Malaysia Defies Western Sanctions on Iran
Malaysia only recognizes sanctions imposed by the United Nations and not by any individual country, Home Minister Datuk Seri Saifuddin Nasution says.
By Nguyen Kien Van – New Eastern Outlook – 25.06.2024
On May 16, a US delegation led by Brian Nelson, the Under Secretary of the Treasury for Terrorism and Financial Intelligence, visited Kuala Lumpur to discuss sanctions against Iran. The US accuses Iran of using Malaysian companies to finance militants in the Middle East.
What do we know about US accusations against Iran?
The US claims that trade between Malaysia and Iran has skyrocketed since the outbreak of the armed conflict between Israel and Hamas. Western nations allege that Iran financially supports Hamas and Hezbollah, opponents of Israel. The US highlighted the death of over 3,000 Israelis since October 7, 2023, in the ongoing conflict. 30,000 Palestinians killed in the Gaza Strip, however, do not seem to bother the US at all. Instead, the focus remains on Iran and its proxies, including Hamas, allegedly receiving funds through the Malaysian financial system.
The US is concerned that Iran can continue selling oil by transferring it from ship-to-ship in international waters to disguise its origin. Countries that do not adhere to US sanctions, or choose to ignore them, facilitate this process. Brian Nelson identified Malaysia as one such country, allegedly involved in transporting Iranian oil and raising funds for groups the US deems terrorist organizations.
What do Malaysian officials think in this regard?
Following the meeting with the US delegation, Malaysian officials reiterated that they would not comply with sanctions imposed by any country other than those from the UN Security Council. Home Minister Datuk Seri Saifuddin Nasution Ismail emphasized Malaysia’s commitment to combating terrorism financing. He acknowledged the US concerns about “illegal supplies” of Iranian oil through Malaysia, but reiterated Malaysia’s stance on adhering only to UN-imposed sanctions. The US delegation respectfully accepted Malaysia’s position.
Solidarity Among Muslim Countries
Malaysia, a Muslim-majority country, has consistently supported a two-state solution to the Israel-Palestine conflict and condemned Israel’s actions, which have resulted in numerous Palestinian casualties. Malaysia backed Iran’s use of drones and missiles against Israel on April 13, with Prime Minister Anwar Ibrahim calling it a legitimate response to Israel’s “barbaric attack” on the Iranian consulate in Damascus.
Back to Kuala Lumpur Airport
By the end of the meeting, the US delegation appeared to recognize their failure to sway Malaysia. Saifuddin Nasution Ismail reaffirmed Malaysia’s commitment to counter-terrorism financing at both ASEAN and global levels, stressing Malaysia’s adherence to the rule of law and expressing hope that the US would acknowledge this.
Once again, US efforts to intimidate Malaysia with sanctions over its economic relations with Iran have faltered, highlighting Washington’s persistent hegemonic ambitions. If other Southeast Asian nations were to similarly defy US pressure, ASEAN could emerge as a robust and independent force in the region.
Malaysia tells US it doesn’t recognise sanctions imposed unilaterally
MEMO | May 9, 2024
Malaysia has told the US that it does not recognise sanctions imposed unilaterally by individual states, Interior Minister Saifuddin Nasution Ismail said today.
“I emphasised that we will only recognise sanctions if they are imposed by the UN Security Council,” added Ismail at an event after meeting with Brian Nelson, the top sanctions official of the US Treasury Department, Free Malaysia Today has reported. “The delegation from the US respected our stance.”
Nelson is in Malaysia reportedly to discuss issues related to funds being moved to Iran and its proxies, and funding for the Palestinian resistance movement Hamas from within the Malaysian financial sector.
The minister pointed out that Kuala Lumpur is committed to combating terrorist financing with a “clear strategic plan in place to tackle illicit funding and money laundering.” Moreover, he said that Malaysia’s policies and strategies “comply with international standards.”
The meeting came as the US said it was trying to prevent Malaysia from becoming a jurisdiction where Hamas could both fundraise and then move money. Washington also said that Iran’s capacity to move its oil was due to service providers based in Malaysia.
The minister, however, described his meeting with Nelson as “productive” and said that Malaysia was “always open to engaging with the US.”
Suspected Israeli hitman caught in Malaysia
RT | March 29, 2024
Malaysian police have apprehended a heavily armed Israeli national who investigators believe might be a Mossad hitman and a member of a larger spy ring. The suspect recently arrived in the country on a French passport and claims he had come to murder a fellow Israeli in a family dispute.
