PM Mahathir attacks West, denies cronyism, nepotism

PM Mahathir attacks West, denies cronyism, nepotism

KUALA LUMPUR (Agencies): Malaysia's prime minister railed yesterday against "foreign powers" he accused of trying to topple him and ruin the country, and he denied that cronyism and nepotism had hurt the economy.

Blaming foreign companies for preying on Malaysian companies weakened by the Asian economic crisis, Prime Minister Mahathir Mohamad urged ruling party members at their annual convention to unite against the attacks.

Mahathir dismissed accusations of crony capitalism in Asian nations, saying Malaysians should not be influenced by Western propaganda and by marauding market forces.

He said that governments in both East Asia and the West suffered from corruption, but investors had used "crony- capitalism" as an excuse to attack Asian economies.

Mahathir, in remarks prepared for delivery to the general assembly of his United Malays National Organization (UMNO) party, said foreigners wanted to control Asia's economies and determine the region's political leaders.

"Undoubtedly there is corruption, lack of transparency and other things in governments of East Asia. Even advanced countries of the West are not free from this phenomenon," Mahathir said in his address opening UMNO's three-day annual general assembly.

"Actually, crony-capitalism, corruption and non-transparency which are said to be found in Asian countries are only excuses to attack the economy and finance of these countries."

Mahathir said governments had warned of the dangers of overvalued shares, but fund managers could only see the profits resulting from price increases until Asia's economic crisis erupted last year.

"Rightly, the development process of the Malays, migrating from farmers to entrepreneurs and educated traders, ought to continue," Mahathir told some 2,000 delegates at the United Malays National Organization general assembly.

"However it seems there are quarters who will not allow this. We are pushed to become a backward, weak race, that is recolonized and having to serve others," he said. "They are trying to destroy all that we have built."

Mahathir is a frequent critic of the West. His acerbic rhetoric has often scared investors and sent the ringgit and stock markets plunging.

But he received a standing ovation for his speech yesterday, in which he warned foreign countries could try to manipulate Malaysia's internal politics to cause a power struggle.

Such a struggle could lead to the selection of a leader "willing to submit to world powers," Mahathir said.

Mahathir, 72, may have been alluding to Deputy Prime Minister Anwar Ibrahim. Anwar, 51, who is also finance minister and Mahathir's hand-picked successor, has often been at odds with his mentor over the handling of the economy and pegged by some as more level-headed and better suited to lead the country into the next century.

Some political observers had been anticipating a showdown between the two men during the convention.

But later yesterday, Mahathir and Anwar appeared together at a news conference where the prime minister backed Anwar as his deputy in the party in case there was a challenge for the office.

"If people want to have a contest, by all means do. But as far as I am concerned, if people want to contest against my deputy, I'll support the incumbent."

Anwar said he had never challenged Mahathir's leadership. "It's only the implication of some groups, particularly the foreign media," he said.