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signing of an MOU
Source: Malaysian Prime Minister Ismail Sabri Yaakob (centre) inked the cooperation deal with Pakatan Harapan on Sept 13, 2021. PHOTO: PRIME MINISTER'S OFFICE, MALAYSIA

Impact of a Memorandum of Understanding on Political Reforms in Malaysia

Ahmad Danial

What is a Memorandum of Understanding?

A Memorandum of Understanding (MOU) is a legally non-binding agreement between two or more parties. It is most often used in international relations, but can also be used in domestic contexts. Generally, MOUs are signed for a variety of reasons, such as to promote collaboration, foster better communication, or facilitate the exchange of information. For example, an MOU can be used to set out the terms of a partnership between two countries or to define the roles and responsibilities of the parties involved in a project. In our case today in Malaysia, an MOU can be used to set out the terms of political reforms and stability between the government and the opposition. The MOU can provide a framework for the parties to work together to achieve their goals and can help to ensure that all parties involved are clear about their roles and responsibilities.

Background

On 16 August 2021, following the resignation of Tan Sri Muhyiddin Yassin’s government due to backlash on the handling of Covid-19, UMNO vice president, Dato’ Sri Ismail Sabri became the ninth Prime Minister to lead the country’s recovery. He commanded a very slim four-seat majority in Malaysia’s 222-seat parliament of 114 seats. Pakatan Harapan (PH), the opposition bloc, had 88 seats in parliament. The country was still recovering with half-baked lockdowns and an unfinished vaccination program, and a general election was unrealistic and inconsiderate to the struggling rakyat. Thus, a memorandum of agreement between PH and the government was signed to ensure political stability.

Contents of the MoU

The Prime Minister said in a statement that the deal, which is called the Memorandum of Understanding for Transformation and Political Stability, covered six main areas. Among the key areas of reforms are transforming administration, empowering parliament, and strengthening the independence of the judiciary. Here are a few key takeaways from the deal.

As part of the agreement, the government has agreed not to dissolve the parliament before July 31, 2022. This meant that a general election (GE) would not be held until at least August 2022, effectively calming the political uncertainties and reducing the likelihood of impending polls. However, the next GE must be called before July 2023, five years since the first parliament sitting following GE14.

The MOU stated that the PH bloc would either support or abstain during the vote to pass the national budget, related supply bills, and other bills that marked a confidence vote. This was on the condition that the drafting process would be jointly negotiated between the government and PH. Both terms allowed the government to lead the country out of the pandemic without worrying about political legitimacy and minimised ‘politicking’.

To cater to additional needs in handling the pandemic, the MOU stated that the government would provide an extra fiscal injection of RM45 billion. The sum would be used to strengthen the healthcare system, extend financial help to the people, and support the continuity of businesses. 

Funds would also be set aside to “find, test, trace, isolate, support, and vaccinate” the population. Moreover, the agreement outlined that 50 per cent of the members of the National Recovery Council must comprise public and private sector experts. The deal signalled that politicians prioritised national recovery of health and economy to the tired rakyat and keen investors.

Most importantly to us, the MOU also called for both sides to agree on administrative reforms, such as an Anti-Party Hopping Bill, which, if passed, would prevent politicians elected on one party’s platform from defecting to another party. Political defections of this nature are not uncommon in Malaysia, with elected representatives switching camps or being bought out before the term ends. 

Such defections resulted in the fall of the PH government in February 2020, when a number of members of parliaments from PKR, as well as almost all Parti Pribumi Bersatu Malaysia lawmakers, pulled out of the then-ruling coalition PH. Defections by state assemblymen also led to the state governments collapsing in Johor, Perak, Melaka, and Kedah.

Additionally, the MOU stated that the government must expedite the implementation of UNDI18, the constitutional amendment allowing 18-year-olds to vote and stand for elections in the near future. Furthermore, The MOU also outlined parliamentary reforms, including equal funding for members of parliament (MPs) from the ruling government as well as MPs involved in the agreement. All these administrative transformations must be implemented no later than the first meeting of the fifth parliament term in 2022.

What has happened since?

A year later, the government delivered on their promises in the MoU—mostly. Then-PKR Information Chief, Fahmi Fadzil said about 83% of the items agreed upon in the MoU had been achieved. Among the pending reforms are reinstating the Parliamentary Services Act and the maximum 10-year term for Prime Minister, the latter being expected to be tabled soon.

The opposition also delivered on their part of the MoU—mostly. The motion to extend the enforcement of the Security Offences (Special Measures) Act 2012 for another five years was not approved by the Dewan Rakyat, prompting threats to revoke the MoU. Other bills, such as the national budget and stimulus injections, were discussed and approved through a bipartisan effort, ensuring secure recovery and governance.