The arrest was announced by Inspector-General of Police Razarudin Husain during a press conference on Friday. The 36-year-old suspect entered Malaysia on March 12, and was staying at a hotel in the country’s capital of Kuala Lumpur at the time of his arrest.
“During questioning, the suspect produced another passport which was issued by Israel. The six guns were found in a bag in his hotel room,” Husain said.
The suspect reportedly told police he had come to the country to find and kill a fellow Israeli national, citing a “family issue” as his motive. However, Husain noted that the man refused to divulge information about his job, and said investigators could not rule out that the suspect was linked to Israel’s Mossad intelligence agency.
“We don’t fully believe what this suspect is telling us, maybe he has another agenda because he has been here since March 12. We found that the weapons were bought using cryptocurrency,” the official said.
Police are now investigating how exactly the arsenal, which included various types of pistols, had been smuggled into the country. The police also seized some 200 rounds of ammunition, while three of the guns were loaded, the official noted.
The investigation also believes the suspected hitman likely had accomplices in the country and presumably was a member of a larger group. “We have not identified the others. We will also check the authenticity of his passport with the French embassy,” the inspector-general said.
Thus far, neither France nor Israel has made any public remarks on the affair.
Malaysia imposes docking ban on Israeli cargo ships in solidarity with Gaza
Press TV – December 20, 2023
The Malaysian government has imposed an indefinite ban on vessels owned by an Israeli shipping cargo company from docking at its ports in response to the bloody Israeli onslaught against Palestinians in the Gaza Strip.
Ships en route to the occupied Palestinian territories and Israeli-flagged vessels will also be barred from loading cargo at any port in the largely Muslim Southeast Asian nation.
Prime Minister Anwar Ibrahim said in a statement on Wednesday that the Transport Ministry has been instructed to enforce the ban with immediate effect.
Anwar singled out Israel’s biggest shipping firm ZIM.
Malaysia’s cabinet had in 2002 authorized Israeli-registered companies to dock vessels at Malaysian ports; and in 2005, allowed Israeli-registered ships to anchor in Malaysia. However, Wednesday’s statement said that authorizations had been rescinded.
“The Malaysian government decided to block and disallow the Israeli-based shipping company ZIM from docking at any Malaysian port,” Anwar said.
“These sanctions are a response to Israel’s actions that ignore basic humanitarian principles and violate international law through the ongoing massacre and brutality against Palestinians.”
Malaysia “also decided to no longer accept ships using the Israeli flag to dock in the country” and ban “any ship on its way to Israel from loading cargo in Malaysian ports.”
Anwar said his country was confident its trade would not be affected by the decision.
Malaysia does not have diplomatic ties with Israel.
Malaysians have kept up a strong show of support for the Palestinian people’s struggle to claim their sovereign rights, and strongly condemned the cruelties being perpetrated by the Israeli regime in Gaza.
Malaysians in various parts of the country have held marches and motorcycle convoys to voice their support for the Palestinian people, who are suffering from oppression and atrocities committed by the Israeli regime.
Muslim scholars have called on all people to show undivided support for Palestine because the Palestinian issue is related to humanity and not just religion.
Israel waged the brutal war on Gaza on October 7 after the Palestinian Hamas resistance movement carried out Operation Al-Aqsa Storm against the usurping entity in retaliation for its intensified atrocities against the Palestinian people.
Since the start of the offensive, the Tel Aviv regime has killed at least 19,667 Palestinians, mostly women and children, and injured 52,586 others.
Thousands more are also missing and presumed dead under the rubble in Gaza, which is under “complete siege” by Israel.
Hamas delegation in Malaysia for Kuala Lumpur Summit

MEMO | December 19, 2019
A senior delegation from the Palestinian Islamic Resistance Movement, Hamas, arrived in Kuala Lumpur on Wednesday morning to attend an international summit in Malaysia’s capital. The movement said that its delegation is attending at the invitation of Malaysian Prime Minister Mahathir Mohamad.
The delegation is headed by Hamas Political Bureau member Mousa Abu Marzook and includes his colleagues Khalil Al-Hayya, Izzt Al-Rashiq and Husam Badran along with other officials such as Sami Abu Zohri, Osama Hamdan and Jamal Isaa.
