THE following is the full text of Prime Minister Datuk Seri Najib Razak's special interview with Rory Ashary, aired over MetroTV yesterday.

Q: Prime Minister Najib Razak, thank you for appearing on MetroTV. In this visit, apart from discussions on economic cooperation, other important matters included labour and border issues between the two countries. I want to focus on labour first. How do you see the solution to the labour problem between Indonesia and Malaysia going forward?

PM: We deeply appreciate the manpower from Indonesia in assisting the economy of Malaysia in various sectors as an important labour source. Nonetheless we need the entry of labour in an orderly manner and according to the laws of the country.

Q: Does this mean no more illegal labour?

PM: What I meant is that it could cause social problems, besides we could not accord them protection for their interests.

Q: After this visit, what is going to be different for Indonesian labour in Malaysia?

PM: Many of us would agree that the problem be managed by the joint committee. The Human Resource Ministers of both countries will be holding discussions to find solution to the problem and secondly how we have more added values. One of the proposals by President Jokowi is to upgrade their skills and we have also identified the required skills needed by the industries, plantation, construction sectors so that we can carry out matching.

Q: Apart from labour, what are the other important issues affecting bilateral ties between Malaysia and Indonesia?

PM: Our ties are very cordial. I have always considered our relations as utmost important as we cannot just rely on the spirit of being from the same race, historical and cultural similarities and religion and so on but we must be aware and identify the areas which can bring our relations to a new higher level.

Q: What are they, Pak Najib?

PM: For example in economy, how we can integrate the economy of Malaysia and Indonesia. I see the move by President Jokowi here in developing the infrastructure, including public housing highways and so on. All these can be carried out by Malaysian companies and I want the consideration to be based on merits.

Q: How do you compare the Malaysia-Indonesia relations before you took office as Prime Minister in 2009 and now? What is the difference?

PM: It is a process, it does not mean relations was not good before me or worsened when I became Prime Minister. But we will work hard, for example if in the past there were demonstrations against Malaysia, lately there were none, so sometimes there are minor issues but unduly magnified, like the question of dance and so on should not be a problem between the two countries as we both inherited similar cultures. So if we can reduce or even reject completely elements out to make small issues big, our relations can be seen from a wider perspective and enable both countries to work even closer together.

Q: As the second largest investor in Indonesia, how do you see Indonesia today, Pak Najib?

PM: I see, very encouraging prospects among them the move by the government today to ease bureaucracy in FDI, so we see Indonesia becoming more investor-friendly today and secondly the business opportunities arising from infrastructure development undertaken by the President, Malaysian companies can contribute based on merits. I see this as very good prospects on the matter.

Q: If it is said Indonesia is becoming investor-friendly, how can Malaysia maximise the potential to strengthen the economic ties, economic cooperation between the two countries?

PM: Yes, for example the decision to hold WIEF, World Islamic Economy Forum in Jakarta is one of the platforms we can step up collaborations from business to business aspect or perspective. These business people look at the political signal. When they see the top leadership of Malaysia and Indonesia enjoying cordial relations, it will give clear and positive signals for the other sectors in the two countries to work together.

Q: Pak Najib, how would you describe the personal relations between you and Pak Jokowi?

PM: I am very comfortable with Pak Jokowi, I see his openness, I see his sincerity and I also see that in many issues we share similar stands and perspectives, so this means we have less differences in opinions. Despite the challenges, we hope to have comprehensive solutions to questions on border areas, maritime waters and so on, and practical issues such as the detention of fishermen should not be made to hamper Malaysia-Indonesia relations.

Q: What is it with President Jokowi as the Republic of Indonesia President that made you feel at ease as your counterpart to cooperate with Indonesia?

PM: I knew Pak Jokowi before he became the President of Indonesia. I see that he is very aware of the importance for Malaysia and Indonesia to cooperate as closely as possible.

Q: Pak Najib, I will move to other topics. Your country has been hit with allegations on 1MDB by the US Justice Department which issued a law suit against the company, what really happened?

PM: This is a business issue but unfortunately the business issue has been made into a political issue by certain enemies. If there were weaknesses which were inconsistent with the law and so on, let it remained a business problem and investigated according to the law and the Malaysian government was the first to take action to investigate and we have set up the Parliamentary Accounts Committee (PAC), comprising government and opposition party members and other bodies such as MACC, police, Bank Negara, have all conducted investigations on 1MDB. Unfortunately it has been made into a political issue by certain enemies. I want to say that whatever is conducted by DOJ recently does not involve me or the Malaysian government or 1MDB directly. It merely mentioned five people in the civil suit and it should be clarified that it is a civil suit and not a
criminal case.

Q: You said the case is a business case but it was politicised. What do you think is the motive for politicising the issue?

