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Study Currency Trade Statement by Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong on the Prime Minister Dato' Seri Dr Mahathir Mohamad's reiteration that the world must wake up to the threat of currency speculators. | |||||||
| Yesterday, the Prime Minister repeated his views on the currency speculators. Because he has mentioned names such as George Soros, he has been blamed for the sorry state of affairs in our currency and stock market. Now, the Hong Kong dollar has been attacked by these speculators, prompting its Government to come to the rescue. Dato' Seri Dr Mahathir said that as long as the world refused to admit that currency speculators caused the region's economic woes, the global economy would always be vulnerable to such threats. "It seems that the world does not want to recognize what I have said as true," added the Prime Minister. He quoted the example of the Mexican peso that had lost 40% of its value since January 1998. Dato' Seri Dr Mahathir maintained that governments did not cause the economic crisis, as was proven in South Africa and Russia, where the currencies had also been attacked by the speculators. After 13 months of economic crisis, the Malaysian Ringgit and the stock market are still suffering. The people are increasingly bearing the brunt. We do not know when the | |
economy will recover. We would like all people to unite and overcome the crisis. On the other hand, while speculators play a part in the currency turmoil, it is reasonable to look at the weaknesses in the country. The National Economic Recovery Plan has admitted to some of the weaknesses such as wastage and bureaucracy. Most people would believe that the Government is partly responsible for the crisis. It is no good denying this. What is more positive is for the Government to correct all the irregularities in the country. Although we have heard of the lack of transparency in the global currency trade, we have yet to understand fully what actually goes on. If the Prime Minister can initiate a thorough study of the world currency trade, the people will know it better. We can then formulate more effective measures to deal with it. Malaysia alone cannot face the speculators who have mammoth hedge funds. Just imagine, last year the United States of America had direct foreign investment of U.S.$180 billion whereas at its height in 1993, Malaysia only had U.S.$6 billion.
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