Turkish President Recep Tayyip Erdoğan, Iranian President Hassan Rouhani and Qatari Emir Shaikh Tamim Bin Hamad Al-Thani are also due to attend the summit, at which representatives and delegations from 18 Muslim states are expected to participate. Pakistan has pulled out, apparently after pressure from its allies Saudi Arabia and the UAE and concerns that it could challenge the position of the Organisation of Islamic Cooperation.
Saudi Arabia reads the riot act to Imran Khan
By M. K. BHADRAKUMAR | Indian Punchline | December 17, 2019
The Kuala Lumpur Summit 2019 hosted by Prime Minister Mahathir Mohamad in the Malaysian capital Kuala Lumpur on December 18-21 was originally conceived as a landmark event in the politics of the Muslim world. It still is, albeit on a wet wicket struggling to tackle a nasty googly that Pakistan Prime Minister Imran Khan threw at the event at the last minute.
To recap, the idea of the KL Summit was born out of a trilateral pow-vow between Turkish President Recep Erdogan, Malaysian Prime Minister Mahathir Mohammed and Pakistan’s Imran Khan in September on the sidelines of the UN GA session in New York.
The common perception of the three countries was that the Muslim World failed to react forcefully enough to the emergent situation affecting the Kashmiri Muslims. Pakistan actively promoted the perception that the leadership of the ummah was not reacting forcefully enough over Muslim issues such as Kashmir.
On November 23, while announcing his decision to host the KL Summit, Mahathir said that the new platform hoped to bring together Islamic leaders, scholars and clerics who would propose solutions to the many problems facing the world’s 1.7 billion Muslims. He disclosed that dignitaries attending the KL Summit would include Erdogan, the Qatari Emir Sheikh Tamim bin Hamad al-Thani, and Imran Khan.
The role of politics in development, food security, preserving national identity, and redistributing wealth were listed as other topics to be discussed, alongside the expulsion of Muslims from their homelands and the categorisation of Islam as the “religion of terrorism”.
In poignant remarks, Mahathir bemoaned that no Muslim country was fully developed, and that some Islamic nations were “failed states”. He said,
“Why is there this problem? There must be a reason behind this. We can only know the reason if we get the thinkers, the scholars, and the leaders to give their observations and viewpoints.
“Perhaps we can take that first step … to help Muslims recover their past glories, or at least to help them avoid the kind of humiliation and oppression that we see around the world today.”
Importantly, Mahathir described the summit as a meeting of minds that had the “same perception of Islam and the problems faced by the Muslims”.
From among the list of invitees, it now turns out that Iranian President Hassan Rouhani will be attending tomorrow’s summit, but King Salman of Saudi Arabia has regretted that the Organisation of Islamic Conference (OIC) is being bypassed.
Mahathir disclosed that King Salman conveyed to him in a phone conversation that it was better that the Muslim issues were discussed in a full-fledged OIC meeting. Mahathir said laconically,
“He (King Salman) wanted to tell me the reasons why he couldn’t make it. He’s afraid that something not good will happen to the Muslims. He has a different opinion from us. He feels that matters like these (Muslim issues) shouldn’t just be discussed by two or three countries, and there should be an OIC meeting and I agreed with him.”
The testy exchange signalled that the Saudi regime sees the KL Summit as a calculated challenge to its leadership of the ummah and as an initiative about laying the foundations for an Islamic alliance.
Mahathir is outspoken but what is less noticed is that his positions actually align closely with those of Turkey and Pakistan. These include the Palestinian question, the situation in Jammu & Kashmir and the persecution of the Rohingya community in Myanmar.
According to the Malaysian news agency Bernama, the KL Summit “aims to revive Islamic civilization, deliberate (over) and find new and workable solutions for problems afflicting the Muslim world, contribute (to) the improvement of the state of affairs among Muslims and Muslim nations, and form a global network between Islamic leaders, intellectuals, scholars, and thinkers.”
In sheer brain power, Saudi Arabia cannot match such an agenda. A sense of frustration has been building up over the past decade or so among the Muslim countries that the OIC is reduced to an appendage of the Saudi foreign policies. Saudi Arabia’s rift with Qatar, its rivalries with Iran, the brutal war in Yemen, the killing of Jamal Khashoggi, etc. also seriously dented Riyadh’s image in the most recent years.
