A contempt for the sanctity of contracts

Three stories in the news on the same day identify a disturbing trend that will hobble AsiaÆs growth.

It is not often you read the newspaper and start to identify a common theme.

Yesterday, in the pages of the Asian Wall Street Journal, a very definite theme emerged, and it wasnt a positive one.

The first article I read examined the Malaysian governments decision to overturn a 25-year agreement with the state of Terengganu. This was an agreement that saw the state government get a 5% stake of oil revenues produced in its territory. Breaking this agreement will cost the local government M$810 million $213 million this year alone.

Why was this agreement broken

The central government - run by UMNO - doesnt like the new ruling party...

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