PM NAJIB LEADS UMNO PARTY CONVENTION WITH FOCUS ON

C O N F I D E N T I A L SECTION 01 OF 03 KUALA LUMPUR 000837

SIPDIS

E.O. 12958: DECL: 10/22/2019
TAGS: PGOV MY
SUBJECT: PM NAJIB LEADS UMNO PARTY CONVENTION WITH FOCUS ON
INTERNAL REFORMS

Classified By: POLCOUNS Brian McFeeters for reasons 1.4 (b, d).

SUMMARY AND COMMENT
--------------


1. (SBU) At the United Malays National Organization (UMNO)
annual general convention, October 13-16, Prime Minister
Najib was successful in pressing for several important
reforms of the party's constitution. The number of delegates
who will elect the next UMNO President (i.e., the Prime
Minister, assuming the National Front coalition remains
dominant) and other party leaders was increased from 2,510 to
146,500, and six other changes to the party's constitution,
including opening up more opportunities for women in the
party were adopted. Najib gave a well-received keynote
speech that highlighted the importance of UMNO reaching out
to non-Malays, while carefully ensuring that the privileges
of ethnic Malays would be protected. The positive atmosphere
of the four day event was heavily reported in the
government-controlled mainstream media. The opposition
party,s efforts to counter the UMNO hoopla and its
longer-term strategy to win back popular support since the
2008 general elections was relatively muted and limited to
the blogosphere.


2. (C) Comment: The reforms should have a modest effect
within Malaysia's largest and most powerful political party.
Democratizing the party's election process should greatly
reduce vote buying for party leadership positions and allow
more challengers to enter the political fray at all levels.
The reforms are not as sweeping as the Malaysian media has
portrayed them, however, given that in large part they only
represent a return to the status quo ante of 1988 when former
PM Mahathir rescinded these party constitutional provisions.


3. (C) Comment continued: More significant than the UMNO
reforms, however, is that any doubts regarding PM Najib's
leadership within the party have been largely put to rest.
After taking over in March in the midst of quiet uncertainty
throughout the party (reftel),he has emerged as the
undisputed leader of UMNO. At this point, Najib should enjoy
strong support from his party until he calls for the next
general election, likely not until 2013, giving him a wider
latitude to pursue his objectives than he previously had. The
focus of Najib's keynote speech was more about strengthening
still-dominant UMNO for the sake of Malays than increasing
UMNO's appeal to non-Malays. End Summary and Comment.

UMNO'S GENERAL MEETING: WELL-PLANNED, WELL-EXECUTED
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4. (SBU) UMNO held its 2009 Annual General Assembly (AGM)
with great fanfare from October 13-16, the first since March
2009 (reftel),when then Deputy-PM Najib Tun Razak was
selected as the next Prime Minister of Malaysia and President
of UMNO. Part constitutional convention and part pep rally,
the AGM ran so smoothly that UMNO delegates took only 90
minutes to debate and pass the changes to the party
constitution, with all but one passing unanimously. Based on
television coverage, delegates to this AGM appeared engaged,
unlike in previous AGMs where many were shown reading
newspapers.


5. (SBU) The 2,541 delegates voted to alter 36 clauses and
sub-clauses in seven main articles. Of the seven articles,
three are considered significant. First, the number of
eligible party members who can vote for the party's
leadership was increased from 2,510 members to 146,500,
effective in 2011. Second, the requirements for members to
run for party positions have been eased. Third, the women's
wing, known as Wanita UMNO, will have automatic appointments
to seats on committees at the branch, divisional, and supreme
council levels.

NAJIB'S SPEECH: REACHING OUT, BUT STILL PROTECTING MALAYS
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6. (SBU) PM Najib opened his keynote speech in a surprisingly
defensive posture, focusing on race in Malaysia. Najib
rejected the idea that UMNO was a "power-crazy...racist
organization." After noting that "blatant racism was the
norm" in the U.S. until the mid-1960's, Najib said that
UMNO's cooperation with other component parties (the
Malaysian Chinese Association and the Malaysian Indian
Congress) in the National Front Coalition, its cultural
tolerance, and its sponsorship of vernacular schools all
proved that it was not racist.


7. (SBU) Striking a reformist and almost penitent tone, Najib
issued a number of challenges to UMNO members, noting that
since the March 2008 general election (when the National

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Front coalition lost its unbroken two-thirds majority in
Parliament and barely won the popular vote),"UMNO's
political enemies have begun to speculate about the downfall
of this cherished party." Thus, Najib exhorted to delegates,
UMNO should not be seen as the party of those seeking wealth;
instead it should "open itself to constructive changes";
should actively seek out new members at the grassroots level;
and should pick leaders "known for their integrity in
executing their duties."


