed territory. This
        possibility became evident in February 2005 when Malaysia's oil company Petronas awarded an
        exploration contract for two blocks in the disputed Ambalat area off the eastern coast of Borneo
        to Royal Dutch Shell. Indonesia responded by deploying warships and F-16 fighter aircraft to the
        area. This issue is unlikely to be resolved soon. In December 2005 the Indonesian navy sent 36
        warships and transports, with at least 1,000 marines embarked, into the disputed area on one of
        the largest exercises it had ever staged. Relations between the countries remain strained and the
        issues regarding resources and disputed maritime borders are likely to serve as a perennial
        irritant.

        According to some assessments, Malaysia may become a net oil importer by 2011. This reflects
        both rising consumption, as well as the arbitrage between the country's low-sulphur, 'sweet'
        crudes that command a premium from refiners and cheaper crude that can be refined locally.

        In November 2006, Malaysia's MISC Bhd, the world's largest single owner-operator of LNG
        tankers, announced it would spend USD5.5 billion over the next five to six years to expand its
        fleet. The national carrier will acquire eight LNG ships, six tankers for petroleum shipping, eight
        chemical carriers and a container ship. The new deliveries will raise MISC's fleet strength from
        109 ships with 8.39 deadweight tons (dwt) to 132 ships with 10.81 million dwt.




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        Transport

        Former prime minister Mahathir Mohamad's emphasis on building often huge and sometimes ill-
        considered infrastructure projects has left Malaysia with an excellent network of major roads, a
        new international airport and urban transport systems. One of the first actions of his successor,
        Prime Minister Abdullah Badawi, was to cancel a huge railway project. Abdullah has also made
        it clear that he is opposed to the sub-agenda of many of these projects, which invariably involve
        channeling work towards politically well-connected construction and engineering companies.

        Greater emphasis is now likely to be given to trying 'soft' approaches to the problems of urban
        road congestion, the seemingly unstoppable demand for car ownership - partly the product of
        Mahathir's desire for an indigenous automobile industry - and steady decline in public transport
        usage. These issues may be tackled through the increased use of charging, tolls and taxes,
        coupled with greater subsidies on public transport systems.

        On 31 December 2003 the government ordered a cut in car import duties, one year ahead of a
        schedule agreed by Association of Southeast Asian Nations Free Trade Agreement (AFTA).
        However, the cut was matched by a 60 to 100 per cent increase in excise duties on all cars -
        including the domestic Proton range- ostensibly to help compensate the fall in revenue. The
        effect was to increase car prices by as much as four per cent, serving as a brake on demand and a
        possible precedent for further tax increases.

        The government in early 2006 was preparing to unveil the National Automotive Policy (NAP),
        which is intended to encourage the development and expansion of the local vehicle
        manufacturing and assembly sector. The status of imported cars under the NAP is unclear, which
        has led to around 10,000 cars being held at Malaysian ports while their "Approved Permits" are
        assessed. This policy has largely failed to protect the Proton brand, and in mid-2008 Minister of
        International Trade and Industry Muhyiddin Yassin said his department was studying the NAP
        with a view to issuing new recommendations as to how the scheme should operate. Increased
        Proton sales in mid-2008, probably in response to high fuel costs and the weakening ringgit, may
        prevent any radical changes to the NAP.

        Another innovation is the advent of low-cost, no-frills air travel. The success of Asia Air in
        providing cheap domestic flights since early 2002 has been at least partly responsible for
        Malaysian Airlines System's (MAS) major financial problems. MAS has sought to stem its losses
        through cutting its fleet size, acquiring more fuel efficient aircraft and selling off property.
        However, rising fuel costs and weakening demand have partly reversed these gains during 2008.
        AirAsia by 2007-08 was carrying well over 16 million passengers a year and has around 175 new
        aircraft either recently delivered or on order. The airline's business model has caused some
        concern in 2008 due to fuel costs and slowing demand. However, the carrier is likely to benefit
        as other low-cost competitors are forced out of business.




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        Statistical Overview

                                                                    2001    2002    2003    2004    2005     2006
        GDP (current USD billion)                                   88.05 95.16 104.0 118.3 130.1 150.67
        GDP growth (annual %)                                       0.45    4.21    5.6     7.1     5.3      5.9
        GDP per capita (constant 1995 USD)                          8,622 8,955 9.472 10,232 10,887 11,675
        Foreign Direct Investment, net (BoP, current USD billion) 0.29      3.5     2.5     4.6     3.9      6.0
        Inflation (annual %)                                        1.42    1.81    1.2     1.3     1.3      3.0
        External debt (current USD billion)                         43.35 48.3      50.3    55.2    51.9     52.52
        Exports (current USD billion)                               102.44 105.48 104.98 126.62 160.8 176.2
        Imports (current USD billion)                               86.25 91.70 96.82 105.28 130.1 142.6
        Source



        Sources: https://www.cia.gov/cia/publications/factbook/geos/my.html
        Jane‘s Information Group

        9. Infrastructure
            A. Transportation
                   Airports:    116 (2008)
              Airports - with   total: 36
             paved runways:     over 3,047 m: 5
                                2,438 to 3,047 m: 10
                                1,524 to 2,437 m: 7
                                914 to 1,523 m: 8
                                under 914 m: 6 (2008)
             Airports - with    total 80 914 to 1,523 m 8 under 914 m 72 (2008)
          unpaved runways:
                 Heliports:     2 (2007)
                 Pipelines:     condensate 3 km; gas 1,965 km; oil 31 km; refined products 114 km (2008)
                 Railways:      total: 1,890 km
                                standard gauge: 57 km 1.435-m gauge (57 km electrified)
                                narrow gauge: 1,833 km 1.000-m gauge (150 km electrified) (2006)
                  Roadways:     total: 98,721 km
                                paved: 80,280 km (includes 1,821 km of expressways)
                                unpaved: 18,441 km (2004)
                 Waterways:     7,200 km
                                note: Peninsular Malaysia 3,200 km; Sabah 1,500 km; Sarawak 2,500 km (2008)
          Merchant marine:      total: 306
                                by type: bulk carrier 12, cargo 97, carrier 1, chemical tanker 34, container 46, liquefied gas
                                33, passenger/cargo 5, petroleum tanker 71, roll on/roll off 3, vehicle carrier 4
                                foreign-owned: 40 (Germany 1, Hong Kong 14, Japan 4, Russia 2, Singapore 16, Sweden 3)
                                registered in other countries: 68 (Bahamas 13, Marshall Islands 3, Norway 1, Panama 12,
                                Philippines 1, Saint Kitts and Nevis 1, Singapore 27, Thailand 3, Tuvalu 1, US 2, unknown
                                4) (2008)
                    Ports and   Bintulu, Johor Bahru, Kuantan, Labuan, George Town (Penang), Port Kelang, Tanjung
                   terminals:   Pelepas


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            Transportation -    the International Maritime Bureau reports the territorial and offshore waters in the Strait of
                      note:     Malacca and South China Sea as high risk for piracy and armed robbery against ships;
                                numerous commercial vessels have been attacked and hijacked both at anchor and while
                                underway; hijacked vessels are often disguised and cargo diverted to ports in East Asia;
                                crews have been murdered or cast adrift
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html
        http://www.worldtravelguide.net/data/png/png100.asp

        Roads

        Most of Malaysia's 27,000 km of paved road network is to be found in western Peninsular
        Malaysia.

        A surge in wealth, access to easy credit, the government's determination to develop an
        indigenous car manufacturing industry, and the country's relatively easy passage through the late
        1990s Asian economic crisis, led to a huge increase in car ownership since the mid-1990s. Kuala
        Lumpur, a sprawling city, is one of the most car-dependent urban centers in Asia.

        Government priorities to encourage ownership of locally produced cars, coupled with often long
        commuting distances, have restricted the ability of public transport to compete in all but the most
        densely travelled routes. The result is often a high level of congestion. The government's solution
        to congestion has been to build more roads, many of them tolled and all owned and operated by
        companies with strong links to the ruling coalition. Prime Minister Abdullah Badawi has
        indicated that he has other priorities and his government can be expected to introduce more
        austere policies that could have a significant impact on how the country deals with its transport
        problems.

        New projects

        In the past five years Malaysia has completed a number of major transport infrastructure
        projects, notably a new bridge (the ‗second link') between Johor and western Singapore and a
        number of key roads around Kuala Lumpur and the densely populated Klang Valley. The
        previous government also said it wanted to replace the existing causeway link with Singapore
        with a bridge to allow navigation through the Johor Straits. Singapore's reluctance to support the
        project effectively ended this plan. The first 169 km phase of the 338 km East Coast Expressway,
        linking Kuala Lumpur with Chendering (Terengganu) opened in 2004. The second phase, which
        will complete the highway, was still under construction in mid-2008.

        Major new planned projects include a second bridge linking Penang island with the mainland and
        an MYR8 billion (USD2.1 billion) upgrade and repair program for some 3,000 km of roads.

        The government is also restructuring the public transportation system along the densely
        populated Klang Valley in a bid to cut car commuting journeys to Kuala Lumpur and to
        encourage increased use of the bus and rail transport systems. According to figures published in
        mid-2003, only 16 per cent of Kuala Lumpur's commuters use public transport. This number is
        likely to have risen in line with higher fuel costs.



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        Railways

        The structure of Malaysia's rail system has barely changed since the British colonial power
        completed a line up the eastern side of peninsula's central mountain range in the 1930s. The
        principal routes are the 787 km Singapore-Butterworth line and the 528 km East Coast line.




        Malaysia's railway network


        Efforts to upgrade the system have centered on a USD3.8 billion project to double-track and
        electrify the main north-south line that former prime minister Mahathir Mohamad awarded to a
        politically well-placed businessman a few days before he left office at the end of October 2003.
        In mid-December 2003 Prime Minister Abdullah Badawi announced the project had been
        cancelled as part of a review of major infrastructure projects. In January 2008 the Malaysian
        government awarded a USD1.08 billion contract to an Indian company for the double-tracking
        and electrification of a 100 km stretch of railway line between Seremban and Gemas. The project
        is due to be completed by end-2012.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Kuala Lumpur built three urban railway systems during the 1990s. The first section of the city's
        Light Rail Transit (LRT) network entered service in 1996. The 27 km STAR (Sistem Transit
        Aliran Ringan), an elevated driver-operated service, became fully operational in 1999, carrying
        some 26 million passengers. The PUTRA (Projek Usahasama Transit Ringan Automatik) route, a
        29 km fully automated line, became fully operational in April 2001. The first 8.6 km section of
        the 16-km elevated PRT (Peoplemover Rapid Transit) Monorail began operations in August
        2003, serving central Kuala Lumpur, with final completion due by 2007. In April 2002, a new 57
        km express rail line began operating from KL Sentral (Kuala Lumpur's new main railway
        station) to KLIA (Kuala Lumpur International Airport). An 18 km monorail system is under
        construction in Putrajaya, the country's administrative capital, with completion originally due by
        end-2004, although a shelving of the project in June 2004 has led to delays. The project has been
        put on hold indefinitely, ostensibly to await an increase in potential passengers.


                                Kuala Lumpur's automated PUTRA light rail vehicle

                                                                                     0551307



        Waterways

        Peninsular Malaysia has over 3,200 km of inland waterway, Sabah just over 1,500 km and
        Sarawak about 2,500 km.

        Airports

        There are currently 37 airport facilities managed by Malaysia Airports Holdings Bhd (MAHB), a
        private company. Four of the airports are international, 15 domestic and the remainder are rural
        landing strips in East Malaysia and islands off the peninsula. In 2005 the country's airports
        handled an estimated 41 million domestic and international passengers and just over one million
        tons of cargo. The government's Department of Civil Aviation (DCA) Airports Standards
        Division is responsible for inspecting and certifying all airports equipment and practices and
        establishing security programs to protect air travelers.

        Kuala Lumpur International Airport (KLIA)

        The new USD2.5 billion airport was officially opened in June 1998, replacing the airport at
        Subang as Malaysia's main international gateway. The airport has two runways, 106 aircraft
        stands, over 200 check-in counters and nearly 500,000 m2 of floor area. Located 50 km south of
        the city, KLIA is accessed by a dedicated highway and the Express Rail Link (ERL) that began
        operating in April 2002.

        KLIA can handle up to 35 million passengers and 1.2 million tons of cargo a year. In 2006,
        KLIA handled 24.12 million passengers, against 23.13 in 2005. The airport also moved 677,446
        tons of cargo in 2006, up from 653,654 tons in 2005. The rapid rise in low cost air travel boosted



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        traffic, and there are plans to build a second terminal dedicated to this sector. The new low-cost
        terminal would be able to handle up to 30 million passengers a year.

        Malaysia Airports Holding (MAHB) signed a 50-year concession agreement with the
        government to manage KLIA. Under the agreement, MAHB will reimburse the government 60
        per cent of the project cost, or RM6.4 billion (USD1.7 billion), for the duration of the
        concession. MAHB also operates Istanbul's Sabiha Gokcen Airport, the Astana International
        Airport in Kazakhstan, India's Indira Gandhi International Airport in Delhi and the Rajiv Gandhi
        International Airport in Hyderabad.

        Reference point            02º45.4'N 101º 41.39'E
        Maximum runway length 4,000 m (13,123 ft)
        Runway surface             Asphalt
        Elevation                  15 m
        Nearest town/city          Kuala Lumpur (50 km)


        Kota Kinabalu

        Reference point            05° 56.5'N 116° 02.9'E
        Maximum runway length 2,987 m (9,800 ft)
        Runway surface             Asphalt
        Elevation                  3m
        Nearest town/city          Kota Kinabalu (7 km)


        Kuala Lumpur (Subang)

        Reference point            03° 07.9'N 101° 33.1'E
        Maximum runway length 3,780 m (12,400 ft)
        Runway surface             Paved
        Elevation                  27 m
        Nearest town/city          Kuala Lumpur (16 km)


        Kuching

        Reference point            01° 29.1'N 110° 20.6'E
        Maximum runway length 2,454 m (8,050 ft)
        Runway surface             Asphalt
        Elevation                  27 m
        Nearest town/city          Kuching (11 km)




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        Penang

        Reference point            05° 17.9'N 100° 16.7'E
        Maximum runway length 3,345 m (11,000 ft)
        Runway surface             Flexible paved
        Elevation                  3m
        Nearest town/city          Georgetown (14 km)


        Civil Airlines

        The national carrier, Malaysian Airline System (MAS), operates domestic, regional and long-
        haul services. In January 2002 Asia Air, a low-cost, no-frills Malaysian-based carrier began
        operations, offering MAS its first serious competition over domestic routes. Further small
        operators are likely to emerge, although the local market is unlikely to be able to support more
        than a handful of such airlines. Malaysia is well-served by regional airlines, but the number of
        long-haul services have yet to fully recover from the 1997-98 Asian economic crisis.

        Malaysia Airline System

        Malaysia Airlines is an International Air Transport Association (IATA)-scheduled carrier. The
        airline operates services to 30 domestic and around 60 international destinations, a marked
        reduction on an earlier network of more than 100 domestic and a similar number of international
        routes. By mid-2008 MAS operated some 80 passenger and six cargo aircraft. The carrier was
        effectively renationalized in February 2002 after accumulating huge debts. The controversial
        restructuring involved some USD2.5 billion in public funds to cancel debts in exchange for the
        state taking 69 per cent ownership of the carrier. All MAS's aircraft were also taken over by a
        state-owned company, Penerbangan Malaysia (PMB), which leases them back to the airline.

        Such accounting has done little to ease the company's problems. In late December 2005 the
        company announced it may have to sell its headquarters in central Kuala Lumpur to meet its
        spiraling debts and fund a USD800 million expansion plan. The government seems almost
        certain to once again support the carrier, if only for reasons of national prestige. However the
        airline has abandoned a USD1 billion bond offer, postponed the replacement of almost 40
        Boeing 737-400 aircraft, cut back on route expansion plans and removed its managing director.

        In early 2006 MAS announced a new three-year Business Turnaround Plan (BTP) intended to
        return the airline to profitability in 2007. The BTP involved cutting a number of routes to
        destinations in India, China and Europe as well as domestic and regional services. By end-2006
        MAS declared profits over two quarters, on the sale of properties and aircraft and higher
        operating revenue and improved yields. In May 2007 MAS announced orders for more than 100
        new aircraft as part of a seven-year fleet renewal plan. The carrier said it wanted some 55 wide-
        bodied long-range and 55 narrow-bodied medium-range aircraft. The cost of such an acquisition
        would put at around USD14.3 billion at then list prices. MAS also ordered ten ATR 72-500s with
        an option for a further ten aircraft in a deal worth USD360 million. The aircraft are for use by the
        carrier's MASwings and Firefly subsidiaries on domestic and regional routes.


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        Although MAS made a record profit of RM851 million (USD246 million) for FY2007.
        However, by mid-2008 soaring oil prices triggered a new round in cost cutting and route
        restructuring, including reducing capacity by six per cent. The airline confirmed that an order for
        35 narrow-body Boeing 737-800s would go ahead, but an option on a further 20 similar aircraft
        may not be exercised. The new aircraft will replace the existing Boeing 737-400 fleet. The
        airline's fuel bill took its toll between late 2007 and mid-2008. By August 2008 MAS reported a
        second consecutive decline in quarterly profits as passenger numbers fell and oil prices rose.
        Second-quarter net income dropped 65 per cent to RM40 million (USD12 million) from RM113
        million from the same period in 2007. The carrier has delayed making any decision on ordering
        wide-body aircraft from 2008 until 2009.

        Fleet details

        A330-300                                                 × 11
        A330-200                                                 ×3
        B737-400                                                 × 37
        B747-400                                                 × 11
        B747-200F                                                x4
        B747-400F                                                ×2
        B777-200ER                                               × 17
        Boeing 737-800 (on order)                                × 35
        Airbus A380-800 (on order)                               x6
        ATR 72-500 (on order)                                    x 10
        Note



        Asia Air

        Established in January 2002, the company was the first Asian low-fare, no-frills airline to
        introduce ticketless travel. The Malaysian-based company operates in conjunction with associate
        companies in Thailand and Indonesia. In the period May 2006-July 2007 total passenger traffic
        reached 10.63 million, against 8.28 million in the same 2005-06 period. AirAsia serves around
        60 destinations in 14 separate Asian countries and territories, including Australia. Operations are
        based on four main hubs - Kuala Lumpur International Airport, Johor Bahru's Senai International
        Airport, Bangkok's Don Muang Airport and Jakarta International Airport - offering scores of
        flights a day.

        In November 2004 the carrier announced plans to acquire another 80 aircraft. The following
        month a deal was agreed with Airbus to supply Air Asia with 40 A320 aircraft, with an option to
        purchase or lease an additional 40 likely to be accepted in the future. The deal was valued at
        USD5.2 billion on list price, but the size of the agreement was likely to lead to discounts for Air
        Asia. Delivery of the aircraft began in December 2005, with one aircraft arriving per month since
        that time.




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        By mid-2008 AirAsia had a total of 175 aircraft - all Airbus A320s - either recently delivered or
        on order. However, in common with other airlines, AirAsia's has had to deal with the impact of
        the soaring cost of aviation fuel. The carrier's response has been to increase the number of
        flights, routes and capital investment. AirAsia's strategy is to absorb passengers shed by other
        airlines as they react to the downturn by cutting capacity. Most industry analysts view this as a
        high-risk strategy. In August 2008 AirAsia reported a 95 per cent fall in net profits for April-
        June quarter to RM9.42 million (USD2.9 million). The company attributed this result to a RM77
        million (USD23 million) foreign exchange loss from a weakened Malaysian currency rather than
        any structural problems with its business. Debts are also mounting and will continue to climb as
        more aircraft are delivered. Other challenges come from the relatively weak performance of its
        Thai and Indonesian units as well as falling consumer spending and renewed competition from
        Malaysia Airline System.

        Fleet details

        A320-300                                                                 × 41
        B737-300                                                                 ×6
        Note: AirAsia has ordered a total of 175 Airbus A320 aircraft, with deliveries due to be completed in 2014.


        Air Asia X

        AirAsia X was formed in January 2007 as a Malaysian-based low-coast long-haul carrier. The
        carrier is owned by Aero Ventures Sdn Bhd (48 per cent), Virgin Group (16 per cent) and
        AirAsia (16 per cent). The remaining 20 per cent is divided between Japanese and Bahraini
        investors. By mid-2008 the airline operated four flights a week between Kuala Lumpur and
        Australia's Gold Coast and the Malaysian capital and Hangzhou in China using a single A330-
        300. Two new A330s were due to be delivered by the end of 2008, with a further three delivered
        in 2009. The carrier has ordered 25 A330-300s. The additional aircraft will allow AirAsia X to
        launch services to the Australian cities of Perth and Melbourne by end-2008. The airline has also
        said it plans to start services Britain in early 2009, either to a London airport or Manchester.

        Fleet details

        A320-300 (leased)                                                                  ×1
        Note: AirAsia X has ordered 25 Airbus A320-300 aircraft, with deliveries due to start in late 2008.


        MASwings

        MASwings was launched in October 2007 after the Malaysia Airline System agreed to resume
        responsibility for operating the state-subsidized rural air services (RAS) in East Malaysia from
        Fly Asian Xpress' (FAX). The private carrier had been awarded the RAS contract in August
        2006 but within six months had asked the government to cancel the contract as it wanted to
        concentrate on long haul operations. The airline operates service to 23 destinations, many of little
        more than landing strips in remote areas of the East Malaysian states of Sabah and Sarawak.



