Country Reports on Terrorism 2012 - Malaysia

Overview: Malaysia's counterterrorism cooperation with the United States has continued to improve in recent years, and it was an important counterterrorism partner in 2012. Malaysia has not suffered a serious incident of terrorism for several years, but was vulnerable to terrorist activity and continued to be used as a transit and planning site for terrorists. Weak border controls persisted in the area contiguous with Thailand in northern Malaysia, and there were gaps in maritime security in the tri-border area of the southern Philippines, Indonesia, and the Malaysian state of Sabah. The repeal of the decades-old Internal Security Act and its replacement by the new Security Offenses (Special Measures) Act, along with several amendments to existing laws, moved Malaysia's counterterrorism approach away from detention without trial to a criminal prosecution-based system. The Royal Malaysia Police (RMP) cooperated closely with the international community on counterterrorism efforts, and RMP and other law enforcement officers participated in capacity building training programs.

Legislation, Law Enforcement, and Border Security: In April, the parliament repealed Malaysia's Internal Security Act (ISA), under which Malaysia had for decades routinely detained suspected terrorists without formal judicial proceedings for renewable two-year terms. Three separate declarations of emergency were also repealed on November 24, 2011, which led to the expiration of the Emergency Ordinance in May 2012. In place of the ISA, the parliament passed the Security Offenses (Special Measures) Act (SOSMA) which took effect on July 31, along with amendments to the Penal Code, Criminal Procedure Code, and Evidence Act. Under the SOSMA, once an arrest has been made, the next-of-kin must be notified immediately and the accused must have access to a lawyer within 24 hours. A high-ranking police officer can extend the detention period to 28 days, at which time the accused must be charged or released. The law also states that a person cannot be charged for his political beliefs or activities. The repeal of the decades-old ISA and its replacement by the SOSMA, along with several amendments to existing laws, was a positive development, moving Malaysia's counterterrorism approach toward a criminal prosecution-based system.

There were no reported arrests under the ISA in 2012. In October, Lebanon arrested two Malaysians believed to be suicide bombers with suspected al-Qa'ida links. In February, Malaysian police detained Iranian Masoud Sedaghatzadeh, who had allegedly fled to Malaysia from Thailand after a group of Iranians in Bangkok accidentally detonated bombs allegedly intended to target Israeli interests. Sedaghatzadeh was captured when he attempted to depart Malaysia for Iran from the Kuala Lumpur International Airport. A Malaysian court ordered his extradition to Thailand but Sedaghatzadeh reportedly was appealing the order; at year's end he remained in Malaysian custody pending appeal.

Malaysia has very liberal visa requirements generally, and does not require an entry visa for citizens of many countries. As part of its visa and immigration controls, Malaysia continued to implement a biometrics system introduced in June 2011 that records the fingerprints of the right and left hand index fingers at all ports of entry. The National Foreigners Enforcement and Registration System reportedly was linked to the police's existing Biometric Fingerprint Identification System. The system has had problems, but the police reported that the new biometric system was successful overall. The country also continued an effort to register foreign workers, many of whom were undocumented, and to regularize their status or facilitate their return to their countries of origin. The effort involved the biometric registration of over two million foreign workers and undocumented immigrants.

Malaysia continued to participate in the Department of State's Antiterrorism Assistance program. The program began to transition in 2012 from its focus on cyber investigations and cyber security to a focus on border security. Installation of the eighth and final maritime surveillance radar was completed in 2012. Located on the northeastern coast of Sabah, these radars provided additional maritime domain awareness capability for the Malaysian Joint Forces Command. At Malaysian government request, the United States conducted a three-day counterterrorism workshop for Malaysian police and prosecutors entitled "Preventing Acts of Terrorism Through Proactive Policing and Prosecution," which focused on best practices for investigating and successfully prosecuting conspiracy and material support cases under Malaysia's new law.

Countering Terrorist Finance: Malaysia is a member of the Asia/Pacific Group on Money Laundering, a Financial Action Task Force-style regional body. Malaysia's Money Service Business Act of 2011 (MSBA), which took effect on December 1, 2011, was used for prosecution for the first time on August 10 when a company was charged with operating as a money-changer without a license. The MSBA represents an improved legislative framework that criminalized terrorist financing and strengthened the safeguards of the money services industry (the remittance, money-changing, and wholesale currencies businesses) against abuses. Compliance with the MSBA is monitored closely by Bank Negara Malaysia. Malaysia did not prosecute any counterterrorist finance crimes in 2012.

In September, Malaysia's Compliance Officers' Networking Group organized the fourth International Conference on Financial Crime and Terrorist Financing, a two-day event. The event was attended by more than 300 people, including speakers from the U.S. Department of Treasury, the U.S. Department of State, Homeland Security Investigations, and the FBI. For further information on money laundering and financial crimes, we refer you to the 2013 International Narcotics Control Strategy Report (INCSR), Volume 2, Money Laundering and Financial Crimes: http://www.state.gov/j/inl/rls/nrcrpt/2012/database/index.htm.

Regional and International Cooperation: Malaysia actively participated in ASEAN and the APEC forum. Malaysian law enforcement officials routinely met with regional counterparts to discuss counterterrorism issues at meetings such as the Heads of Asian Coast Guard Agencies Meeting in New Delhi in October, and the ASEAN Senior Officials Meeting on Transnational Crime in Bangkok in September. The Malaysian Maritime Enforcement Agency hosted boarding officer training and a Maritime Law Enforcement Commanders' Forum, funded by the Department of State's Export Control and Related Border Security program, to improve maritime law enforcement collaboration among Gulf of Thailand littoral nations.

Malaysia's Southeast Asia Regional Center for Counterterrorism (SEARCCT) hosted five seminars and training events with regional participation, including: a three-day Sub-Regional Seminar on International Joint Investigations for Southeast Asian States jointly organized by SEARCCT and the UN Counter-Terrorism Committee Executive Directorate with support from the government of New Zealand; a five-day Regional Aviation Security Seminar in collaboration with the New Zealand and UK High Commissions; and a four-day seminar on "The Dynamics of Youth and Terrorism," attended by 39 participants.

Countering Radicalization and Violent Extremism: Malaysia facilitated talks between the Philippine government and the Moro Islamic Liberation Front that resulted in the October signing of a historic peace framework agreement, an effort which some Malaysian officials have said was partly intended to reduce the potential for radicalization in a region of the Philippines that borders Malaysia.

The RMP and the Department of Islamic Development operated a disengagement program for terrorist suspects who were held under the ISA in Malaysia's Kamunting Prison. The program involved religious and social counseling and vocational training. It employed psychologists, religious scholars, police officers, and family members. A committee evaluated detainees' progress toward eligibility for release from prison. The committee's reports were reviewed by a panel from the detention center and also by the Home Ministry. Upon release, former inmates were visited by parole officers and continued to face restrictions on their activities, including curfews and limits on their travel and contacts. While the government portrayed the disengagement program as highly successful, it lacked demonstrable metrics for its effectiveness. As this program was directed primarily at ISA detainees, it was unclear what will become of the program in the wake of the ISA's mid-2012 repeal.