Mahathir criticizes ethnic Malays for misuse of loans
Mahathir criticizes ethnic Malays for misuse of loans
KUALA LUMPUR (AP): Prime Minister Mahathir Mohamad has criticized some members of Malaysia's dominant ethnic group for blowing affirmative action opportunities aimed at benefiting them.
The blunt-spoken leader, who has built his political career on championing the rights of Malay Muslims while also feeling free to chide them, was quoted on Tuesday by The Star newspaper as telling a Malay business group that some affirmative action programs were squandered.
Mahathir cited the example of businessmen over-borrowing on loans made cheaply to Malays and not repaying them or using the money frivolously.
"Don't borrow one million ringgit ($263,000) for a 500,000 ringgit business and use the rest of the money to buy a Mercedez- Benz," Mahathir said.
The remarks follow recent tensions between Malay and minority Chinese groups over the future of the affirmative action programs, which were set up after bloody racial riots in 1969 to increase the economic clout of the traditionally poor Malays.
A Chinese group urged the repeal of the affirmative action programs, saying they did not reward individual merit. A Malay group defended the programs and threatened to wage a holy war to defend them. After months of pressure, the Chinese appeal was withdrawn.
Under the programs, Malay businessmen enjoy loans at low interest rates and preference for government contracts. Malay students have places in university set aside for them.
Mahathir has often criticized Malay businessmen for not working hard as hard as the ethnic Chinese, who still retain control of large segments of this Southeast Asian country's economy.
The government has also been forced to bail out well-connected Malay businessmen who received control of projects deemed as having a national interest.
Last month, the government paid Naluri, a holding company run by tycoon Tajudin Ramli, eight ringgit per share for its controlling 29.1 percent stake in money-losing Malaysian Airline System. That was more than double the current share price, but the same price Tajudin paid when he bought his stake in 1994.
Mahathir said the government had done much to help the Malay businessmen including setting up huge financial funds to help them.
"If we fail despite all these, we need to ask ourselves why," The Star quoted him as saying.
Mahathir, who has ruled Malaysia since 1981, was also dissatisfied with the low rate of Malays graduating from public universities despite 60 percent of the enrollment being reserved for them. He said the education system was not to blame.
"It is the same system followed by the Chinese, so how can the Chinese students do so well?" Mahathir said.
Separately, Mahathir downplayed speculation over a major Cabinet reshuffle, saying a planned shakeup will not result in major changes.
"It will involve ministers, but it will not be a major reshuffle," Mahathir was quoted as saying by The New Straits Times newspaper on Tuesday. "I don't just sack people. It is very destructive."
Speculation on the look of a new Cabinet has been running high since last month, when the Utusan Malaysia newspaper reported that 50 percent of the ministers, deputies and permanent secretaries would be changed in a looming reshuffle.
Mahathir confirmed upon returning from a visit to Myanmar last week that he would make Cabinet changes soon, but expectations that they would be announced after last Friday's meeting of the supreme council of his ruling party were not fulfilled.
In comments reported on Monday by the national news agency Bernama, Mahathir appeared to snuff out speculations that new ministries will be set up in the reshuffle, saying he was satisfied with the existing ones.
The reshuffle would be the first since 1999, a year that saw the opposition make major electoral gains due to public sympathy with former deputy prime minister Anwar Ibrahim, who was sacked in 1998 and has been convicted of sodomy and corruption.