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        Fleet details

        .Fokker 50                   ×7
        DHC-6 Twin Otter             x5
        ATR 72-500                   x1
        Note: All aircraft owned by MAS


        Firefly

        Firefly is a wholly-owned subsidiary of Malaysia Airline System. The Penang-based low-cost
        carrier began services in April 2007 operating two MAS Fokker 50 aircraft. By August 2008
        Firefly was operating three Fokker 50s and a newly delivered ATR 72-500 to seven domestic
        destinations and five international services to Thailand and Indonesia.

        Fleet details

        .Fokker 50                 ×3
        ATR 72-500                 x1
        Note: All aircraft owned by MAS


        Ports

        Government and private sector port development and expansion programs in the mid-1990s have
        borne fruit as Malaysia offers an increasingly serious challenge to Singapore, the region's
        premier shipping hub. New or modernized ports have eroded the colonial-era logistics and
        transport system based on the peninsula serving as a source of commodities and Singapore as a
        business and trading centre. Malaysia must now convince domestic and foreign shippers that it
        can maintain the advantages it has gained by financial incentive and political pressure through
        constant investment and effective management

        The main developments over the past decade have taken place Tanjung Pelapas (PTP) in
        southwestern Johor state and Port Klang's Westport container terminal at Pulau Indah. PTP is
        now Malaysia's principal container port, having overtaken Port Klang's two container terminals -
        Westport and Northport - on an individual basis in recent years. PTP handled 5.4 million 20 ft
        equivalent container units (TEUs) in 2007, a 14.5 per cent increase on 2006. Once work is
        completed in 2011 on four additional berths, PTP will be able to handle 12 million TEUs. PTP
        has also secured a third major shipping line. Malaysia's MISC, the country's main shipping line,
        will use the port as its main hub, joining Denmark's Maersk Sealand and Taiwan's Evergreen
        Marine.

        Throughput at Port Klang's Westport and Northport terminals totaled a combined 7.2 million
        TEUs in 2007, a sharp increase on the 6.3 million TEU's handled in 2006. Wesport handled 4.34
        million TEUs in 2007, a growth of 18 per cent, and Northport 2.86 million TEUs, up 7.5 per cent
        on 2006. There are reported to be plans to merge the two terminals into a single port, but no
        timetable has been given. Both terminals have also begun expansion plans to increase their


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        capacity. Westport will receive two more berths that will increase its annual capacity by 30 per
        cent to eight million TEUs. Northport will add another container terminal.

        Other major Peninsular Malaysian ports include:

        Bintulu

        Bintulu is in East Malaysia's Sarawak state and is one of the world's largest Liquified Natural
        Gas (LNG) loading ports. Over the past decade Bintulu has moved into container handling,
        principally servicing feeders operating from Singapore and Malaysia. In 2007 Bintulu had
        handled 251,800 TEUs, a 26 per cent increase on 2006. A three-year RM200 million expansion
        program is due to start in 2008 that will increase the port's annual handling capacity to 650,000
        TEUs from the present 327,000 TEUs.

        Kuantan

        The port of Kuantan is on the northeast coast of Peninsular Malaysia. The port serves the
        offshore oil industry and is seeking to become a regional transshipment centre for traffic to and
        from Thailand and Indochina. Recent developments at the port since 2001 include the dredging
        of an 80 ha additional water basin, construction of a third liquid chemical berth and the
        completion of a 400 m container berth. In 2007 the port handled 127,600 TEUs in 2007, a two
        per cent increase over 2006.

        Pasir Gudang

        The port of Pasir Gudang is located on the Johor Straits, opposite Singapore. The port has an
        annual capacity of one million TEUs, and in 2007 handled 920,000 TEUs. The port is expected
        to reach full capacity by 2010. Some Malaysian politicians have accused Singapore of trying to
        hamper the port's traffic through reclamation works that have reduced navigation in the Johor
        Straits. The increase in container throughput demonstrates that such activity has done little to
        stem demand for the port.

        Penang

        Penang is on the northwest coast of Peninsular Malaysia, close to the northern entrance to the
        Straits of Malacca. Its principal port is the North Butterworth Container Terminal. In 2007,
        Penang port handled 926,000 TEUs, a nine per cent increase over 2006. In addition to the
        container port, there are also facilities for handling bulk and vegetable oil at Butterworth
        wharves and nearby Prai.

        Source: Jane‘s Information Group
            B. Communication

        Malaysia has one of the most modern telecommunication networks in Southeast Asia. The sector
        is regulated and licensed by the government Communications and Multimedia Commission
        (CMC).


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        The fixed line segment was privatized in 1999 when network licenses were awarded to a number
        of competing operators. In 2008 it was estimated that more than 90 per cent of the population
        had access to a mobile telephone service, giving Malaysia the second highest mobile penetration
        in Southeast Asia after Singapore. Fixed-line services lagged far behind mobile telephony and
        are actually going in reverse, with about 17 per cent (around 4.3 million subscribers) by early
        2008.

        Personal computer ownership is around 25 per cent, while internet subscription, which had been
        slow, increased dramatically in line with broadband penetration. During 2006 and 2007, take-up
        trebled, giving access to five per cent of the population (up from one per cent in 2004). Forecasts
        for 2008 expected an expansion of 50 per cent to reach around 15 per cent of households by
        year's-end. The government actively encourages PC ownership and the use of the Internet, with
        incentives to promote greater uptake.

        Source: Jane‘s Information Group


        Malaysia has some of the toughest censorship laws in the world. The authorities exert substantial
        control over the media and can impose restrictions in the name of national security.

        The government is keen to insulate the largely-Muslim
        population from what it considers harmful foreign influences on
        TV. News is subject to censorship, entertainment shows and
        music videos regularly fall foul of the censors, and scenes
        featuring swearing and kissing are routinely removed from TV
        programs and films.

        The TV sector comprises commercial networks and pay-TV
        operations. Around a quarter of TV households subscribe to the                  Malaysian media tycoon Tiong
        Astro multichannel service. Pay-TV operators MiTV and Fine                      Hiew King reads a copy of the
        TV entered the market in 2005. TV3 is the leading national                      Chinese-language daily
        private, terrestrial broadcaster.                                               Nanyang Siang Pau

        State-owned Radio Television Malaysia (RTM) operates two TV networks and many of the
        country's radio services. Private stations are on the air, broadcasting in Malay, Tamil, Chinese
        and English.

        Newspapers must renew their publication licenses annually, and the home minister can suspend
        or revoke publishing permits.

        Some web sites, such as Laman Reformasi, close to former deputy prime minister Anwar
        Ibrahim, freeMalaysia and Malaysiakini, have attracted official criticism.
        The press
            New Straits Times - English-language daily
            The Star - English-language daily
            Business Times - English-language daily


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           The Malay Mail - English-language daily
           Malaysiakini - English-language, online news service
        Television
           Radio Television Malaysia (RTM) - state-run, operates TV1 and TV2 networks
           TV3 - commercial network
           ntv7 - commercial network
           8TV - commercial network
        Radio
           Radio Television Malaysia (RTM) - state-run, operates some 30 radio stations across the
           country and external service Voice of Malaysia
           Era FM - private FM station
           Hot FM - private FM station
           Time Highway Radio - private Kuala Lumpur FM station
        News agency
           Bernama - state-run

        Source: http://news.bbc.co.uk/2/hi/asia-pacific/country_profiles/1304569.stm#facts

          Telephones - main     4.35 million (2007)
                lines in use:
               Telephones -     23.347 million (2007)
            mobile cellular:
          Telephone system:     general assessment: modern system; international service excellent
                                domestic: good intercity service provided on Peninsular Malaysia mainly by microwave
                                radio relay; adequate intercity microwave radio relay network between Sabah and Sarawak
                                via Brunei; domestic satellite system with 2 earth stations; combined fixed-line and mobile
                                cellular teledensity exceeds 110 per 100 persons
                                international: country code - 60; landing point for several major international submarine
                                cable networks that provide connectivity to Asia, Middle East, and Europe; satellite earth
                                stations - 2 Intelsat (1 Indian Ocean, 1 Pacific Ocean) (2007)
           Radio broadcast      AM 35, FM 391, shortwave 15 (2001)
                   stations:
                  Television    88 (mainland Malaysia 51, Sabah 16, and Sarawak 21) (2006)
         broadcast stations:
           Internet country     .my
                       code:
             Internet hosts:    377,716 (2008)
             Internet users:    15.868 million (2007)
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html




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        10. Military
                 A. Leadership

        Minister of Defense:                        Y.B. Dato' Seri Dr. Ahmad Zahid Bin Hamidi
        Chief of Defense Forces:                    General Abdul Aziz Zainal
        Chief of the Army:                          Gen Datuk Muhammad Ismail Jamaluddin
        Chief of the Air Force:                     General Datuk Seri Azizan Ariffin
        Chief of the Navy:                          Admiral Dato' Sri Abdul Aziz Bin Haji Jaafar


                 Minister Of Defense - Y.B. Dato' Seri Dr. Ahmad Zahid Bin Hamidi

        Datuk Seri Ahmad Zahid Hamidi, the new Defense Minister (9 April
        2009), is not a stranger to the ministry, having been the political secretary
        to Datuk Seri Najib Tun Razak when Najib was the defense minister.

        Ahmad Zahid, 56, held the post for three years before resigning in 1993.

        His arrest under the Internal Security Act in 1998 due to his involvement
        in the reform movement, did not hamper his ascend in politics.

        In 2004 he was appointed deputy tourism minister and then the deputy
        information minister in 2006.

        Last year he was made the Minister in the Prime Minister‘s Department and Thursday Ahmad
        Zahid, who polled 1,592 votes — the highest number of votes in the contest for the Umno vice-
        presidency in last month‘s party elections — was appointed the defense minister.

        Born on Jan 4, 1953 in Kampung Sungai Nipah Darat, Bagan Datoh, Perak, he joined Umno in
        1984 and elected the Bagan Datoh Umno Youth chief for 11 years.

        He was elected the Umno Youth vice-chief in 1987 and the movement‘s chief in 1996.

        He holds a Doctor of Philosophy in the field of communications from the Universiti Putra
        Malaysia (UPM) and a master‘s degree in corporate communications from the same university.

        Married to Datin Seri Hamidah Khamis, they have five children.

        Ahmad Zahid described his appointment as returning to a familiar territory.

        ―I will continue with what has been planned and will also discuss with the prime minister on
        things which need improvement,‖ he told reporters.

        Ex-servicemen Association President Datuk Mohamad Abdul Ghani described Ahmad Zahid‘s
        appointment as timely.


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        ―He has the experience as had served as the political secretary to the defense minister,‖ he told
        Bernama.

        Sources: http://www.mod.gov.my/sub2_page_eng.php?maincode=mind-
        main001&&sub1code=mind-sub1-004&&sub2code=mind-sub2-002

        http://english.siamdailynews.com/asia-news/southeastern-asia-news/malaysia-news/zahid-not-a-
        stranger-to-defence-ministry.html

        Chief of the Defense Force - Jen Datuk Seri Abdul Aziz Zainal

        Abdul Aziz was born in Kuala Pilah, Negeri Sembilan, on Aug 26,
        1951.

        After completing his cadet training at the Royal Military College in
        1971, he was commissioned as a Lt Muda and posted to the 3rd
        Royal Malay Regiment on April 16, 1971, as platoon head.

        He then held various positions at battalion level, including as
        battalion commander before being posted to the Army Headquarters
        and training institutes.

        He also served as Human Resource Staff Officer at the Army
        Management School in Port Dickson.

        From 1981 to 1983, Abdul Aziz was the Military Attaché at the Malaysian Embassy in the
        Philippines and, on his return, he was posted to the Army Commander's office as military
        adviser.

        As a Colonel, he was posted to the Planning Branch and in 1997, he was promoted Brigadier
        General and made Assistant Chief of Staff of the Operations and Training Branch in the Army
        Headquarters.

        Abdul Aziz was promoted Major General and made Commander of the 3rd Division in Terendak
        Camp, Melaka, from Jan 15, 2001. He was made Army Field Commander on Aug 18, 2003.

        At the international arena, he served as Chief of the Malaysian Contingent (MALCON3) under
        the command of NATO in Bosnia-Herzegovina from 1996 to 1997.

        He has also attended various courses and seminars overseas such as the Shooting Management
        Course in United Kingdom, the Peace Relief Operations Seminar and the Pacific Armies
        Operations Seminar in Victoria, British Colombia, and the Pacific Armies Management seminars
        in Sydney, Tokyo and Calgary.

        In 1996, he obtained a Masters Degree in Management from the Asian Institute Of Management
        in Manila.



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                       opinions, assessments or positions of the DoD or any other government agency or entity.


        In January 2007, he became the Chief of the Defense Force.

        Abdul Aziz is married to Datin Rosita Md Mawi and they have two sons and two daughters.

        Source:
        http://www.thestar.com.my/news/story.asp?file=/2007/1/31/nation/16732120&sec=nation

        Chief of the Army - Gen Datuk Muhammad Ismail Jamaluddin

        Gen Datuk Muhammad Ismail Jamaluddin was born n 21 September
        1952 in Johor Bahru, Johor. He started his career with the Malaysian
        armed Forces after being commissioned as a Sub-Lieutenant in the
        Royal Malay Regiment's Eighth Battalion. Before being promoted to
        the rank of Brigadier General, he led the Malaysian Contingent in
        Bosnia (Malcon IV-SFOR), holding the post of Equipment Colonel and
        Inspectorate Colonel at army headquarters. Before becoming the Chief
        of the Army he was the Deputy Chief of the Army.
        He assumed his current position in January 2007.

        Source: Utusan Malaysia; 25 Jan 2005
        http://www.aimalumni.org/referrals/outstandingalumni_contents.asp?id=394


        Chief of the Air Force - General Datuk Seri Azizan Ariffin

        Azizan, who hails from Yan, Kedah joined the armed forces on
        April 16, 1971 and will be the 15th RMAF Chief. He assumed
        the responsibilities as Air Force Chief on 30 October 2006.

                Born in Yan, Kedah Darul Aman in 1952, he completed
        his Officer Cadet training at the Royal Military College and was
        commissioned on 16th April 1971 in the Air Traffic Control
        Branch of the RMAF. He completed his basic and advance Air
        Traffic Control courses in Australia in 1971 and 1973
        respectively. He has held various appointments as an Air Traffic
        Controller in units such as the Joint Air Traffic Control Centre
        Paya Lebar in Singapore and RMAF Base Kuantan.

                Lt Gen Dato‘ Azizan attended his basic and advance
        flying training in Australia and graduated on 7th July 1977. Since
        then he has flown CT 4s, Bulldog B 100, Aermacchi MB 326H, Cessna 402B, Pilatus PC 7,
        BAe 125, Fokker 28, Falcon 900 and C 130. He was a Squadron Commander of the VIP
        Squadron, examiner, flying instructor and Standard Officer at the RMAF Flying Training
        School. He was also a member of the National Aerobatic Team `Taming Sari‘. Lt Gen Dato‘
        Azizan has held a number of important staff, command and tri-service appointments. He was



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        assigned to Pakistan as Defence Advisor, Director of Training RMAF Headquarters and Chief
        of Staff No 2 Air Division. He has commanded No 2 Air Division and was later appointed as
        Commandant of the Air Force College and Commandant of the Malaysian Armed Forces
        Academy. He has attended numerous overseas specialist courses, local career courses and was a
        graduate of Air Command and Staff College (USA) and National Defence College (India).

                In recognition of his service and contribution towards national security, t Gen Dato‘
        Azizan was conferred with a number of Federal, State and Armed Forces awards. Amongst
        these are the Darjah Kebesaran Sri Indera Mahkota Pahang (SIMP) and Darjah Kebesaran Sultan
        Ahmad Shah Pahang (DSAP) which carries the title Dato‘ from HRH the Sultan of Pahang,
        Darjah Setia DiRaja Kedah (DSDK) which carries the title Dato‘ from HRH the Sultan of Kedah,
        Panglima Setia Angkatan Tentera (PSAT), Johan Setia DiRaja (JSD), Darjah Pahlawan
        Angkatan Tentera (PAT), Johan Mangku Negara (JMN) and Kesatria Angkatan Tentera (KAT)
        from His Majesty DYMM Seri Paduka Baginda Yang di-Pertuan Agong.

               Lt Gen Dato‘ Azizan is married to Datin Noorainee Abd Rahim and the couple is blessed
        with two daughters and three sons. He is active in sports and has a passion for golf.

        Source: http://www.bernama.com/bernama/v3/news_lite.php?id=226618
        http://maf.mod.gov.my/airforce/bm/profail/kepimpinan_02.htm



                 Chief of the Navy - Admiral Dato' Sri Abdul Aziz Bin Haji Jaafar

        Admiral Dato' Sri Abdul Aziz Jaafar assumed his current
        appointment as the Chief of Navy on 1 April 2008.

        Admiral Dato' Sri Abdul Aziz Jaafar was born in Sungai Udang,
        Malacca on 7 May 1956. He had his secondary education at the
        Sekolah Menengah Masjid Tanah in Malacca and later at the
        Royal Military College, Sungai Besi, Kuala Lumpur. He joined
        the service in 1974 and was then commissioned into His
        Majesty‘s service as a Sub-Lieutenant in 1977.

        Throughout his 33 years of service, Admiral Dato' Sri Abdul
        Aziz has held various appointments both at sea and ashore. He
        was the Chief of Staff to the Fleet Operations Commander in
        2001. In July 2002 he assumed duty as Commander, Naval
        Region 2 in Labuan. In July 2005 he was appointed as Assistant
        Chief of Staff Human Resources in RMN Headquarters. He was
        later appointed as the Fleet Operations Commander from 27 January 2006 until 28 July 2006.
         On 31 July 2006 he took up the appointment of Assistant Chief of Staff Defense Operations and
        Training at the Malaysian Armed Forces Headquarters. He was promoted to Vice Admiral on 15
        Nov 2006 and assumed the post Deputy Chief of Navy before being promoted to Admiral and
        subsequently assuming command as Chief of Navy.



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        Admiral Dato' Sri Abdul Aziz was a commissioning crew for 4 RMN ships namely KD PAUS
        (Fast Attack Craft (Gun)) in Hong Leong-Lurssen, Malaysia (1976), KD SRI INDERA SAKTI
        (Multi Purpose Command and Support Ship) in Bremen (1980), KD KASTURI (Corvette) in
        Kiel, Germany (1984) and KD LAKSAMANA MUHAMMAD AMIN (Missile Corvette) in La
        Spezia, Italy (1999). He has had command of 3 RMN ships before, such as KD BAUNG (Fast
        Attack Craft (Gun)) in 1986, KD MUSYTARI (Offshore Patrol Vessel) from 1994 to 1996 and
        KD LAKSAMANA MUHAMMAD AMIN (Missile Corvette) from 1999 to 2001.

        Admiral Dato' Sri Abdul Aziz has attended various professional and career courses locally and
        abroad. Among the courses were International Navigation Specialization Course, United
        Kingdom in 1980, Malaysia Armed Forces Staff Course in 1991 and the Naval Command
        Course at the Naval War College, United States in 1995. He was in INTAN in 1987/1988
        attending the Management Science course and was awarded the Advanced Diploma in
        Management Science with distinction. Whilst undergoing the Naval Command Course, he
        pursued his MA studies majoring in International Relations at the Salve Regina University
        graduating with distinction.

        Admiral Dato' Sri Abdul Aziz is married to Datin Sri Sarah Tun Abdul Ghafar. He has wide
        range of interests. He is a keen golfer and an avid reader. His favorite subjects are sports,
        international relations, leadership and management.

        In recognition of his services, Admiral Dato' Sri Abdul Aziz has been conferred the Darjah
        Kebesaran Sri Sultan Ahmad Shah Pahang (SSAP) by HRH Sultan Pahang which carries the
        title of Dato' Sri, the Darjah Seri Panglima Darjah Kinabalu (SPDK) from Yang Dipertua
        Negeri Sabah. The Darjah Cemerlang Seri Melaka (DCSM) and Darjah Mulia Seri Melaka
        (DMSM) from the Governor of Malacca. The Darjah Paduka Mahkota Selangor (DPMS) from
        HRH Sultan of Selangor. At the National Level he has been bestowed the Darjah Panglima Jasa
        Negara (PJN), Darjah Johan Setia Mahkota (JSM), Kesatria Mangku Negara (KMN) dan Ahli
        Mangku Negara (AMN). At the Malaysia Armed Forces level he has been decorated the Darjah
        Panglima Gagah Angkatan Tentera (PGAT), Darjah Panglima Setia Angkatan Tentera
        (PSAT) and Darjah Pahlawan Angkatan Tentera (PAT) and Kesatria Angkatan Tentera
        (KAT) award.

        Source: http://www.navy.mil.my/content/view/18/64/lang,en/

                 B. Armed Forces Overview

         Military branches:     Malaysian Armed Forces (Angkatan Tentera Malaysia, ATM): Malaysian Army (Tentera
                                Darat Malaysia), Royal Malaysian Navy (Tentera Laut Diraja Malaysia, TLDM), Royal
                                Malaysian Air Force (Tentera Udara Diraja Malaysia, TUDM) (2008)
        Military service age    18 years of age for voluntary military service (2005)
             and obligation:
                 Manpower       males age 16-49: 6,440,338
               available for    females age 16-49: 6,280,826 (2008 est.)
           military service:
         Manpower fit for       males age 16-49: 5,493,946
           military service:    females age 16-49: 5,409,524 (2009 est.)


