Asia Sentinel: UMNO's Corporate Cornucopia

The House that Mahathir Built

UMNO's Corporate Cornucopia

Written by Our Correspondent

Asia Sentinel, 13 OCTOBER 2010

How Malaysia's companies funneled money into the country's biggest political party

In the 1980s and 1990s, Halim Saad and Tajudin Ramli were two of Malaysia's brightest stars, picked by former Prime Minister Mahathir Mohamad to lead the country's ethnic Malays onto the national stage as exemplars of a new Bumiputera business culture that would catch up with the ethnic Chinese who had dominated commerce as long as Malaysia had been in existence.

When Mahathir took office, insiders say, his plan was to create a cadre of 100 super-rich bumis who in turn would help rural Malays into prosperity under a konsep payung, or umbrella concept routed through the United Malays National Organization, much the way he envisioned driving the country into industrialization through massive projects. But greed intervened. Once the privileged got rich, there was little incentive to share it with the kampongs, the Malay rural villages. Many of the companies eventually collapsed and are being supported by government institutions such as Kazanah Nasional, the country's sovereign investment fund, or the Employee Provident Fund.

Although the Umno connection was widely assumed during Mahathir's 22 year reign as prime minister, today a flock of explosive court documents filed in different Kuala Lumpur courts appear to be breaking open conclusively the open secret that Tajudin and Halim and others were essentially front men for the United Malays National Organization, the country's biggest ethnic political party and part of a class of rentier businessmen who became known as Umnoputras, a play on the word Bumiputera, or native Malaysians, predominantly ethnic Malays.

To Continue, read UMNO's Corporate Cornucopia



UMNO-linked companies:
Faber Group Bhd
KUB Malaysia Bhd
Malaysian Resources Corp. Bhd
Media Prima Bhd
New Straits Times Press (M) Bhd
Putera Capital Bhd
UEM Builders Bhd
UEM World Bhd
PLUS
Pharmaniaga
Utusan Melayu (M) Bhd (partly owned by Syed Mokhtar Albukhary, another Mahathir crony and one of Malaysia's 10 richest men according to the Forbes List
Renong Bhd
Realmild Sdn Bhd
Mahkota Technologies (Also a partnership with Syed Mokhtar Al Bukhary
Malaysian Airlines
Celcom
Malaysian Helicopter Service
Temasek Padu Sdh Bhd
Sabah Shipyard
Labuan Shipyard
Redicare
Medivest