New Cabinet In Malaysia

ECONOMIC TRENDS 10 April 2009

Equity Research PP11072/03/2010 (023549)

Malaysian Politics Presenting the New Cabinet…

PM Dato’ Sri Najib Tun Razak announced the new Cabinet line up yesterday (9 Apr ’09). Overall, it is a slightly “leaner” Cabinet as the number of Ministers and Ministries are down to 29 and 25 respectively, from 31 and 27 previously.

PM retains the Finance Minister post, keeping the “tradition” set since Tun Dr Mahathir’s time. However, Second Finance Minister is now Datuk Ahmad Husni Mohammad Hanadzlah, replacing Tan Sri Nor Mohamed Yakcop, who moved to the Economic Planning Unit as Minister at PM’s Department.

Other major changes and movements include Tan Sri Muhyiddin Yassin being moved to the Education Ministry from International Trade & Industry (MITI), while all three of the three newly-elected UMNO Vice Presidents got new portfolios – Datuk Hishammuddin Hussein (Home Ministry from Education), Datuk Zahid Hamidi (Defence from PM’s Office) and Datuk Shafie Apdal (Rural Development from Unity, Heritage, Culture & Arts). The new MITI is Datuk Mustapa Mohamad.

Big surprises come from the UMNO Youth side following the inclusion of Datuk Mukhriz Mahathir (who lost in the UMNO Youth Head election to Khairy Jamaluddin) as the Deputy MITI, and Datuk Razali Ibrahim, UMNO Youth No. 2 as Deputy Youth & Sports Minister. Notable absentee is from UMNO Youth as well i.e. the Head, Khairy Jamaluddin.

Key comebacks include Tan Sri Datuk Dr Koh Tsu Koon as Minister in the PM’s Department, Senator Datuk Dr Awang Adek Hussein who is back as as Deputy Finance Minister and newly-elected UMNO Women Head, Datuk Shahrizat Jalil, who also return to as Women, Family & Community Development Minister.

Major survivors are Dato’ Seri Dr. Rais Yatim and Datuk Seri Mohd Khaled Nordin who failed in their bids to be UMNO Vice Presidents.

Overall, in line with our earlier expectation that the outcome of UMNO’s election is not the major determinant of the Cabinet line up as well as the outlook of more significant representations by East Malaysians in the Cabinet, although we were a bit disappointed that the doors were not opened for more professionals/technocrats in the administration.

There will be no “honeymoon” for new PM and his Cabinet, who have to perform and deliver on the economic and social front to regain the political support to BN amid the “status quo” domestic political landscape post-Mar ’08 General Election and the last five by-elections.

Suhaimi Ilias [email protected] (603) 2297 8682 Ramesh Lankanathan [email protected] (603) 2297 8685

Malaysian Politics – New Cabinet

ECONOMIC TRENDS ▪ 10 April 2009 of 9

Slightly “leaner” Cabinet... PM Datuk Seri Najib Tun Razak announced the new Cabinet line up yesterday afternoon (9 Apr ’09). It was a slightly “leaner” Cabinet, with:

Fewer Ministers but more Deputy Ministers. The new Cabinet line up saw the number of Ministers down slightly to 29 from 33 previously, although the number of Deputy Ministers increased to 40 from 36 as 11 Ministers now have two Deputies. This is largely seen as a “compromise” to include those from BN component parties other than UMNO that represents non-Malays, as well as the fairer gender as there is still only two woman Ministers in this Cabinet.

Fewer Ministries due to M&As (mergers and abolitions). The number of Ministries fell to 25 from 27 previously, largely due to the abolitions of two Ministries (Entrepreneurs & Co-operative Development Ministry, and Energy, Water & Communications Ministry). At the same time two “new” Ministries were created from mergers i.e. Information, Communication, Arts and Culture Ministry and Energy, Green Technology and Water Ministry.

