Sadly, none of this should be surprising to those who do business in Malaysia. Multinational corporations operating in the country often seek redress of their grievances in overseas courts in Singapore or Hong Kong rather than take their chances with the Malaysian judicial system. Other potential investors opt to steer clear of Malaysia altogether, planting themselves in neighboring countries that offer greater transparency, accountability and assurance of the rule of law. As the late Tun Suffian, a former chief judge with an impeccable record, once remarked in a speech in 2000, "When I am asked what I thought, my usual reply is that I wouldn't like to be tried by today's judges, especially if I am innocent."

A government so complicit in the abuse of power and the destruction of the judiciary can hardly be expected to follow through on the structural reforms that are now required -- namely, a complete overhaul of the process of judicial appointments, including the creation of an independent council with oversight powers and autonomy. The executive must be kept out of this process. The Conference of Rulers, a council comprising the nine rulers of the Malay states, must assert its authority and play its constitutional role as the people's guardian against arbitrary action of the powers that be.

In this regard, the observation of Sultan Azlan Shah — the chief judge of the high court before his ascension to the rotating Malaysian throne — bears repetition: "The erosion of public confidence in the judiciary's independence would ultimately lead to instability and it would certainly take a long time and would be an arduous task to restore it."

Malaysia celebrated its 50th birthday in August to rather muted fanfare. Fifty years since we gained our independence, the country remains a dim shadow of what it could be. Economic indicators show rising inflation, increasing unemployment and declining foreign investment. Ignoring the need for economic, judicial and electoral reform, the government uses its monopoly on the media to project an image of strength and stability. Meanwhile, the delicate balance among Malaysia's diverse ethnic communities is quickly coming undone as each group begins to scapegoat the other for its own problems.

There is compelling need to return to the founding principles enshrined in our Constitution to ensure that Malaysia's future is a truly democratic one marked by tolerance, economic vitality and the rule of law.

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ANWAR IBRAHIM, who is barred from running for political office until April 2008, is the de facto leader of Malaysia's opposition Justice Party (Keadilan). He is a former deputy prime minister.

Reprinted from The Wall Street Journal Asia © 2007 Dow Jones & Company, Inc. All rights reserved.