Mahathir says currency crisis can be managed

Mahathir says currency crisis can be managed

KUALA LUMPUR (AFP): Malaysian Premier Mahathir Mohamad said yesterday the country can weather the attack on its local currency and urged his countrymen not to despair as he took another swipe at foreigners he blames for the country's problems.

The government was gathering information on the impact of the ringgit's depreciation and the stock market's fall on the economy and the people, he was reported as saying in Montevideo by Malaysia's official Bernama news agency.

"We can overcome this problem if we are disciplined and know how to adjust ourselves," Mahathir told Malaysian journalists covering his visit to Uruguay.

Business people who were worried about the developments in the country should look at the government's track record in developing the country and enabling them to become rich, he said.

Mahathir said Malaysia had weathered other economic problems before, citing a 1973 crisis due to soaring oil prices and a recession in 1985-86.

"We can overcome all these even though people say we are stupid and do not know how to administer the country and should just follow them."

"They say, there must be herd instinct ... in the present world, we must follow the groups like buffaloes. I feel no need to follow, to the extent of becoming buffaloes," he added.

Asked about the reaction of the international community to his recent speeches which were regarded as provocative, especially his calls to ban currency trading, Mahathir said every time he delivered a speech, there would be pressure on the ringgit.

"The question is whether we have to bow to their pressure. What is the meaning of independence or democracy if leaders elected democratically have to idolize foreigners?" he said.

The Malaysian leader refuted claims that the turmoil roiling Malaysia and other Southeast Asian nations were due to weak economic fundamentals.

"This is not a question of fundamentals. This is a question of pressure ... the question of getting money from those who have money," he said.

"If (you) have no money, they won't disturb. Those who do not have money now, when they make progress in the future, will face the same pressure (as us)," he added.

Mahathir said Malaysia would not idolize foreigners as it has worked too hard to "redeem our integrity and to get independence for our country."

"Do we want to surrender our integrity and independence just like that?"

Mahathir said Malaysia will continue to voice its opinion at international forums, whether they "may or may not be effective."

On suggestions that many Third World countries supported Malaysia but did not dare speak up, Mahathir said: "We should not be angry with them as they are indebted to certain parties and hence, their hands are tied."

He stressed that Malaysia needs to overcome its problems on its own by exercising discipline and implementing proper measures.

The government would not be influenced by what outside forces, especially comments that his speeches were useless and caused problems for others, the premier added.

Malaysia has come under market pressure to put its economy in order after the ringgit eroded more than 30 percent against the U.S. dollar while the stock market lost about one-third in capitalization since July amid a regional currency turmoil set of by the devaluation of the Thai baht.

Mahathir had first floated the forex exchange trading ban idea at the annual meetings of the World Bank and International Monetary Fund in Hong Kong last month, which spooked financial markets.

During a visit to Chile on Wednesday, he again renewed a call for a ban on currency trading, causing the ringgit to hit a new record low of 3.4080 against the U.S. dollar.