Chase for voters at Kuala Terengganu to intensify

There has been a lot of buzz about Kuala Terengganu of late, but according to political watchers, the ‘game’ has only just begun and the attention on this peaceful, coastal town can only intensify from here on.

Ever since the sudden death of its member of Parliament Razali Ismail last month, ‘KT’ and ‘the battle of KT’ have been the buzzwords of pundits from both sides of the political divide.

But to the people of Terengganu, their royal capital is more than just a testbed for high-flying politicians from the ruling Barisan Nasional and the Pakatan Rakyat opposition.

Malaysia’s poorest state until the discovery of oil and gas in the early 1970s, Terengganu folk are just as worried about their future as their counterparts in the rest of the country.

Is the global recession from the West really coming to Malaysia, what will it do to us, how much of our resources will it sap?

These are some of the questions that are constantly on the minds of the people in this flood-prone, north-eastern state, where rain-bearing monsoon winds dictate the pace of life for large parts of the year.

Economic fate and of course - gossip as to who will be the chosen candidates to slug it out at next month’s by-election!

Sabah, Sarawak should emulate

No surprise then that news reports have surfaced that a RM10 billion ringgit sovereign wealth fund will soon be set up to ensure that Terengganu folk have some degree of financial protection once the easy money from oil and gas dries up.

According to news portal Malaysian Insider, the proposal came from Tuanku Mizan Zainal Abidin - Terengganu’s Sultan and the reigning Agong - and has been endorsed by the Umno-led state exco. No official announcement has however been made yet.

Nevertheless, political observers and economic analysts are upbeat on the idea.

“We don’t know the details yet, but just the idea on its own is excellent. It would be a very wise and caring move by Tuanku Mizan for his state and I think Sabah and Sarawak would do well to emulate Terengganu. However, let’s wait for the details,” said Tian Chua, KeADILan Information Chief.

“It looks like the intention is to provide Terengganu with new sources of growth to replace oil and gas, which are exhaustible. They have to diversify the state economy,” said Azrul Azwa, senior economist at Bank Islam.

“Care must of course be taken as to the funding aspect. After all debt must always be repaid, but if there is good management and the federal government co-operates whole-heartedly, then it will benefit the people of the state. Definitely, they have to think about their future,” Azrul added.

Terengganu gets back only five percent or about RM1billion in oil royalty from the BN-led federal government.

Despite being resource-rich like Sabah and Sarawak, there are still huge pockets of the populace that hover around the poverty line. Development expenditure allocated in the annual federal budget is restricted and focussed on the state’s oil producing areas.

This has been a huge source of discontent for the Terengganu folk who voted in the PAS-led state government in 1999. The Islamic-based party later found itself hampered by a lack of development funds when ex-premier Mahathir Mohamad froze the payment of oil royalties in a retaliatory move made almost immediately after the 1999 polls. PAS lost back the state in 2004.

A test for the incoming Umno president

Although Umno retained control of Terengganu in the March 2008 general election, winning two-thirds of the state seats, political veterans say its grip on the KT parliamentary seat is shaky.

They pointed to the deceased Razali, who had kept the seat with a majority of only just 628 votes against PAS candidate Mohamad Sabu, a non-local whose unfamiliarity in the constituency worked against him

“Umno needs to pump out the election goodies. It is now weaker than in the March 8 election.” said a political watcher.

“There has been an internal power tussle and people are not sure about Najib. KT is widely seen as a litmus test for Najib. Can he lead Umno and the country? If Umno, it will be taken as a sign that he does have enough fire power with the Malays. Straightaway he will be tagged as a weak leader like Abdullah.”

Najib, the incoming Umno president and deputy premier, is due to take over from Prime Minister Abdullah Ahmad Badawi in March 2009.

There has been growing dissent within Umno and the Umno-led Barisan ever since the general election held earlier this year, when they lost their long-held two-thirds parliamentary majority.

Fed up with rampant corruption and the growing use of race-based politics to divide the ethnic groups, Malaysian voters had given the Pakatan control of five of the country’s 13 states.

A battle royale can be counted on

Nevertheless Umno leaders believe their chances are brighter than before.

Terengganu state Umno chief Ahmad Said promised to mobilise 15,000 members for the Kuala Terengganu by-election slated for Jan 17. Najib would himself launch the election machinery at Tamadun Islam on Saturday, he added.

Meanwhile, PAS will decide on its candidate at a central committee meeting on Dec 21. Deputy party president, Nasharuddin Mat Isa, however said the name of the candidate would only be announced at a later date.

“The Kuala Terengganu people can be the catalyst in restoring confidence towards the BN. This by-election is the time for them to do so,” said Muhyiddin Yassin, Umno vice president who is also gunning for the party’s No 2 post in March next year.

- Suara Keadilan