Mahathir makes unique pact with political opponents

Mahathir makes unique pact with political opponents

KUALA LUMPUR (Reuter): Malaysian Prime Minister Mahathir Mohamad has made an unprecedented business pact with opposition Moslem fundamentalists, an overture that may lead to political cooperation as well, officials said at the weekend.

Mahathir and Nik Aziz Nik Mat, head of the ruling Parti Islam se-Malaysia (PAS) in northeastern Kelantan state, on Friday witnessed the signing of a petrochemical deal between a company controlled by Mahathir's party and a Kelantan oil firm.

It was a rare show of unity between bitter political rivals in Malaysia's only opposition-ruled state.

"We may be political enemies, but it doesn't mean we can't be business partners," Mahathir said at the signing ceremony in Kota Baru, Kelantan's capital.

The prime minister and his allies held their first ever dialogue with Nik Aziz and PAS leaders after the signing.

Government and corporate figures aligned to the prime minister's United Malays National Organization (UMNO) said after the talks that Mahathir may even extend the cooperation to politics, if the fundamentalist PAS toned down its "extremism".

"I think the time has come...the PM is willing to work with PAS and Nik Aziz is singing praises of him," said Hassan Harun, chairman of KUB Malaysia Bhd, the UMNO-controlled cooperative that signed the petrochemical deal with Kelantan.

Nik Aziz, an Islamic preacher who has ruled Kelantan since 1990, surprised political analysts last week when he described Mahathir in a television interview as "an exemplary leader of the Moslem world", and called on Kelantan people to turn out in full force to welcome him.

Speaking to reporters in Kota Baru after Mahathir's arrival, Nik Aziz added: "The rivalry between the two parties had, at times, gone overboard."

"The situation would be less tense if there was more cooperation. While we differ politically, we should not become extremists," he said.

Since coming to power in highly conservative Kelantan, the PAS has proposed Islamic punishment for criminals that calls for stoning of adulterers and amputation of limbs for thieves.

The party has banned liquor, gambling, lipstick and unisex hair salons. It requires separate check-out lines for men and women at supermarkets and has all but banned night-time entertainment outlets.

Mahathir said he was open to bringing PAS into the government.

"Nothing is impossible in politics. Most of the people in our government used to be our enemies once."

Mahathir said the fate of PAS, which has gone no further than conquering Kelantan in 40 years, was in its own hands.

"If they want to be friendly with us, we are friendly. If they want to be enemies with us, then we become enemies. If they want to shoot us, we shoot back," he said.

Asked about a political deal with Mahathir, Nik Aziz said: "At the moment the mood is happy...I would like to take some time before I comment further."