For example, Renong conglomerate, headed by Tan Sri Halim Saad, has over 14 huge companies as subsidiaries such as United Engineers Malaysia, UEM, and Time Engineering with its controversial Time dotCom. It was (still is?) inseparable from UMNO.

The Government has given these companies special treatment. For instance, it has paid much more than the market price for the shares of Tan Sri Tajuddin Ramlin in MAS and, through statutory bodies like Employees’ Provident Fund, EPF, has helped Time dotCom.

INTRICACY

It seems that UEM controls 32% of Renong shares, and Tan Sri Halim owes UEM RM 3.2 billion. The intricacy of Renong, its subsidiaries and its debt boggles the mind.

The Government has formulated a master plan for the financial system to strengthen Malaysia against further globalisation and liberalisation. If it persists with special treatment such as bailouts for politically-connected companies like Renong, how can it implement the master plan?

Therefore, we press the Government to announce its plan to solve the dilemma of Renong including the part to be played by Danaharta, the National Properties Management company, handling non-performing loans.

As the economic growth this year is forecast at 2.2% instead of 7% in the 2001 budget, Malaysian economy is bad. This is the time to show the world that the Government is serious about correcting the inherent weaknesses, one of which being the shoring up of politically-connected companies.