Malaysia: Numbers of Ministers & Ministries – Past 10 Years

25

2827

25

29

3233

29

0

5

10

15

20

25

30

35

1999 2004 2008 2009

Ministry Minister

Source: Media reports

8 Ministers and 9 Deputy Ministers from the previous Cabinet were dropped. These are mostly those who lost in the recent UMNO elections, including Tan Sri Muhammad Muhd Taib (lost UMNO Deputy President contest), Datuk Seri Syed Hamid Albar (lost UMNO VP race), Datuk Shahrir Samad (resigned post-UMNO election after losing UMNO Supreme Council contest) and Dato’ Azalina Othman (lost UMNO Supreme Council election). However, for some of them like Dato' Zulhasnan Rafique, Dato’ Ir Mohd Zin Mohamad and Datuk Idris Harun, winning the UMNO elections (as Supreme council members) was of no consequence or guarantee either.

Ministers Dropped

Minister Portfolio

Datuk Seri Syed Hamid Albar Internal Security and Home Affairs

Datuk Seri Ong Ka Chuan Housing & Local Government

Datuk Seri Ir Mohd Zin Mohamed Works

Datuk Shahrir Samad (resigned) Domestic Trade and Consumer Affairs

Senator Tan Sri Muhammad Muhd Taib Rural & Regional Development

Datuk Seri Zulhasnan Rafique Federal Territories

Datuk Seri Azalina Dato' Othman Said Tourism

Senator Datuk Amirsham Abdul Aziz Prime Minister's Department




Deputy Ministers Dropped

Deputy Minister Portfolio

Senator Wan Ahmad Farid Wan Salleh Internal Security and Home Affairs

Tengku Dato’ Seri Azlan Ibni Sultan Abu Bakar Foreign Affairs

Datuk Noraini Ahmad Human Resources

Datuk Abu Ghapur Salleh Natural Resources & Environment

Datuk Razali Ismail (passed away) Education

Datuk Teng Boon Soon National Unity, Culture, Arts & Heritage

Datuk Idris Harun Higher Education

Dato' Mohd Johari Baharum Prime Minister's Department

Datuk Hassan Malik Prime Minister's Department


8 Ministers and 10 Deputy Ministers retain their existing portfolios:

Ministers & Deputy Ministers Staying Put Minister Portfolio

Dato’ Sri Najib Tun Razak Finance

Datuk Dr. S. Subramaniam Human Resources

Datuk Douglas Unggah Embas Natural Resources & Environment

Datuk Dr Maximus Ongkili Science, Technology & Innovation

Datuk Liow Tiong Lai Health

Datuk Seri Mohamed Nazri Abdul Aziz Prime Minister's Department (Law & Parliament)

Datuk Ong Tee Keat Transport

Datuk Seri Mohd Khaled Nordin Higher Education

Deputy Minister Portfolio

Datuk Yong Khoon Seng Works

Datuk Jacob Dungau Sagan International Trade & Industry

Datuk Dr. Wee Ka Siong Education

Fadilah Yusof Science, Technology & Innovations

Datuk Dr Hou Kok Chung Higher Education

Datuk M. Saravanan Federal Territories

Datuk Sulaiman Abdul Rahman Abu Taib Tourism

Senator Datuk Dr Mashitah Ibrahim Prime Minister's Department

Datuk S. K. Devamany Prime Minister's Department

Wee Jeck Seng Youth & Sports


Plenty of reshuffles and some promotions... UMNO Deputy President, Tan Sri Muhyiddin Yassin, who automatically becomes the Deputy Prime Minister (DPM) was also moved to the Education Ministry from the International Trade & Industry Ministry (MITI). This makes sense as MITI involves a lot of travelling overseas and it is not appropriate for the PM and DPM to be simultaneously out of the country on too many occasions (Note: The country’s administration falls into the hands of the Government’s Chief Secretary whenever both PM and DPM are overseas). Taking over MITI is Datuk Mustapa Mohamad who was previously at the Agriculture and Agro-based Ministry. There are also portfolio changes involving the newly-elected three UMNO Vice Presidents. Dato’ Seri Hishammuddin Hussein moves to the Home Ministry from Education, while it is a promotion of sorts for Dato’ Seri Ahmad Zahid Hamidi (to Defence from the PM’s Office) and Datuk Seri Shafie Apdal (to Rural Development from Unity, Heritage, Culture & Arts). In addition, three Deputy Ministers from previous Cabinet are promoted to Ministers as per the list overleaf, which includes Datuk Ahmad Husni Mohamad Hanadzlah as Finance Minister II from Deputy MITI, and Sabah’s Datuk Anifah Aman as Foreign Minister from Deputy Tourism Minister.



