Islamists' Policies Win Allies in Malaysia State 
International Herald Tribune
February 8, 2000
Thomas Fuller

Side-by-side in the corridors of the state capital building here are men wearing flowing robes and pin-striped suits, turbans and silk ties.

The Islamic party that wrested control of this oil-rich state from the party of Prime Minister Mahathir bin Mohamad in November is often described in the hostile national press as fundamentalist.

But three months after a watershed election, the party is showing a knack for combining its religious outlook with a hard-nosed, pro-business approach that is winning it unlikely allies.

Ethnic Chinese businessmen, many of whom voted against the Islamic party because of fears of an Islamic state in Malaysia, are now praising the party for a series of measures that they say reveal an unexpected practical side to the party.

Led by a turban-wearing, bearded Muslim cleric, Hadi Ahmad Awang, the Terengganu government has canceled the previous government's project for a massive state mosque — calling it extravagant — and lifted a ban on pig farms. Pigs are considered unclean by Muslims but form an important part of the Chinese diet.

The prospect of a successful and popular government in Terengganu is a significant threat to Mr. Mahathir, whose traditional power base is being eroded by the Pan-Malaysian Islamic party, or PAS, across the northern arc of states known as the Malay belt.

Mr. Hadi and his officials have arranged meetings with hundreds of local and foreign investors, foreign trade officials and Chinese politicians, many of whom have come away impressed.

" I can speak on behalf of the Chinese community here and say that they have performed well above our expectations," said Low Kian Chuan, president of the Terengganu Chinese Chamber of Commerce and Industry, as well as one of the state's leading businessmen.

Chinese praise for the party is trouble for Mr. Mahathir. The prime minister has relied heavily on the Chinese vote in the face of waning support among his own people, the Malay. Power in Malaysia has always been held by people who successfully unite the country's dozens of races and ethnic groups.

"The new PAS Terengganu state government had the best start of any new government in the 42-year Malaysian history," said Lim Kit Siang, chairman of the Democratic Action Party, the country's Chinese opposition party.

The state government is led by a mix of secular-educated businessmen and lawyers and religious officials — the turbans and business suits. It is a government, political analysts say, that shows the party's modern face — and national ambitions.

"What is important is that we make sure that investors have confidence in us," Mr. Hadi said in a recent interview.

By winning Terengganu, the Islamic party not only won a platform to show off its policies to the rest of the country, but gained access to oil money to help carry out its plans. The state receives 5 percent of Terengganu's oil revenues, royalties that amount to more than 500 million ringgit ($132 million) a year

Mr. Hadi said the state will soon negotiate with the federal government to increase its share of oil revenue.

The Islamic party is already working to spread its power base into other areas of the Malay belt as well as neighboring Pahang state, where the party made significant inroads during the November election.

The party currently controls two of Malaysia's 13 states, small in absolute terms, but important because of the high percentage of Malays there.

Power in Malaysia centers on the Malay, who make up just over half the population, but who by tradition hold the top positions in government. Thus, the Malay belt is the key battleground for Mr. Mahathir and his Islamic party rivals.

"It will be the biggest battle for the hearts and minds of the Malaysian people since the demise of communism," said Hishammuddin Hussein, a federal minister and leading member of Mr. Mahathir's party.

In turning Terengganu into a national showcase, the party is faced with a formidable challenge. The state, although rich in resources, has the second highest incidence of poverty in Malaysia.

To save money, large-scale projects such as a sports complex and the state mosque, both proposed by the previous government, have been shelved.

"Mosques are very close to our hearts," said Zaihan Mohamed Daud, special secretary to Mr. Hadi. "But the project was so lavish we decided to scrap it. We'll give the money to the people instead."

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