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                  Manpower      male: 266,267
          reaching militarily   female: 252,543 (2009 est.)
              significant age
                   annually:
                     Military   2.03% of GDP (2005 est.)
               expenditures:
        Source: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html


        Summary

        Total Strength Army Air Force Navy
        107,561          80,000 8,000        19,561


        Assessment

        Currently, the Malaysian Armed Forces are capable of conducting military operations ranging
        from low intensity operations to mid-level conventional warfare within Malaysian territory and
        has a limited capability to conduct independent out of area operations. Capabilities will be
        enhanced with the entry of several key combat systems into service, namely 48 PT-91M tanks
        which will be operationally ready by the end of 2008 and will provide the army with its first
        main battle tank capability. The arrival of two Scorpene class submarine in 2009 will provide the
        Royal Malaysian Navy (RMN) with its first submarine capability and the operational entry in
        2009 of 18 Sukhoi Su-30MKM multi-role fighters into the Royal Malaysian Air Force (RMAF)
        will significantly increase the RMAF's combat capability.

        The Malaysian Armed Forces have issues surrounding the deployability of ground forces to East
        Malaysia and the sustainability of its armed forces in a conventional warfare conflict, given both
        the RMN's and RMAF's limited air and sealift capabilities. The current numbers of Malaysia's
        naval and aviation transportation assets also preclude significant airborne or amphibious
        operations though a capability to deploy up to a battalion of troops for such operations in a single
        lift currently exists. The Malaysian Armed Forces are aware of such shortcomings and the
        RMAF has an order for four A400M transports to be delivered in 2013-2014 to supplement its C-
        130 fleet.

        The sustainability issue stems from the fact that much of the ordnance, munitions and spare parts
        for the Malaysian Armed Forces are imported from overseas although efforts are also being
        made to reduce this though local production and manufacture. Logistics is further complicated by
        the fact that Malaysia maintains and operates a myriad of equipment by different countries and
        suppliers.

        Another area of weakness lies with the Malaysian government having an open-ended timeframe
        for the procurement and replacement of equipment leading to programs being postponed or
        suspended due to budgetary concerns particularly in light of the current economic crisis.

        Another issue is the matter of interservice cooperation, in particular with regard to joint
        operations, although the recent formation of a Joint Forces Headquarters is expected to resolve


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        this problem. The ability for the services to communicate effectively with each other and
        maintain a C4I network is also an area being worked on. However, costs and the need to ensure
        that such systems are not reliant on non-Malaysian sources for installation, maintenance and
        support has resulted in progress in this area being slow.

        Doctrine and strategy

        The shift from a threat-based force to a capability-based force is at the core of long-term defense
        modernization planning, with particular emphasis on strengthening the navy and air force.

        The defense component of the Eighth Malaysian Plan (2001-2005) focused on a dual-track
        approach that incorporates modernization and the development of programs geared towards low-
        intensity conflict. Several incidents over the past few years triggered concerns over direct threats
        to Malaysia's security from cross-border insurgents, terrorist or criminal gangs.

        The Sabah/Philippines/Indonesia sea frontier is the most active military area in Malaysia at
        present. For example, the sudden escalation of tension in this region in 2005 with Indonesia over
        disputed territorial waters. In addition, operations in this complex area tie in with the broader
        post-11 September 2001 US 'War on Terrorism'. The dispute with Indonesia, echoed by a
        resurgence in muted claims by the Philippines over Sabah, may lead to greater emphasis on
        acquiring additional appropriate naval and air platforms. The role of ground forces in this
        difficult terrain could be enhanced by improved mobility and communications rather than
        additional weapons systems.

        There are also concerns over the border with Thailand following a number of incidents in 2004-
        2005 that resulted in a high loss of life among local Muslims. The military's role would be to
        monitor the border in order to meet at least a minimum standard of co-operation with the Thai
        authorities. However, anti-Thai sentiment is evident in the predominately Muslim Malay
        northern states where there are strong links with their co-religionists - and often their relatives -
        across the border. This sentiment can be expected to have affected at least some members of the
        military, which could hamper any sustained effort to secure the frontier.

        The Malaysian government has emphasized its belief in comprehensive nuclear disarmament and
        is a member of all the relevant demand-side conventions proscribing the use, stockpiling,
        production and development of weapons of mass destruction.

        Chain of command

        Minister of Defense:        Y.B. Dato' Seri Dr. Ahmad Zahid Bin Hamidi
        Chief of Defense Forces: General Abdul Aziz Zainal
        Chief of the Army:          General Muhammad Ismail Jamaluddin
        Chief of the Air Force:     General Azizan Ariffin
        Chief of the Navy:          Admiral Dato' Sri Abdul Aziz Bin Haji Jaafar




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        Strategic control is exercised by the Cabinet through the Minister of Defense. Within the
        Ministry of Defense the Armed Forces Council is responsible for strategic decision-making and
        overseeing the MOD's Secretary General, who works in tandem with the Chief of Defense
        Forces (CDF). Each service has its own headquarters, although there are plans to create a Joint
        Force Command (JFC) during the Ninth Malaysia Plan. The JFC, which is intended to assume
        routine operational control over the armed forces was originally planned to be launched in
        September 2005, yet the plan was opposed by senior officers from all services and was
        withdrawn for further amendments. The JFC has since been established in late 2007 though it
        will only be expected to be fully operational in 2008. A three star officer from one of the services
        is to be appointed to head it.

        Joint operations and exercises have long been resisted by the three services, particularly the
        army. The navy completed its first ever joint exercise, ANGSA, with the Royal Malaysian Air
        Force (RMAF) in the South China Sea on 12 August 2006. ANGSA involved 1,500 naval
        personnel, 1,000 from the RMAF, 19 RMN vessels - including the RMN's Lekiu-class frigates
        KD Jebat and KD Lekiu, Kasturi-class corvettes KD Kasturi and KD Lekir and the recently
        commissioned Kedah-class corvette KD Kedah with a Fennec helicopter embarked - two of the
        navy's new Super Lynx helicopters; a chartered civilian vessel; 24 RMAF aircraft; and a leased
        civilian aircraft.

        Both services deemed the exercise necessary to prove their own interoperability, before joining
        with the Royal Malaysian Army (RMA), which traditionally holds the view that the two services
        exist to support army operations, and has been resisting some of the joint concepts being studied
        in the Malaysian Armed Forces.




        Organizational Structure of Malaysian Ministry of Defense



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        Malaysian Armed Forces Chain of Command


        Strategic weapons

        Malaysia has no ballistic missiles and has not indicated any intention to acquire such weapons.

        NBC capabilities

        Nuclear Weapons

        Malaysia has no nuclear weapons capability. It signed the Partial Test Ban Treaty in 1964, the
        nuclear Non-Proliferation Treaty in 1970, the Southeast Asia Nuclear Weapon Free Zone Treaty
        (Bangkok Treaty) in 1995, and the Comprehensive Test Ban Treaty in 1998.

        Nonetheless, Malaysia has experienced some controversy over its role in the provision of
        components for other nuclear programs. Following the disclosure of Libya's weapons of mass
        destruction programs in December 2003, details emerged of four shipments between December
        2002 and August 2003 from the Malaysian company Scomi Precision Engineering (SCOPE) to a
        Dubai-based company, which were then forwarded to Libya in a deal worth USD3.4 million. The
        shipments contained dual-use components that were to be assembled into uranium centrifuges.
        Although the transaction was investigated and found to be legitimate, it highlighted weaknesses
        in Malaysia's dual-use export control regime. The fact that SCOPE is controlled by Prime
        Minister Abdullah Badawi's son, Kamaluddin Abdullah, added to the political controversy.

        Biological Weapons

        Malaysia does not possess and is unlikely to acquire any biological weapons. The country
        ratified the Biological and Toxin Weapons Convention in 1991.




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        Chemical Weapons

        There is no evidence that Malaysia possesses or intends to develop a chemical warfare
        capability. The Royal Malaysian Police are equipped with non-persistent chemical anti-riot
        agents. Malaysia ratified the UN Convention on Chemical Weapons in April 2000.

        Source: Jane‘s Information Group

            C. Army

        Summary

        STRENGTH
        80,000
        Major Formations
        Divisional Headquarters × 4 (Area Commands)
        Infantry Brigade × 9
        Mechanised Brigade × 1
        Airborne Brigade × 1
        Special Forces Group × 1 (Brigade-Strength)
        Principal Combat Units
        Infantry Battalion × 36
        Armored Battalion × 5
        Artillery Battalion × 5
        Air Defense Battalion × 1
        Special Forces Regiment × 3
        Engineer Regiment × 5
        Rapid Deployment Force × 1
        Army Aviation Squadron × 1


        Assessment

        A doctrinal shift towards conventional warfare and power projection following the end of the
        communist insurgency campaign in the late 1980s has profound consequences for the army. The
        process of reshaping the army from a territorially organized, infantry-based service doctrinally
        focused on counter-insurgency operations into a more mobile force, stressing combined-arms
        operations in a conventional warfare context, is ongoing. The process has been greatly helped by
        peacekeeping deployments in Somalia, Bosnia and East Timor during the 1990s, which provided
        valuable operational and command experience. Despite cuts in numbers, the army is steadily
        upgrading the standard of its personnel, equipment, logistics and infrastructure.

        The purchase of PT-91M MBTs from Poland, expected to be completed by mid-2009, and the
        possible acquisition of a further 100 tanks, will provide a major new capability for the army.
        Combined with new APCs/AFVs and up to 40 Tracked Load Carriers (TLC) to haul
        ammunition, spares and other essential equipment, the army will be able to field a powerful
        armored formation within the next few years. This formation will be supported by newly
        acquired artillery - notably Denel G5 Mk3 155 mm/0.45 cal towed artillery systems from South
        Africa and Avibras ASTROS II multiple rocket systems from Brazil. The army is also believed


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        to be interested in acquiring additional long-range artillery, with Giat's Caesar 155 mm SP seen
        as a potential candidate. This system had already been tested in Malaysia, as of mid-2007.

        The army now faces the challenge of assimilating this new equipment and technology in a timely
        and effective process. With good planning and patience, this should be accomplished by the end
        of the decade and serve as a steady platform for more ambitious upgrades and acquisitions.

        Deployments, tasks and operations

        Role and Deployment

        The army's emergence from a primarily counter-insurgency force has been slow, reflecting the
        priority given to the navy and air force since the Communist Party of Malaya (CPM) finally, and
        formally, ended its revolutionary struggle in December 1989 and faded into obscurity. The Asian
        economic crisis of the late 1990s stalled long-planned modernization efforts. A combination of
        low-cost Russian and Eastern European equipment and the post-11 September 2001 terrorist
        threat helped restart the program.

        The army is deployed throughout Malaysia, with brigades located in most states. Nine brigades,
        plus the brigade-strength Special Forces Group, are deployed in Region II (peninsular Malaysia)
        and three brigades in Region I (Sabah and Sarawak). There is a divisional HQ in the state of
        Sarawak, with one of its brigades deployed in neighboring Sabah, and this strength has been
        enhanced since 2000. Much of this enhancement involves the deploying of additional troops to
        garrisons on outlying islands, a task assigned to two under-strength battalions.

        The army's roles are officially defined as follows:

        Primary Roles

                To safeguard all national frontiers and boundaries from encroachment during peacetime;
                To repel all hostile forces during wartime and national emergencies; and
                To deal with any forms of insurgency.

        Secondary Roles

                To assist the police and civil authority in the maintenance of public order;
                To assist the civil authority in national disasters and relief work; and
                To assist the civil authority in national development.

        Supporting Role

                To undertake peacekeeping operations under the auspices of the UN.




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        Recent and Current Operations

        The army has contributed extensively to UN observer and peacekeeping missions, especially
        during the 1990s. Malaysia's Armed Forces were involved in the following UN missions as of
        January 2009:

                MINURSO (Western Sahara): 20 troops and 12 military observers;
                MONUC (Democratic Republic of Congo): 17 military observers;
                UNAMID (Darfur): 10 troops;
                UNIFIL (Lebanon): 600 troops;
                UNMIL (Liberia): 10 military observers;
                UNMIN (Nepal): four military observers;
                UNMIS (Sudan): two troops and five military observers; and
                UNMIT (East Timor): two military observers.

        Substantial forces were deployed in association with NATO's SFOR in Bosnia. In May 2006
        Malaysia sent elements of an airborne regiment from 10th Brigade and special forces' personnel
        to support the Australian-led intervention in East Timor. These troops were withdrawn from the
        country at the end of August 2006 in preparation for the potential deployment of 900 troops from
        the 4th Mechanised Brigade to Lebanon as peacekeepers and the perceived improvement in the
        security situation in East Timor.

        The Ministry of Defense (MoD) established the Malaysian Peacekeeping Training Centre
        (MPTC) in January 1996 to prepare military and civilian personnel for their role in peace-
        keeping operations. The MPTC currently runs courses on UN Staff Duties for officers and senior
        NCOs, the duties of UN military observers and on UN logistics.

        Command and control

        Minister of Defense: Y.B. Dato' Seri Dr. Ahmad Zahid Bin Hamidi
        Chief of Army:         General Muhammad Ismail bin Hj Jamaluddin


        The 21st Special Forces Group and the 10th Brigade are under the direct command and
        operational control of the army commander. The 11th Brigade is under the command of the
        commander of the Army Field Command and has special responsibility for operations in the area
        of Kuala Lumpur and the State of Selangor. The 4th Mechanised Brigade is under administrative
        control under 3rd Division but operational control lies with Army Field Command.




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        Malaysia: Army chain of command



        Organization

        The army is dominant among the Malaysian Armed Forces. Within the army, the infantry plays
        the leading role, mainly because Malaysia's terrain is largely unsuited to mobile armored
        warfare. Wheeled vehicles have been preferred for their ability to travel further and faster along
        the coastal roads in order to respond to strategic needs along Malaysia's extensive border.
        However, the majority of the country is under a thick canopy of jungle and military operations
        are extremely arduous.

        The process of reshaping the army from a territorially-organized, infantry-based service
        doctrinally focused on counter-insurgency operations into a more mobile force stressing
        combined-arms operations in a conventional warfare context continues. The process has been
        greatly helped by peacekeeping deployments in Somalia, Bosnia and East Timor which provided
        valuable operational and command experience.




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        The army's organizational structure, from army headquarters to unit level, has been overhauled
        with the intention of improving command and control and creating a balanced and well-
        supported infantry- and armor-led force. It is based around four divisional HQs, covering two
        military regions. The 1st Division is autonomously based in East Malaysia, while the 2nd, 3rd
        and 4th Divisions are in Peninsular Malaysia.

        There are nine infantry brigades, one airborne brigade, one mechanised brigade and one special
        forces group, (brigade strength). Under the command of these brigades are 36 infantry battalions;
        five armored battalions; five artillery battalions; one air-defense battalion; five engineer
        regiments; three special forces regiments; one Rapid Deployment Force and one Army Aviation
        squadron.

        Within the new structure, two army brigades have been transformed into combined-arms
        formations, with 2,500-strong 10th Brigade forming the core of the army's Rapid Deployment
        Force (RDF). Controlled directly by HQ Army, 10th Brigade comprises three parachute and
        airborne infantry regiments, a 105 mm light artillery regiment, a light tank squadron equipped
        with Scorpions and engineer, logistics and signal support units.

        The second specialized formation is 4th Mechanised Brigade, comprising armored and
        mechanised infantry regiments. The process of converting most infantry formations into
        mechanised units depends mainly on availability of APCs and other operational requirements.
        For example, continuing border tensions in East Malaysia involving deployment of infantry units
        to small islands may lead to a reassessment of the need for all infantry battalions to be fully
        mechanised. In addition, the army plans to cut its present strength to between 60,000-70,000
        personnel. Most of the cuts have so far been among the Royal Malay Regiment (RMR) infantry
        formations. The army's first tank regiment is expected to be operationally ready when deliveries
        of 48 PT-91M are completed by mid-2009.




        Malaysia: Infantry Battalion organization




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        Malaysian Army Air Corps (AAC)

        The Malaysian Army formally inaugurated the AAC in March 1997 with its first active squadron
        (881 Squadron) flying 10 Aerospatiale Alouette III utility helicopters. When the corps build-up is
        completed in 10 to 15 years, it will be expected to operate a mix of transport, utility and attack
        helicopters that could number up to 300 platforms. The Alouette will eventually be replaced by
        11 A109M light utility helicopters, which are expected to be used in a range of roles including
        light attack. Five A109s were delivered in December 2005 with the remainder arriving in
        September 2006.

        The Army Aviation Corps is initially be under the direct command and control of the army
        commander and will work closely with the 10th Parachute Brigade and the 21st Special
        Operations Group. The units form the core structure of the Malaysian Rapid Deployment Force.

        Army Aviation Order of Battle

        Unit                      Base            Type                 Role
        881 Squadron              Keluang         Alouette III         Observation / Liaison
        881 Squadron              Keluang         Alouette III         Utility
        Note:
        882 and 883 Squadron are not yet formed, but are expected to be established in Sabah and Sarawak.


        Operational Art and Tactical Doctrine

        Since independence in 1957, British Army tactics and doctrine have been modified to suit local
        needs. The army's experience in UN operations is unlikely to have altered this doctrinal base.

        Bases

        The HQ complex for 1st Division at Muara Tuang is due to be completed by February 2010. The
        USD64.24 million facility will cover a 348 ha site and serve as a base for 1st Division
        Headquarters, currently located in Kuching, together with one of its infantry battalions and most
        of its support elements. Some 2,000 troops and their families will live there. The division is
        responsible for defending the East Malaysian states of Sabah and Sarawak. It comprises three
        infantry brigades, though the combined number of infantry battalions for the three brigades in
        total amount to six to seven battalions.

        A construction program intended to provide operational support for the army in the southern half
        of peninsular Malaysia is nearing its end. The major military base at Gemas, straddling the states
        of Negri Sembilan, Johor and Malacca, will serve as a combat training complex for infantry,
        armor and artillery when it is completed in the next few years.

        The army also plans to build a new camp on the island of Langkawi.

        A Special Forces base at Mersing on Johor's east coast is designed to support the army's
        operations in the contested Spratly Islands and East Malaysia.


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        Bases include (listed by state):

        Kuala Lumpur (Federal Territory)
        Sungai Besi Camp
        Imphal Camp
        Batu Cantonment Camp
        Johor
        Tebrau Camp
        Keluang Camp
        Johor Baru (Majidee Camp)
        Kota Tinggi
        Kedah
        Sungai Petani (Lapangan Terbang Camp)
        Kelantan
        Kota Baru (Pengkalau Chepa)
        Desa Pahlawan Camp
        Malacca
        Terendak Camp
        Sungai Udang Camp
        Negri Sembilan
        Paroi
        Rasah
        Seremban
        Port Dickson
        Pahang
        Kuantan (Batu 10 Camp; Darulwood Camp)
        Temerloh (Batu 8 Camp)
        Kuala Lipis
        Penang
        Batu Feringgi Camp
        Sungai Ara Camp
        Jalan Peel Camp
        Kepala Batas
        Perak
        Ipoh (Syed Putra Camp)
        Taiping
        Banting Camp
        Tapah
        Perlis
        Kangar (Oran Camp)



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        Sabah
        Kota Belud (Paradise Camp)
        Kota Kinabalu (Lok Kawi Camp; Mile 7 Labuk Road)
        Sandakan (Sri Kinabatangan Camp)
        Sarawak
        Kuching (Penrissen Camp; Bukavu Camp; Semanggo Camp)
        Sibu (Oya Camp)
        Pakit Camp
        Selangor
        Sungei Buloh
        Kuala Kubu Baru
        Klang (Genting Camp)
        Tambun (Syed Putra Camp)
        Terengganu
        Kuala Terengganu (Seri Pantai Camp)
        Batu 11 Tanah Merah




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        Training

        Basic training takes place at the Recruit Training Centre at Port Dickson. Arm-specific training
        is the responsibility of 10 corps schools. The Army Combat Training Centre (PULADA) at Kota
        Tinggi in Johor runs jungle warfare courses. Officers train at the Royal Military College, Young
        Officers' Combat School, Armed Forces Academy, Armed Forces Staff College, Senior Officers'
        School and the Armed Forces Defense College. Some senior officers take courses at the US
        Army War College, Royal College for Defense Studies (UK) or the National Defense College
        (India).

        Training Areas

        The army maintains extensive training areas in both Peninsular and East Malaysia.

        Equipment in service

        Armor

        Type                      Manufacturer                Role                     Original       In         First
                                                                                       Total          Service    Delivery
        PT-91M                    PHZ Bumar                   Main Battle Tank         48             30         2007
        Scorpion 90               Alvis                       Reconnaissance           26             26         1983
                                                              Vehicle
        AML 60/90                 Panhard General Defense     Reconnaissance           140            130        n/a
                                                              Vehicle
        K-200                     Doosan                      Infantry Fighting        111            111        1993
                                                              Vehicle
        ACV 300 'Adnan'           FNSS Savunma Sistemleri Infantry Fighting            211            211        2002
                                                          Vehicle
        V-100/ LAV-150            Textron Marine & Land       Armored Personnel        184            150        n/a
        Commando                  Systems                     Carrier
        M3                        Panhard General Defense     Armored Personnel        37             30         n/a
                                                              Carrier
        Stormer                   BAE Systems                 Armored Personnel        25             20         1983
                                                              Carrier
        Condor                    Rheinmetall                 Armored Personnel        459            450        n/a
                                                              Carrier
        SIBMAS                    Cockerill Mechanical        Armored Personnel        186            110 12     n/a
                                  Industries                  Carrier
                  Note:

             1. 88 vehicles were cannibalized by December 2006 to provide spare parts.
             2. 24 were originally in armored recovery vehicle configuration, with 22 still in service.




