Mahathir renews attack on speculators

Mahathir renews attack on speculators

KUALA LUMPUR (Reuters): Malaysian Prime Minister Mahathir Mohamad yesterday unleashed a new attack on currency and stock market speculators, saying they had reduced Asia's tiger economies to "whimpering kittens".

Mahathir also lashed out at international agencies, saying they were imposing stringent conditions that would prevent the region's ailing economies from recovering.

In his speech to businessmen, diplomats and trade union leaders, Mahathir adopted the combative style which embroiled him in controversy last year before he announced he would strive to avoid publicly apportioning blame for Asia's turmoil.

The sharp devaluation of Southeast Asia's currencies and the decline in share prices were used to impoverish the region, he said.

"The economic turmoil caused by the devaluation of the currencies of these countries reduced the tigers to whimpering kittens and forced them to seek help from international agencies," he said.

Thailand, Indonesia and South Korea have all received rescue packages crafted by the International Monetary Fund.

Mahathir said the conditions for the aid went beyond eliminating corruption and cronyism.

"The countries have also to increase interest rates, reduce credit, raise taxes and open up their countries to full access to their companies by foreign companies," he said.

"The effect of currency devaluation coupled with the conditions exacted by the international agencies is to make it almost impossible for these countries to recover economically," he said.

Mahathir said it was thought these countries would recover.

"But what is there to stop repeated attacks on their currencies and continued turmoil? Even if the attacks stop, the massive damage to their economies would take decades to be restored."

The Malaysian leader said openness and transparency had not benefited ailing Asian economies under attack. "The advocates and practitioners of smart partnerships must be cautious about accepting the new ethics of commercial community," he said.

"Openness and transparency are not enough if there is no accompanying morality, honesty, honor and caring for others," he said.