…as well as “surprises”, “newcomers”, “survivors” and “comebacks”.... Key surprises are the inclusion of Dato’ Mukhriz Tun Dr. Mahathir (who lost in the UMNO Youth Head election) as the Deputy MITI, and Deputy UMNO Youth Head, Datuk Razali Ibrahim, as Deputy Youth & Sports Minister. New Puteri UMNO Head, Datuk Rosnah Rashid Shilin is given the Deputy Health Minister post. A notable absentee from the list of newcomers is the newly-elected UMNO Youth Head, Khairy Jamaluddin, who said during the campaigning period that he does not want a Cabinet post if he won the Youth Head contest. Major comebacks include Tan Sri Datuk Dr Koh Tsu Koon – former Penang Chief Minister and current Gerakan President who lost in the Mar ’08 General Election – as Minister in the PM’s Department, and Senator Datuk Dr Awang Adek Hussein – who also lost in Mar ’08 General Election – who returns to his Deputy Finance Minister portfolio. Newly-elected UMNO Women Head, Datuk Shahrizat Jalil, also return to the Cabinet as Women, Family & Community Development. The most notable “survivors” are Dato’ Seri Dr Rais Yatim (who moved to Information, Unity, Culture & Arts Ministry from Foreign Affairs Ministry) and Datuk Seri Mohd Khaled Nordin (stays as Higher Education Minister), despite being at the losing end of the UMNO VP election.

Ministers Moved & Promoted Minister Portfolio Change

Tan Sri Muhyiddin Yassin Education from MITI

Dato’ Seri Hishamuddin Tun Hussein Home Affairs from Education

Dato’ Seri Dr Ahmad Zahid Hamidi Defence from PM’s Office

Datuk Shaziman Abu Mansor Works from Energy, Water & Communications

Datuk Peter Chin Fah Kui Energy, Green Technology and Water from Plantation Industries & Commodities

Datuk Mustapa Mohamad MITI from Agriculture & Agro-Based Industry

Tan Sri Bernard Dompok Plantation Industry & Commodity from PM’s Office

Dato’ Seri Dr Rais Yatim Information, Communication, Arts & Culture from Foreign Affairs

Datuk Noh Omar Agriculture & Agro-Based Industry from Entrepreneur & Cooperative Development

Datuk Ismail Sabri Yaakob Domestic Trade & Consumer Affairs from Youth & Sports

Datuk Seri Shafie Apdal Rural & Regional Development from National Unity, Culture, Arts & Heritage

Datuk Ahmad Shabery Cheek Youth & Sports from Information

Datuk Ng Yen Yen Tourism from Women, Family & Community Development

Tan Sri Nor Mohamed Yakcop PM’s Office from Finance


Deputy Ministers Promoted to Minister

Deputy Minister to Minister Portfolio Change

Datuk Anifah Aman Foreign Affairs from Tourism

Datuk Ahmad Husni Mohamad Hanazlah Finance from MITI

Datuk Kong Cho Ha Housing & Local Government from Finance




Deputy Ministers Moved Deputy Minister Portfolio

Datuk Chor Chee Heung Finance from Home Affairs

Dato’ Wira Abu Seman Yusop Home Affairs from Defence

Jelaing Mersat Home Affairs from Domestic Trade & Consumer Affairs

Datuk Dr Abdul Latiff Ahmad Defence from Health

Noriah Kasnon Energy, Green Technology & Water from Women, Family & Community Development

Senator A. Kohilan Pillay Foreign Affairs from Plantation Industries & Commodities

