Funds to RI, Thailand boost SE Asia: Anwar
Funds to RI, Thailand boost SE Asia: Anwar
KUALA LUMPUR (AFP): Malaysia's one billion dollar financial
aid each to Indonesia and Thailand would boost confidence and
help Southeast Asian economies to recover, Deputy Premier Anwar
Ibrahim said Friday.
"Positive economic growth in Thailand and Indonesia will give
positive effect to economic development here because sometimes
outsiders perceive the region as one entity," he was reported
saying by Bernama news agency.
Anwar paid an unannounced visit to Jakarta on Monday, where he
held talks with President Soeharto and extended a one billion
dollar aid facility to help revive Indonesia's ailing economy.
Soeharto had Tuesday said Singapore had also offered Indonesia
funds totaling US$10 billion to help overcome the economic crunch
but Singapore officials said a day later the amount was still
being worked out.
Anwar, who is also finance minister, dismissed talks that the
amount was burdensome for Malaysia but described the funds as "a
gesture which the nation could afford."
"I do not think this matter should be a cause for concern
since it will not burden the country's economy because it is not
possible for me to come out with such funds if we are not capable
of doing so," he said.
Both countries had not utilized the Malaysian facility yet as
they were still negotiating with the International Monetary Fund
and other nations, he said.
"There is a possibility that the fund for Indonesia may not be
utilized, but I think we should not take chances, if the facility
is required we must be prepared to contribute," he added.
Anwar expressed confidence that the region's economies would
recover within a short period, which was the basis of Malaysia
pledging the fund facility.
Malaysian oppositions had questioned the government's prudence
and judgment" in committing the sum to Indonesia in view of the
country's own economic plight.
The ringgit has depreciated by more than 30 percent against
the dollar while the local bourse has lost over one-third of its
market capitalization since July.
Meanwhile, Malaysian Premier Mahathir Mohamad renewed a call
to regulate currency trading and slammed the International
Monetary Fund (IMF) for using the region's economic crisis to
impose conditions on nations seeking aid.
Mahathir warned that "the world will not be saved if we do not
have any rules (on currency trading)," referring to the recent
meltdown in global stock markets.
"While they pressure us to rule according to law but in the
trading arena, there is no rule of law, rule of regulation or
anything, they do as they like, " he was quoted saying on
national television.
The premier said he failed to understand why there were no
rules on "so-called market forces" which cannot be controlled nor
disciplined.
Mahathir also slammed the IMF for using the financial crisis
in Southeast Asia as an opportunity to impose new conditions on
market liberalization on countries asking for financial aid.