Mahathir renews attack on foreign speculators

Mahathir renews attack on foreign speculators

KUALA LUMPUR (AFP): Malaysian Prime Minister Mahathir Mohamad
Saturday marked the eve of his country's 40th anniversary with a
renewed attack on "irresponsible" foreign speculators who he
likened to "wild beasts."

Proclaiming Malaysia would overcome its current economic
turmoil, marked by a slump in the value of the ringgit and a
nose-diving stock market, Mahathir urged his countrymen to face
the "challenge that will strengthen" the nation.

Although "40 years is too short for us to build a wall that
can protect us from the fierce attacks of developed countries,"
political stability will help the country overcome all its woes,
he said.

Mahathir hit out at foreign funds for what he called
"irresponsible speculation" which has caused economies in the
region to stumble and has eroded more than 400 million ringgit
(US$139 million) from the Malaysian stock market and increased
the value of foreign debts by 10 percent.

He pledged to fight such speculators and said the crisis was a
testimony that "a borderless world can be a wild jungle filled
with wild beasts."

"We cannot close our borders because we know we are weak and
insignificant, but if we cannot break the horns, we will tweak
the ears," he said, in an address to the Malaysian Chinese
Association, a key group in the 14 member National Front
coalition government.

"We will learn to live in this jungle and we will develop the
skills to handle the wild beasts which roam inside it."

Mahathir Saturday did not identify those he accused of
wreaking havoc on the economy, but he earlier alleged billionaire
financier George Soros was involved, a charge denied by both
Soros and the U.S. government.

The ringgit has plunged to a record low against the U.S.
dollar and the bourse has plunged one third in value since early
this year amid a massive withdrawal by foreign funds put off by
new control measures.

But the premier dismissed criticism of the new rules, saying
they were aimed at mopping up shares to prevent foreign funds
from selling and at "creating a good sentiment."

Mahathir, who Thursday ordered local institutions to buy up
shares in the ailing stock market, said he was confident of a
recovery within "one week."

"In any war, somebody will lose and somebody will win. We hope
to win. We must say that we don't start something that we cannot
finish," said the headstrong premier, who has transformed the
once agricultural backwater of Malaysia into an industrial hub in
his 17 years in office.

Mahathir also rejected calls by the International Monetary
Fund (IMF) for Malaysia to view the current crisis as a "wake-up
call" to slow down its large-scale projects.

"That is what the IMF has been saying all the time. Because we
didn't slow down, they are now very happy that the actions of the
foreign investors have shown that they are right," he said.

Without foreign investors playing the market, the government
was doing the right thing in creating jobs, opportunities and
wealth for the country.

"The IMF is only interested in saying 'I told you so,' even if
they had to subvert our economy just to prove that they are
right," he added.

Citing the case of Thailand, where the IMF has brokered a
$16.7 billion bailout for the country's ailing economy, Mahathir
said the "IMF has not been very helpful."

"The baht is still sliding and the Thai economy is still in a
bad shape after borrowing $21 billion from the IMF," he added.

"So why do you borrow from the IMF if it is not going to help
at all?"

Mahathir said he was confident Malaysia would be able to
achieve eight percent growth this year "in ringgit terms,"
although its "foreign currency or per capita income will go
down."

The country may have to slow down its imports but would go
ahead with planned projects, although "they may not be so grand,"
he added.