By Khairul Khalid
The Sultan of Johor defends his multibillion business deals and claims that he needs to earn a living like everybody else. Former prime minister Mahathir Mohamad previously said otherwise. Who is right in this delicate matter?
It was an extraordinary claim by the Sultan of Johor Ibrahim Ismail.
In an interview with The Star, covering a wide range of topics including his burgeoning business and commercial interests, the Sultan says that he is no different than the average Malaysian, at least when it comes to putting food on the table.
“I have to earn my living like everyone else. I cannot depend on my allowances of RM27,000 a month. I must earn a living, like ordinary Malaysians,” said the Sultan of Johor prior to his coronation.
In the interview with The Star, the Sultan of Johor was responding to a question about public concerns over his increasing involvement in massive business deals, including power plants, land and property.
Does the Sultan really have to scrape and scrounge like any average wage earner?
In 2013, he sold 116 acres of prime waterfront land in Johor Bahru to Chinese developers Guangzhou R&F for RM4.5 billion.
He also has a stake in the controversial RM450 billion Forest City development in Iskandar, a project by another Chinese developer Country Garden. The Sultan vigorously defended Forest City despite harsh criticisms about its social and environmental impact as well as its long-term viability.
Last year, the Sultan bought a 15% stake in MOL AccessPortal (MOL) for US$120 million (RM439 million). It is an online payment group owned by billionaire Vincent Tan, owner of Berjaya Group.
The Sultan has a 51% stake in SIPP Energy that was awarded the Track 4A power plant in project in Pasir Gudang, Johor in a joint venture (JV) with TNB (Tenaga Nasional Bhd). The project is worth an estimated RM13 billion.
Recently he increased his stake in Redtone International Bhd to become the telecommunications firm’s largest shareholder.
With all due respect to the Sultan, these business interests are way beyond the earnings of ordinary Malaysians.
The Sultan, to state the obvious, is no ordinary man either.
He is accorded perpetual respect and deference by his subjects. He receives special privileges as well as remuneration, beyond any normal citizens, borne out of his stature as a state ruler.
It is unclear whether there is anything explicit in the constitution that bars the Sultan from commercial activities.
Dr Mahathir Mohamad
However, the Sultan’s recent declaration puts him completely at odds with former prime minister Mahathir Mohamad, who has previously commented on the prickly issue of royals in business.
“The rulers are paid handsome pensions and may not be involved in business,” said Mahathir in his blog last year.
Why does Mahathir think that having royalty dabbling in business is a bad idea?
“Officers tend to defer to the wishes of rulers and would find difficulty in rejecting business propositions by them. There was also the belief that unscrupulous businessmen would make use of the Sultans to get an advantage over others and to bypass rules and policies,” said Mahathir.
In the recent interview with The Star, the Sultan of Johor defends his right to do business, saying that his ancestors have always had a history of doing business, citing gambier and black pepper trading of his forebears.
“I believe it is healthy for royalty to be involved in proper and legitimate businesses rather than to be in dubious businesses that harm the image of the institution,” said the Sultan.
Regardless of history, the participation of royalty (not just the Sultan of Johor) in business in modern Malaysia clearly needs to be re-contextualised.
Royalty and their families are already provided with ample remuneration by the state and federal governments to live comfortably and represent the nation, so much so that it precludes the need to participate in business.
For example, should the monarchy relinquish their royal privileges or stipends once they are officially in business?
Would they be able to resume their ceremonial duties without any conflicts of interest? Would the taxpayers have to pay for the monarch if they are legally challenged in any business disputes?
And most importantly, if the royalty are to compete with commoners in business, how can the public – ordinary people earning a hard living – be assured that there will be a level playing field?
If the monarchs strongly feel that they should be free to do business and earn a living if they choose to do so, the law needs to clearly redefine the constitutional monarchy’s role to suit modern realities.
Mahathir, in his explanation of the role of the government and institutional monarchy, has this to say.
“The government and its leaders and parliament are expected to be firm in defending the constitution and the interest of the people and country.
“The Prime Minister in particular must be firm and not be swayed by customary adats or deference to the rulers,”said Mahathir.
The former prime minister is right. A clear line needs to be drawn in royalty’s business dealings.
It is a delicate but urgent matter that needs to be addressed by a strong guiding hand, especially by the top leaders in the government.
GRRRRR!!!
You must be logged in to post a comment.