Former PM Mahathir Mohamad is still playing kingmaker in Malaysia

The recent passing of Singapore's revered Lee Kuan Yew left former Malaysian prime minister Dr Mahathir Mohamad as the last survivor of the old guard of Asian leaders. More than a decade in retirement has not dulled Mahathir's appetite for political meddling, as he has reminded us with an extraordinary attack on his latest successor. He has written in his blog that Prime Minister Najib Razak will lead the ruling United Malays National Organisation (Umno) to electoral defeat if he remains leader. Remarkably, in 2009 Mahathir spearheaded a campaign against his immediate successor, Abdullah Ahmad Badawi, that brought Najib to power. In particular he has linked Najib to corruption in a submarine purchase and raised questions about an investment company launched by Najib that is US$11 billion in debt.

Mahathir's latest intervention has exacerbated political and economic uncertainty that has grown since the governing Umno coalition suffered a serious setback at the 2013 election. Umno has responded to the mass defection of ethnic Chinese and Indian supporters by re-identifying with ethnic Malays and Islam. Opposition leader Anwar Ibrahim has been jailed on a morals charge. Najib has reversed a promise to abolish a colonial-era sedition law used recently to detain opponents and journalists. And now parliament has passed an anti-terrorism bill providing for detention without trial, coincidentally on the same day as the announcement of the arrests of 17 militants said to belong to an Islamic State terror cell.

Both Lee and Mahathir ruled with an iron fist. But economically, Lee's meritocracy outperformed Mahathir's policies of protectionism and affirmative action in favour of under-privileged Malays, which were blighted by cronyism and protectionism. Najib appears to have enjoyed support within the party but history shows that politically, 89-year-old Mahathir's word is not to be discounted. Whether it could prompt another change in the leadership will be closely watched in Malaysia and around the region.