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        Artillery

        Type                       Manufacturer             Role                        Original          In            First
                                                                                        Total             Service       Delivery
        155 mm FH-70               BAE Systems              Field Howitzer              12                12            1989
        155 mm G5 Mk3              Denel                    Howitzer                    28                28            2001
        105 mm Model 56 Pack Oto Melara                     Howitzer                    130               100           n/a
                                                                                                                1
        105 mm M102                Rock Island Arsenal      Howitzer                    40                40            n/a
        81 mm L16                  RO Defense               Mortar                      300               300           n/a
                                                                                                                2
        ASTROS II 'Keris           AVIBRAS                  Multiple Rocket             18                18            2002
        SPRB'                      Aerospatial              Launcher
                    Notes:

             1.     In storage.
             2.     An additional 18 launchers are to be delivered by September 2009.



        Anti-Tank Weapons

        Type                           Manufacturer                  Role                      Original     In           First
                                                                                               Total        Service      Delivery
        SS-11                          Nord Aviation                 Anti-Tank Missile         n/a          n/a          n/a
        Eryx                           Aérospatiale Matra Missiles Anti-Tank Guided            24           24           n/a
                                                                   Weapon
        9M131 Metis-M (AT-7            KBP Instrument Design         Anti-Tank Guided          n/a          n/a          n/a
        'Saxhorn')                     Bureau                        Weapon
        Baktar Shikan                  Dr A Q Khan Research          Anti-Tank Guided          n/a          n/a          n/a
                                       Laboratories                  Weapon
        92 mm FT5                      Denel                         Anti-Tank Weapon          n/a          n/a          n/a
        106 mm M40                     Watervliet Arsenal            Recoilless Rifle          n/a          n/a          n/a
        84 mm Carl Gustaf              Saab Bofors Dynamics AB       Recoilless Rifle          150          150          n/a
        89 mm (3.5 in) M20             Hydroar SA                    Rocket Launcher           100          100          n/a


        Air Defense Weapons

        Type                     Manufacturer          Role                              Original         In Service First
                                                                                         Total                       Delivery
        Starburst                Thales                Air Defense Missile               42               42 1          n/a
        Javelin                  Thales                Air Defense Missile               48               48            n/a
                                                                                                                    2
        Jernas                   MBDA                  Air Defense Missile               135              135           2005
        ANZA II                  IICS                  Very Short-Range Air              n/a              n/a           n/a
                                                       Defense Missile
        35 mm Oerlikon           n/a                   Anti-Aircraft Gun                 16               16            1988



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        GDF-005
        40 mm L/70              Bofors Defense AB Anti-Aircraft Gun                 36                36        n/a
                  Note:

             1.   Used by army and air force.
             2.   These are within Malaysia's 15 Jernas units, each comprising nine launchers, three Dagger and three
                  Blindfold radars. All towed by small trucks.



        Infantry Weapons

        Type                         Role
        9 mm H&K P9S                 Pistol
        9 mm FN 35                   Pistol
        5.56 Steyr AUG               Assault Rifle
        5.56 mm HK33E                Rifle
        5.56 mm AR70/90              Assault Rifle
        5.56 mm M16A1                Assault Rifle
        5.56 mm Colt M4 Carbine Assault Rifle
        7.62 mm FN-FAL               Rifle
        7.62 mm G3SG/1               Sniper Rifle
        9 mm Sterling                Sub-Machine Gun
        7.62 mm HK11A1               Light Machine Gun
        7.62 mm Bren L4              Light Machine Gun
        5.56 mm AS70/90              Light Machine Gun
        7.62 mm HK21E                General-Purpose Machine Gun
        7.62 mm FN MAG               General-Purpose Machine Gun
        0.50 in Browning M2HB        Heavy Machine Gun


        Army Aviation

        Type                    Manufacturer              Role    Original Total In Service First Delivery
        SA 316B Alouette III Eurocopter (Aerospatiale) Utility 10                  10          1970 1
        AW 109LOH               AgustaWestland            Utility 11               11          2005
                  Note:

             1.   Delivery date to air force.



        Source: Jane‘s Information Group




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            D. Air Force

        Summary

        STRENGTH
        8,000
        MULTIROLE FIGHTER
        F/A-18D Hornet, MiG-29N 'Fulcrum', Su-30MKM 'Flanker'
        AIR DEFENCE / ATTACK
        F-5E Tiger II, Hawk Mk 208
        RECONNAISSANCE
        RF-5E Tigereye, Eagle 150 UAV
        MARITIME PATROL
        King Air 200TB
        TRANSPORT
        Airtech CN-235M-220, C-130H Hercules
        TANKER
        KC-130H Hercules
        HELICOPTER
        S-70A Black Hawk, S-61A-4 Nuri, AS-61N Nuri, Alouette III
        TRAINER
        MD3-160 Aerotiga, PC-7 Turbo Trainer, Aermacchi MB-339A/CM, Hawk Mk 108


        Assessment

        The Royal Malaysian Air Force's (Tentara Udara Diraja Malaysia - TUDM) energies in the
        medium term future are set to concentrate on integrating its somewhat diverse combat fleet into a
        cohesive force. The purchase of 18 Russian Sukhoi Su-30MKM 'Flanker' multi-role fighters, as
        well as the possible acquisition of a similar quantity of Boeing F/A-18F Super Hornets, will form
        the basis of a strike wing with formidable potential. The decision to acquire four A400M aircraft
        from Airbus to begin the process of replacing the C-130 Hercules should have little impact as the
        first delivery is not due until 2013.

        These acquisitions will give the TUDM something approaching parity with Thailand and place it
        ahead of Indonesia in terms of combat capability, although it will remain inferior to Singapore's
        sophisticated and substantial air arm.

        Despite ambitious plans, it should be noted that the procurement of sophisticated new equipment
        will not necessarily provide Malaysia with the capability that these warplanes have the potential
        to deliver. One of the main challenges facing the TUDM will be that of developing and
        maintaining effective personnel and logistic policies so as to fully capitalize on the potential of
        its combat-capable assets. Doubts continue over whether the TUDM has the administrative
        structure and experience to realize such a program.

        The TUDM's ability to achieve its aims will depend on how well it is able to manage its
        resources in the face of intense competition for skilled manpower from the national aviation
        sector. The emergence and rapid expansion of low-cost airlines has placed a premium on air and
        ground crew, with the commercial sector offering salaries and conditions that the military simply
        cannot match. Pressure on such personnel will further intensify following the government's


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        announcement in March 2005 that Kuala Lumpur's former main airport at Subang is to be
        developed as an aviation industry hub for the maintenance, overhaul and repair of commercial
        and military aircraft.

        Deployments, tasks and operations

        Role and Deployment

        The traditional role has been support of other services, particularly the Army. The move away
        from counter-insurgency operations and the present emphasis on conventional warfare capability
        has resulted in the development of potent air defense and strike capabilities in addition to the
        provision of support to the army and navy in joint-service operations.

        There are now strong indications that the TUDM will relinquish some support missions presently
        undertaken for the other Malaysian armed services. The army's recent acquisition of A109
        helicopters and its long-term plan to acquire attack helicopters point the way to removing some
        ground support missions from TUDM jurisdiction. Similarly, the Royal Malaysian Navy (RMN)
        appears to be seeking an organic fixed-wing maritime reconnaissance and patrol capability.

        The TUDM is officially defined as being responsible for the development and maintenance of:

                An air defense capability and to preserve the integrity of the national airspace and
                 airspace of interest;
                An offensive capability;
                An air transport support capability;
                A maritime air surveillance capability;
                A search and rescue capability;
                An efficient air intelligence capability;
                A support structure capable of sustaining air operations;
                An effective system for command, control and communications; and
                Assistance in nation-building and the provision of relief support in national disasters.

        Recent and Current Operations

        The TUDM has undertaken minor overseas deployments in support of peacekeeping operations
        and contributed to missions in Cambodia, Somalia and the former Yugoslavia in the past.

        Command and control

        Chief of Air Force: General Tan Sri Azizan Ariffin


        The TUDM is subordinate to the Ministry of Defense (MoD), and is commanded by the Chief of
        Air Force and the Deputy Chief of Air Force. The air arm is divided into two departments,
        specifically the Department of Plans and Development, and the Department of Operations. The
        Department of Plans and Development is responsible for implementation of policies, plans and
        for development of specialist branches of the TUDM, while the Department of Operations is


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        entrusted with formulation of doctrine, contingency plans, air exercises, running of the air bases
        and employment of current assets assigned to Air Divisions.




        Higher Levels of Command for the Royal Malaysian Air Force


        Organization

        The Air Force Headquarters is located within the Ministry of Defense and oversees the activities
        of four subordinate Air Divisions that are responsible for day-to-day running of the TUDM.
        These are task-oriented.

                No 1 Air Division (Sungai Besi, Kuala Lumpur) - air defense and strike operations in
                 peninsula Malaysia and South China Sea;
                No 2 Air Division (Labuan, off Sabah) - functions as a forward headquarters, with
                 particular responsibility for Sabah and Sarawak;
                No 3 Air Division (Subang, Selangor) - strategic and tactical airlift; and
                No 4 Air Division (Sungai Besi, Kuala Lumpur) - logistical support and training.

        Flying units operate from eight main air bases, two of which (Labuan and Kuching) are in
        Malaysian Borneo. Of the 15 squadrons that are presently established, three (comprising two
        with S-61 helicopters and one with C-130 transports) are deployed in East Malaysia.

        Order of Battle

        Air Operational Headquarters (No. 1 Air Division)

        Unit          Base          Type            Role
        6 Squadron Kuantan          Hawk Mk 208 Attack
        6 Squadron Kuantan          Hawk Mk 108 Continuation Training



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        11 Squadron Gong Kedak Su-30MKM             Multirole Fighter
        12 Squadron Butterworth F-5E                Air Defense / Attack
        12 Squadron Butterworth F-5F                Continuation Training
        12 Squadron Butterworth RF-5E               Reconnaissance
        15 Squadron Butterworth Hawk Mk 108 Training
        15 Squadron Butterworth Hawk Mk 208 Training
        15 Squadron Butterworth MB-339              Training
        16 Squadron Subang          King Air        Maritime Patrol
        18 Squadron Butterworth F/A-18D             Multirole Fighter
        19 Squadron Kuantan         MiG-29N         Multirole Fighter
        19 Squadron Kuantan         MiG-29NUB Continuation Training


        Air Support Headquarters (No. 3 Air Division)

        Unit          Base         Type             Role
        2 Squadron Subang          Fellowship       VIP Transport
        2 Squadron Subang          ACJ              VIP Transport
        2 Squadron Subang          Business Jet     VIP Transport
        2 Squadron Subang          Falcon 900       VIP Transport
        2 Squadron Subang          Global Express VIP Transport
        2 Squadron Subang          Cessna 402B      Multi-Engine Training
        3 Squadron Butterworth S-61                 Transport / Search and Rescue
        5 Squadron Labuan          S-61             Transport / Search and Rescue
        7 Squadron Kuching         S-61             Transport / Search and Rescue
        10 Squadron Sungai Besi AS-61N              VIP / Transport
        10 Squadron Sungai Besi S-70A               VIP / Transport
        10 Squadron Sungai Besi S-61                Utility Transport
        14 Squadron Labuan         C-130H           Transport
        14 Squadron Labuan         C-130H-30        Transport
        20 Squadron Subang         C-130H-30        Transport
        20 Squadron Subang         KC-130H          Tanker / Transport
        Det           Sungai Besi Cessna 402B       Communications / Survey
        21 Squadron Subang         CN-235M          Transport
        Det           Kuching      CN-235M          Transport


        RMAF COLLEGE

        Unit                       Base           Type         Role
        Flying Training Centre 1 Sungai Besi MD3-160           Basic Training
        Flying Training Centre 1 Alor Setar       PC-7         Basic Training




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        Flying Training Centre 2 Alor Setar      Alouette III Helicopter Training
        Flying Training Centre 3 Alor Setar      PC-7        Advanced Training
        Flying Instructor Institute Alor Setar   PC-7        Instructor Training
        Flying Instructor Institute Sungai Besi MD3-160      Instructor Training


        Operational Art and Tactical Doctrine

        The acquisition of F/A-18 Hornet and Su-30MKM 'Flanker' strike fighters has led the TUDM to
        drastically revise its founding doctrine which was based on support for army and navy
        operations. The main thrust of the new doctrine concerns the conduct of offensive operations
        against well-defended targets and the defense of national assets from aerial attack.

        The TUDM faces the challenge of prioritizing deployment of its principal assets. Over-emphasis
        on forward basing in East Malaysia, for example, could exacerbate relations with Indonesia and
        the Philippines. However, maintaining the bulk of combat resources on the peninsula removes
        the units from their most credible operational area. The most likely outcome is that the status quo
        will be maintained to satisfy wider political and strategic reasons, leaving the TUDM to deal
        with the practicalities of having to hastily redeploy resources at what is certain to be the least
        opportune moment.

        Overall, the TUDM offers a credible deterrence in the defense of its borders. However, it would
        be less capable in defending key military or strategic targets on the peninsula in the unlikely
        event of hostilities with Singapore or a major power.

        Bases

        Alor Setar    (06° 11' 46" N; 100° 24' 24" E)
        Butterworth (05° 27' 31" N; 100° 23' 26" E)
        Gong Kedak (05° 47' 58" N; 102° 29' 03" E)
        Kuantan       (03° 46' 20" N; 103° 12' 31" E)
        Kuching       (01° 29' 04" N; 110° 20' 34" E)
        Labuan        (05° 17' 58" N; 115° 15' 04" E)
        Subang        (03° 07' 36" N; 101° 33' 06" E)
        Sungai Besi (03° 06' 48" N; 101° 42' 06" E)


        Training

        Flying training is the responsibility of the RMAF College at Alor Setar and Sungai Besi and
        commences with primary instruction on the MD3-160 Aerotiga, progressing to basic and
        advanced phases on the PC-7 Turbo Trainer. The RMAF College also includes a Flying
        Instructors' School using both these types of aircraft. Advanced and operational flying training
        for fast jet pilots is carried out by No.15 Squadron at Butterworth on MB-339s and Hawks. In
        June 2006, Defense Minister Najib Razak said the government was seeking agreement to train
        pilots in India on the Sukhoi-30MK multi-role fighter.


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Helicopter instruction is conducted on the Alouette III at No.2 Flying Training Centre at Alor
        Setar, while No.2 Squadron's tasks include multi-engine pilot training and navigator training,
        using Cessna 402Bs. The Officer Cadet School is at Subang, Kuala Lumpur. Engineers and
        technicians are trained at the School of Aeronautical Engineering, Kinrara.

        The RMAF also routinely conducts training exercises with ASEAN, FPDA and other friendly
        powers.

        Training Areas

        Flying training is concentrated in northern peninsular Malaysia; operational units exercise in
        peninsular Malaysia, Sabah, Sarawak and over the South China Sea.

        Equipment in service

        Fixed Wing

        Type                     Manufacturer      Role                                Original       In         First
                                                                                       Total          Service    Delivery
        F/A-18D Hornet           Boeing            Fighter - Multirole                 8              8          1997
        MiG-29N 'Fulcrum-A' MiG                    Fighter - Multirole                 16             16         1995
        Su-30MKM 'Flanker'       Sukhoi            Fighter - Multirole                 18             12         2007
                                                                                                          1
        F-5E Tiger II            Northrop          Fighter - Multirole                 17             8          1975
        Hawk Mk 208              BAE Systems       Fighter - Ground Attack / Strike    19             19         1994
        King Air 200TB           Beechcraft        Maritime Patrol / Anti-Submarine 4                 4          1994
                                                   Warfare
        RF-5E Tigereye           Northrop          Reconnaissance / Surveillance       2              2          1983
        CN-235M-220              Airtech           Transport                           8              8          1999
        C-130H Hercules          Lockheed Martin Transport                             6              1          1976
                                                                                           2
        C-130H-30 Hercules       Lockheed Martin Transport                             6              8          1992
        KC-130H Hercules         Lockheed Martin Tanker / Transport                    5              5          1997 3
        402B                     Cessna            VIP / Light Transport               12             94         1975
        ACJ                      Airbus            VIP / Light Transport               1              1          2007
        Business Jet             Boeing            VIP Transport                       1              1          2003
        BD-700 Global            Bombardier        VIP / Light Transport               2              1          2000
        Express
        Falcon 900               Dassault          VIP / Light Transport               1              1          1990
        F28 Fellowship 1000      Fokker            VIP Transport                       2              1          1975
        Hawk Mk 108              BAE Systems       Trainer / Light Attack              10             6          1994
        PC-7 Turbo Trainer       Pilatus           Trainer / Light Attack              44             28         1983
        PC-7 Mk II M Turbo       Pilatus           Trainer / Light Attack              19             18         2001
        Trainer
        MB-339AM                 Alenia            Trainer / Light Attack              13             7          1983
                                 Aermacchi


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        MB-339CM                 Alenia             Trainer                             2                2       2009
                                 Aermacchi
        F-5F Tiger II            Northrop           Trainer                             55               3       1979
        MiG-29NUB                MiG                Trainer                             2                2       1995
        'Fulcrum-B'
        MD3-160 Aerotiga         SME                Trainer                             20               20 6    1995
                  Notes:

             1.   Two aircraft configured for photo-mapping tasks.
             2.   Delivery date refers to conversion; aircraft originally delivered from 1976 to 1980.
             3.   Total includes six in storage awaiting possible sale.
             4.   Total includes at least three reported to be in storage in November 2007.
             5.   Plus two which have been modified.
             6.   All have been modified.



        Rotary Wing

        Type                   Manufacturer      Role                   Original Total In Service First Delivery
        S-70A Black Hawk Sikorsky                VIP / Light Transport 2                 2           1997
        AS-61N Nuri            Agusta-Sikorsky VIP / Light Transport 2                   2           1990
        S-61A-4 Nuri           Sikorsky          Utility / Transport    40               25          1968
        SE 3160 Alouette III Aerospatiale        Trainer                27               10          1963


        Unmanned Aerial Vehicles

        Type        Manufacturer Role                                             Original         In           First
                                                                                  Total            Service      Delivery
        Eagle       CTRM                Intelligence, Surveillance and            3                3            2001
        150                             Reconnaissance

        Missiles

        Type                   Manufacturer Role
        AIM-9M Sidewinder Raytheon              Air-to-Air
        AIM-9S Sidewinder Raytheon              Air-to-Air
        AIM-7M Sparrow         Raytheon         Air-to-Air
        AA-8 Aphid             Vympel           Air-to-Air
        AA-10 Alamo            Vympel           Air-to-Air
        AA-11 Archer           Vympel           Air-to-Air
        AA-12 Adder            Vympel           Air-to-Air
        AGM-84A Harpoon Boeing                  Air-to-Surface
        AGM-65 Maverick        Raytheon         Air-to-Surface



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        AS-14 Kedge            Vympel          Air-to-Surface


        Source: Jane‘s Information Group

            E. Navy

        Summary

        STRENGTH
        19,561 (2,385 officers)
        SUBMARINES
        1
        FRIGATES
        2
        CORVETTES
        8
        FAST ATTACK CRAFT - MISSILE
        8
        FAST ATTACK CRAFT - GUN
        6


        Assessment

        The shape and mission of the Royal Malaysian Navy (RMN) is determined by Malaysia's
        divided geography. It is around 1,500 air miles between the northern end of the Malacca Strait
        and the waters separating East Malaysia and the southern Philippines. The Malay peninsula's two
        coasts create differing maritime priorities and threats, while national claims to distant contested
        islands add a further demand on the navy's assets.

        Such a complex operational environment would be daunting for a major industrialized power.
        For Malaysia, with its limited resources, finding the right balance between maintaining a credible
        naval deterrence and ensuring routine maritime security for offshore assets, trade and borders is a
        major challenge.

        The government's solution has been to opt for the creation of a small submarine force that should
        be operational by the end of the decade, a powerful surface force based around a group of
        frigates and corvettes and a large number of well-armed light and coastal units.

        While the surface elements are well suited to the confined waters of the Strait of Malacca, Gulf
        of Thailand, South China Sea and coastal water of East Malaysia, there is considerable doubt
        over the utility of the three-boat submarine force. The acquisition of the two Scorpene and single
        Agosta class boats from France is widely seen in Malaysia and among the country's immediate
        neighbors as a response to Singapore's decision to purchase submarines. As the two neighbors
        have completely different defense priorities, such an explanation would suggest Malaysia's
        decision was driven more by political considerations than the considered view of senior RMN
        officers.



