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Anwar said, although ASEAN was seen as "united" economically, the economic interests of each member nation still superseded the interests of the region as a whole.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