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Inside Malaysia's Shadow State

WHAT IS THIS FILM ABOUT?

This investigation provides undercover footage of the corruption and illegality at the heart of governance in Sarawak, Malaysia’s largest state, on the island of Borneo.

For over thirty years, Sarawak has been governed by Chief Minister Abdul Taib Mahmud, who controls all land classification, forestry and plantation licenses in the state. Under his tenure, Sarawak has experienced some of the most intense rates of logging seen anywhere in the world. The state now has less than 5 per cent of its forests left in a pristine condition, unaffected by logging or plantations and continues to export more tropical logs than South America and Africa combined.

The film reveals for the first time the instruments used by the ruling Taib family and their local lawyers to skirt Malaysia’s laws and taxes, creaming off huge profits at the expense of indigenous people and hiding their dirty money in Singapore. Taib and the local lawyers we approached denied Global Witness’s allegations of corruption. A summary of their responses are included at the end of the film.

HOW DOES CORRUPTION AFFECT SARAWAK’S PEOPLE?

Corruption is destroying the fabric of Sarawak’s society and squandering the state’s natural resources. The region’s indigenous people have born the brunt of this. Ancestral land to which they have claims has been routinely licensed for logging and plantations, badly damaging their livelihoods and violating their rights under Sarawak and Malaysian law. This has trapped many communities in a cycle of poverty and dependency.

Moreover, corruption affects the future well-being of all Malaysian citizens. This investigation demonstrates how money that should be driving development is being lost to corruption and hidden in secrecy jurisdictions overseas. Malaysia is thought to be the world’s third largest source of such illicit financial flows, losing the country an estimated US$285 billion (RM863 billion), or over US$43,000 (RM130,000) perhousehold between 2001 and 2010. This is money that could have been spent on improving key services and quality of life for ordinary Malaysians.

IS THIS A WIDER PROBLEM THAN SARAWAK?

The timber rush which occurred during Taib’s three decades in office has spawned some of the world’s largest logging companies. These companies have had a catastrophic effect on forests and indigenous communities in almost every major tropical forested region in the world, and are regularly implicated in major illegal logging scandals.

Global Witness’ analysis shows that Sarawak’s logging companies are currently logging or converting forests to plantations in at least 12 countries. Their operations cover an area of 18 million hectares worldwide, an area roughly three times the landmass of Norway.

Thank you, Global Witness!