KUALA LUMPUR, July 24 — There is increasing apprehension both within the ruling Pakatan Harapan (PH) coalition and among investors over the influence of the informal Council of Eminent Persons (CEP) chaired by Tun Daim Zainuddin.

Singapore daily The Straits Times (ST) reported today a divergence of opinions between the political leaders and the CEP concerning major public projects and the leadership of government-linked companies like Khazanah Nasional, leading to a potential conflict in decisions due to overlaps.

"The CEP reduces the Cabinet’s role to some extent, raising the risk of policy confusion and concerns about parallel administrations. Investors want to avoid having two finance ministers and have clarity over who is calling the shots,” Eurasia Group’s Asia director Peter Mumford was quoted saying.

As example, ST said Daim had wanted fresh tenders for the mega rail projects involving the third line for the Light Trail Transit (LRT3) and Mass Rapid Transit (MRT) instead of renegotiations of existing contracts.

Finance Minister Lim Guan Eng had however recently announced a cheaper pricing of RM16 billion for the LRT3 project with 47 per cent in cost savings, while ST said the MRT2 line’s RM32 billion pricing could also be slashed by at least RM8.5 billion.

"The fact that Cabinet approved Lim’s proposal shows that Daim and Mahathir are not totally of the same mind.

"But whether many dare to challenge Daim’s authority remains to be seen,” an unnamed PH leader was quoted saying.

The anonymous PH insider also pointed out that both the Prime Minister's Office and CEP have separate teams scrutinising the 1Malaysia Development Berhad issue.

The CEP was formed by Prime Minister Tun Dr Mahathir Mohamad as an informal body to advise the largely inexperienced PH coalition government for the first 100 days. Its role was supposed to be limited to making recommendations to the Cabinet, but the report suggests that Daim may have overstepped those bounds into decision-making territory.

Businessmen and financial experts are reportedly clamouring for appointments with the Daim-led council, as much as they are trying to secure meetings with Finance Ministry and Economic Affairs Ministry for briefings.

According to ST, the full Cabinet had met on July 4 and discussed the CEP’s role and were assured then that the CEP would not make any decisions with regards to policies.

It cited growing unease after changes to positions in key institutions, including in the recent appointment of a new Bank Negara Malaysia governor, the country’s Chief Justice and other top judges, and the new Dewan Rakyat Speaker which saw a former judge take on the role instead of PKR’s Datuk Johari Abdul, the preferred nominee backed by DAP.

Wan Saiful Wan Jan, deputy policy and strategy head of ruling party Parti Pribumi Bersatu Malaysia (PPBM), reportedly confirmed that the CEP’s role has been discussed "not just among ministers and party leaders, but also senior officials”.

But ST also reported Wan Saiful as being assured by both PPBM chairman Dr Mahathir and Daim that the CEP will only be around for 100 days.

ST said there was a concern that Daim’s influence would remain past the 100 days through changes brought about by the council, even when the former finance minister does not need to be accountable in an official position.

"Yes, that would be a major concern if appointees are to protect Daim’s interests. Mahathir has to be careful about not overplaying Daim’s hand as a troubleshooter, but then again, can Mahathir even stop someone like Daim?” S. Rajaratnam School of International Studies’ senior fellow Johan Saravanamuttu was quoted telling ST.

Just days after the CEP was formed, lawyers had told Malay Mail that they believe the CEP is not unconstitutional or illegal, as long as it remains an advisory body with non-binding recommendations that the Cabinet will not be obliged to follow.