Datuk Hamzah Zainuddin Plantation Industry & Commodity from Housing & Local Government

Tan Sri Joseph Kurup Natural Resources & Environment from Rural & Regional Development

Datuk Joseph Salang Gandum Information, Unity, Culture & Arts from Energy, Water & Communications

Datuk Robert Lau Hoi Chew Transport from Housing & Local Government

Datuk Rohani Abdul Karim Agriculture & Agro-Based Industry from Plantation Industries & Commodities from

Datuk Tan Lian Hoe Domestic Trade & Consumer Affairs from Information

Datuk Saifuddin Abdullah Higher Education from Entrepreneur & Cooperative Development

Source: Media report

Ministers: Newcomers & Comebacks

Minister Portfolio

Senator Datuk Shahrizat Jalil Women, Family & Community Development

Datuk Raja Nong Chik Raja Zainal Abidin Federal Territories

Tan Sri Datuk Dr Koh Tsu Koon Prime Minister's Department (Unity & Performance Management)

Senator Datuk Jamil Khir Baharom Prime Minister's Department (Religious Affairs)


Deputy Ministers: Newcomers & Comebacks

Deputy Ministers Portfolios

Senator Datuk Dr Awang Adek Hussein Finance

Datuk Lajim Ukin Housing & Local Government

Dato’ Mukhriz Tun Dr Mahathir MITI

Datuk Lee Chee Leong Foreign Affairs

Senator Datuk Maznah Mazlan Human Resources

Datuk Dr Puad Zakarshi Education

Senator Heng Seai Kie Information, Communication, Arts & Culture

Datuk Paduka Chew Mei Fun Women, Family & Community Development

Datuk Abdul Rahim Bakri Transport

Datuk Joseph Entulu Belaun Rural & Regional Development

Datuk Rosnah Rashid Shilin Health

Datuk Razali Ibrahim Youth & Sports

Ahmad Maslan Prime Minister's Department

Senator T. Murugiah Prime Minister's Department

Datuk Liew Vui Keong Prime Minister's Department




We reserve judgment on the new Cabinet for now. The Cabinet changes are natural as the new PM comes in, and this Cabinet also reflects the outcome of last month’s UMNO election, although as we expected and mentioned earlier, winning or losing the UMNO election was not necessarily the key and only deciding factor. In addition, as we also expected, there were more substantial roles and positions for East Malaysians in the newly formed Cabinet. However, we were somewhat disappointed that there was not much by way of inclusions professionals/technocrats in the present administration, despite the earlier rumours – and not to mention the removal of Tan Sri Amirsham A. Aziz. This highlights the realpolitik behind the formation of this Cabinet. One thing is for sure – there will be no “honeymoon” for Dato’ Sri Najib and his team as they have to roll up their sleeve and get to work immediately. Recall in our note (Malaysian Politics – Tri-Elections: “Status Quo”, 8 Apr ’09) following the results of the recent three by-elections and analysis of the last five by-elections, that the BN Government continues to “struggle” to win in Peninsular Malaysia, although it maintains the strong backing from East Malaysia more than a year after the landmark Mar ’08 General Election. Therefore, performing and delivering on the economic and social fronts are crucial to winning back the political support ahead of the next General Election in less than four years’ time. This will have to start with effective and efficient implementation of the two economic stimulus packages totaling RM67b as cabinet changes at this time can result in unnecessary delays if not managed properly.