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        The RMN's principal constabulary task in patrolling the country's long coastline and huge
        Exclusive Economic Zone (EEZ) containing most of Malaysia's crucial oil and gas fields and
        reserves, as well as important fisheries and trade routes, will be enhanced by six new generation
        patrol vessels which will enter the fleet over the next few years. Their mission may be supported
        by improved maritime reconnaissance and patrol platforms and upgraded C3 systems. Such
        developments may happen, but so far the sequencing appears to be out of line with deployments.

        This mismatch between mission and capability was demonstrated by the withdrawal from service
        of the navy's Wasp shipboard helicopter before their Super Lynx replacement had arrived and
        been integrated within the service. Such lapses point, at best, to confusion and management
        failings and at worse a procurement culture that places the needs of the services after those of
        other interests.

        Deployments, tasks and operations

        Role and Deployment

        The navy is the principal instrument for the defense of Malaysia's maritime interests. In
        peacetime, the navy's primary roles are officially defined as:

                Training for war;
                Protection of offshore resources;
                Hydrographic survey; and
                Assisting civil agencies in anti-piracy and EEZ protection.

        Secondary peacetime roles include:

                Support for the army and air force;
                Search and rescue;
                Disaster relief; and
                Supporting foreign policy through 'showing the flag'.

        The navy's wartime roles are:

                Destruction of enemy forces at sea;
                Defense of sea lanes of communication;
                Protection of shipping; and
                Seaward defense of offshore oil rigs.

        Deployment

        The RMN's main base is at Lumut on the west coast of Peninsular Malaysia. However, the navy
        is increasingly deploying more assets into the South China Sea and East Malaysian waters,
        supported by new or upgraded bases and other facilities.




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        Construction of a major new naval base at Teluk Sepanggar Bay, near Kota Kinabalu in Sabah,
        has been delayed, due to the failure of the local construction company to secure a foreign partner.
        RMN patrol boats also operate 'forward' from civilian ports on a contingency basis, supported
        where required by Sri Indera Sakti class supply and stores ships.

        The RMN base at Labuan in East Malaysia has been converted into a logistics depot and remains
        the navy forward base in the area. A squadron of six Jerong class fast attack gun craft were
        deployed to Labuan in the mid-1990s.

        The navy also maintains a presence in the contested Spratly islands. Small naval contingents,
        including naval Special Forces personnel, are stationed on the Swallow, Ardaiser and Mariveles
        reefs claimed by Malaysia in the contested Spratly Islands. The last serious recorded incident
        involving Malaysian forces in the Spratlys occurred in October 1999. According to the
        Philippine military, two RMAF fighters and two Philippine Air Force aircraft nearly engaged
        over a Malaysian-occupied reef. Another lesser incident occurred in May 2003 when a Brunei
        naval patrol boat prevented a Western oil company from carrying out exploration work in a
        disputed sea area off the north Borneo coast.

        In March 2005 there was a dispute between Malaysia and Indonesia over the extent of each's
        maritime boundaries off Sabah. The Malaysian authorities sought to keep the dispute
        manageable by maintaining a low military profile, and one patrol boat was tasked with the
        protection of those boundaries. By contrast, Indonesia at one point deployed seven warships,
        fighter aircraft and Marines to the area.

        However, in December 2005 the Indonesian navy staged its largest ever exercise, Armada Jaya
        XXY, involving 36 warships and transports that including a beach landing by hundreds of
        Marines at Sanggata, just south of the Sabah border. Regardless of Indonesian claims the
        exercise was not intended to be provocative, Malaysia's armed force - and the navy in particular -
        are unlikely to ignore the signals evident in this display of force.

        The situation off Sabah appears to have stabilized, although other potential flashpoints remain in
        the area. Similarly, the incidence of pirate attacks in the Malacca Strait has fallen dramatically
        since the start of joint sea and air patrols by the littoral states, which was strengthened in April
        2006 through the signing of the Strait of Malacca Patrol Joint Coordinating Committee Terms of
        Reference (TOR) and Standard Operational Procedures (SOP) document, by Malaysia, Indonesia
        and Singapore. No pirate attacks were reported in the first half of 2006, which may, over time,
        lead to reduction in patrol activity and the potential return of the pirates. In May 2007, Malaysia
        politically sought joint patrols of the Malacca Strait, since current naval and air patrols
        (conducted by Indonesia, Malaysia and Singapore), are restricted to domestic territorial or
        international waters, hindering the pursuit and apprehension of pirates and criminals.

        Maritime Marine Enforcement Agency (MMEA)

        Malaysian Maritime Enforcement Agency (MMEA) became operational in November 2005. The
        MMEA's principal areas of operations are the Malacca Strait and the South China Sea/Gulf of
        Thailand. The new agency's principal task is to act as a de facto coastguard within the country's


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        200 n mile maritime Exclusive Economic Zone (EEZ). A senior MMEA official said the agency
        would emphasize law enforcement, including investigation and prosecution. In addition, MMEA
        took over the functions of the Maritime Rescue Coordinating Centre (MRCC) in June 2006.

        As of mid-July 2006, the MMEA's establishment was just over 4,000 personnel on secondment
        from other existing agencies. This number is expected to rise to around 7,000 once the agency is
        fully operational. The agency should eventually be operating around 65 vessels and craft
        transferred from the RMN, police, marine, customs and fisheries departments. In addition
        another 38 rigid inflatables are under construction.

        According to the MMEA's Director-General, Vice-Admiral Mohammad Nik, the agency is also
        planning to establish an air wing for search and rescue, surveillance and intelligence operations.
        The proposed air unit would operate both fixed wing aircraft and helicopters, but no schedule for
        its formation has been announced other than that it will be established within the Ninth Malaysia
        Plan (2006-2010).

        MMEA answers directly to the Prime Minister's Department, but would come under armed
        forces command in the event of hostilities. Its headquarters are in the Lumut naval base, with
        regional bases in Langkawi (North), Johor Bahru (South), Kuantan (East), Kota Kinabalu
        (Sabah) and Kuching (Sarawak).

        Recent and Current Operations

        After a spate of pirate attacks on Malaysian-owned vessels off the Horn of Africa in mid 2008,
        the RMN deployed the Lekiu-class frigate KD Lekiu, the Kedah-class offshore patrol vessel KD
        Pahang and the Newport-class landing ship KD Sri Inderapura to escort and protect Malaysian
        vessels in the area.

        These vessels will be also supported by a Royal Malaysian Air Force S-61A Nuri multipurpose
        helicopter.

        In July 2006, the RMN provided logistics support to Malaysian troops deployed to East Timor.

        Command and control

        Deputy Prime Minister / Minister of Defense: Y.B. Dato' Seri Dr. Ahmad Zahid Bin Hamidi
        Chief of Navy:                                    Admiral Dato' Sri Abdul Aziz Bin Haji Jaafar




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                       opinions, assessments or positions of the DoD or any other government agency or entity.




        Royal Malaysian Navy: Chain of Command


        Organization

        RMN HQ, consisting of six administrative divisions, is located within the Ministry of Defense.
        The navy is divided into functional organizations, including Fleet Operations Command (FOC)
        at Lumut, Support Command and Naval Reserve HQ as well as two Naval Area Commands
        headquartered in Kuantan (I) and Labuan (II). A third naval region command, to be
        headquartered on Langkawi Island is being established with the area of responsibility being the
        west coast of Peninsular Malaysia.

        FOC includes the Flotilla, Fleet Systems Command, Fleet Readiness Command, the RMN
        Communications System, Naval Air Command, Submarine Command and PASKAL (naval
        special forces).

        The Flotilla comprises the following units:

                1 × frigate squadron;
                1 × corvette squadron;
                1 × MCMV (mine countermeasures vessel) squadron;
                1 × MPCSS (Multi-Purpose Command and Support Ship) squadron;
                1 × sealift squadron;
                2 × fast attack craft (missile) squadron;
                1 × fast attack craft (gun) squadron (6th);
                3 × patrol craft squadron (12th, 13th, 14th);
                1 × hydrography squadron;
                1 × OPV (offshore patrol vessel) squadron; and


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                 1 × diving tender.

        Naval Aviation Order of Battle

        Unit         Base Type        Role
        501 Squadron Lumut Super Lynx ASW/SAR
        502 Squadron Lumut Fennec                  ASW/SAR

        Operational Art and Tactical Doctrine

        Operational art and doctrine are closely modeled on Britain's Royal Navy. Links between the
        RMN and RN remain strong and are unlikely to be eroded by either the acquisition of French
        submarines or the growing presence of the US military in the region.

        Bases

        Peninsular Malaysia
        Lumut, Perak: HQ FOC, main base, dockyard, training centre, naval air station;
        Tanjung Gelang, Kuantan, Pahang: HQ Naval Area Command I;
        Penang.
        East Malaysia
        Labuan: HQ Naval Area Command II; FAC (G) Sqn base;
        Sungei Antu, Kuching, Sarawak;
        Sandakan, Sabah: forward base with PC sqn.
        Spratly Islands
        Stesen Lima (Lima Station) on Pulau;
        Layang-Layang (Swallow Reef);
        Stesen Uniform on Terumbu Ubi (Ardasier Reef);
        Stesen Mike on Terumbu Mantanani (Maniveles Reef).


        It was reported in June 2007 that delays have hit Malaysian plans to develop a new submarine
        base by early 2009, with locally based TRC Synergy still looking for a foreign partner in the
        project. The submarine base is to be built at Sepangar Bay in East Malaysia under a MYR318
        million (USD91.5 million) contract awarded to TRC Synergy on 26 February 2007.

        The Malaysian company is looking for foreign expertise, as it has no experience in constructing
        such specialized facilities. Talks have been held with Navantia and DCNS, the two companies
        building the two Scorpene class submarines on order by Malaysia, but nothing concrete has so
        far emerged. TRC Synergy has also been looking at other potential partners, particularly in
        Germany, but a German source told Jane's that German companies are reluctant to become
        involved because of problems encountered with the Kedah class offshore patrol vessel program.




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        Navy plans also called for the establishing of a fourth naval region command headquarters at
        Sinjinkat, Kurching in the East Malaysian state of Sarawak, to support the Second Sea Regional
        Command, which would be responsible for the South China Sea and Sabah East Coast, while the
        Fourth Sea Region Base, (in addition to supporting the Second Sea Region), would also cover
        the waters around the Malaysian state of Sarawak.

        A first batch of 119 RMN officers and personnel qualified as submariners in 2008 after
        completing four years of training in France. In a report on 26 June 2008, navy chief Admiral
        Datuk Abdul Aziz Jaafar said that a further 143 personnel are undergoing the same training to
        operate the two Scorpene submarines that are being acquired by the RMN. A contract for the
        construction of the boats, awarded to DCNS and Navantia (formerly IZAR) in 2002, included a
        four-year training package at Brest using the ex-French Navy Agosta 70 class submarine
        Quessant.

        Training

        The navy's principal training establishment is KD Pelandok, located at Lumut Naval Base. The
        Naval Educational Training Centre (NETC) provides a three-year naval officer cadet course, as
        well as trade training for ratings and 'postgraduate' intermediate and advanced courses for both
        officers and ratings. Training at the NETC was further enhanced in October 2002 when the RMN
        took delivery of an ATLAS ANS5000 Bridge Simulation System. New entrant ratings are
        inducted at KD Sultan Ismail (the former Recruit Training Centre) in Tanjung Pengelih, Johor.

        Training Areas

        Operational sea training is conducted mainly in the Strait of Malacca and the South China Sea.

        Equipment in service

        Submarines

        Class      Manufacturer         Role Original Total In Service Commissioned
        Scorpene DCN, Cherbourg         Patrol 1                1             2009
        Scorpene Navantia, Cartagena Patrol 1                   0             n/a 1
                  Note:

             1.   Currently undergoing trials; due to be commissioned in 2009.



        Surface Fleet

        Class                Manufacturer                           Role               Original     In      Commissioned
                                                                                       Total        Service
        Lekiu                Yarrow (Shipbuilders), Glasgow         Frigate            2            2         1999
        Laksamana            Fincantieri, Breda, Mestre             Corvette           4            4         1997



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Kasturi (Type FS     Howaldtswerke                          Corvette              2         2         1984
        1500)
        Kedah                Blohm + Voss/Penang                    Corvette              6         2         2006
                             Shipbuilding/Boustead Naval
                             Shipyard
        Handalan (SPICA- Karlskrona                                 Fast Attack Craft 4             4         1979
        m)                                                          - Missile
        Perdana (La          CMN, Cherbourg                         Fast Attack Craft 4             4         1972
        Combattante II)                                             - Missile
        Jerong               Hong Leong-Lürssen, Butterworth        Fast Attack Craft 6             6         1976
                                                                    - Gun
        Mahamiru (Lerici) Intermarine                               Minehunter            4         4         1985
        Newport              National Steel, San Diego              Landing Ship -        1         1         1971
                                                                    Tank
        Combat boat 90H Dockstavarvet                               Patrol Craft          17        17        1997
        31 Meter Patrol      Vosper Ltd, Portsmouth                 Patrol Craft          2         2         1968
        Craft


        Auxiliaries

        Class                        Manufacturer                      Role          Original      In         Commissioned
                                                                                     Total         Service
        Fast Troop Vessels           Naval Dockyard, Lumut             Transport     2             2          2001
        Logistic Support Ship        Bremer Vulkan                     Support Ship 1              1          1980
        Logistic Support Ship        Korea Tacoma                      Support Ship 1              1          1983
        Coastal Supply Ships and     n/a                               Supply Ship 4               4          n/a
        Tankers
        Diving Support / Salvage     Carrington Slipway                Salvage Ship 1              1          n/a
        Ship
        Diving Support / Salvage     Schichau-Unterwester,             Salvage Ship 1              1          n/a
        Vessel                       Bremerhaven
        Penyu                        n/a                               Diving        1             1          1979
                                                                       Tender
        Duyong                       n/a                               Diving        1             1          1971
                                                                       Tender
        Survey Vessel (AGS)          Hong Leong-Lürssen,               Survey Ship 1               1          1998
                                     Butterworth
        Survey Vessel (AGSH)         Hong Leong-Lürssen,               Survey Ship 1               1          1978
                                     Butterworth
        Harbor Tugs                  n/a                               Tug - Harbor n/a            10         n/a
        Sail Training Ship           De Merwede                        Training      1             1          n/a
                                                                       Ship
        Sail Training Ship           Brooke Yacht, Lowestoft           Training      1             1          1989
                                                                       Ship
        Naval Training Ship          Kanda Shipbuilding Company Training             1             1          n/a



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                                                                       Ship
        Hang Tuah (Type 41/61)       Yarrow (Shipbuilders),            Training     1              1             1973
                                     Glasgow                           Ship


        Naval Aviation

        Type                        Manufacturer Role                                   Original       In         First
                                                                                        Total          Service    Delivery
        WG.13 Super Lynx 300        Westland        Helicopter - Maritime/Anti-         6              6          2003
        Mk 100                                      Submarine
        AS 555SN Fennec             Eurocopter      Helicopter - Trainer                6              6          2004


        Missiles

        Type       Manufacturer Role
        Sea Skua Matra BAE         Air-to-Surface


        Source: Jane‘s Information Group

             F. Defense Spending


        Summary

                                                                   2008
        Total Defense Spending (USD billions)                      4.51
        Total Defense Spending (MYR billions)                      14.52
        Total Defense Spending (% of GDP)                          2.13 per cent
        Total Defense Spending per member of Armed Forces USD46,369


        Malaysian defense spending in increasing rapidly in recent years. The 2008 defense budget of
        USD4.5 billion makes the country the second largest spender in the immediate region, behind
        Singapore and slightly ahead of Indonesia.

        Defense spending trends

        Although Malaysia publishes an annual defense budget figure as part of the government's state
        budget, it is split into just two sections - operating and development expenditure - and it is
        widely thought that real defense spending is significantly higher than the official budget
        suggests. The official budget, for example, does not include defense industry funding, nor does it
        cover certain procurement items which are sometimes settled by other arrangements including
        barter agreements.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        What is certain is that actual spending has exceeded the official budget regularly in recent years.
        According to the Malay Ministry of Defense, expenditure in 2006 (the most recent year for
        which expenditure details are available) was 8.5 per cent higher than the budget allocation, with
        the majority of the overspend coming in the operations budget. This was not unusual as the
        degree to which military spending exceeded budget allocations has been steadily increasing since
        2003, going from 3 percent in that year to 3.8 per cent in 2004 and to 5.5 per cent in 2005.

        2007 and 2008 have seen further budget increases, fuelled in part by sustained economic growth
        of around 6 per cent in real terms that has seen the government also increase its revenues and
        expenditure. What is not yet clear is the extent to which the more recent budgets reflect total
        spending. If the period 2003-2006 is taken as a guide then the final spend could be anywhere
        between 3 and 10 per cent higher than the budgeted figure.

        The Ninth Malaysia Plan (2006-10) includes MYR15.7 billion in development funds for defense,
        12 per cent less than the allocation for the previous five-year period. However, by 2008
        development funding had already reached MYR13.5 billion, suggesting that by the end of the
        plan it will have exceeded the originally planned level substantially. It is also unclear what
        proportion of these funds have been made available for new purchases and how much is already
        accounted for by previous acquisitions that have yet to be fully paid for, in particular a batch of
        Sukhoi 30-MKM fighter aircraft. The Ministry of Defense has suggested that, with so many
        major acquisitions completed in recent years, resources will be focused on training, surveillance,
        joint service operations and naval platforms rather than more expensive combat hardware.
        Procurement expenditure is likely to come under additional pressure as a result of the rising
        support and logistical costs that are associated with operating the diverse range of military
        equipment purchased in recent years (such as four different types of combat aircraft).

        Several less high-profile purchases have also been initiated including new armored personnel
        carriers, armored infantry fighting vehicles, offshore patrol vessels and helicopters. Immediate
        security concerns driving these acquisitions are unresolved border disputes in the east of the
        country, tension growing in southern Thailand and a variety of piracy and illegal immigrant
        problems. The army is facing significant cuts in manpower of around 30 per cent, partly in order
        to help fund these acquisitions, but many argue that the threats currently facing the country
        highlight the need to keep personnel numbers at present levels.

        The high-profile acquisitions listed above were originally outlined in the Seventh Malaysia Plan
        1995-2000 but had to be delayed due to the impact of the economic crisis. Under the subsequent
        Eighth Malaysia Plan, which ran from 2001 to 2005, most of the delayed orders were finally
        confirmed. However, with a SARS-induced stimulation package affecting the government's
        finances an expected order for an additional 18 F/A-18 fighter aircraft was cancelled.

        The impact of previous purchases is illustrated by the hefty allocation of MYR4.1 billion in 2006
        and MYR4.7 billion in 2007 to development expenditures, leaving in theory a total of only
        MYR6.4 billion for the remaining 3 years of the Ninth Plan. Indications that previous
        procurements are having an impact on new programs include the delay in moving forward on a
        combat search and rescue helicopter and the cancellation of a squadron of utility helicopters for




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        the army. As such it seems likely that any new major acquisitions will need to be financed from
        outside the defense budget itself.

        Military Aid

        Malaysia does not receive any Foreign Military Financing aid from the United States, however it
        does receive a very small amount of International Military Education and Training aid of less
        than USD1 million annually.

        Source: Jane‘s Information Group

             G. Procurement


        Assessment

        After a hiatus following the Asian economic crisis of the late 1990s, Malaysia's Armed Forces
        are clearly benefiting from a wave of new spending intended to complete the transition from a
        largely counter-insurgency force into a regional power. The problem for Malaysian defense
        planners is how to construct a force that meets national strategic goals and assessments without
        triggering the kind of tensions and suspicions that could trigger a regional arms race. So far, this
        issue has not been resolved through the various available forums - ASEAN, APEC or the FPDA,
        for example - that could help create the type of confidence-building measures intended to deflect
        potentially damaging and wasteful defense expenditure.

        Relations with Singapore have improved despite Malaysia's program to modernize and expand
        its military capabilities. While the two neighbors routinely deny they are in an arms race, their
        growing inventories of increasingly sophisticated platforms and systems, coupled with an
        absence of any new realistic threats to justify their acquisition, suggests otherwise.

        A sudden spike in tension with Indonesia in February-March 2005, following a cool in relations
        with Thailand over its policies towards the Muslim population just over the border from
        Malaysia, can be expected to lead military and civilian defense planners and analysts to once
        again broaden their view of Malaysia's threat profile.

        There is another view of Malaysia's interest in boosting national defense that has little to do with
        the requirements or even ability of the armed forces. The acquisition of defense-linked
        technology is in line with the government's policy over the past two decades of encouraging the
        development of a domestic industrial base. The government has sought, largely through the use
        of revenues from the country's oil and natural gas exports, to create a broad manufacturing sector
        from an extremely narrow base. The defense sector is an obvious area where government, as the
        sole contractor, can steer investment and provide the seed money for a range of new industries.

        Major procurement decisions are believed to circumvent the Ministry of Defense to be handled
        directly by the Prime Minister's Office, where non-strategic considerations may often play a
        crucial role in the final selection of equipment. Prime Minister Abdullah has already shown


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        greater restraint over using the procurement process than Mahathir, whose often exuberant
        pursuit of high-technology business for Malaysia often distorted the relative priorities of strategic
        needs and commercial interests. This should decrease the potential for inappropriate or over-
        engineered equipment being procured as ambition outstretches local military skills and training.

