Asian economic turmoil

Asian economic turmoil

Malaysian Prime Minister Mahathir's call for a ban on currency
trading might have sounded rather absurd. How could he possibly
have thought about putting restrictions on currency trade in such
a free trade era like today?

I do not think that it was a coincidence that the Malaysian
ringgit has fallen every time Mahathir condemns foreign currency
speculators for what they had done to the Asian economy. To me,
it looks more like a "punishment" of Mahathir by speculators
making a show of force.

However, in my opinion, Mahathir has every reason to be angry.
The Asian economy that has been progressing in the right
direction for some time has been crushed, resulting in serious
damage to all Southeast Asian economies.

In Indonesia, business has slowed down. Everyone seems to
worry about the uncertainty. Many are not sure what steps to take
since the economic situation seems to be unstable and vulnerable.
A wrong step might lead to bankruptcy. How can one make an
adjustment if the value of the rupiah drops and changes every
minute against the U.S. dollar?

This uncertainty does not only affect the business community,
but it also affects the general public because prices of
commodities keep going up. Business has become paralyzed as loan
interests also have increased.

In this context we have to be introspective instead of blaming
others for our troubles and failures. Despite our faults and
carelessness, I believe that the large-scale foreign currency
speculators like George Soros have played a big role in causing
the current turmoil in Asian economies. It's true that they have
the right to trade currency everywhere in the world. However, is
it fair to play such a game or take advantage of countries that
are still in the process of growing?

Asian countries are like young people. They are full of
energy, potential and aspiration. Yet they are not fully grown,
but are immature and vulnerable. One should not disrupt this
period of growth for youngsters. The same is true with Asian
economies. They need time, space and support to grow and develop
until they are prepared to enter the era of globalization.

JENNY LAURITZ KHOENG

Jakarta