On August 16, an appeal by the Malaysian Socialist Party (PSM) was rejected in court and a January 13, 2003 ruling denying the PSMs right to be registered as a political party was upheld. The two reasons provided by the judge in 2003 were that the PSM did not comply with a regulation necessitating that parties have members in at least seven states, and that the party is a threat to national security. The Court of Appeal dismissed the latter argument, but reaffirmed the first. In a statement issued after the decision, the PSM said it was deeply disappointed with the judgment, that the PSM was never given a license to operate as a state level party and that it had on numerous occasions stated that the party has no problem in fulfilling the seven state requirement. The statement said the ruling was a step backward for democracy and freedom of association in Malaysia, but that it is not going to stop us from forming a socialist party in Malaysia. The party will now file an appeal in the Federal Court. For more information visit < http://parti-A HREF="mailto:sosialis.org"><sosialis.org>.