        This problem is already evident in Malaysia's wide range of major aviation and naval platforms -
        which has increased the problems of interoperability. There are now serious support and
        logistical constraints due to operating Russian, US and British combat aircraft as well as British,
        German, Italian and eventually French warships. Apart from having to create separate spares and
        maintenance regimes, operational obstacles are created by language, documentation and
        numerous other differences. Further, the rapid expansion of defense-related industries has led to
        a parallel drain on skilled service personnel, attracted by higher wages and better career
        prospects. While this may fit into the overall government strategy of economic diversification
        and upgrading skills, it has a clear and deleterious impact on the armed forces' operational
        efficiency. This situation is unlikely to be resolved either quickly or easily.

        Economic recovery has allowed the government to order a steady flow of new military
        equipment. While some of the platforms were intended to replace or enhance existing equipment,
        others fulfilled a long-standing trend towards upgrading the capabilities of the armed forces. The
        most striking examples came with the decision to acquire submarines and main battle tanks.

        However, one of Abdullah Badawi's first actions when appointed prime minister in October 2003
        was to call for a review on some military procurement projects. Initially, it was thought that the
        most likely items to be deferred or abandoned were 18 Boeing F/A-18 aircraft, whose purchase
        has been in doubt since their acquisition was agreed in principle with the US government in
        2002. However, in June 2007 it appeared likely that the project would win funding, which could
        come from reducing maintenance on the MiG-29 fleet, thus accruing savings. Other projects in
        doubt may also include up to four Russian Mi-26 heavy-lift helicopters.

        This caution was echoed by Defense Minister Najib Razak in early April 2004 when he
        emphasized the needs for budgetary prudence in assessing expenditure priorities. He also noted
        that no decision had been made of the F/A-18 purchase. The Ninth Malaysia Plan (9MP, 2006-
        2010), released in April 2006, also emphasized that defense expenditure would be less of priority
        over the rest of the decade. Defense budgets over the life of the 9MP would be almost 12 per
        cent below the Eighth Malaysia Plan (8MP, 2001-05), reflecting the government's decision not to
        acquire any further major platforms in the near-term.

        Malaysia's military posture may now be seen to centre on the following elements:

                Continuing enhancement of conventional warfare capabilities;
                A focus on absorbing new equipment in all services;
                A new emphasis on joint-service operations;
                A growing emphasis on strategic mobility;
                Greater stress on the role of reservists in support of full-time personnel;
                Growing recognition of the importance of refining policy and practice in recruitment,
                 training and personnel development;



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                Improved logistical support; and
                Further major infrastructure development.

        The Ninth Malaysia Plan allocated MYR15.237 billion (USD4.18 billion) for defense over four
        years, an 11.9 per cent reduction on the MYR17.289 billion (USD4.74 billion) spent during the
        Eighth Malaysia Plan (the dollar value is distorted because of being pegged to the US currency at
        a rate of MYR3.80 for the duration of 8MP). By contrast, expenditure in the field of internal
        security rose by almost 26 per cent over the period to MYR5.966 billion from MYR4.744 under
        8MP.

        Specific projects given priority by the Malaysian Ministry of Defense (MoD) during the Eighth
        Plan included:

                acquisitions of multi-role combat aircraft, air defense systems, unmanned aerial vehicles
                 and attack helicopters for the army and helicopters for the navy;
                acquisitions of heavy lift helicopters and tactical transport aircraft for the air force;
                development of a credible rapid deployment force;
                modernization and extension of the service life of existing combat aircraft; and
                improved communications and logistical systems.

        By mid-2006, the only notable defense acquisition directly linked to the 9MP was the decision to
        replace all the country's Steyr AUG A1 assault rifles with Colt M4 Carbines.

        Army procurement

        Armor

        Main Battle Tanks

        Poland's PHZ Bumar is supplying the Malaysian Army with 48 PT-91 Main Battle Tanks
        (MBTs), six WZT-4 armored recovery vehicles, five PMC armored vehicle launched bridges and
        three MID-M obstacle breaching vehicles plus ammunition and training, ordered in April 2003
        under a USD375 million contract. The final PT-91M rolled off the production line in late January
        2009 and is now conducting acceptance trials. This completes the order for 48 PT-91M
        platforms, with deliveries of the support vehicles due to be completed by June 2009. The MBTs,
        fitted with a laser warning system and explosive reactive armor, will provide a massive
        enhancement to the army's armored capability. The MBTs are expected to be formed into a
        single regiment.

        According to Jane's Defense Forecasts, a further 100 vehicles are expected to be ordered
        between 2009-2011 to allow the formation of a three-regiment armored brigade. The existing
        Armored Fire Support Vehicle 90s and Scorpion reconnaissance vehicles may find a role in the
        new armored formation, or alternatively they may be used to enhance infantry formations or
        replaced. The contract would also likely include 12 WZT-4 armored recovery vehicles and six
        MID-M obstacle breaching vehicles plus ammunition and training.




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        Armored Reconnaissance

        In April 2006 the army began mobility trials of three 8 × 8 vehicles to meet a potential
        requirement for an initial acquisition of 98 vehicles required to equip a cavalry regiment.

        The three vehicles being evaluated are:

                the Finnish Patria Vehicles Armored Modular Vehicle (AMV), fitted with an Oto Melara
                 two-person turret and armed with ATK Gun Systems Company 30 mm MK 44 cannon;
                the Swiss Mowag Piranha IIIC, also fitted with an Oto Melara two-person turret; and
                the Turkish FNSS Pars II, fitted with a one-person Sharpshooter turret armed with an
                 ATK Gun Systems Company 25 mm M242 cannon.

        The main role of the 82 vehicles will be reconnaissance, with the other 16 fulfilling specialized
        roles, such as command post vehicles. The trials were concluded with only the Patria, marketed
        by Poland, passing all stage of the trials. However, the trials were not deemed to be conclusive
        and it is known that other companies have also offered their vehicles to meet this requirement.
        So far no further developments on this program has occurred. Due to economic problems
        impacting on Malaysian procurement programs, it is unlikely that these vehicles will be
        purchased until 2011.

        In December 2006, the Malaysian Army completed the cannibalization of 88 Sibmas Fire
        Support Vehicles - half the fleet - in order to keep the remaining half operational.

        Armored Personnel Carriers (APCs)

        Malaysia lacks a modern armored personnel carrier, relying instead on the Condor 4 × 4 armored
        vehicle, which lacks sufficient armored protection to cope with the threat of RPGs. In 2006 it
        emerged that the Malaysian Army was seeking to procure 48 vehicles and, in April 2008, an
        order was placed with DRB-Hicom Defense Technologies (Deftech) for 48 ACV-300 'Adnan'
        APCs. The contract is valued at USD136 million, and the vehicles are to be locally manufactured
        under license by Deftech.

        This order follows on a similar order in 2000 for 211 ACV-300 vehicles under a USD278 million
        contract. The vehicles were supplied in 10 versions: Infantry Fighting Vehicle with a one-person
        Shapshooter turret armed with a ATK 25 mm gun and 7.62 coaxial machine gun; anti-tank armed
        with the Pakistani Baktar Shikan ATGW system; APC with a Thales turret armed with a 40 mm
        grenade launcher and 7.62 machine gun; APC with a Thales turret armed with 12.7 and 7.62 mm
        machine guns; Ambulance; Command Post Vehicle; Mortar Carrier; Recovery vehicle; Fitters
        vehicle; Signals vehicle; and cargo vehicle. The first vehicles were delivered in 2002 and
        designated 'Adnan' with deliveries completed in 2004.

        However, an additional program to replace the army's ageing Sibmas wheeled fire support
        vehicles and Condor wheeled armored personnel carriers has been postponed until at least 2011
        with worsening financial pressures blamed for the postponement.




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        In April 2006, Malaysia's first indigenously produced armored fighting vehicle was unveiled.
        The AV4 is a prototype wheeled light armored vehicle developed by local firm DRB-HICOM
        Defense Technologies. Development of the AV4 began in early 2005, and it ran for the first time
        in February 2006, before making its first official appearance at the Defense Services Asia 2006
        Exhibition held in Malaysia in April. The AV4 is similar to the Belgian Sabiex International
        Iguana 4 × 4 vehicle and has been developed as a private venture.

        Artillery

        Malaysia has placed a USD16.8 million order for eight ACV-S armored mortar carriers as at
        April 2008. TDA will provide their 120 mm 2R2M mortar system under a USD17.9 million deal.

        Malaysia has a requirement for eight advanced mortar systems in order to provide organic fire
        support to units equipped with the ACV-300 APC. The procurement of a mobile mortar system
        will provide mechanised infantry formations with the ability to provide their own fire support,
        instead of having to rely on centralized, static mortar positions or artillery batteries. The
        extended ACV-300 vehicle, designated ACV-S, is the logical choice for the system as it has
        commonality with the vehicles currently in service. It was developed as a private venture in 2004
        to meet the requirement for a mortar system. The real competition for this program surrounded
        the 120 mm mortar system itself. The two contenders were the 120 mm 2R2M mortar
        manufactured by France's TDA and Ruag's Bighorn Mortar system. Both systems feature
        advanced targeting systems and automated loading, allowing the ability to "shoot and scoot." In
        2008 it was announced that TDA had won the contract, worth USD17.9 million. The Malaysian
        company Deftech has been awarded a USD16.8 million contract for the ACV-S vehicles. As
        more armored personnel carriers are procured it is likely that there will be a further requirement
        for mortar systems.

        An additional order of up to 18 ASTROS II was signed in late 2007 though not publicly
        confirmed until March 2009, when the army announced the launchers would be delivered by
        September 2009. They will equip a second regiment, 52 Artillery Regiment, which will be
        operationally ready in 2010 and will be based in the state of Kedah as part of the 2nd Division.
        The regiment already in service, 51 Artillery Regiment, is currently based in Negri Sembilan
        state as part of the 3rd Division.

        The army is interested in acquiring additional self-propelled long-range artillery. Possible
        contenders include Giat's Caesar 155 mm SP, which has been extensively trialed in Malaysia,
        Denel's T5, which combines the upper part of the standard G5/45-cal ordnance with an 8 × 8
        cross-country chassis and South Korea's Samsung Techwin 155 mm/52-cal K9 Thunder SPH. In
        addition, the army's existing 105 mm 130 Model 56 pack light guns are nearing the end of their
        service life. They are likely to be eventually replaced either by the RO Defense 105 mm Light
        Gun or Giat's LG1 MkII. However, these plans have been postponed to the timeframe of the 10th
        Malaysian plan (2011-16) owing to budget constraints. Similarly, plans to buy an additional nine
        Denel G5 155 mm guns as replacements for some of the 28 G5s currently in the inventory have
        also stalled due to a lack of funding.




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        Air Defense

        The army took delivery of the MBDA Jernas Short-Range Air Defense (SHORAD) missile
        system in 2006. The new system can be expected to be integrated with the Russian shoulder-fired
        Igla 1 Manpads anti-aircraft system ordered at the same time. While there is no indication how
        JERNAS is being deployed, there is widespread speculation it will be installed in the south of the
        country near the border with Singapore as part of measures to deter military overflights from the
        republic. Malaysia has also taken delivery of Pakistan's indigenously developed ANZA MkII
        shoulder-fired SAMs for use by the army's special forces.

        In July 2004, Deputy Prime Minister and Defense Minister Najib Razak announced that
        Malaysia had agreed in principle to acquire medium-range SAMs from China, under the Ninth
        Malaysia Plan (2006-2010). The tentative agreement covered the acquisition and possible local
        manufacture of China National Precision Machinery Import and Export Corporation FN-6
        shoulder-launched missiles if Malaysia purchases the company's medium-range KS-1A missiles.
        No further details are available.

        In July 2003, Prime Minister Mahathir Mohamad said during a visit to Ukraine that his
        government was particularly interested in acquiring air defense systems from that country. There
        are also reports from Russia that Malaysia may be interested in the Buk-M1-2 (SA-17 Grizzly).

        Infantry

        Small Arms

        In April 2006 Deputy Prime Minister and Defense Minister Najib Tun Razak announced
        Malaysia would replace all its Steyr AUG rifles under an upgrade program linked to the 9MP. A
        letter of intent worth MYR70 million (USD19.2 million) was signed with local company SME
        Ordnance (SMEO) for 14,000 Colt M4 carbines. A further 86,000 M4s would be purchased once
        funding became available. The weapons would be obtained from US-based Colt Defense and
        assembled locally by SMEO. No delivery schedule has been given ahead of US approval for the
        deal. The Steyr entered service in the early 1990s, and the decision to switch to the Colt M4
        appears to reflect technology transfer considerations as well as greater interoperability with other
        regional armed forces.

        Anti-Tank Guided Weapons

        Malaysia is evaluating anti-tank guided weapons to meet an army requirement for 18 launchers
        and 200 missiles after closing a Finance Ministry tender deadline at the end of January 2007.
        Systems under consideration include the Russian KBP Metis-M and Kornet-E, China's Norinco
        Red Arrow, Pakistan's Baktar Shikan, the MBDA TRIGAT and the Denel Ingwe from South
        Africa. The army already has a limited number of Metis M and Baktar Shikan systems, but the
        Kornet-E is said by sources to be favored due to its performance in 2006 against Israeli armor in
        Lebanon.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        However, industry sources say that the allocated budget of USD36 million is insufficient to
        obtain the required number of weapon systems should the Kornet-E be selected. In January 2008
        the program was reported to have been cancelled due to lack of funding.

        Transport

        The army is procuring 85 light high-mobility tactical vehicles at the cost of USD19.1 million. In
        April 2008 it was announced that Uro Vehicules Especiales (Urovesa) had been awarded a
        MYR60 million (USD19.1 million) contract for the supply of 85 vehicles, with deliveries
        reported to commence from March 2009. This contract is one of several contracts signed at the
        Defense Services Asia exhibition in Malaysia in April 2008, showing a concerted effort by the
        Malaysian Armed Forces to modernize its equipment.

        Terrain in Malaysia is extremely difficult and poses many operational problems. The jungle and
        mountainous regions in the centre of the country require a highly maneuverable force to operate
        in it. The addition of a light high-mobility vehicle will provide light forces with increased range
        and mobility, as well as allowing greater suppressive fire support. The VAMTAC looks very
        similar to the US HMMWV, as it was designed to the same specification. However at just
        USD200,000 per vehicle it is a viable cheap alternative. The VAMTAC also has the added
        advantage of a higher payload, with a GVW of 5,000 kg. Sixty of the units will be used as
        weapon carrier vehicles, armed with a mixture of 12.7 mm machine guns, 14 mm grenade
        launchers or mortar launchers. The remaining 25 units will be used as gun towing vehicles.

        Army Aviation

        Malaysia is looking to expand its Unmanned Aerial Vehicle (UAV) industry through a local
        project to develop a tactical system for the Royal Malaysian Army (RMA).

        The Tactical Unmanned Aerial Vehicle (TUAV) project, the first of its type pursued by
        Malaysian industry, is being undertaken by Unmanned Systems Technologies - a partnership
        between Composites Technology Research Malaysia, Systems Consultancy Services and
        Ikramatic Systems. The aircraft is equipped with a detection system, camera and flight-control
        system. It weighs 85 kg and can carry a payload of 140 kg. The development project is valued at
        around MYR20 million (USD5.5 million).

        The aircraft is equipped with a detection system, camera and flight-control system. It weighs 85
        kg and can carry a payload of 140 kg. The development project is valued at around MYR20
        million (USD5.5 million). Speaking through Malaysia's government-owned news agency in
        October 2008, Prime Minister Datuk Seri Abdullah Ahmad Badawi said the project had potential
        for commercialization and export. "This is a good development in the aerospace industry and
        will provide us with further strength to expand and develop the industry," he said during an
        aerospace council meeting at Parliament Building in Kuala Lumpur.

        There is also an immediate requirement for an attack helicopter. European Aeronautic Defense
        and Space (EADS) announced that it had offered the Malaysian government its Eurocopter Tiger
        attack helicopter soon after the A109M decision. in 2003. However, there is no sign that such a


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        platform is considered a priority by either the military or the government. A decision to acquire
        eight Denel CSH-2 Rooivalk helicopters was reversed in mid-2002, and it is unlikely any
        substantial order for attack helicopters will be made until the development and consolidation
        process at the new Army Air Wing is completed.

        Modernization

        APCs

        A program to locally upgrade and refurbish the inventory of Stormer and Commando APCs is
        continuing. Up to 50 Commandos are now believed to have been fitted with new turrets and
        improved firepower capability, while a further 18 have been converted into 81 mm mortar
        carriers.

        Air Force procurement

        Requirements

        Combat

        In May 2003, the Malaysian government announced that it was to purchase 18 Sukhoi Su-
        30MKM 'Flanker' multi-role fighters from Russia for an estimated MYR3.4 billion (USD900
        million), with signature of the contract taking place in August 2003 during the former Russian
        President Vladimir Putin's visit to Malaysia. Formal handover of the first two examples took
        place in Moscow on 24 May 2007, with these arriving in Malaysia aboard an Antonov An-124
        on 18 June 2007. Further pairs of aircraft followed on 26 July and 31 July 2007, with another
        four having been airlifted to Gong Kedak air base by the beginning of March 2008, by March
        2009 12 aircraft were in service. The Su-30s were originally scheduled for delivery in 2007, with
        the delay reportedly due to problems in integrating French and South African avionics systems.
        However, Russian sources say the problem centered on the failure of a third-party company,
        selected by Malaysia, to provide the necessary avionic components to Sukhoi on time.

        The aircraft are being paid for in cash and palm oil, with the latter accounting for about a third
        (MYR1.06 billion) of the total cost. The deal also includes technology transfers worth a further
        MYR1.03 billion, probably linked to the establishment of a joint-venture facility - involving
        Sukhoi, Irkut and Rosoboronexport - that was announced in October 2003. This facility will be
        located in Malaysia and will be responsible for servicing the aircraft as well as providing some
        components. Allied to this purchase, in June 2006, Defense Minister Najib Razak revealed that
        the government was seeking agreement with India for training, technical, maintenance and spare
        part support for the Su-30MKM. This will almost certainly involve India's state-owned
        Hindustan Aeronautics Ltd (HAL), which is currently assembling Su-30s for the Indian Air
        Force.

        Shortly after announcing plans to obtain the Su-30, in September 2003, the US Congress agreed
        in principle to allow the sale of 18 Boeing F/A-18 Super Hornets and associated equipment and
        services to Malaysia. If it goes ahead, the proposed MYR5.7 billion deal will also involve 36


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        General Electric F414-GE-400 engines, 18 AN/APG-73 radar systems, 18 AN/ALR-67(V)3
        countermeasure receiving sets, 18 AN/ALE-47(B)2 countermeasure dispensing sets, 12
        AN/ALQ-214(V)2 integrated defensive electronic countermeasures (IDECM) systems, 72 LAU-
        127B/A guided missile launchers, as well spare parts (including three engines), full technical
        support and an offset program.

        The Malaysians have not yet decided whether to go ahead with this acquisition. It is also unclear
        whether the deal includes the Raytheon AIM-120C Advanced Medium Range Air-to-Air Missile
        (AMRAAM). US authorities had previously lifted restrictions on the delivery of AMRAAM to
        Singapore and Thailand in May 2003, both countries having agreed to a deal under which they
        purchased the missiles, which were then stored in Guam. Malaysia was said to have been offered
        the same deal, but declined to accept. However, Malaysia has since purchased a small number of
        AMRAAMs (reportedly 20) that were stored in Guam until 2007 when the US government
        authorized their release.

        Transport

        In December 2005, Malaysia signed an agreement with Airbus Military to procure four A400M
        transport aircraft worth MYR8 billion (USD742 million). Deputy Prime Minister and Defense
        Minister Najib Razak said the new aircraft would eventually replace Malaysia's ageing fleet of
        C-130 Hercules transport aircraft. Two A400Ms are due to be delivered in the second half of
        2013 with the remaining pair following in 2014. The deal includes at least one major offset
        agreement with local company Composites Technology Research Malaysia Sdn Bhd (CTRM),
        initially worth MYR907 million.

        AWACS

        Other requirements include planned procurement of up to four Airborne Warning and Control
        System (AWACS) aircraft. A formal request for proposals to satisfy this requirement was meant
        to have been released in mid 2008. However, economic problems has meant that this
        procurement is likely to be delayed until 2011. Platforms that appear well-suited to meet
        Malaysia's requirement include the Northrop Grumman E-2 Hawkeye and the Saab 2000 with
        Erieye radar. The Boeing 737AEW&C could also come into contention, although cost
        considerations would appear to limit its prospects of success. However, this procurement could
        be delayed further by national economic pressures according to the chief of Malaysia defense
        forces. General Zainal said the RMAF would be willing to wait for money to purchase the
        capability until the 10th (2011-15) or 11th (2016-20) Malaysian reform plans.

        Utility

        On 19 July 2007, Malaysia's Deputy Prime Minister, Najib Razak, revealed that the process of
        finding a replacement for the veteran S-61A Nuri helicopter would begin with the release of
        tender documents by the end of the year covering an initial purchase of 12. By 8 January 2008,
        bids had been received from a number of contenders, including the AgustaWestland EH101,
        Eurocopter EC 725, Mil Mi-17V-5 and Sikorsky S-92, with Malaysian officials announcing that
        the Eurocopter EC 725 had been selected in September 2008. Deliveries are presently expected


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        to begin in 2010 and it is expected that as many as 48 examples of the chosen type will be
        obtained.

