DATE=8/12/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-236938
TITLE=MALAYSIA/ INTERNET (L-ONLY)
BYLINE=LIM SHU LING
DATELINE=KUALA LUMPUR
CONTENT=
VOICED AT: 

INTRO: MALAYSIAN POLICE HAVE BEGUN ARRESTING PEOPLE SUSPECTED OF 
SPREADING RUMORS OF UNREST IN THE COUNTRY OVER THE INTERNET.  LIM
SHU LING REPORTS FROM KUALA LUMPUR THAT THE RUMORS HAD A 
DETRIMENTAL EFFECT ON AN ALREADY TROUBLED ECONOMY. 

TEXT: AUTHORITIES  HAVE MOVED SWIFTLY TO DETAIN TWO PEOPLE UNDER 
THE INTERNAL SECURITY ACT FOR ALLEGEDLY CIRCULATING RUMORS OF 
IMPENDING  VIOLENCE IN MALAYSIA OVER THE INTERNET.  RUMOURS OF 
RIOTING IN KUALA LUMPUR BY INDONESIAN WORKERS SPREAD THROUGHOUT 
THE COUNTRY LAST FRIDAY, CAUSING CITY RESIDENTS TO PANIC AND 
THRONG  TO SHOPS TO STOCK UP ON ESSENTIAL ITEMS. 

THE RUMORS CAME AHEAD OF AN AUGUST 15TH  DEADLINE FOR THE RENEWAL
OF WORK PERMITS FOR INDONESIAN WORKERS. MORE THAN 200-THOUSAND 
INDONESIANS WILL HAVE TO LEAVE THE COUNTRY BECAUSE THEIR WORK 
PERMITS WILL NOT BE RENEWED.  MALAYSIA HAS ALREADY DEPORTED 
THOUSANDS OF INDONESIAN ILLEGAL IMMIGRANTS BECAUSE OF THE 
ECONOMIC DOWNTURN IN THE COUNTRY.

PRIME MINISTER MAHATHIR MOHAMMAD HAS LABELED THE RUMOR-MONGERS AS
TRAITORS.  HE SAID THE INCIDENT HAD WEAKENED EFFORTS TO REVIVE 
THE TROUBLED ECONOMY AND INSTILL CONFIDENCE IN THE NATION. 
FOLLOWING THE RUMORS, THE STOCK MARKET AND THE MALAYSIAN CURRENCY
REGISTERED SHARP DECLINES.

THE TWO SUSPECTS WILL BE DETAINED INITIALLY FOR A 60-DAY PERIOD. 
UNDER THE INTERNAL SECURITY ACT,  PEOPLE DEEMED TO BE A RISK TO 
NATIONAL SECURITY CAN BE DETAINED WITHOUT TRIAL FOR UP TO TWO 
YEARS.

POLICE HAVE WARNED THERE WILL BE MORE ARRESTS SOON.  THE 
AUTHORITIES ARE TRACKING DOWN SUSPECTS WITH THE HELP OF INTERNET 
SERVICE PROVIDERS AND COMPUTER EXPERTS. THEY ADDED THAT THE 
RUMORS HAD NOT ORIGINATED FROM OUTSIDE MALAYSIA.

THE POLICE SAID THE SITUATION IN KUALA LUMPUR IS NOW CALM AND IT 
APPEARS NO MORE RUMORS ARE BEING SPREAD VIA THE INTERNET. 
(SIGNED)

NEB/LSL/GC/PLM



12-Aug-98 3:34 AM EDT (0734 UTC)
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Source: Voice of America
.