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The Pulic Would Like To Know The Malaysian Government Strategy For Capital Control In The Face Of Changes Statement by Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong on the Malsaysian Government's response to the International Monetary Fund, IMF's Malaysia Report. 13 August 2000 | |||||||
| On 10 August 2000, the IMF released its country report in Washington. Its managing director Horst Kohler was supposed to say that Malaysia's selective capital control measures were not so bad and that there should be measures to strengthen recovery and achieve high and sustainable economic growth while controlling inflation. No doubt the Government continues to sing its own praise about its correct economic policy, fiscal and monetary stance. We can also read unfavourable reports. During the height of the economic crisis, Malaysia did not go to IMF which had prescribed terrible medicines for several countries, aggravating social unrests. Selective capital control and pegging the ringgit to the US dollar at a fixed rate did tide the country over the bad patch. Can we go on forever? What is the strategy to deal with the changes while the world financial architecture remains the same, warts and all. Avaricious currency traders with mammoth funds capitalise on the weaknesses in the world financial architecture to speculate on weaker currencies, rendering the affected countries bankrupt. In July 1997, the Asian economic crisis caught Malaysia with the pants down. On the other hand, Malaysia has inherent weaknesses such as mismanagement, wastage, corruption, bureaucracy, cronyism and nepotism. Had we not had these weaknesses, the crisis would not have hit us so badly. Still, we were not the worst it. The | |
current political situation, the state of the judiciary and the propensity for the Government to pump in money for the property and building sector such as low-coast housing and the car trade cannot go on forever. Manufacturing for export is doing reasonably. But, the Government is short of money. Although the International Trade and Industry says that domestic and foreign investments between 1995 and 2000 have exceeded the target of RM110 billion, we would like to know the actual figures. All Malaysians would like to see sustainable economic growth and full economic recovery. Despite the official prattling about recovery, millions of Malaysians are still feeling the pinch. Inflationary pressure persists and the Cabinet decision to allow for petrol price hike has worsened it. The relative lack of transparency in liabilities of the public sector is worrying. We must continue to voice our concern about the defects of world financial architecture. Since the developed countries have not shown desire to rectify the defects because of their vested interests, what is the As the Government does not show any intention to change the capital control policy, we hope it would let us know the strategy for dealing with the changes while the world financial architecture remains unaltered.
Dr Tan Seng Giaw | |||||
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