8. (SBU) Najib walked a fine line by recommending that UMNO
embrace all Malaysians, while also going to considerable
lengths to reassure Malays that Malay interests would
continue to be protected. Reaching out to non-Malays, Najib
said, "UMNO cannot be seen as party which is passionate in
fighting for a small group. We want UMNO to be seen and
accepted fully as an inclusive party that puts the people
ahead of its interest." Later he added, "UMNO's relevance as
a governing party depends on how far is can successfully
capture the imagination of not only the Malays but all
Malaysians." Najib did not dwell on UMNO's role as promoter
and protector of Islam, usually a key element of UMNO
speeches, instead touching on his inclusive, but vaguely
defined, "1Malaysia" concept.


9. (SBU) Najib's comments on preserving Malay privileges were
more specific than his effort at outreach to non-Malays.
After a discussion of the New Economic Policy (launched in
1971 to advance Malay economic interests),Najib acknowledged
that the policy might need "new strategies" but he then
zeroed in on the needs of Malays. Even though there was now
a large group of middle-income and professional Malays, "the
fact is, in general, the Malays are seen as still being left
behind and in need of assistance. That is our main
contention." He later made clear that constitutional
provisions protecting Malays' special status will not be
changed. Najib asserted that "the Government has done so
much for the people," and reeled off a list of statistics on
various kinds of assistance it has provided.

REACTIONS
--------------


10. (SBU) Reactions to the changes to UMNO's constitution,
the PM's speech, and the overall impact of the 2009 UMNO AGM
were unfailingly positive from Malaysia's state-controlled
media. Deputy PM Muhyiddin Yassin said "Without the quota
system and rules, it will enable the democratic process to be
stronger and sincere." Engaging in some hyperbole, UMNO Vice
President Ahmad Zahid Hamidi zealously noted that "the
changes are radical. This is something which has never been
done before by anybody." Kedah politician and UMNO member
Rosnah Majid commented "some people had lost heart especially
after we lost all those by-elections, but he has renewed our
spirit." UMNO Vice President (and also Home Minister and
Chairman of the UMNO Constitutional Amendments Committee)
Hishamuddin Hussein praised his party because "this is
clearly a manifestation of UMNO leaders' openness and
democracy towards the expectations of party members and the
people."


11. (SBU) The Malaysian-language and Malay mouthpiece "Utusan
Malaysia" got behind the PM,s message with some frank
criticisms of UMNO as an apparent means to spur party members
toward reform. For example, one October 18 article on "young
people's reactions" included quotes from six young Malays,
three men and three women, each with a smiling picture,
saying that UMNO needed to earn people's trust rather than be
known only for "mega-projects and wealth"; that young people
saw UMNO as "elitist" with "arrogant leaders"; that UMNO
leaders neglected youth and looked after their private
interests; and that it was not yet clear that UMNO would
really change after the excitement of the AGM died down.


12. (SBU) Former PM Mahathir Mohamad lauded Najib's
"inspiring" speech, but cautioned UMNO must now "walk the
talk." In an op-ed and in his blog, the former PM challenged
Najib to follow through on his promises. Opposition leader
Anwar Ibrahim called the reforms "impressive pronouncements,"
but cautioned "the people will judge UMNO by its actions."
Anwar, quoted by the "Malaysian Insider" blog, pointed out
that party reforms don't matter; the reforms that matter are
those in the media, police, and judiciary. He noted that the
UMNO-controlled media was still racist and still expressed
negative sentiments against non-Malays.

THE SEVEN AMENDMENT'S TO UMNO'S CONSTITUTION
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13. (U) The seven amendments to UMNO's constitution are as
follows:

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-- The number of delegates who elect the top party officials
will increase from 2,510 to 146,500; UMNO has approximately 3
million members.

-- There will be a registration system to replace the
nomination quota system. Those wanting to contest top party
posts will have to be committee members at one of the 17,000
UMNO divisions for at least one term.

-- The women's wing will have automatic representation on
committees at the branch, divisional, and supreme council
levels.

-- The elections at the divisional and supreme council levels
will be held simultaneously.

-- The annual membership fee will be replaced by a lifetime
membership fee of 2 Malaysian Ringgit ($.70 USD),meant to
make it as easy as possible to attract new members.

-- Chiefs in the UMNO Youth, Women's, and Young Women's wings
(known as UMNO Youth, Wanita UMNO, and Puteri UMNO) will be
given the mandate to verify new membership at the branch
level.

-- Divisional secretaries will automatically be recognized as
delegates to the UMNO general assembly.
KEITH