PM: The motive is clear because as the opposition, they are uneasy with my leadership, so they have to look for issues. In other issues, they failed to gain attention or response to topple me and the government but on this issue they may have managed to get attention from certain quarters. But in the Sarawak state election recently, we won with overwhelming majority and in the two by-elections in Sungai Besar and Kuala Kangsar during Ramadan, our majority soared even higher, so if it was a gauge of the open democractic system, the people have made their choice. In fact former prime minister of Malaysia Tun Mahathir made a statement that the by-elections in Sungai Besar and Kuala Kangsar would be a referendum on my leadership...the people had clearly gave an even stronger mandate for my leadership despite various issues.

Q: So does this means there is nothing wrong with 1MDB?

PM: There maybe certain weaknesses and we have rectified them, we took internal actions, for example we have a new CEO and the Ministry of Finance has taken over and as I said if there are more issues, we will take the necessary actions.

Q: Good, how do you explain the mention of Dr Mahathir. Actually, how is your relations with Dr Mahathir? He was your former mentor.

PM: Yes, Dr Mahathir was my strong supporter in the past and was my mentor but Dr Mahathir has a control complex and wanted to decide on national decisions and policies even though he is no longer the prime minister. This means Mahathir is obsessed about control and after knowing him for so long, I know I only have two options as prime minister. First, as prime minister I have to refer to him. To get his "advice". I said advice but maybe instructions to carry out his wishes in the country's administration. In that case I would be a prime minister who is forced to listen to him. Or I can become the prime minister who believed in my leadership, my consideration based on the mandate given by the people to me as well as party, so that I shall do what is best for the country in my responsibility to the people.

Q: What is your choice?

PM: I choose the second because the second choice means I must be a prime minister who is responsible to the people, do what I think it for the best of the country but I know the repercussions as Dr Mahathir will not be happy with me as history has proven that he has pushed and disposed many leaders in the government in the past.

Q: From a warm relationship to something sour?

PM: Because I don't listen to him, I don't listen to him because I have my own considerations which I think are right for Malaysia.

Q: Pak Najib, how is the 1MDB case like your sour relationship with Dr Mahathir and the opposition affecting your partnership or governance?

PM: Yes, in the end, although it has become quite a hot issue we are a democracy, we will eventually leave it to the people. The people will decide what they want and I believe in the Malaysian people's wisdom to make a choice when the time comes.

Q: Besides...we try to eliminate the scandal first, accusations and so forth. We have to acknowledge that you are a leader who is being praised for using the personal touch on the people of Malaysia. How do you explain your relationship with Malaysians currently?

PM: I think it's good because I go down to the grassroot level. Often I meet the people and I can see quite a warm welcome when I go down to the ground and Alhamdulillah lately in terms of the relationship with the people I feel happy. (Even though there are various allegations) that is normal in politics, that is the custom, but the thing is we must get support and confidence of the people.

Q: There are policies which are not popular but many people said these are necessary. Such as cutting fuel subsidies and replacing it with massive development of the MRT and LRT. Can you explain to us what are the policies?

PM: We have almost the same challenges, two nights ago I talked to Pak Jokowi and Indonesia has abolished its fuel subsidies, in Malaysia, we also have abolished the oil subsidies, even though, yes this is a matter of praising the leaders. Whether we are brave enough to do it but it is not popular in the short term or we make the right decision, sooner or later the people will realise that the decision is absolutely right.

Q: We will move on to the issue of terrorism, this is one thing that you said two days ago in your speech at the World Islamic Economic Forum. You said that currently Malaysia was so focused on defeating Isis especially the terrorism conundrum in Malaysia. What kind of formula is most appropriate to counteract terrorism and defeat Isis in countries with potentially terrorism conundrum?

PM: We need to do various ways. First we must recognise a threat as a real threat, a serious threat, a threat that can happen anytime. So if we accept it as a reality, then we need to take certain measures. Firstly, I together with the cabinet ministers, we have approved a new set of legislation to give more power to the security forces to act. We believe in the power of preemptive, for example if there is a clear evidence that an act of violence will take effect by any individuals, then the individuals can be detained. But it's not an executive power (it's) the power of the court. So we produce evidence for the court to decide whether the person is a threat to the public or not. Yes right, in terms of law principles, the incident has not yet to occur but do we have to wait for anything, bad things to happen before we can act.

Q: What can Indonesia learn from Malaysia's efforts in counteracting radicalism and eradicating terrorism?

PM: Pre-emptive power, but don't give pre-emptive power to the administration power, give to the court. Produce evidence in court that these people will do an eminent act of violence. So if we wait for something to happen, it will have an adverse effect. The effect is toward individuals, communities and to the economy of the country. Look at Tunisia for example, their tourism industry is now paralysed.

Q: How do you see the current discussion on terrorism act in Indonesia to include the army (in an effort) to eradicate terrorism? Do you think it will be effective when the army is being included together with the police for example to eradicate terrorism?

PM: I support because police alone are not enough, we need the strength of the armed forces, there must be cooperation.