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Saturday, December 01, 2007

Campur Tangan Luar: Tambah Jernih Atau Mengerohkan Keadaan?

The UPA regime may not have spent sleepless nights over agitating Indians in Malaysia, but after a Malaysian minister took on UPA partner M Karunanidhi, the government has been forced to react.

Five days after 10,000 ethnic Indians protested in Kuala Lumpur against the Malaysian government's racial discrimination policies, foreign minister Pranab Mukherjee told an indignant Parliament, "We are in touch with the Malaysian authorities and the matter is being taken up."

Prime Minister Manmohan Singh, addressing a joint press conference with EU president, Portuguese PM Jose Socrates, said the government was concerned whenever Indian citizens and people of Indian origin were in trouble anywhere in the world. "This is a matter which concerns us. Whenever people of India run into difficulties, it is a source of concern," Singh said.

Making a statement in both Houses of Parliament on Friday, Mukherjee said, "The government remains deeply solicitous about the welfare of people of Indian origin living abroad. There is a large community of people of Indian origin in Malaysia who are citizens of that country. We have friendly relations with Malaysia and we are in touch with the Malaysian authorities in the related matter."

However, officials were vague about what exactly had been done by the government. There was no indication that the Malaysian envoy had been summoned. When questioned, MEA officials said "diplomatic channels" had been used to convey India's sentiments.

India's reaction will likely be confined to a protest about the statement on Karunanidhi. As for the Indian protests, the dominant reaction within the MEA is that the protesters were Malaysians first, so it was largely a domestic matter.

The group of ethnic Indians, mainly Tamils, were taking a petition to the British High Commission "seeking the support of Queen Elizabeth for a class action suit filed in the UK for the exploitation of Indians who were brought to Malaysia as indentured labour." While Malays form about 65% of Malaysia's population and Chinese about 25%, Indians form 10% of the population. The lawsuit demands compensation from the UK for transporting Indians to Malaysia during the colonial era.

Of course, as everyone is acutely aware, the real purpose is to focus the attention of the Abdullah Ahmed Badawi government on the policy of racial discrimination that is also known as the Malaysian "social contract." It was the second largest protest action by the Hindu Rights Action Force (HINDRAF) in a month. Some of it is undoubtedly directed at elections which may be announced for 2008 rather than 2009.

But, at the bottom of it is the fact that Malaysian government's pro-Bhumiputra economic policies, crafted in the 1970s by Mahathir Mohammed after violent clashes between Chinese and Malays — which said that all businesses and enterprises must have a Malay presence — is fraying at the edges. It is a policy that is a significant deterrent to foreign investors, said business sources, which shows in Malaysia's inability to attract high amounts of FDI.

A Malaysian business delegation currently touring India has been trying hard to entice Indian investment into Malaysia, taking advantage of the Islamic financial system. But it's equally true that the Malaysian government has recently identified some special economic zones where the race quota does not apply. That, however, does not mean Malaysia is likely to revoke this policy anytime soon. Badawi recently described the policy as "sacred."

However, for India, the race protests could be an opportunity. The Malaysian government is already hurting under this policy and India can push the envelope against this to aid Indian investment in Malaysia when India resumes its trade talks with Malaysia in January. Malaysia is already squeezing India on palm oil which has put the brakes on an Asean-India FTA document.