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Statement by Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong on the Prime Minister Dato' Seri Dr Mahathir Mohamad's pledge on transparency and higher standard in corporate governance. 4.9.2001.

Yesterday, the Malaysian Prime Minister Dato Seri Dr Mahathir Mohamad said:"We have carefully examined our own weaknesses and have taken various measures to correct our past mistakes."

The Prime Minister wants transparency and higher standard of corporate governance.

We hope that the measures taken are effective so that we can restore confidence on our economy. But, the Government has to go further by telling the people the truth about what has gone on in the many steps it has taken such as its purchase of the MAS shares, UEM, the use of statutory savings organizations such as EPF to shore up Time dotCom, the bailout of Indah Warter Konsortium, the special task force on Light Rail Transit, LRT, and the 10 anchor banks.

Because of various factors LRT has made a multibillion ringgit loss. The Government has a task force to work out a package to rescue LRT, the destails of which are not disclosed. The bailout of IWK and MAS has caused concern. We don't know what has gone on. How much has the Government spent? What is the source of fund?

BUMIPUTRA-COMMERCE BANK

The 10 anchor banks to merge the banks and finance companies in Malaysia will take time to succeed. The expertise and the workforce of each bank and the benefits from each merger are unknown to the public. Yes, the objective is to make Malaysian banks competitive in a more globalized world. Are we getting there?

Bank Bumiputera has been rescued by the Government several times, perhaps to the tune of over RM12 billion. On the other hand, Bank Commerce is, maybe, four times smaller than Bank Bumiputra. But, the former is much more disciplined whereas the latter is not. After the merger, is the former influencing the latrter or vice versa? Has Bank Bumiputera come out of the shell as a government department?

Dr Tan Seng Giaw