There may be some uncertainty about Malaysia's ability or willingness to participate financially in the Sudan oil project. Read the following excerpts:
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KUALA LUMPUR -- Malaysian Prime Minister Mahathir Mohamad pledged Saturday to carry out economic austerity measures aimed at slowing economic growth and preparing the country to emerge from its economic crisis.
In a speech to Southeast Asian businessmen, Mr. Mahathir acknowledged
that Malaysia is facing severe economic problems, and said unviable
projects and unnecessary workers need to be eliminated to reach a
recovery.
"We must reassure the world that we will carry out what we have
undertaken to do at whatever cost," Mr. Mahathir said.
Two weeks ago, Anwar Ibrahim, finance minister and deputy prime
minister, announced austerity measures that included an 18% cut in
government spending for 1998. Mr. Anwar also cut Malaysia's economic
growth forecast for 1998 to 4% to 5%, from previous projections of 7%.
Mr. Mahathir said Malaysia was paying a heavy price for being "caught
unawares" by the increasing globalization of the world economy. During
the past four months, the Malaysian ringgit has dropped some 45% and
stock prices have plunged amid concerns that Malaysia has been living
beyond its means by promoting expensive infrastructure projects that have swollen the country's current account deficit.
But unlike previous comments on the crisis that have laid the blame on foreign speculators, Mr. Mahathir on Saturday acknowledged the need for sacrifices to help make the economy more efficient.
"What is not viable must be killed outright so the survivors can be free to consolidate their positions. People unnecessarily employed should be retired," Mr. Mahathir said. "As a doctor who once practiced surgery, I appreciate the need to amputate gangrenous legs to save the rest of the body. What we have to do is surgical. And we will do it," he added.
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All I'm doing here is speculating about the uncertainties that are hurting the price of our "beloved" Arakis. I haven't heard any specific comments concerning Malaysia's commitment to honoring their agreements in the Sudan. Naturally, in the spirit of the thread, everyone is invited to think out loud.
Marantz |