        Malaysia has put the purchase on hold as a result of the worsening economic climate, announced
        Prime Minister Abdullah Ahmad Badawi in October 2008. However, Najib Tun Razak, deputy
        prime minister and finance minister, said on 29 October 2008 that the Home Affairs Ministry and
        the Ministry of Defense (MoD) would be discussing whether to choose a long-term payment plan
        or a delayed purchase for the helicopters in line with the government's goal of ensuring funds are
        available to counterbalance the effects of the global economic crisis. Najib reiterated that the
        Royal Malaysian Air Force still needed the helicopters to replace its ageing fleet of S-61 aircraft.

        The proposed purchase of the 12 EC 725s has been the subject of a month-long controversy in
        Malaysia since Abdullah announced the planned purchase on 26 September. The Malaysian
        opposition has attacked every aspect of the purchase and has called upon the parliamentary
        Public Accounts Committee (PAC) to investigate the EC 725 tender process. The PAC opened
        its inquiry into the purchase on 30 October.

        Trainer

        On 22 November 2006, Malaysia signed a contract valued at EUR88.7 million in Kuala Lumpur
        for the supply of eight Aermacchi MB-339CM jet trainer/light attack aircraft, with four more on
        option, as well as the provision of spare parts, ground equipment and related services. The MB-
        339CM will replace the few remaining MB-339As in the current inventory. Sources told Jane's
        that negotiations were complicated by Malaysia's insistence that the sale be linked to Rome
        granting MAS (the Malaysian civil air carrier) additional landing rights in Italy.

        The air force took delivery of its first two trainers on schedule in March 2009, with the six
        remaining aircraft to be delivered by the end of next year. In January 2009 the Malaysian pilot
        training activities on the aircraft were slated to begin at Alenia Aermacchi facilities.

        The CM variant of the single-engine MB-339 is based upon the MB-339CD in service with the
        Italian Air Force and is equipped with a human-machine interface that includes a head-up display
        and three multifunctional displays in both the front and rear cockpits, as well as software to
        simulate complex operational scenarios. In addition, the aircraft features an air-refueling probe,
        which makes it more representative of current fighters. New functions in the aircraft's avionics
        system include embedded training simulation, digital maps, a cockpit compatible with night-
        vision goggles, new radios and identification friend or foe system, a new integrated autonomous
        air combat maneuvering instrumentation pod as well as modern safety equipment such as a crash
        data recorder and emergency locator transmitter.

        Previously, on 26 April 2006, Malaysia concluded the purchase of 10 Pilatus PC-7 Mk II Turbo
        Trainer aircraft at a cost of USD56.7 million. This deal was originally announced in February
        2006 and is a follow-up to the acquisition of nine PC-7 Mk IIs in 2000, one of which has since
        been destroyed.




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        Modernization

        The TUDM will be preoccupied over the coming few years in absorbing a range of new aircraft
        procured under the Sixth and Seventh Malaysia Plans. However, modernizing schedules can also
        be expected to be carried out in tandem.

        The main modernization work over the past few years has centered on a program to acquire an
        in-flight refueling capability and enhance the TUDM C-130H fleet. Lockheed Martin has
        converted C-130Hs that were formerly configured for maritime patrol into aerial tankers. Work
        on modifying two other C-130Hs to the stretched C-130H-30 configuration, increasing cargo
        capacity by 33 per cent, has also been completed.

        A rolling upgrade to the software for Malaysia's F/A-18 Hornet multirole fighters is ongoing
        until 2011. Completion of this project will enable them to fully utilize the AMRAAM's
        capabilities and bring the Malaysian F/A-18 software capabilities to a comparable standard to
        those of the US Navy and Marine Corps. This upgrade will also permit the F/A-18 to employ the
        Joint Direct Attack Munition (JDAM), a weapon which has been requested from the US.

        In order to enhance surveillance of the Malacca Strait, two King Airs are currently being
        upgraded in accordance with a 12 April 2006 contract involving local company Airod and Thales
        of France. Work on this project is expected to be completed by the end of 2007 and involves
        installation of the Thales AMASCOS (Airborne Maritime Situation Control System) by Airod.
        The TUDM is also planning to similarly modify two CN-235M transport aircraft.

        The Eagle Airborne Reconnaissance Vehicle (ARV) System or Eagle 150B is being used as a
        platform for an unmanned aerial vehicle. It is a joint development between local company
        Composites Technology Research Malaysia Sdn Bhd (CTRM), BAE Systems and Excelnet Sdn
        Bhd. Each system comprises three Eagle ARVs, a ground control station and a remote receiving
        station and can be used for military surveillance, coastal and border patrols, aerial survey and
        environmental monitoring. At least one such system has been deployed.

        Navy procurement

        Requirements

        Malaysia's MTU Services and D'Aquarian have signed five-year contract extensions with the
        Malaysian Ministry of Defense to provide engineering services to the Royal Malaysian Navy
        (RMN), the companies confirmed to Jane's in February. The contract with MTU Services is
        valued at RM537 million (USD147 million) and will see the Selangor-based company provide
        spare parts, training and maintenance on unspecified RMN machinery and MTU-made electronic
        control and monitoring systems. The deal with D'Aquarian is worth MYR66 million and
        involves the same services on Deutz diesel engines currently in service with the RMN.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Submarines

        A long-anticipated order for three submarines was signed in June 2003. The government ordered
        two new Scorpene class diesel-electric (SSK) submarines, which will be built as a joint venture
        between France's Direction des Constructions Navales (DCNS) and Spain's Navantia (formerly
        IZAR), with the French company building the forward modules and the Spanish yard responsible
        for the aft sections. In addition, the refurbished ex-French Navy Agosta-70 class SSK submarine
        Ouessant is included in the MYR3.7 billion (USD974 million) deal.

        The first Scorpene, Tunku Abdul Rahman, was launched at the DCNS shipyard in Cherbourg in
        October 2007 and returned there in early June 2008 after 90 days of contractor sea trials in the
        Bay of Biscay. The trials included 420 hours of underwater tests to verify maximum speed, dive
        endurance, maneuverability and stealth performance. Sonar and torpedo launch systems and
        safety and rescue systems were also tested. Tunku Abdul Rahman underwent final acceptance
        trials and then travelled to Toulon for work-up trials with the RMN prior to being commissioned
        on 27 January 2009. The boat is expected to arrive in Malaysia in July 2009 when it will be
        home ported at the RMN's new base at Teluk Sepanggar near Kota Kinabalu, Sabah.

        The second Scorpene, Tun Razak, was launched on 8 October 2008 at shipbuilder Navantia's
        Cartagena yard in southeast Spain and is due to arrive in Malaysia in late 2009, where it will join
        first-of-class Tunku Abdul Rahman , based at Naval Area 2.

        Each boat has a DCNS-built Subtics combat system and six launch tubes for an 18-weapon
        payload comprising WASS Black Shark heavyweight torpedoes and MBDA SM39 Exocet anti-
        ship missiles. There is an option to retrofit air-independent propulsion at a later date.

        Under the terms of the contract, around 50 per cent of the cost is tied to barter and offset deals.
        These centre on EUR230 million worth of palm oil, EUR92 million of other commodities and
        EUR138 million invested in training and technology transfer to Malaysian companies. The boats
        are eventually expected to be deployed from a new base in Teluk Sepanggar in the East
        Malaysian state of Sabah.

        In June 2006 Defense Minister Najib Razak said that Malaysia was seeking an agreement with
        India on Scorpene crew training and maintenance. India has acquired six of the boats.

        The Malaysian government approved the construction of a second batch of OPVs in November
        2008. The building of the six vessels will commence once the delivery of the first batch of six
        boats had been completed. That ships will be built by Lumut-based Boustead Naval Shipyard
        under license from Germany's Blohm + Voss.

        Aircraft Carrier

        Senior RMN officers routinely raise the question of the need for a light aircraft carrier. The type
        of vessel they envisage appears to be similar to Thailand's Chakri Naruebet carrier, which can
        operate helicopters and STOL combat as well as serve as a command and control ship in both
        military and civil emergency roles. Tension with Indonesia over disputed maritime boundaries in


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        East Malaysia may re-ignite interest in this proposal. However, there is little in the Ninth
        Malaysia Plan to suggest that the government sees such an acquisition as either cost-effective or
        necessary for the time being.

        Corvettes

        Malaysia has announced its intention to upgrade two FS1500 Katsuri class corvettes, which were
        built by HDW between 1982 and 1984 although there are no reports as to the programs progress.
        Combat data systems were fitted in 1998 and newer MM40 Exocet anti-ship missiles replaced
        MM38 in 2002. The upgrade will provide self defense capability against anti-ship missiles with
        the installation of a Close-in Weapons System (CIWS), and an enhanced anti-submarine warfare
        capability with the installation of torpedo tubes. The estimated service life of the two vessels is
        between 30 and 40 years.

        Frigates

        BAE Systems received a Letter of Intent from the Malaysian government in July 2006
        confirming plans to acquire two Batch 2 Jebat-class frigates from its Clyde-based shipbuilding
        subsidiary BAE Systems Surface Fleet Solutions. The company will deliver the so-called Project
        'Brave' program - valued at about GBP700 million (USD1.38 billion) - in conjunction with
        Malaysian industry partner Realmild, owners of the Labuan Shipbuilding and Engineering (LSE)
        yard in Sabah.

        By the end of 2006, Malaysia had agreed to purchase two frigates from BAE Systems and is
        currently discussing the technical specifications for the two vessels, which will be upgraded
        versions of the Leiku class frigates, currently in service with the RMN. In February 2007, Razak
        said that negotiations with BAE over technical details were continuing. That same month, BAE
        signed an agreement with Realmild, opening the way to co-operation on the program.

        The two ships will be built at the Lausban Shipyard and Engineering dockyards on Labuan island
        off the coast of East Malaysia.

        In June 2007, Jane's reported that Malaysia looked set to equip the new frigates with the
        Raytheon RIM-162 Evolved SeaSparrow Missile (ESSM) after the US weapon was selected
        ahead of MBDA's rival Aster 15 missile system. The move, which remains subject to contract,
        would mark a significant success for Raytheon given that the Royal Malaysian Navy (RMN) has
        historically turned to MBDA for the supply of naval guided weapons.

        In the meantime, plans for an additional batch of Lekiu class frigates have also seen progress and
        a Letter of Intent (LoI) with BAE Systems was signed in July 2006, although a construction
        contract was overdue as of mid-2008. Notwithstanding the plans for expensive frigates Deputy
        Prime Minister and Defense Minister Datuk Seri Najib Tun Razak stated that Malaysia may
        continue with the new-generation OPV program, saying that, "The government has agreed in
        principle that it will not be stopped once the OPVs are ready." The number of additional vessels
        to be acquired remains to be seen however. A second batch is estimated to cover an additional
        six vessels, rising to 10 as a higher estimate. The overall outstanding requirement is stated as 21


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        vessels. The program schedule assumes a decision within the next two years and a flowing
        transition from close of Batch I construction in 2010 to construction of Batch II units. Deliveries
        are estimated to occur between 2014 and 2016.

        The vessels are relatively lightly armed with a 76mm Oto Melara gun forward and a 30mm gun
        on the superstructure. Additional systems are fitted for but not with and may be exercised on
        some or all of the optional vessels. This may include a Rolling Airframe Missile (RAM) air-
        defense missile launcher and anti-ship missile. An increased focus on anti-submarine tasks
        would call for the installation of a sonar system and torpedos.

        Patrol Vessels

        The New Generation Patrol Vessel (NGPV) program based around the Blohm + Voss Meko 100
        patrol boat is now back on track after earlier delays. The initial order is for six of the 1,650 ton
        offshore patrol vessels (OPV), though the whole-life program calls for up to 27 boats over a 15
        year period. The lead vessel (PV-1 KD Kedah) was delivered in mid-2000, but its acceptance by
        the RMN was delayed until June 2006 because of a number of technical and training problems.
        The second Kedah class vessel Pahang was delivered by July 2006. The same vessels were both
        unable to achieve a high level of operational readiness and attain a satisfactory Mission Capable
        Category 1 status in 2008

        Penang Shipbuilders and Construction Naval Dockyard (PSC-ND) was originally due to begin
        deliveries of the six-ship Kedah class in 2004. However, the first two vessels failed their initial
        acceptance tests in early 2005 and the dockyard was beset by management problems, leading the
        government's Lembaga Tabung Angkatan Tentera (Armed Forces Provident Fund) and Boustead
        Holdings to take over the company in August 2005 and is now known as Boustead Naval
        Shipyard.

        Construction is now also being carried out by Boustead Penang Shipyard at Pulau Jerejak
        (Penang). The program to complete the first batch had re-gained momentum in 2007, and the
        indigenously-built Perak, Terengganu and Kelantan were eventually launched in November
        2007, December 2007 and November 2008 respectively. Perak - the first of the class to be built
        entirely in Malaysia - should be accepted from Boustead Naval Shipyard in March 2009 as
        scheduled and Selangor should be launched in the same month. Based on the troubled history of
        the program the possibility that additional vessels would be built seemed remote for some time,
        however is now again being considered if Boustead performs to expectations and delivers the
        outstanding vessels on time.

        Completion of the last four platforms required an infusion of additional funding, which was
        secured in February 2007, with MYR500 million (USD142.9 million) allocated to complete the
        remaining four platforms by November 2009. Deputy Prime Minister and Defense Minister
        Datuk Seri Najib Tun Razak said that the funding will enable BN Shipyards, based in Lumut, to
        complete the vessels as scheduled. The contract requires the last of the four ships to be delivered
        by November 2009.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        The Malaysian government has approved the procurement of a second batch of six vessels in
        November 2008. Prime Minister Datuk Seri Abdullah Ahmad Badawi stated that construction
        will start once the delivery of the first batch of six ships is completed, according to a 24
        November report by the state news agency. Badawi made the announcement at a naming
        ceremony for the fifth OPV, Kelantan, at the RMN complex at Lumut in the state of Perak. RMN
        spokesman Lieutenant Commander Mohd Zaidi said the second batch of OPVs is expected to be
        operational by the end of the 2011-2015 Tenth Malaysian Plan. While confirming that the ships
        would be built by Boustead Naval Shipyard, Lt Cdr Zaidi said financial details of the batch two
        project were still being finalized. The funding of the program has become a more important issue
        in light of announcements made by Malaysian Armed Forces in recent months about plans to
        delay two high profile projects because of economic pressures.

        The OPV's main armament is an OtoBreda 76/62 Rapido medium-range gun and an
        OtoBreda/Mauser 30 mm Short-Range gun. Provision has also been made for the later addition
        of one RAM (Rolling Airframe Missile) RIM-116A launcher for air defense and two launchers
        for the MM40 Exocet anti-ship missile. The combat management system will be the STN Atlas
        Elektronik COSYS-110M1. The main surveillance radar will be the TRS-3D/16 ES three-
        dimensional radar from EADS Deutschland. The OPV will also be able to operate the
        AugustaWestland Super Lynx helicopter ordered by the RMN.

        Multipurpose Support Ship

        A requirement exists for up to three such vessels, though the operational specifications and
        funding is to come out of Malaysian Armed Forces Headquarters. The requirements are that the
        joint capacity of two ships to be able to completely transport an entire Malaysian Rapid
        Deployment Force Battalion. Malaysia currently operates an ex-USN Newport class LSTH
        which it purchased in late 1994. Individual ship requirements are for a capacity of 500 troops and
        100 vehicles, an 18 knots speed with 8,000NM endurance using diesel engines, a substantial or
        even full-length) flight deck capacity with the for two to -three helicopters and storage capacity
        for four helicopters and four LCM, along with a possible installation of a missile system for
        point defense and the ability of the ship to act as a command platform and floating headquarters
        for joint and amphibious operations. The vessel was requested by the Malaysian armed forces in
        March 2007, however, precise technical requirements, specifications and cost have not been
        decided, however, consideration for a second vessel, (even at reduced cost), has been discounted.

        According to statements by Deputy Prime Minister and Defense Minister Datuk Seri Najib Tun
        Razak on 11 March 2007 the procurement of the vessel has been requested by the Malaysian
        Armed Forces, however technical requirements and specifications, as well as cost have not yet
        been determined.

        Vessel design is anticipated to be similar to Schelde Naval Shipbuilding (Enforcer/Rotterdam
        Malaysia), Amaris DCN (Mistral) or Navantia (BPE). However, Malaysia demonstrated an
        interest in Spain's 13,900 ton Galicia Landing Platform Dock, after it visited the country to
        provide humanitarian assistance to the Indonesian province of Aceh following the Indian Ocean
        tsunami in December 2005. The vessel, (two of which serve in the Spanish Navy), is capable of
        conveying up to 543 full equipped troops, 72 aircrew, special operations staff and training crew.



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Modernization

        The RMN, in common with the other services, will find the process of integrating the stream of
        new acquisitions due to be delivered over the next five years will absorb much of its
        administrative and operational energies. Further, the navy will have to continue its rolling
        program of maintaining and upgrading existing platforms and systems.

        Assuming all programs run to schedule, by 2010 the composition of the RMN will be far more
        capable in some areas, but still lagging in others.

                The Scorpene submarines, perhaps supported by the Agosta training boat, should be
                 commissioned and deployed in East Malaysia by late 2009/early 2010.
                The six OPVs will be completed and deployed in a range of roles, notably maritime
                 border protection and support for contentious offshore claims.
                The existing F2000 frigates, supported by the Laksamana and Kasturi corvettes, will form
                 the core of the surface fleet.
                The navy may have its own organic MR capability.
                The present limited sealift capability may be increased, probably with the acquisition of a
                 surplus platform or a local new build.
                Ambitions to give the navy a 'blue water' capability may threaten the continuing
                 development and doctrine of the RMN natural regional role.

        Maritime Patrol Aircraft

        The RMN is developing its maritime patrol and reconnaissance capability. This role is currently
        provided by four Raytheon Beechcraft Super King Air B200Ts acquired in 1994 and operated by
        RMAF. Given the emphasis now placed on maintaining frontier and Exclusive Economic Zone
        (EEZ) security, particularly in East Malaysia where tension with Indonesia, illicit migration, and
        the threat from cross-border terrorist or criminal groups has increased in recent years, the RMN
        concluded an USD8 million agreement in April 2006, which covers the RMAF's fleet of four
        King Airs. The upgrade involves the installation of Thales' Airborne Maritime Situation Control
        System (AMASCOS) together with related modifications to the aircraft. AMASCOS consists of
        a tactical command system, Ocean Master search radar and forward-looking infrared system.

        The navy accepted the MBDA Sea Skua anti-ship missile into service with their Super Lynx
        helicopters following a successful firing trial on 12 February 2008. The trial took place in the
        Strait of Malacca and involved the firing of a single missile from a Super Lynx helicopter of 501
        Squadron. The trial was witnessed by the chief of the RMN, Admiral Tan Sri Ramlan Mohamed
        Ali, and Fleet Operations Commander Vice Admiral Dato Mohamed Amdan Kurish. A previous
        firing trial held in March 2006 ended unsuccessfully when the missile's rocket motor failed to
        ignite, resulting in the Sea Skua falling into the sea. MBDA admitted that technical errors with
        the missile, rather than any fault on the part of the RMN, had resulted in the failure. The
        remaining Sea Skuas in the RMN's inventory were then taken back to the UK for inspection by
        MBDA and under the terms of the contract a replacement missile was also provided. The success
        of the latest trial means that the Sea Skuas are now ready for operational service with the RMN's




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        six Super Lynx helicopters. Malaysia bought the Sea Skua in 2001 in a deal worth USD27.9
        million, with deliveries commencing in 2005.

        Ship Upgrades

        The Kasturi (FS1500) class corvettes are undergoing a major refit and upgrading, which will
        prolong their service life beyond 2010. Both ships' command and control systems will be
        upgraded and new electronic warfare suites installed. Torpedo tubes and a CIWS similar to the
        Phalanx system will be installed. The British-built frigate, KD Rahmat, which serves as training
        ship, may be re-engineered to keep it in service for a further decade.

        Major conventional military procurement

        Type                       Manufacturer                Role                         Quantity Origin       First
                                                                                                                  Delivery
        PT-91M                     PHZ Bumar                   Main Battle Tank             6          Poland     2007
        Scorpene SSK               DCN                         Diesel-Electric Submarine    2          France     2007
        Su-30MKM                   Rosoboronexport             Multimode Fighter            18         Russia     2007
        PT-91Z                     Bumar-Labedy                Main Battle Tank             48         Poland     2006
        Meko A-100 Type            Blohm + Voss                Patrol Boat                  6          Germany 2006
        Agosta 70                  DCN                         Diesel-Electric Submarine    1          France     n/a
        K310 Igla 1 Manpads        Rosonboronexport            Short-Range Air Defense      9          Russia     n/a
                                                               System
        A109M                      Augusta Westland            Helicopter - Light           11         Italy      2006
                                                               Observation
        Jernas                     MBDA                        Short-Range Air Defense      n/a        UK         2005
                                                               Missile System
        Fennec AS 555 SN           Eurocopter                  Helicopter - Maritime        6          France     2004
        Advanced Armored           FNSS-Nurol                  Armored Combat Vehicle       211        Turkey     2004
        Combat Vehicles
        Super Lynx 300             AgustaWestland              Helicopter - Maritime        6          UK         2003
        Avibras ASTROS II          Avibras Aerospciale         Multiple Rocket System       18         Brazil     2002
        Aspide Mk1                 Alenia Marconi Systems      Surface-to-Air Missile       32         Italy      2000
                                   (EADS)                      (Shipboard)
        Exocet                     MBDA (EADS)                 Medium-range, Air-to-        16         France     2000
                                                               Surface Missile
        Source: Jane‘s Information Group




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        11. Security and Foreign Forces

        Police

        TOTAL STRENGTH
        90,000 (including 18,000 General Operations Force)
        2,100 (Marine Police)


        Organization

        The Royal Malaysian Police (RMP) force structure reflects its origins during British colonial
        rule. Emphasis on the RMP's paramilitary and public order function is often greater than that
        placed on community policing. The force is also dominated by ethnic Malays, leading many
        members of the country's other communities to mistrust the service. This sentiment was
        heightened following the distribution of a video in November 2005, allegedly showing an ethnic
        Chinese female prisoner forced to squat naked in front of ethnic Malay RMP personnel. The
        prisoner was in fact ethnic Malay, but the rapidity with which racial blame was cast is indicative
        of the public lack of trust regarding the RMP's ethnic bias. The Malaysian Transparency
        Perception Survey 2007 by Transparency International Malaysia (TI-M) indicated that 56 per
        cent of the public viewed the police as the public organization with the lowest integrity and
        transparency.

