Mahathir accuses G7 of ganging up on world's poor

Mahathir accuses G7 of ganging up on world's poor

TOKYO (AFP): Malaysia's outspoken Prime Minister Mahathir Mohamad on Friday lambasted the Group of Seven (G-7) rich nations for ganging up on the poor in times of crisis.

Just a month before Japan hosts a summit of the Group of Eight -- G7 plus Russia -- Mahathir said the rich world could always club together to protect its interests.

"But who cares about us, about poor countries and poor people?" the Malaysian leader asked the annual "Future of Asia" conference in Tokyo.

"They are not fit to sit at the same table with the rich, the G7.

"If solving the trade problems of the G7 results in the poor becoming poorer, it is just too bad."

Mahathir, a trenchant critic of strict International Monetary Fund bailouts when crisis struck Asia in 1997, said Malaysia was proud to have gone its own way in implementing capital controls.

"We are willing to be called stupid ignorami who cannot understand herd instincts. But for us, if the result is bad, then we must assume the system is bad and we will throw it out," he said.

"And so our exchange-rate control and the regulation of short- term capital flows were instituted and as I said Malaysia is doing nicely, thank you."

Globalization was good in principle, but it could wreak havoc if left uncontrolled, the prime minister added.

"Asia must assert itself. It must not just follow. It must work together with Europe and America," Mahathir said.

The prime minister also said Singaporeans were welcome to do business in Malaysia, after Singapore Telecommunications Ltd. failed to buy a stake in a major Malaysian telecoms company last month.

Time Engineering Bhd. called the deal off following strong speculation that the Malaysian government opposed it.

"Among the biggest investors in Malaysia are Singaporeans and Singapore companies and they are always welcome to invest in Malaysia," Mahathir said.