Nonetheless, revolutionary parliamentary reforms were carried out, such as the Anti-Hopping Bill, the implementation of UNDI18, and automatic voter registration, all of which played a critical role in GE15. The nation also recovered well from the pandemic, with one of the highest vaccination rates globally and healthy GDP growth for Q4 2021.

The miracle of the MoU

Why exactly was the MoU a big success at bringing about change? It is, after all, not legally binding. Ismail said the MoU was historic as it saw bipartisan cooperation that was in line with the spirit of “Keluarga Malaysia”. The Yang Di-Pertuan Agong had also decreed that all parties needed to practise “deliberative democracy” in reaching a consensus on issues to lead Malaysia towards being a prosperous and inclusive nation.

Source: Malaysia's King, Sultan Abdullah Ahmad Shah (second from left), talking to Prime Minister Ismail Sabri Yaakob (right) on Sept 13, 2021, as opposition leader Anwar Ibrahim (left) looks on. PHOTO: EPA-EFEMalaysia's King, Sultan Abdullah Ahmad Shah (second from left), talking to Prime Minister Ismail Sabri Yaakob (right) on Sept 13, 2021, as opposition leader Anwar Ibrahim (left) looks on. PHOTO: EPA-EFE

Politics also played an important role in the success. It is broken down into a four-part definition: Politics exists when 1) a sufficient set of decision-makers 2) with a common understanding of a particular problem on the formal agenda 3) is committed to supporting 4) a commonly perceived, potentially effective policy solution. The MoU helped to rally all four components, especially commitment. The commitment was high because both the government and the opposition gave consideration to the deal. One could not govern without the other; the government needed support for political stability, and the opposition wanted reforms and a say in leading the nation out of the pandemic. Both camps built on trust and a common, win-win end goal worked for the betterment of Malaysia.

Secondly, in politics, timing matters. Political timing refers to politicians attempting to influence the timing of events in such a way as to maximise the political benefits or minimise the political costs for themselves. The pandemic and the looming general election forced lawmakers to cater to the rakyat. Both sides of parliament needed to demonstrate substantively to the rakyat why they were worthy of their votes come GE15. Firstly, the country must recover from the pandemic; calling an election in the middle of the pandemic would be political suicide. Secondly, UMNO and PH were sidelined from the political arena during Muhyiddin’s premiership; this deal symbolised a success story for both camps, to entice voters for the upcoming state and general elections. It is in the best interest of both parties to cooperate at the time (and now) for political longevity.

Thirdly, and most inspiringly, the MoU’s success is attributed to the increase in political activism in Malaysia. Day by day, the rakyat, old and young, are becoming more invested in politics. Efforts such as UNDI18 and public protests in the middle of the pandemic proved the rakyat wanted change, and they were not afraid to pressure the current government. Ultimately, more political awareness meant more people were voting, which gave leverage to the opposition in terms of parliamentary seats. Without enough seats to negotiate stability, the MoU would not materialise. The foundations of a strong democracy lie in each individual rakyat to hold their MPs accountable by way of voting. 

Source: Demonstrators demand embattled PM Muhyiddin Yassin resign over the handling of the coronavirus pandemic. [Arif Kartono/AFP]

Moving forward

The MoU helped initiate bipartisan cooperation between the government and the opposition for the first time in Malaysian history. Not only has it stopped the political fight between the ruling party and the opposition since the Sheraton Move to secure safe and stable passage for the government such as during the tabling of Budget 2022 and the 12th Malaysian Plan, but it has also brought easier reform processes such as the passing of Anti-Hopping and Anti-Sexual Harassment Acts. It has also granted the opposition more access to information, with them forming a special committee to meet Ismail Sabri every month to know about the governmental progress in key reforms outlined in the signed MoU.

Will there be a future MoU? It is unlikely as the current government bloc contains 148 seats in parliament, making a two-thirds majority. So, in many key constitutional amendments that require reforms, no opposition support is required. However, this is not to discourage future bipartisanship efforts; after all, the MoU is merely a piece of paper, non-legally binding at that. The takeaway is that Malaysia has the potential to flourish and we have proven that. The Agong, the government, the opposition, the activists, and the rakyat, all played our part to help build back the country we love dearly. The MoU merely facilitated the reforms and recovery; it is we the people that changed the status quo and will continue to do so in the spirit of democracy. 

It all lies in our vote. Identity politics and fear-mongering tactics are relics of the past. We are seeing more and more voters becoming more politically aware and invested. Scrutinising policy, manifestos, and track records should shape our votes, not populist and sensationalist politics. Above all, increasing freedom of expression and criticism fostered by social media and supportive regulation ensures the rakyat’s voice is heard and amplified. Our vote determines the course of the country for the next five years.

“yang menang tidak menang semua dan yang kalah tidak kalah semua”

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