Tue, 07 Oct 2003

Mahathir gets red-carpet treatment in Bali

The Jakarta Post, Nusa Dua, Bali

Retiring Malaysian Prime Minister Mahathir Mohamad received superstar treatment from most people here, from the driver of his BMW limousine and hotel employees to foreign tourists and even President Megawati Soekarnoputri.

The dean of Asian leaders also received a standing ovation from about 200 businessmen who enthusiastically listened to his brief speech at Monday's session of the ASEAN business and investment summit. The businessmen felt encouraged with his statement that private sector was one of the important secrets of his success to bring high and sustainable economic growth to his country.

They applauded when the minister dismissed cynical views among the public that close cooperation between the government and business world was the root of corruption and cronyism. Citing his own experience, he said none of his friends who entered the business world ever received any favors from him. His friends who used his name to get a foot into the private sector but without any business skill would quickly fail.

"That is business," said the Prime Minister.

The 77-year-old politician pointed out that it was very important for governments to have good relations with business because if business grows well the government can collect tax from the business without any risk his government would suffer from loss if the private sector fails in their business. He said the worst thing a government could face would be no longer having businesses to tax.

Citing his own experience he said the Malaysian government taxed 28 percent of each ringgit earned by the private sector from their business activities.

"If you make money, me make money. But if you lose money, that's your business," the smiling Prime Minister said while the audience burst into raucous laughter.

Mahathir also noted the importance of privatization of state enterprises. His experience in selling a government telecommunications group to private investors made him more confident because the value of the company was only about 200 million ringgit, and now its value had sky-rocketed to billions of ringgit.

Mahathir is ASEAN's longest serving elected prime minister. He will be the second ASEAN leader to leave the political stage with dignity after Singapore's Senior Minister Lee Kuan Yew who remained powerful despite his retirement as prime minister in the early 1990s. Meanwhile Indonesia's Soeharto is still remembered by many people as a good ASEAN leader, but he was forced to end his 32-year regime by a "people's power" movement. After Soeharto's departure in 1998, Mahathir became the most senior leader in the regional organization.

"I don't think anybody should worry just because I am resigning ... ASEAN has already been put on a firm footing and it will carry on," Mahathir told reporters after delivering his speech.

This summit will be a farewell summit for him. President Megawati is scheduled to host a gala dinner to honor him on the sidelines of the summit.