ASEAN plans joint action against speculators: Anwar

ASEAN plans joint action against speculators: Anwar

KUALA LUMPUR (AFP): Malaysian Deputy Prime Minister Anwar
Ibrahim said yesterday that Southeast Asian nations would launch
a joint effort against an "economic war" launched by foreign
speculators on their currencies.

The government was not devoid of resources to battle western
international syndicates who have launched a war against the
region's share market and currencies, he was quoted by the
Bernama news agency as saying.

The Malaysian ringgit plunged to the sensitive 3.0000 level
against the US dollar yesterday amid Kuala Lumpur's financial
market turmoil, dealers said.

The embattled ringgit touched the 3.0000 level and, on profit-
taking, hovered around 2.9950 in late morning trade, a dealer
with a European brokerage said, adding the market was concerned
over the alarming decline in the Kuala Lumpur stock market which
threatened to spill over to the economy.

The ringgit had closed on Wednesday at 2.9730.

Malaysian share prices were lower as foreign selling continued
unabated and is likely to pull the bourse lower over time,
dealers said.

"The uncertainties surrounding the outlook of the economy and
ad hoc policies that are implemented to defend the economy is
driving out foreign investors," a dealer said.

Anwar, who is also the finance minister, added Malaysia was
neither fearful of the western syndicates but was confident that
measures taken would turn the attackers into "worms wriggling in
the scorching sun."

"We are convinced that this group will face immense losses if
they continue to sell our stocks ... for the measures we have
taken will stifle their efforts to buy back the shares at even
lower prices," he said.

"Because of the greed, we are certain they will come in haste
to buy our shares when the market reverts to stability," Anwar
added.

Anwar said that western syndicates were able to launch
lightning raids on the economies of Association of Southeast
Asian Nations (ASEAN) members because ASEAN as a unit was weak in
defending its economies.

"There was no organized defense mechanism ... as a group which
could counter these attacks," he said.

Anwar said, although ASEAN was seen as "united" economically,
the economic interests of each member nation still superseded the
interests of the region as a whole.

"It is therefore clear that the attackers are aware of this
weakness and their strategy now was to launch sudden attacks
against us one by one," he said.

Anwar said the financial tumble in ASEAN member Thailand had
affected all the grouping's members as well as Hong Kong. ASEAN
groups Brunei, Myanmar, Indonesia, Laos, Malaysia, the
Philippines, Singapore, Thailand and Vietnam.

"It is therefore clear that the attackers are aware of this
weakness and their strategy now was to launch sudden attacks
against us one by one," he said.

Anwar, however, said the current gloom in the economy was only
a passing phase and those throwing their shares into the market
were greedy and out to make extraordinary gains from an
extraordinary situation.

The deputy prime minister also hit out at a small group of
Malaysians who he said were "sheeps in wolves' clothing" because
they collaborated with foreigners to jeopardize national economic
stability.

Anwar also said the government was aware and understood the
plight of the people particularly entrepreneurs who are passing
through difficult times.

"We cannot react in a haphazard manner. We must study all the
strategies with care and wisely so that our measures would have a
positive effect," he said.