By Celine Fernandez And James Hookway
KUALA LUMPUR, Malaysia--Malaysians were met with the
unprecedented spectacle of the man who ran the country for 23 years
joining a weekend-long protest against current leader Prime
Minister Najib Razak's management of the economy and debt problems
at a state investment fund.
Mahathir Mohamad, now 90 years old, briefly appeared at the
rally in central Kuala Lumpur on Saturday evening and again on
Sunday afternoon, joining tens of thousands of people who had taken
to the streets after it emerged last month that nearly $700 million
allegedly passed into the accounts of Mr. Najib before the last
general elections in 2013.
Dr. Mahathir, who has long sought to remove Mr. Najib as prime
minister and head of the ruling United Malays National
Organization, said his message for the prime minister was: "That
the people do not like him; that the people want him to step down.
I want Najib to step down."
He also drew parallels with the mass domestic protests that
toppled the Philippines' late dictator Ferdinand Marcos in 1986,
saying that "a street demonstration is our last option."
Other demonstrators at the protest, which organizers named
"Bersih" for the Malay word for "clean", chanted for Mr. Najib's
resignation and demanded an end to new consumption taxes and other
economic measures.
Political analysts, however, said that while the protesters
appeared emboldened by Dr. Mahathir's support, the fact that
authorities allowed the protest to proceed reflected the likelihood
that Mr. Najib will be able to keep control of the resource-rich
country if he can retain the support of UMNO and prevent a steeper
slide in the value of Malaysia's ringgit, which has been among
Asia's worst-performing currencies this year, losing about 16% of
its value against the dollar.
"The Bersih protest itself isn't going to change anything," said
James Chin, a Malaysian academic who heads the Asia Institute at
the University of Tasmania in Australia and who was in Kuala Lumpur
to observe developments. "Unless there is a full-scale riot, he is
still in a strong position."
Keeping UMNO on board, however, is still a considerable
challenge, Mr. Chin and other analysts say. The party has ruled
Malaysia since independence from Britain in 1957. But cracks in the
organization are growing, with Dr. Mahathir's faction becoming
increasingly vocal in recent weeks.
The Wall Street Journal reported last month that Malaysian
investigators had traced hundreds of millions of dollars of
deposits into what they believed were Mr. Najib's personal bank
accounts after the movement of cash among agencies, banks and
companies linked to state investment firm 1Malaysia Development
Berhad, or 1MDB. Mr. Najib is head of the advisory board of 1MDB,
which has acquired debts of about $11 billion since Mr. Najib
established it shortly after becoming prime minister in 2009.
The Journal reported that the original source of the money was
unclear and that the government investigation hadn't detailed what
happened to the money that allegedly went into Mr. Najib's personal
accounts. Mr. Najib has denied any wrongdoing or taking money for
personal gain. The country's antigraft agency said the money in Mr.
Najib's account was a donor contribution that originated from the
Middle East. The donor wasn't specified.
In late July, Mr. Najib fired then-deputy premier Muhyiddin
Yassin after Mr. Muhyiddin called on Mr. Najib to explain the
worsening situation at 1MDB. Mr. Najib also promoted four members
of a parliamentary committee investigating 1MDB to the cabinet,
meaning they could no longer stay on the panel. The following day,
he replaced the country's attorney general, who was also involved
in an investigation into 1MDB, ahead of his scheduled retirement
date in October.
Swiss authorities, meanwhile, this month said that they have
opened a criminal probe into the relationship between what they
called "suspicious transactions" in Switzerland's banking sector
and 1MDB. The investment fund said it is ready to assist in any
investigation.
The issue has created a political firestorm in Malaysia, but
political analysts note that opposition to Mr. Najib's rule has
become badly fragmented along racial lines after its most
influential leader, Anwar Ibrahim, was convicted and sentenced to
five years in prison on a sodomy charge this year.
A firebrand speaker and member of Malaysia's majority
ethnic-Malay Muslim population, Mr. Anwar was widely viewed as one
of the few politicians able to unite the country's disparate
opposition parties, which range from the predominantly
ethnic-Chinese Democratic Action Party to the Pan-Malaysian Islamic
Party, or PAS. Since the Anwar verdict, which Mr. Anwar denounced
as a political plot, the DAP and PAS have broken off their
political alliance.
Indeed, analysts and people at the rally noted that while there
were sizable numbers of Malays in the crowd, the participants
overwhelmingly came from Malaysia's minority Chinese community
after PAS decided not to take part. A poll taken by the Kuala
Lumpur-based Merdeka Center showed that 81% of ethnic Chinese
polled supported the Bersih protest, while 70% of Malays opposed
it.
Protest organizers said the number of Malay participants in the
weekend protest was comparable with those of earlier antigovernment
demonstrations.
Still, "Mr. Najib can turn this rally to his advantage by
pointing to a sea of Chinese faces," Mr. Chin said. He also said he
could choose to portray Dr. Mahathir as disloyal to UMNO.
There are signs that this might already be happening. State
media agency Bernama on Saturday reported Mr. Najib as saying the
protesters are "shallow and poor in their patriotism and love for
their motherland" for holding the demonstration so close to the
country's independence day on Monday. "Don't they understand the
country was built on the blood and sweat of our freedom
fighters?"
Write to Celine Fernandez at Celine.Fernandez@wsj.com and James
Hookway at james.hookway@wsj.com
(END) Dow Jones Newswires
August 30, 2015 07:43 ET (11:43 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.