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.