Malaysia to buy more Indian sugar to resolve palm oil spat
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MSM Malaysia Holdings Berhad will buy 130,000 tonnes of raw sugar from India worth 200 million ringgit ($49.20 million) in the first quarter, the company told Reuters. It bought around 88,000 tonnes of raw sugar from India in 2019.
MSM is the sugar refining arm of the world’s largest palm oil producer, FGV Holdings, which is a unit of Malaysian state-owned Federal Land Development Authority or Felda.
The company did not cite the palm oil dispute as a reason for the increase in purchases.
But the two sources, who are familiar with discussions between the company and the government on the purchase, said it was a bid to appease India, which has been urging Malaysia to reduce the trade deficit between the countries.
India, the world’s largest edible oil buyer, this month effectively halted Malaysian palm oil imports apparently in retaliation to Malaysian Prime Minister Mahathir Mohamad’s comments criticising New Delhi over its policy on Kashmir.
Malaysia has said it will look to other markets to sell more palm oil but that may not be easy as India has been the biggest buyer of Malaysian palm oil for the past five years, purchasing 4.4 million tonnes in 2019.
Malaysia’s exports to India were worth $10.8 billion in the fiscal year that ended on March 31, while imports totalled $6.4 billion.
Malaysia imported a total of 1.95 million tonnes of raw sugar in 2019, according to data from the International Sugar Organisation on Refinitiv Eikon. It typically buys more from Brazil and Thailand than from India.
India is the world’s biggest sugar producer but is struggling with a surplus. Its exports are expected to rise to a record 5 million tonnes for the 2019/20 season.
MSM said it was expecting the arrival of three shipments of raw sugar from India between January and February.
“This is very good move. It will help India in increasing sugar exports,” Praful Vithalani, president of the All India Sugar Trade Association told Reuters about MSM’s move to buy more from India.
Around 50,000 tonnes of raw sugar has already been contracted by Malaysia for January shipments, said a Mumbai-based dealer with a global trading firm.
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Comments (109) Closed
Jan 23, 2020 11:30am
Lesson to be learnt, never mess up with today's India. It will strike where it hurts the most.
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Jan 23, 2020 11:33am
Malaysia is taking U turn now.
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Jan 23, 2020 11:34am
India is a super power. Malaysia has learnt it the hard way. Food for thought for pm IK.
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Jan 23, 2020 11:35am
Reality exposed too early.
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Jan 23, 2020 11:36am
There you go..
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Jan 23, 2020 11:37am
Slip of the tongue costs much....
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Jan 23, 2020 11:41am
India can export flour and sugar to Pakistan too and at very nominal rates. Imran be wise like Mahathir.
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Jan 23, 2020 11:42am
Indian sugar might prove to be too sweet for Malysia and Malysian people.
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Jan 23, 2020 11:43am
At the end of the day, India gets benefits from the whole drama.
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Jan 23, 2020 11:47am
It's time to put palm oil issue aside and move on. Indo Malaysian cultural ties are far more important than political leaders. PM Mahathir would have learnt his lesson by now. Modi should invite him to New Delhi and further boost the cooperation between two countries.
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Jan 23, 2020 11:52am
Malaysia has always been a mature international player prior to the entry of Mahathir. Even their previous president was guest of honor for India's RDay parade a couple of years ago.
Hence Indian people should not hate Malaysian civilians and farmers due to few 'childish' characters. If Malaysia is talking business sense then India should reciprocate without qualms. That is how diplomacy and trade works.
Mahathir is slow learner and hence don't wait for him to catch up.
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Jan 23, 2020 11:52am
Naya India is different it is commanding not like the previous govts
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Jan 23, 2020 11:54am
This what called power of India ....brought Malaysia on its knees.
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Jan 23, 2020 11:56am
It's called win-win for India. Pak watch and learn
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Jan 23, 2020 11:56am
So as long as Malaysia buys more sugar from India all is well and good. What happened to completely cutting off Malaysia for Kashmir stand?