APPENDIX: Malaysia Cabinet Line Up 2009

PORTFOLIO

MINISTER DEPUTY MINISTER

Prime Minister

YAB Dato’ Sri Hj Mohd Najib bin Tun Hj Abdul Razak

Deputy Prime Minister

YAB Tan Sri Muhyiddin Yassin

Ministry of Finance

Dato’ Sri Mohd Najib Tun Razak (Minister I)

Datuk Ahmad Husni Mohamad Hanadzlan (Minister II)

Datuk Chor Chee Heung

Datuk Dr Awang Adek Hussein (Senator)

Ministry of Home Affairs

Dato’ Seri Hishamuddin Tun Hussein

Dato’ Wira Abu Seman Yusop

Encik Jelaing anak Mersat

Ministry of Defense

Dato’ Seri Dr Ahmad Zahid Hamidi

Datuk Dr Abdul Latiff Ahmad

Ministry Housing & Local Government

Datuk Kong Cho Ha

Datuk Lajim Ukin

Ministry of Works

Datuk Shaziman Abu Mansor

Datuk Yong Khoon Seng

Ministry of Energy & Green Technology and Water

Datuk Peter Chin Fah Kui

Puan Noriah Kasnon

Ministry of International Trade & Industry

Datuk Mustapa Mohamad

Dato’ Mukhriz bin Tun Dr Mahathir

Datuk Jacob Dungau Sagan

Ministry of Foreign Affairs

Datuk Anifah Aman

A. Kohilan Pillay (Senator)

Datuk Lee Chee Leong

Ministry of Agriculture & Agro-Based Industry

Tan Sri Bernard Dompok

Datuk Hamzah Zainuddin

Ministry of Human Resources

Datuk Dr. S. Subramaniam

Datuk Maznah Mazlan (Senator)

Ministry of Natural Resources & Environment

Datuk Douglas Unggah Embas

Tan Sri Joseph Kurup

Ministry of Education

Tan Sri Muhyiddin Yassin

Datuk Dr. Wee Ka Siong

Datuk Dr Puad Zakarshi

Ministry of Information, Unity, Culture & Arts

Dato’ Seri Dr Rais Yatim

Datuk Joseph Salang Gandum

Puan Heng Seai Kie (Senator)

Ministry of Women, Family & Community Development

Datuk Shahrizat Jalil (Senator)

Datuk Paduka Chew Mei Fun

Ministry of Science, Technology & Innovations

Datuk Dr Maximus Ongkili

Encik Fadillah Yusof Source: Prime Minister’s Office



APPENDIX: Malaysia Cabinet Line Up 2009 (continued)

PORTFOLIO

MINISTER DEPUTY MINISTER

Ministry of Transport

Datuk Ong Tee Keat

Datuk Abdul Rahim Bakri

Datuk Robert Lau Hoi Chew

Ministry of Plantation Industries & Commodities

Datuk Noh Omar

Datuk Johari Baharum

Datuk Rohani Abdul Karim

Ministry of Domestic Trade & Consumer Affairs

Datuk Ismail Sabri Yaakob

Datuk Tan Lian Hoe

Ministry of Rural & Regional Development

Datuk Seri Shafie Apdal

Datuk Hassan Malek

Datuk Joseph Entulu anak Belaun

Ministry of Higher Education

Datuk Seri Mohd Khaled Nordin

Datuk Dr Hou Kok Chung

Datuk Saifuddin Abdullah

Ministry of Health

Datuk Liow Tiong Lai

Datuk Rosnah Rashid Shilin

Ministry of Youth & Sports

Datuk Ahmad Shabery Cheek

Datuk Razali Ibrahim

Encik Wee Jeck Seng

Ministry of Federal Territories

Datuk Raja Nong Chik Raja Zainal Abidin

Datuk M Saravanan

Ministry of Tourism

Datuk Ng Yen Yen

Datuk Sulaiman Abdul Rahman Abdul Taib

Ministers in the Prime Minister's Department:

Tan Sri Datuk Dr Koh Tsu Koon (Unity Affairs and Performance)

Datuk Seri Mohamed Nazri Abdul Aziz (Parliament)

Tan Sri Nor Mohamed Yakcop (Economic Planning Unit)

Mejar General Datuk Jamil Khir Baharom (Islamic Matters)

Deputy Ministers in the Prime Minister's Department:

Datuk Liew Vui Keong

Datuk Dr Mashitah Ibrahim (Senator)

Datuk S K Devamany

Encik Ahmad Maslan

Encik T. Murugiah (Senator)

Source: Prime Minister’s Office



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New Cabinet In Malaysia

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