U.S. Department of State Country Reports on Terrorism 2006 - Malaysia

The Government of Malaysia took significant steps to improve its legal framework to deal with terrorists and their enablers. New provisions were added to Malaysia's Penal Code and Criminal Procedures Code that include clearer definitions of terrorism and related crimes and penalties including the death penalty or life in prison for terrorist-related crimes. In the Spring, police arrested 12 members of Darul Islam in Sabah, including citizens of Malaysia, Indonesia and the Philippines. The group was believed to have supported JI terrorists operating in Indonesia and the Philippines, and they were reportedly caught with illegal firearms and bomb making directions at the time of their arrest. Media reports also indicated that police made multiple interdictions of explosives and bomb making material transiting Malaysia via Eastern Sabah.

The police in Malaysia took the lead in counterterrorist investigations and operations. Malaysian police forces fall under the authority of the Ministry of Internal Security which is headed by Prime Minister Abdullah Badawi. To date, suspected terrorists have not been brought to trial but are held in detention under the country's Internal Security Act (ISA) where they undergo a program of rehabilitation. While in theory, ISA detentions can last indefinitely, sentences are for two years and must be renewed by a determination that the detainee remains a threat to national security. In October, the government unexpectedly released 17 individuals from ISA detention stating that they had been rehabilitated. Because they had been released before completing their sentences, these individuals were placed in probationary status and must periodically report to the authorities. Five of the released detainees had been members of the Kumpulan Mujahedin Malaysia (KMM), while the other eleven were believed to have had ties to Jemaah Islamiya (JI).

Counterterrorism finance-related amendments to the Anti-Money Laundering Act, the Subordinate Courts Act and the Courts of Judicature Act came into effect on January 1, 2007. Malaysia and the United States also signed a Mutual Legal Assistance Treaty.

The Malaysian government engaged with its neighbors on issues related to counterterrorism and transnational crime. It continued to operate and hoped to expand the Southeast Asian Regional Center for Counterterrorism (SEARCCT), an international center for training. Malaysian mediators continued to work in the southern Philippines to help end the dispute between the Philippine government and the separatist Moro Islamic Liberation Front (MILF). With the "Eyes in Sky" program, Malaysian military forces were working with Singapore and Indonesia to provide enhanced security to the Straits of Malacca, the world's busiest shipping lane. In December, the Malaysian Defense Minister/Deputy Prime Minister and his Indonesian counterpart announced an initiative to enhance bilateral police cooperation along the land border on Borneo.