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Jan 23, 2020 11:59am
Mr. 90s PM, be careful with your words, it costs your country dearly.
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Jan 23, 2020 12:00pm
From now on you won’t hear any anti INDIA talks by Malaysia. Modi had thought a good lesson to Dr.M.
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Jan 23, 2020 12:01pm
@Hindustani, ok relax. Neither has Mahathir apologised for his statement nor backed down. India made a grand statement but at the end of the day back channels has gotten on the table and things will work out as far as trade is concerned. India wants palm oil and Malaysia has it. That is all that matters.
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Jan 23, 2020 12:06pm
@Hindustani,
USA and China also saying the same thing to your 'superpower'.
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Jan 23, 2020 12:06pm
@Hindustani,
USA and China also saying the same thing to your 'superpower'.
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Jan 23, 2020 12:07pm
So Malaysia has to keep quite on indian atrocities.
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Jan 23, 2020 12:10pm
India failed to do anything in return. Good work, Malaysia.
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Jan 23, 2020 12:10pm
Never ever mess with Superpowers.
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Jan 23, 2020 12:12pm
Sugar import by Malaysia, might not mold or change the decision.
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Jan 23, 2020 12:15pm
India has plenty of options to buy Palm oil, from Indonesia and Argentina.
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Jan 23, 2020 12:18pm
Thank you, Mr Mahathir, Your words cost us nothing, but gain.
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Jan 23, 2020 12:30pm
@TruthPrevails, Just you watch. Mahathir will keep hitting on Indian misbehavior.
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Jan 23, 2020 12:30pm
@Fastrack, India failed to do anything in return. Good work, Malaysia.
Man.. are you genuinely so intelligent?
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Jan 23, 2020 12:35pm
Mind you, Malaysia.
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Jan 23, 2020 12:36pm
Let good sense prevail. Don't mess!
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Jan 23, 2020 12:38pm
Pakistan should step in and buy malaysian palm oil to help out berather no? Even if malaysia is chosing to buy more Indian sugar than From Pak!
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Jan 23, 2020 12:46pm
White sugar is not good for health.
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Jan 23, 2020 12:48pm
@Fastrack, No they didnt. USA supports India and china said solve it bilaterally. None of them commented on CAA bill unlike Malaysia.
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Jan 23, 2020 12:49pm
India knows how to extract benefits from the crisis. Now payback time for Malaysia.
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Jan 23, 2020 12:56pm
@Fastrack, yup you are right , we just squeezed extra 45 million dollars from malaysia .this is it.
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Jan 23, 2020 12:56pm
@topbrass, im guessing ur not aware of who mahatir is. Mahatir is the one who built malaysia of today.
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Jan 23, 2020 01:00pm
@Hindustani, Does this applies to China as well?
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Jan 23, 2020 01:00pm
@Hindustani, Bully the smaller and weaker ones, mantra of today's world!
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Jan 23, 2020 01:07pm
@Fastrack, where are your facts?
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Jan 23, 2020 01:24pm
So Malasian drama is over. Now back to your business.
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Jan 23, 2020 01:26pm
That's not good enough... He should withdraw his statement publicly
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Jan 23, 2020 01:26pm
@Bilal, ok relax .. India wants palm oil and indonesia has .. it already stopped taking oil from malaysia
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Jan 23, 2020 01:29pm
@Bilal, no we are buying palm oil from indoenasia the largest producer, and they will also increase import of beef and sugar from india,
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Jan 23, 2020 01:32pm
@Bilal, really? Seems India is not even reciprocating to Malaysia offer and instead started buying Indonesian palm oil.
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Jan 23, 2020 01:49pm
@Bilal, Cheaper oil is with Indonesia. Its only Malaysia that has to lose going against India. Get your understanding correct.
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Jan 23, 2020 01:52pm
Bread crises are settle down I think.
