Identifier
Created
Classification
Origin
07KUALALUMPUR1334
2007-08-27 09:24:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kuala Lumpur
Cable title:  

WELCOME TO MALAYSIA'S 50TH ANNIVERSARY CELEBRATION

Tags:  PGOV PREL ECON OVIP MY 
pdf how-to read a cable
VZCZCXYZ0011
OO RUEHWEB

DE RUEHKL #1334/01 2390924
ZNR UUUUU ZZH
O 270924Z AUG 07
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9880
INFO RHEBAAA/DEPT OF ENERGY WASHDC IMMEDIATE
UNCLAS KUALA LUMPUR 001334 

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT OF ENERGY FOR DEPUTY SECRETARY SELL
STATE PASS TO USTR FOR AMBASSADOR BHATIA

E.O. 12958: N/A
TAGS: PGOV PREL ECON OVIP MY
SUBJECT: WELCOME TO MALAYSIA'S 50TH ANNIVERSARY CELEBRATION

UNCLAS KUALA LUMPUR 001334

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT OF ENERGY FOR DEPUTY SECRETARY SELL
STATE PASS TO USTR FOR AMBASSADOR BHATIA

E.O. 12958: N/A
TAGS: PGOV PREL ECON OVIP MY
SUBJECT: WELCOME TO MALAYSIA'S 50TH ANNIVERSARY CELEBRATION


1. (U) Welcome to Malaysia and its golden independence
anniversary. Our fifty-year relationship with Malaysia is
strong and growing. As President Bush has said: "The United
States and Malaysia share strong trade and investment ties
and a commitment to generating prosperity through openness,
democracy, and freedom." President Bush and Malaysia's Prime
Minister Abdullah Badawi have met three times since 2004,
most recently in New York in September 2006, and their direct
communications, including letters and phone calls, are a
testament to our relationship. Now as Malaysia celebrates
the 50th anniversary of its independence from Great Britain,
we have much to remember and much to anticipate in the years
ahead.

Malaysia Celebrates 50 Years of Independence
--------------


2. (U) Popularly known as "Merdeka," Malaysia's Independence
Day is celebrated on August 31, commemorating that date in
1957 when Malaysia gained its sovereignty after years of
British colonial rule. Literally translated "Merdeka" means
"Independent" rather than "Independence," but it arises from
rally calls of pre-independence political movements in the
1940s and 50s which championed the call for independence with
frequent chants and slogans of "Merdeka!"


3. (U) Malaysia's road to independence began immediately
following the Second World War as popular sentiment for
independence swelled and British imperialism began to
retract. The territories of peninsular Malaysia joined
together to form the Federation of Malaya in 1948 and
eventually negotiated independence from the British in 1957.
A British-educated Malay aristocrat, Tunku Abdul Rahman,
became the first prime minister and is revered as the father
of the country. In 1963 the British colonies of Singapore,
Sarawak, and Sabah joined the Federation, and for the first
time the country adopted the name Malaysia. Singapore's
membership was short-lived, however, and in 1965 it left the
federation to become an independent republic.


4. (U) The United States was one of the first 16 nations to

recognize immediately Malaysia's independence, and we have
shared formal diplomatic relations since Malaysia's first day
of independence. For its 50th anniversary, Malaysia has
extended special invitations to all 16 of these countries,
along with its Southeast Asian neighbors. Malaysia's embassy
to the United States was among the country's first diplomatic
posts, and today Malaysia also has consulates in New York
City and in Los Angeles.


5. (U) As Malaysia celebrates its 50th anniversary of
independence, foreign dignitaries from around the world will
join in celebrating and congratulating Malaysia on its first
fifty years of extraordinary economic and social development.
Heads of state from most Association of Southeast Asian
Nations (ASEAN) states will be in attendance, as well as
members of various royal families from the region. The
United Kingdom, with its special colonial legacy, will be
represented by Prince Andrew, the Duke of York.

Malaysia's Government
--------------


6. (U) Malaysia is a constitutional monarchy, nominally
headed by the Yang di-Pertuan Agong, customarily referred to
as the King. Kings are selected for five-year terms from
among the nine sultans of the peninsular Malaysian states.
The king also is the titular leader of the Islamic faith in
Malaysia. The King and Queen will host you and other foreign
delegations for a high tea on August 31.


7. (U) Executive power is vested in the cabinet led by the
prime minister; the Malaysian constitution stipulates that
the prime minister must be a member of the lower house of
parliament who, in the opinion of the Yang di-Pertuan Agong,
commands a majority in parliament. The cabinet is chosen
from among members of both houses of parliament and is
responsible to that body. Malaysia's predominant political
party, the United Malays National Organization (UMNO),has
held power in coalition with other parties since independence
in 1957. Prime Minister Abdullah Badawi assumed his
executive role in 2003, taking over from his long-serving
predecessor Mahathir Mohamad. The Deputy Prime Minister is
Najib Tun Razak. Both the Prime Minister and Deputy Prime
Minister will be at all official events on August 31.


8. (U) The bicameral parliament consists of the Senate (Dewan
Negara) and the House of Representatives (Dewan Rakyat). All
70 Senate members sit for three-year terms, which are
normally extended for an additional three years; 26 are
elected by the 13 state assemblies, and 44 are appointed by
the king on advice of the Prime Minister. Representatives of
the House are elected from single-member districts by
universal adult suffrage. The 219 members of the House of
Representatives are elected to parliamentary terms lasting up
to 5 years. Legislative power is divided between federal and
state legislatures. The Prime Minister need not call the
next national poll until 2009, but most people expect the
election to be held within the next three to seven months.