Of course, Saudis hold a big purse and that still translates as influence but the new Islamic forum is poised to move in a direction that is progressive and far more inspiring, with plans to pursue joint projects, including, eventually, the introduction of a common currency.
Mahathir is on record that this mini-Islamic conference could turn into a much grander initiative down the road. Such optimism cannot be disregarded since a growing number of Muslim-majority countries harbour great unease over the near-term prospect of the ascendancy of Crown Prince Mohammed bin Salman as the Saudi king and the next Custodian of the Two Holy Mosques.
Saudi Arabia, anticipating the gambit being thrown down by Mahathir has reacted viciously to undercut the KL Summit. It tore into the summit’s ‘soft underbelly’ by reading the riot act to Imran Khan, which put the fear of god into Imran Khan and how it happened we do not know, but the great cricketer panicked and has since called Mahathir to regret that he cannot attend the KL Summit.
No doubt, it is a big insult to Mahathir’s personal prestige but as the old adage says, beggars cannot be choosers and Imran Khan is left with no choice but to obey the Saudi diktat like a vassal.
With Imran Khan staying away, Mahathir is left to host his counterparts from Turkey, Iran, Qatar and Indonesia. The fizz has gone out of the KL Summit. Nonetheless, Mahathir is not the type of person to forget and forgive. His initial reaction to Imran Khan’s cowardly behaviour shows studied indifference, betraying his sense of hurt.
Pakistan is ultimately the loser here, as its credibility has been seriously dented. Imran Khan was the original promoter of the idea of the three-way axis of Turkey-Pakistan-Malaysia. But to be fair, his modest agenda was to create an exclusive India-baiting regional forum that he can use at will, whereas Mahathir turned it into an unprecedented Islamic forum that is independent of Saudi influence. Perhaps, Mahathir can only blame himself for the overreach.
Malaysian PM: No country can impose its sanctions on other countries
Press TV – November 3, 2019
Malaysian Prime Minister Mahathir Mohamad says his country cannot carry out trade with Iran, one of its big trading partners, as a result of Washington’s unilateral sanctions against Tehran, noting that US bans on Iran contravene the United Nations’ provisions.
Mahathir made the remarks while speaking at a press conference on the sidelines of the 35th ASEAN Summit and Related Summits in Thailand on Sunday.
“There is no provision in the United Nations that a country, which is dissatisfied with another country, can impose sanctions on that country and other countries trading with that nation,” the Malaysian prime minister said, while criticizing the inhibitory impact of US unilateral sanctions against Iran on Kuala Lumpur’s trade with Tehran.
He also dismissed applying sanctions against countries as an act “against the law.”
“The sanctions don’t apply to one country alone,” he said, adding that Malaysia is now being sanctioned.
The Malaysian premier further criticized those who “talk so much” about the rule of law, rule-based trade and relations, but fail to adhere to their own principles without singling out any country.
Mahathir’s remarks came amid reports denoting that banks in Malaysia are closing the accounts of Iranian individuals and companies, in what is believed to be a measure linked to sanctions imposed by Washington against Tehran after the former left the landmark Iran nuclear deal, officially known as the Joint Comprehensive Plan of Action (JCPOA).
Since quitting the JCPOA, US President Donald Trump has been running what he refers to as a “maximum pressure” campaign, which seeks to pressure Iran into negotiating a new deal that addresses its ballistic missile program and regional influence.
The spokesman for Iran’s Foreign Ministry said on Thursday that the country’s embassy in Malaysia is doing its best to solve problems resulting from banking restrictions considered for Iranian nationals by some financial institutions in Malaysia.
Mousavi said, “Unfortunately, under the influence of the United States’ economic terrorism, some Malaysian banks have considered restrictions for opening accounts and providing services to Iranian nationals.”
Malaysia has maintained good diplomatic relations with Iran despite sanctions Washington imposed against Tehran. Iranian Foreign Minister Mohammad Javad Zarif made an official visit to Kuala Lumpur in August on the last leg of his three-nation Asian tour, which also took him to China and Japan.
Malaysia Rejects Goldman’s Offer Of “Less Than $2 Billion” To Settle 1MDB Suit
By Tyler Durden – Zero Hedge – 11/01/2019
In an interview with the Financial Times, Malaysian Prime Minister Mahathir Mohamad said he’s not ready to kneel down and accept Goldman Sachs’s first offer in its attempt to settle a civil case stemming from the bank’s involvement in the 1MDB scandal, one of the biggest financial frauds to rock the region in modern history.