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Jan 23, 2020 02:00pm
@Naxalite, so u r saying malaysia is a small and weak country.
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Jan 23, 2020 02:07pm
@Bilal, indonesia has more & better palm oil to offer.
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Jan 23, 2020 02:12pm
The above article says that India is the largest buyer of edible oils in the world. It is also the highest sugar producing country in the world. where does Pakistan stand?
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Jan 23, 2020 02:12pm
@Hindustani, Never mess with nations that India owes money to. India is buying more expensive palm oil elsewhere. Malaysia has already found other markets.
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Jan 23, 2020 02:14pm
Malaysia still supports UN plebiscite on Kashmir and will say it again. India is a poor irrelevant country.
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Jan 23, 2020 02:28pm
Dr.Mahathir made a very poor choice in taking sides on an issue that is bilateral in nature. India should source its palm oil from Indonesia.
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Jan 23, 2020 02:55pm
Thank you mahathir for your loose tongue. Now our excess sugar output got a market.
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Jan 23, 2020 03:07pm
There is only one super power and that is USA.
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Jan 23, 2020 03:14pm
Dr Mahatir is one of the greatest leaders in the world today. He is tolerant, far sighted and a great economist. The Malaysians are so lucy to have him.
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Jan 23, 2020 03:24pm
@Bilal, indonesia has refined palm oil as well and all set to export it to India.
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Jan 23, 2020 03:31pm
India should not go back to buying palm oil from Malaysia. Indonesia is more than willing to supply India with all its needs.
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Jan 23, 2020 03:50pm
@Fastrack, Pakistan just didnt went for the summit
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Jan 23, 2020 04:10pm
Pakistan is the biggest producer of sugar in the world
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Jan 23, 2020 04:15pm
You backed Pakistan and now realise it was the biggest mistake in your life!!!
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Jan 23, 2020 04:28pm
Mahathir has not backed down or Malaysia has not been brought down to its knees. It's common sense and peace that prevails. Peace should always prevail.
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Jan 23, 2020 04:39pm
@Khan, Nope Brazil and India compete for the top position.
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Jan 23, 2020 04:45pm
@Khan, "Pakistan is the biggest producer of sugar in the world"
First China, second India. India sugar production is 7 times bigger than Pakistan.
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Jan 23, 2020 05:00pm
Mahathir is now regretting messing up relations with India
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Jan 23, 2020 05:07pm
India exports 5million tonnes in f sugar annually .......Malaysia is taking only 100k tonnnes it means nothing for India j the larger scheme of sugar exports its peanuts
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Jan 23, 2020 05:11pm
@Khan, Brown sugar ???
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Jan 23, 2020 05:11pm
@Ramesh R, They are referring to brown sugar
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Jan 23, 2020 05:13pm
@Tamza, what he said - we are very small player.
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Jan 23, 2020 05:14pm
@Bilal, no body messes with india
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Jan 23, 2020 05:58pm
Yeah, you scratch my back, I’ll scratch yours. Good exchange.
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Jan 23, 2020 06:21pm
A humbling experience for Mahathir.
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Jan 23, 2020 06:24pm
It will interesting to kow how much Pakistani sugar compare to indian sugar .will somebody discuss what happening in our sugar industry .
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Jan 23, 2020 07:15pm
@bala, Nor is Palm Oil.
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Jan 23, 2020 07:56pm
@SA, He is always very intelligent. That is why he is slow track and follows a nonagenarian PM who does not remember what he said two minutes ago.
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Jan 23, 2020 08:23pm
If India is the world’s biggest sugar producer -- why do we have shortage of sugar. Can't understand . Because due to govt. corruption . They have to sell more cheap in India. So we don't have surplus.
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Jan 23, 2020 08:43pm
@Bilal, "India wants palm oil and Malaysia has it. "
India can find alternate sources for palm oil.
