Mahathir coutions on freeing markets

Mahathir coutions on freeing markets

KUALA LUMPUR (AFP): Malaysian Prime Minister Mahathir Mohamad
reminded the Group of Fifteen (G-15) developing countries
Saturday to be cautious in implementing market liberalization and
globalization plans.

Citing how a "liberal policy towards currency and share
trading has resulted in abuses which undermine years of
painstaking efforts to develop the countries of Southeast Asia,"
Mahathir urged G-15 members to be more "circumspect."

"The success of the members of the G15 depends on their
ability to understand the changes in the global market place and
to influence these changes in their favor," he said when opening
a G-15 trade fair.

"They cannot be passive and accept anything and everything
that is thrust upon them," said the outspoken premier, known for
his anti-West stance.

While there were genuine investors, "we must not forget that
there are many who only see opportunities for enriching
themselves at our expense," he added, referring to Southeast
Asia's financial crisis.

The Malaysian leader has repeatedly accused foreign funds of
destabilizing Southeast Asian financial markets which have
plunged since July, and spearheaded calls to regulate currency
trading.

While "the world is galloping towards globalization and
liberalization," Mahathir noted that the actual definition of the
two terms was still unclear.

But "developed countries have taken it upon themselves to
interpret these terms as meaning the removal of barriers to their
trade and their investments including portfolio investment," he
said.

The Malaysian leader warned his developing counterparts "to
watch this very carefully as their own industries are not yet
able to compete and take advantage of investments in other
countries."

Opening up of markets at such a time may result in
"unrestricted entry of competing products from industrialized
countries which can afford to lose because they can make profits
elsewhere, whereas developing countries may not have products to
export to markets opened to them," he said.

"The result may be detrimental to their economic and
industrial development," he added.

Mahathir will host a three-day G-15 heads of state summit
starting Monday, where the capital market volatility is expected
to dominate discussion.

Others in the group, established in 1989 to counterbalance the
Group of Seven (G-7) industrialized nations, are Algeria,
Argentina, Brazil, Chile, Egypt, Indonesia, India, Jamaica,
Mexico, Nigeria, Peru, Senegal, Venezuela, Zimbabwe and Kenya,
the 16th and newest member.