MALAYSIA: 2008 COUNTRY REPORT ON TERRORISM

UNCLAS SECTION 01 OF 02 KUALA LUMPUR 001111 SENSITIVE SIPDIS DOJ/OPDAT FOR BERMAN NSC FOR CHANDLER STATE EAP/MTS, RSP; STATE S/CT FOR SHORE, MAHANTY NCTC E.O. 12958: N/A TAGS: PTER PREL PGOV MARR KCRM ASEC MY SUBJECT: MALAYSIA: 2008 COUNTRY REPORT ON TERRORISM REF: A. 2007 KUALA LUMPUR 902 ¶B. KUALA LUMPUR 1102 KUALA LUMP 00001111 001.2 OF 002 ¶1. (SBU) Following is the draft text of the 2008 Country Report on Terrorism for Malaysia. Until the report is finalized for submission to Congress, please treat as Sensitive. Begin Text: The police forces in Malaysia continued to conduct all counterterrorist investigations and operations. Malaysian police fall under the authority of the Home Ministry. Malaysia's enactment of amendments to five different pieces of legislation (the Anti-Money Laundering Act, the Penal Code, the Subordinate Courts Act, the Courts of Judicature Act, and the Criminal Procedure Code) enabled Malaysia to accede to the UN International Convention for the Suppression of the Financing of Terrorism in 2007. To date, however, Malaysia has not initiated prosecution of any terrorist suspects using these amended laws, but instead has continued to use the Internal Security Act (ISA) which allows for detention without trial. At year's end, 16 terrorist suspects linked to Jemaah Islamiya and 13 linked to Darul Islam were held in ISA detention, where they undergo a program of rehabilitation. On average, the Malaysian government has held suspected terrorists and suspected terrorist supporters in ISA detention for two to six years. This year the Malaysian government used the ISA to detain some persons for apparent political reasons, rather than out of security concerns. Subsequently, the Malaysian government has come under increasing pressure to amend or abolish the ISA. Over the past year, the government released 32 detainees, including 13 terrorist suspects linked to Jemaah Islamiya and six linked to Darul Islam. Home Minister Syed Hamid Albar, in confirming the most recent release of the detainees, was quoted in the press as stating that they were no "longer a threat." The Malaysian government engaged with its neighbors on issues related to counterterrorism and transnational crime. It continued to operate the Southeast Asian Regional Center for Counterterrorism (SEARCCT). The Center has served to facilitate the training of Malaysian front-line officials, but has done less to identify forward-looking or regional counterterrorism priorities. The organization is seeking a new mission involving publishing, youth outreach and prison rehabilitation. Malaysian mediators continued to work in the southern Philippines to help end the conflict between the Philippines government and the separatist Moro Islamic Liberation Front (MILF),although on November 30 Malaysia withdrew its remaining participants from the International Monitoring Team (IMT) that monitors the cease-fire between the government and the MILF. Malaysia, along with Singapore and Indonesia, invited Thailand to join the "Eyes in the Sky" program designed to provide enhanced security to the Strait of Malacca, the world's busiest shipping lane. Malaysia sent several naval vessels to the Gulf of Aden following the pirating of two Malaysian commercial vessels there. The ships were released upon the payment of significant ransom fees to the pirates. Malaysia's central bank signed memoranda of understanding on the sharing of financial intelligence with the Financial Intelligence Units (FIUs) of Australia, Indonesia, Thailand, the Philippines, China, the United Kingdom, United States, Japan, Republic of Korea, Sweden, Chile, Sri Lanka, Brunei, Peru, Bangladesh, Canada, and India. Malaysia is an active member of the Asia/Pacific Group Donor & Provider Group for Technical Assistance and has worked with the World Bank, International Monetary Fund, Asian Development Bank, United Nation Counter-Terrorism Committee Executive Directorate, United Nations Office on Drugs and Crime, the Australian FIU KUALA LUMP 00001111 002.2 OF 002 (AUSTRAC) to provide technical assistance in various ASEAN member countries. Malaysia is working with the United States to help develop an effective FIU in Afghanistan. End text. ¶2. (U) Embassy point of contact for this report is Regional Strategic Initiative Coordinator Jason Donovan (DonovanJ@state.gov or DonovanJA@state.sgov.gov). KEITH