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.