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Jan 23, 2020 08:54pm
@Bilal, don't indulge, manage the wheat flour first
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Jan 23, 2020 09:01pm
@Hindustani, lesson to be learnt is, "never black-mail any country".
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Jan 23, 2020 09:03pm
Sugar is injurious to health, while palm-oil is life saving.
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Jan 23, 2020 09:04pm
@Hindustani, of course, India is a world super-power in poverty and hungry people.
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Jan 23, 2020 09:28pm
Amazing turn around, India seemed to have gained more from banning Malaysian products
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Jan 23, 2020 09:35pm
@Tamza, yep, and he will then opt to increase imports from India
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Jan 23, 2020 09:36pm
So now Malaysia can back Pakistan over Kashmir by ignoring Indian Govt criticism.
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Jan 23, 2020 09:38pm
@sriramchand, we do not have sugar shortage.
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Jan 23, 2020 09:44pm
@M. Saeed, yep, but it is still a wonderful place and progressing in leaps a bounds every day
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Jan 23, 2020 10:37pm
@Bilal, Malaysia PM has agreed to stay mum in future what more is needed?
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Jan 23, 2020 10:48pm
Great Malaysia
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Jan 23, 2020 10:55pm
Shame to India.
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Jan 23, 2020 11:42pm
@Hindustani, it’s not about winning or losing . It’s about fair trade . Did you get it
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Jan 24, 2020 01:05am
@Hindustani, so you are saying just because one has economic might, the other should bow and don’t speak up against oppression and injustices?
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Jan 24, 2020 02:16am
@Hindustani, just wait and watch... minimum 10 pcs...
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Jan 24, 2020 03:56am
@Nation, superpower
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Jan 24, 2020 06:19am
India Pakistan trade can be much higher than India Malaysia. Time for Pakistan leadership to think about the trade restrictions imposed which affects trade and millions of people livelihood.
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Jan 24, 2020 06:33am
@Rajat, Pakistan does not export much to India. So no need to learn.
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Jan 24, 2020 07:03am
India will extract much more than this. We dont like to forgive or forget.
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Jan 24, 2020 09:17am
Mahathir has his share of geriatric problems. He has learnt his lessons now. There are large indian population in that country. India alwys want good relation with them.
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Jan 24, 2020 10:01am
@Khan, Pakistan is the biggest producer of many things in the world but very little is exportable.
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Jan 24, 2020 11:29am
Business/ Money power matters. At the end, everything will boil down to sheer business.
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Jan 24, 2020 11:32am
@Bilal, Ok. Next time, Mr. Mahathir will be definitely cautious while talking about Kashmir. Just wait & watch.
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Jan 24, 2020 11:59am
India should not buy any palm from Malaysia,
they should buy Canola Oilseeds from the US
or Canada
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Jan 24, 2020 02:10pm
Otherwise also India can covert Sugar to Ethanol very near future on this, we will save more in imports of oil and control pollution anyhow, will survive grow faster than neighbors for sure
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Jan 24, 2020 06:14pm
Malaysia though congress is ruling India .. They are not aggressive like BJP.
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Jan 24, 2020 06:39pm
@Ibrahim S, Fair trade will continue only in fair weather.
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Jan 24, 2020 07:42pm
@Aditya, no need dear, they are far ahead from INDIA in each and every aspect.
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Jan 24, 2020 07:49pm
@bala, as if palm oil is gud for health.
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Jan 24, 2020 07:50pm
@Faizan Taqi, so what, today same malaysia is under chinese debt trap.
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Jan 24, 2020 08:43pm
@Zak, dear sir, do you even know the first condition for the plebiscite?
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Jan 24, 2020 10:39pm
@Faizan Taqi, Yes. Mahathir is a great leader. But he too, has this shortcoming of showing-off this love for Muslims. This PDA for muslims has no place in today's world.
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Jan 25, 2020 12:02am
@Mujtaba, Yes. Just like you dont talk about Uighers because of China's economic might and CPEC.
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