People to People Ties
--------------


9. (U) The United States and Malaysia share wide-ranging
interests and strong people-to-people ties. At any one time
there are about 7,000 Malaysian students in the U.S. at a
range of universities and colleges from the Massachusetts
Institute of Technology to Indiana State to the University of
California. Even the Deputy Prime Minister's children are
studying at U.S. universities. These Malaysian students
graduate and return to Malaysia, going on to play critical
roles in Malaysian government, economy, and society. They
form a core of people dedicated to furthering U.S.-Malaysian
understanding. Similarly, American businesses, tourists, and
students ensure a steady flow of thousands of Americans to
East and West Malaysia each year, continually fostering our
close cultural and business contacts. With large minorities
of ethnic Chinese and Indians, and ethnic groups in Borneo,
Malaysia, like the United States, is a diverse, multi-racial
society. Malaysia is proud of its record of maintaining
inter-ethnic harmony throughout most of its history.


10. (U) In a gesture of friendship, the Malaysian government
donated $1 million for Hurricane Katrina relief operations.
Earlier this year, the United States provided a modest
donation to the Malaysian Red Crescent society to help
Malaysians cope with massive flooding. Last month, a U.S.
Navy helicopter took part in a search and rescue operation
for a Malaysian military helicopter that crashed in
mountainous terrain.

Malaysia's Regional and Global Role
--------------


11. (U) Malaysia currently chairs the Organization of the
Islamic Conference (OIC),and sits on the leadership troika
of the Non-Aligned Movement (NAM) as the most recent past
president. Malaysia is also a current member of the U.N.
Human Rights Council. Malaysia is an active member of the
Asia Pacific Economic Cooperation (APEC) and a founding
member of the Association of Southeast Asian Nations (ASEAN).
Malaysia has been an active player in UN peacekeeping
operations since the early 1960s and now has over 360
soldiers assigned to the UN peacekeeping operation in
Lebanon. Malaysia is currently facilitating negotiations
between the Philippine Government and the Moro Islamic
Liberation Front and is working with the Government of
Thailand to help foster peace in restive Southern Thailand.
Indeed, Malaysia is an important player in securing regional
and international security.

A Robust Economic Partnership
--------------


12. (U) The Malaysian and American economies are closely
linked. America has been Malaysia's top trade partner since
1999, and Malaysia is the 10th largest trade partner for the
United States. Two-way bilateral trade totaled $49 billion
in 2006. Additionally, the United States was the second
largest foreign investor in Malaysia in 2006, and was the
leading investor for many years before that. American
companies are particularly active in the energy, electronics
and manufacturing sectors, with the oil and gas sector being
Malaysia's top recipient of foreign direct investment.
Exxon-Mobil, Murphy Oil, Conoco-Phillips, Dell, Intel,
Microsoft, General Electric and Western Digital all have
substantial business interests in Malaysia. The United
States launched free trade negotiations with Malaysia in
mid-2006; five rounds have been held to date.

Energy Sector
--------------


13. (U) The Malaysian federal government holds the rights to
the nation's petroleum reserves through its national company
PETRONAS (Petroleum Nasional Berhad),established in 1974 to
execute, oversee, and chart the course of development of the
sector. Malaysia's oil output has grown from 80,000 barrels
per day (bbl/d) in 1974 to approximately 798,000 bbl/d today.
Malaysia's first deepwater oil field, Kikeh, is on track to
begin production by September 30. It is expected to add
another 40,000 bbl/d within the first year of production and
be ramped up to 120,000 bbl/d after one year. The field also
is expected to produce 120 million cubic feet per day of
natural gas. The Kikeh development is an 80:20 joint venture
between Murphy Oil and PETRONAS.


14. (U) Malaysian production of liquid natural gas (LNG)
continues to grow, with the nation now ranking as the world's
third largest exporter. In 2005, Malaysia exported 21.2
million metric tons of LNG. U.S. petroleum companies
operating in Malaysia are ExxonMobil, Murphy Oil,
ConocoPhillips, and Hess, with Hess operating in the Joint
Development Area between Malaysia and Thailand.


15. (U) Petronas contributes approximately 40 percent of the
federal government's revenue. According to Oil & Gas
Journal, Malaysian proven oil reserves have dropped from 4.6
billion barrels in 1996 to 3.0 billion as of January 2007.
Proven gas reserves are 75 trillion cubic feet. As
production tapers off from offshore wells in shallow waters,
Petronas is focusing more on Malaysia's gas reserves and
internationally with operations in 29 countries.

A Strong Security Partner
--------------


16. (SBU) Malaysian leaders have taken a strong stance
against terrorism and the United States is working closely
with the Malaysian Government to fight this global scourge.
Malaysia recently cemented its nonproliferation commitment by
signing the International Atomic Energy Agency Additional
Protocol and has sent observers to Proliferation Security
Initiative exercises. The United States and Malaysia also
share a strong military-to-military relationship with
numerous exchanges, training, joint exercises and visits.
Although we are not allies, the U.S. and Malaysia collaborate
closely in the military sphere. The U.S. spends about one
million dollars a year to train Malaysian military personnel,
and U.S. military personnel train in Malaysia's jungle
warfare training center. Our militaries also conduct a
series of bilateral exercises in the area during the year.
During your visit, the USS Kitty Hawk carrier group will also
be visiting the Kuala Lumpur area on a port call. We have
had fifteen US Navy ships visit Malaysia this year and 23
last year. This is up from only 3 ship visits in 2003. Our
military-to-military relations have improved further in
recent years, and this close relationship greatly contributes
to the overall peace and stability of the region.


17. (U) We hope you will enjoy your visit to Malaysia. We
are sure you will be impressed with the organization and
effort Malaysia has put into their golden anniversary. Your
participation in the 50th anniversary of Malaysia's
independence reinforces the friendship we continue to foster
with a strategic Southeast Asian partner.
SHEAR