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.