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withdrawn.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.