As was rumored in earlier reports, Goldman offered Malaysia “less than $2 billion” to settle the suit. In a series of three bond offerings, Goldman raised $6.5 billion for 1MDB, a sovereign wealth fund that was supposed to finance major public works projects across Malaysia.
But the money never made it that far.
A group of senior government officials, including former Prime Minister Najib Razak, led by shadowy financier Jho Low, looted billions from 1MDB and hid it from the people of Malaysia. How much did they take? The DoJ put the number at $4 billion; Malaysia believes its closer to $6 billion.
Mohamad said that Malaysia’s negotiators (led by AG Tommy Thomas) are still talking with Goldman.
“Goldman Sachs has offered something like less than $2bn,” Mahathir Mohamad told the Financial Times in an interview on Friday. “We are not satisfied with that amount so we are still talking to them… If they respond reasonably we might not insist on getting that $7.5bn.”
And he’s not stopping there. Mohamad said Malaysia has also reached out to DB and UBS over their involvement with 1MDB, as it strives to work with whatever banks it can to recoup any money stolen from 1MDB. DB has also found itself caught up in the criminal end of the scandal: Malaysia is investigating the recidivist German lender over whether it violated AML statutes while raising $1.2 billion for 1MDB back in 2014 (a deal that came after offerings underwritten by Goldman). UBS has been reprimanded by the Swiss government over transactions related to 1MDB that the bank helped facilitate.
Goldman earned more than $600 million in fees from the 1MDB deal, and Malaysia has made it clear that it wants every cent of that money returned.
But US prosecutors have already seized billions of dollars in assets pertaining to the case. On Thursday, reports emerged claiming that Low, now a fugitive believed to be hiding in China under the Communist Party’s protection, has settled a flurry of civil suits with the DoJ, agreeing to hand over more than $900 million. Mohamad said Malaysia isn’t in contact with Low, who admitted no guilt in his deal with the US. Malaysia doesn’t know where Low is: “He’s not staying in any one place.”
“The amount [Mr Low embezzled from 1MDB] is much bigger,” said Mr Mahathir. “If he had the full amount we would be very happy…We are still going after the rest of the money.”
“The DoJ has indicated that, if we can prove claim of ownership, then we will be able to get the money for ourselves.”
Goldman’s strong earnings over the past two quarters have helped ease investors’ worries about 1MDB, and the scandal has largely faded into the background since late last year, when revelations that senior Goldman execs, including Lloyd Blankfein, had personally intervened to greenlight the 1MDB deals despite numerous red flags from compliance. But we imagine that many insiders are waiting for the next shoe to drop. Right now, prosecutors have the leverage. Goldman just might get stuck paying the bulk of Malaysia’s ask.
Both Malaysia and the US have accused senior Goldman bankers of bribing corrupt Malaysian politicians to secure the bond deal business for the bank.
Malaysia to open embassy accredited to Palestine

WAFA – October 25, 2019
BAKU – Malaysia will soon open an embassy to Palestine, the country’s Prime Minister Mahathir Mohamad announced today.
He said that since Israel will ban a Malaysian embassy in the occupied Palestinian territories, Malaysia will open this embassy in Jordan but will be accredited to Palestine, enabling his country to offer aid to the Palestinians more easily.
Addressing the 18th summit of Non-Aligned Movement (NAM) in Azerbaijan, Mahathir criticized the silence of international community for “doing nothing” against Israeli actions, Malaysia’s Bernama news agency reported.
“We know that Israel will not allow Malaysia to open an embassy in the Occupied Territory. As such, we will open the embassy in Jordan,” Mahathir announced.
“I would also like to bring to this occasion on the fate that awaits our poor Palestinian brothers. Palestine remains occupied by a brutal regime. This regime continues to expand illegal settlements on land that rightfully belongs to the Palestinians,” the Malaysian leader said.
“It is unfortunate that a world organization set up by powerful nations now sees those very people ignoring the resolutions of that world body. Now, we see others doing the same,” Mahathir added.
The Malaysia premier slammed Israel for its plans to annex parts of the West Bank well as claiming Jerusalem as its capital.
“Many western countries are supporting this move by relocating or vowing to relocate their embassies there. Malaysia does not agree with this,” he said as he called on NAM member countries that have relocated their embassies in Israel to Jerusalem to reconsider their decision.