        This generally poor reputation has been reinforced by misconduct at all levels of the RMP in
        recent years, ranging from an assault on opposition politician Anwar Ibrahim while in custody by
        the then inspector general of police to numerous accusations of brutality, including extra-judicial
        killings by individual officers. Public antipathy towards the police reduces the service's
        effectiveness in all areas of its responsibility, including intelligence gathering and counter-
        terrorism.

        In early 2007 the RMP's Inspector General Musa Hassan said that a further 37,000 officers
        would be recruited to join the existing 90,000 officers. Pay would also be increased in a bid to
        reduce bribery. By end-2008 it was unclear whether this target had been met and how many extra
        officers had been recruited by the RMP.

        In addition to the regular patrol, traffic and criminal detection functions, the RMP is also
        responsible for a number of paramilitary units:

        Air Unit

        This unit carries out open and covert air surveillance to counter piracy, smuggling and pollution,
        supports Marine Police patrols and assists in the suppression of riots and public disorder. The
        operations centre and the main base are at Subang Airport (Kuala Lumpur). The helicopters are
        based at Sungai Besi and two PC-6s at Kota Kinabalu (Sabah).




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Federal Reserve Unit (FRU)

        The FRU is an anti-riot and crowd control force.

        Marine Police

        The Marine Police (2,100 personnel) operates 14 inshore patrol craft and over 120 small and
        riverine craft, patrols Malaysian territorial waters and provides coast guard services. It has been
        particularly active against illegal fishing, piracy and smuggling. Many Marine Police craft and
        some personnel have been transferred to the newly formed Maritime Enforcement Agency
        (MMEA).

        The main Marine Police bases are at Kuala Kemaman (Terengganu), Penang, Tampoi (Johor),
        Kuching (Sarawak) and Sandakan (Sabah).

                                Suspected Indonesian pirates arrested by Malaysian Marine Police in June
                                2005 near Langkawi island, northern Malaysia. (EMPICS)

                                                                                                                     1134175

        General Operations Force (GOF)

        The GOF (formerly the Police Field Force has 18,000 personnel and operates as a gendarmerie.
        It played a central role in the Malaysian Emergency (1948-60) and in counter-insurgency
        operations during the 1970s and 1980s, but was reduced in size since the surrender of the
        Communist Party of Malaya (CPM) in 1989-90. The GOF is organized along military lines with
        16 regular battalions organized within five brigades, based at Ulu Kinta (Perak), Cheras
        (Selangor), Kuantan (Pahang), Kuching (Sarawak), and Kota Kinabalu (Sabah). There are also
        two 'Tracker' battalions raised from indigenous communities as well as one battalion dedicated to
        VIP protection and another to airport security duties. Equipment includes substantial numbers of
        armored cars and armored personnel carriers. 'Tiger platoons' with a variety of operational
        specialists are attached to all regular battalions.

        Special Operations Force (Pasukan Gerakan Khas: PGK)

        RMP counter-terrorist unit, comprising Komando 69 (invariably referred to as 'VAT 69') and
        Unit Tindakan Khas' (UTK or Special Actions Unit). PGK role is to deter or respond to terrorist
        attacks and serious crimes, including armed robbery and hostage recovery. PGK also fields
        specialist EOD and sniper teams. The size of the PGK is classified.

        Inventory: Surface Fleet

        Type                                  Role                                        Quantity          Delivered
                          1
        Vosper 31 Meter                       Patrol Craft                                2                 1964/7
        Brooke Marine                         Patrol Craft                                6                 1981/2




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Stan Patrol 1500 Class                 Patrol Craft                               6                 1997
        Various                                Inshore/River Patrol Craft                 120               1964-
             1.    15 vessels transferred from the Marine Police to the Maritime Enforcement Agency with effect from
                   November 2005.



        Inventory: Police Air Unit

        Type                     Role                            Quantity In Service
        Cessna Caravan 1         Utility/Liaison                 6            6
        Pilatus PC-6 B2-H4       Utility                         n/a          5
        AS335F2/N2 Ecureuil Liaison/Surveillance Helicopter n/a               6


        Inventory: General Operations Force

        Type             Role                        Quantity In Service
        Shorland         Armored Car                 n/a        100
        AT-105 Saxon Armored Personnel Carrier n/a              140
        SB 301           Armored Personnel Carrier n/a          30


        Customs

        TOTAL STRENGTH
        5,000
        Organization
        The Royal Customs and Excise Department is administered by the Ministry of Finance. It operates more than 60
        inshore patrol craft. Many of these craft were transferred to the newly formed Maritime Enforcement Agency
        (MMEA) in 2006.


        Inventory: Customs

        Type                                                         Role                Quantity          Delivered
        Perek Vosper 32 Meter                                        Patrol Craft        6                 1982/4
        Pembanteras                                                  Patrol Craft        4                 1993
        Combat boat 90E                                              Patrol Craft        2                 1997
        IC 16 M High Speed Interceptor                               Patrol Craft        4                 2004
        Note

        boats.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        Malaysian Maritime Enforcement Agency

        Headquarters appointments

        Director General: Vice-Admiral Mohammad bin Nik

        Establishment

        The Malaysian Maritime Enforcement Agency (Agensi Penguatkuasaan Maritim Malaysia:
        APMM) began operations on 30 November 2005. The APMM was created through an
        amalgamation of resources of existing maritime agencies, including the Royal Malaysian Navy,
        Royal Malaysian Police, Customs, Fisheries, Marine and Immigration Departments.

        In November 2008 Chief of the Royal Malaysian Navy Abdul Aziz Jaafar said the APMM would
        take over all maritime enforcement duties from other related agencies. No time frame was given
        as to when the APMM would become Malaysia's sole maritime law enforcement agency.

        The APMM has a force of more than 60 patrol craft. A further 20 small fast craft are reportedly
        on order from Turkey. In June 2008 the APMM placed an order for two Bombardier 415MP
        multipurpose amphibious aircraft from Canada's Bombardier Aerospace. The aircraft will be
        equipped with two side-looking airborne radars, a forward-looking infrared radar and an airborne
        maritime surveillance system. The APMM took delivery of the third and final Eurocopter
        Dauphin AS365 N3 in late November 2008. In October the APMM ordered three Augusta
        Westland AW139 medium twin-engine helicopters, with an option for more aircraft, in deal
        valued at around USD60 million. The AW139s will be used in the search and rescue, coastal
        patrol and law enforcement roles.

        The APMM will come under the general command and control of the Malaysian armed forces in
        the event of any emergency, crisis or conflict.

        Personnel

        Approximately 2,000 (2008).

        Organization

        The Malaysian Maritime Zone is divided into five maritime regions which are further divided
        into 18 maritime districts.

        Principal missions

                Enforcement of law and order
                Maritime search and rescue
                Air and coastal surveillance
                Maintenance of maritime safety and security
                Control and prevention of maritime pollution


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                  Prevention and suppression of piracy and illicit traffic in narcotic drugs

        Bases

        MMEA HQ                     Putraiya
        Northern Peninsula Regional HQ: Langkawi
                                    District: Langkawi, Penang, Lumut
        Southern Peninsula Regional HQ: Johor Bahru
                                    District: Johor Bahru, Port Klang, Port Dickinson, Tanjung Sedili
        Eastern Peninsula           Regional HQ: Kuantan
                                    District: Kuantan, Kemaman, Tok Bali
        Sarawak                     Regional HQ: Kuching
                                    District: Kuching, Bintulu, Miri
        Sabah                       Regional HQ: Kota Kinabalu
                                    District: Kota Kinabalu, Labuan, Kudat, Sandakan, Tawau


        Inventory: Coast Guard (Maritime Enforcement Agency) Aircraft


        Musytari class OPV 1                                     Patrol                                 2    1985-87
                       2
        Vosper 32m                                               Patrol                                 5    1982-84
                           3
        31m Patrol Craft                                         Patrol                                 15   1963-68
                           4
        26m Patrol Craft                                         Patrol                                 2    n/a
                           5
        25m Patrol Craft                                         Patrol                                 2    n/a
                           6
        22m Patrol Craft                                         Patrol                                 2    n/a
                           7
        21m Patrol Craft                                         Patrol                                 2    n/a
                           8
        17m Patrol Craft                                         Patrol                                 1    n/a
                           9
        16m Patrol Craft                                         Patrol                                 2    n/a
                           10
        15m Patrol Craft                                         Patrol                                 4    n/a
                           11
        14m Patrol Craft                                         Patrol                                 8    n/a
                           12
        13m Patrol Craft                                         Patrol                                 2    n/a
                               13
        Lang Hitam Class                                         Patrol                                 15   1980-83
                  14
        Marlin                                                   Training Vessel                        1    2006
             1.    Transferred from the Royal Malaysian Navy (RMN) in June 2006 and expected to become operational in
                   2007. To be based in the Eastern Peninsula region.
             2.    Transferred from Customs Service in June 2005.
             3.    Transferred from RMN by June 2006
             4.    Transferred from Fisheries Dept in 2006
             5.    Transferred from Marine Dept in 2006
             6.    Transferred from Marine Dept in 2006
             7.    Transferred from Fisheries Dept in 2006
             8.    Transferred from Fisheries Dept in 2006
             9.    Transferred from Marine Dept in 2006



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                       opinions, assessments or positions of the DoD or any other government agency or entity.

             10.   Transferred from Marine Dept in 2006
             11.   Transferred from Marine Dept in 2006
             12.   Transferred from Marine Dept in 2006
             13.   Transferred from Marine Dept in 2006
             14.   Donated by The Nippon Foundation in June 2006



        Border Guards

        TOTAL STRENGTH
        1,200


        Border Scouts

        The Border Scouts, with about 1,200 personnel in Sabah and Sarawak, patrol the border with
        Indonesia.

        Security Forces

        TOTAL STRENGTH
        n/a


        People's Volunteer Corps (RELA)

        Ikatan Relawan Rakyat Malaysia (RELA) is a local volunteer militia established in 1972 as part
        of the government's counter-insurgency strategy. Since the CPM's surrender it has become
        involved in implementing local development projects. RELA members also receive disaster
        relief training. In early 2005 RELA members were briefly mobilized as part of the government's
        crackdown on illegal migrants. In May 2007 the New York-based Human Rights Watch accused
        RELA personnel of violence and extortion in their role of tracking and detaining illegal
        immigrants and called on the Malaysian government to disband the organization. Malaysia's
        state-backed Human Rights Commission stated that while some RELA personnel had broken the
        law, the organization still played a crucial part in countering the huge number of illegal
        immigrants in the country.

        Johor Military Force (JMF)

        The JMF is the Sultan of Johor's militia, and is the only paramilitary organization under state
        rather than federal control. The main role of the 150- to 200-strong unit is to provide security for
        the Sultan and his family.

        Intelligence Agencies

        The principal task of the Royal Malaysian Police's Special Branch is to collect security
        intelligence relating to "subversive and extremist individuals or organizations". Other
        intelligence units are Malaysia's external intelligence organization, controlled by the Department


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        of the Prime Minister, and the Ministry of Defense‘s joint-service 2,000-strong Military
        Intelligence.

        Foreign Forces

        TOTAL STRENGTH
        n/a


        Organization

        There is a long-term Royal Australian Air Force (RAAF) detachment at Butterworth Air Base
        (Penang) with two P-3C maritime patrol aircraft. There are also regular deployments of F/A-18
        fighters and F-111 strike aircraft to Butterworth. Australian Army infantry companies drawn
        mainly from the reserve force are deployed to Butterworth on a three-month rotational basis for
        air base defense and jungle warfare training. The force consists of one infantry company and 33
        air force personnel.

        The RAAF maritime patrol detachment monitors naval deployments in the South China Sea and
        eastern Indian Ocean on behalf of the Australian and Malaysian defense ministries. It is
        understood that data gathered by the detachment is also routinely passed to the US Department
        of Defense.

        The F/A-18 detachments contribute to Malaysia's air defense and to the Five Power Defense
        Arrangements' (FPDA) Integrated Air Defense System, which has always been commanded by a
        two-star RAAF officer. The F/A-18s and F-111s participate in the FPDA's air defense exercises.

        The FPDA provides the historically wary states of Malaysia and Singapore with a vehicle
        through which they can hold talks. It also provides the Malaysians with the opportunity to be
        exposed to the defense planning and operational concepts of more modern militaries. The
        Bersama Lima 2008 exercise was held in October 2008 in Malaysia and the South China Sea and
        involved 18 ships and 61 aircraft operating in combined and joint operations within a multi-
        threat environment.

        Non-State Armed Groups

        Overview

        TOTAL STRENGTH
        Unknown


        The government in Malaysia faces no serious threat to its authority from non-state groups. There
        are persistent reports that Islamic extremist groups are present, but to date there has been no
        independent evidence of any such activity. The government claims the domestic group
        Kumpulan Mujahiden Malaysia (KMM) is the primary terrorist threat, which apparently aims to
        overthrow the government. However, the internal security situation within the country has been
        generally quiet since the police carried out a major operation against the KMM in 2001 and


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        2002. Even prior to this wave of arrests, the KMM had reportedly been little more than a
        criminal nuisance, with the government blaming the group for a variety of unsolved crimes.

        There is also evidence of possible Jemaah Islamiyah (JI) activity in Malaysia. Members of JI are
        alleged to have carried out the October 2002 and 2005 Bali (Indonesia) bombings that killed 202
        and 23 people respectively, the August 2003 car bombing of the J W Marriott hotel in Jakarta
        which killed 12 people, and the van bombing of the Australian embassy in September 2004
        which killed 10. Several Malaysian citizens have also been implicated by the police in bomb
        attacks in Indonesia. One of the most prominent, Dr Azahari bin Husin, died during an
        Indonesian police raid in eastern Java in mid-November 2005. Azahari had been identified as
        one of JI's principal bombmakers, and responsible for the 2002 Bali bombing and other
        subsequent attacks.

        Jemaah Islamiyya (JI)

        JI poses little threat to the Malaysian state, as it is primarily concerned with its operations in
        Indonesia and elsewhere. However, the presence of JI operatives within the country and alleged
        links with the Kumpulan Mujahiden Malaysia (KMM) could lead to funding and armament of
        Islamic extremists in the country.

        Malaysia has used legal sanctions, primarily the Internal Security Act (ISA) introduced by the
        British colonial authorities to counter communist guerrillas and their supporters during the 1948-
        60 Malaysian Emergency, against suspected JI militants and activists. In April 2008 Malaysia's
        home minister, Syed Hamid Albar, told the media that 40 of the 50 detainees - other sources put
        to total to nearer 70 - held under the ISA were alleged JI members. A further six arrests of
        suspected JI activists in July 2008 were reported by a local human rights group. Four Indonesian
        nationals linked to JI and held without trial for up to six years at the Kamunting detention camp
        in northern Malaysia were deported to Indonesia following their release in August 2008. In early
        December 2008 Malaysian national Yazid Sufaat, a former army officer and trained biochemist
        with alleged links to the group responsible for the 11 September 2001 attacks in the US, was
        released after serving six years' imprisonment without trial under the ISA.

        Malaysia has served as the strategic base for JI operations, with few actual missions carried out
        in the country. Operations that have been conducted in Malaysia have been carried out jointly
        with the KMM. Resident in Malaysia are veterans of the anti-Soviet war in Afghanistan, as well
        as those whose skills include support operations such as fundraising. Malaysia has served as a
        safe haven for JI operatives, as well as a base for meetings at tactical and strategic levels, with
        the international airport at Kuala Lumpur and the International Islamic University (Universiti
        Islam Antarabangsa) being used as venues for high-level discussions. Malaysians - Dr Azahari
        Bin Husin and Noordin Mohamed Top - were both implicated by the Indonesian government in
        the September 2004 embassy bombing in Jakarta and the October 2005 Bali attacks. On 7
        November 2005, the Indonesian authorities said Azahari had been killed during a police raid in
        Malang, East Java. According to the police, Azahari chose to blow himself up with a bomb
        rather than face capture.




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                       opinions, assessments or positions of the DoD or any other government agency or entity.

        The JI's consultative council (shura) is allegedly based in Malaysia. Mohammed Iqbal bin
        Abdurrahman (alias Abu Jibril) headed the shura until his arrest and detention by Malaysian
        authorities in June 2001. Hambali (alias Encep Nurjaman or Riduan Isamuddin), a permanent
        Malaysian resident of Indonesian nationality, then took over as acting head of the shura, until his
        arrest in August 2003.

        JI established and infiltrated religious schools to establish a similar support structure to that in
        Indonesia. Bali bomber Amrozi, executed for his crimes in November 2008, admitted receiving
        religious education at the Pondok Pesantren Luqmanul Hakiem religious school in the Malaysian
        state of Johor - an institution described by authorities as having a "Wahhabist orientation".

        East Malaysia's long border with Indonesian Kalimantan would in theory allow JI to move men
        and material between the two countries. However, both the Malaysian and Indonesian
        intelligence services maintain comprehensive networks in the urban centers and ports to keep
        track of 'outsiders' and any suspicious newcomers would find it hard to avoid notice. Similarly,
        proximity of the southern Philippines where arms and ammunition are plentiful does not seem to
        be reflected in a build-up of weapons in East Malaysia - where they would serve little purpose or
        require further onward shipment. As noted above, any arms required in peninsular Malaysia
        could be readily obtained in southern Thailand. The presence of JI in the region has also led to
        fears of infiltration into neighboring Brunei, although no evidence of any such attempts has been
        disclosed.

        Malaysian Mujahideen Organization (KMM)

                Group name: Kumpulan Mujahideen Malaysia (KMM; Malaysian Mujahideen
                 Organization). The group is also sometimes referred to as the Kumpulan Militant
                 Malaysia.
                Level of threat: Currently, there are no indications that the KMM represents any threat
                 to the Malaysian state.
                Status: The Malaysian authorities maintain that the KMM is conducting an active
                 campaign within the country, although the very existence of the KMM as an independent
                 terrorist organization remains open to question. Since 2002, most Islamist militants
                 arrested in Malaysia have been identified as members of the Indonesia-based militant
                 group Jemaah Islamiyah (JI) with which KMM has very close ties, and the term 'KMM'
                 has not been applied.
                Date of founding: Malaysian law enforcement authorities have suggested that the KMM
                 was established as an underground organization during the 1980s. The group is also
                 reported by the authorities to have unofficially formed in 1988, three years after a violent
                 clash between police and villagers in 1985 at Memali. However, the official founding of
                 the group allegedly occurred at a meeting of Afghanistan veterans in 1995, with former
                 Parti Islam SeMalaysia (PAS) branch committee member Zainon Ismail believed by the
                 authorities to have been the instigator. Official acknowledgement of the existence of the
                 KMM was only publicly revealed following the arrest of alleged members in May 2001.
                Group type: Militant Islamist.
                Aims and objectives: The KMM's purported objective is to overthrow the government
                 through non-democratic means and to form an Islamic state (Daulah Islamiyah)


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                       opinions, assessments or positions of the DoD or any other government agency or entity.

                 comprising Malaysia, Indonesia and the southern Philippines.
                Leaders: The Malaysian authorities have portrayed both a domestic and regional
                 leadership structure of the KMM, claiming that the broad theological and organizational
                 leadership of the group has come from Indonesians self-exiled to Malaysia in the late
                 1990s. They name three individuals, all senior leaders of JI, as having a leading role in
                 the KMM: Abu Bakar Baasyir, who was sentenced to 30 months imprisonment in
                 Indonesia in March 2005 for conspiracy to commit the October 2002 Bali bombings
                 (released on 14 June 2006); Riduan Isamuddin, better known as Hambali, JI's operations
                 chief, who was arrested in Ayuddhya, Thailand in August 2003 (currently in custody at a
                 US detention facility on Guantanamo Bay); and Mohammed Iqbal alias Abu Jibril, JI's
                 deputy leader, who was arrested by Malaysian authorities in late 2001 (rendered to
                 Indonesia in 2004; released October 2004). Malaysian authorities believe that Nik Adli
                 Nik Aziz was elected the leader of the domestic KMM in early 1999 and that Zainon
                 Ismail led the group from 1995 to 1999. Both were arrested on 23 September 2001 and
                 released on 18-19 October 2006.

        Source: Jane‘s Information Group




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