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Do something about the weaknesses of our economy: part of the speech in a DAP buffet dinner in Bintulu, Sarawak. Dr Tan Seng Giaw in Bintulu on 10.10.1998 | |||||||
| With the foreign exchange control, marauding speculators cannot attack our currency for the time being. This gives traders a breathing space. During this brief period, the Government must identify and grapple with fundamental weaknesses. A few days ago, the Prime Minister Dato' Seri Dr Mahathir Mohamad visited Sarawak, encouraging people to unite in facing the economic crisis. We hope that the Prime Minister not only pays attention to correcting weaknesses in the Federal Government, but also helps every state including Sarawak with effective measures to overcome the crisis. After the regional financial turmoil hit Malaysia 15 months ago, the Ringgit, RM, and the share market have been savaged. Mammoth foreign hedge funds have tremendous effects on the world economy. Speculators can use tens or hundreds of billions of US dollars to destroy the economy of a nation or a region. Apart from foreign marauders, we have to review the internal factors such as corruption, wanton | |
waste, bureaucracy, nepotism and business politics. Had Malaysia corrected these shortcomings in time, the effects of the financial turmoil would not have been so great. In Sarawak, the Bakun project is a good example. From the beginning until the project was stopped last year, the people have been unhappy about it. How much has Ekran, which was connected with it, spent, logged the timber and claimed compensation on it? How much will be spent on the diversion tunnel? What happens to the people affected? One of the internal weaknesses is NPL. In July this year, the Government said that NPL was 7.5%. Now, one of the biggest banks, Bank Bumiputera, has NPL of over 10%. NPL of over 5% is unhealthy. Since 1st October 1998, the Government has introduced foreign exchange control: capital can flow into this country but cannot get out. The interest rate has been reduced. With the fixed exchange rate of 1 U.S.$ to RM3.8, traders can now make plans to boost the market.
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