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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Bill Ounce who wrote (4823)	6/25/1998 5:09:00 PM
From: Stitch	Read Replies (1) \| Respond to of 9980

Bill, Thread: As an ex-pat in Malaysia (as is BT) and married to a Malaysian citizen I watch the local news with special interest and concern. There is more then one read on the Daim appointment. First of all, I do not think it materially affects Daim's real local power in that he was already appointed as head of the recovery effort through his appointment as the Executive Director, National Economic Action Council. Further he has always had extraordinary "persuasion" power. I have read news analysis that refer to Daim as the "virtual finance minister". On the outside amongst foreign investors and analysts he gets mixed reviews. He is widely recognized as one of the party elite (he is the UMNO party treasurer) and as a close friend of Mahatir is definitely one of the bumiputeras who has benefitted in the past from the extraordinary growth that occurred here. But he also gets reviews that remark on his departure from the usual line speaking frankly about needed reforms after his appointment to the Council. In fact, some comments remarked on the surprising partnership that seemed to have been forged between Daim and Anwar with regard to reforms, banking laws, central bank policies, and anti bailout talk. Daim also gets a lot of credit for having led the country out of the last local recession as Finance Minister in 1986-1990. He did so by slashing government spending. But this time around that may not go so well with the much more fattened party regulars who have become quite used to the largesse of a friendly government. It will be interesting to see what this appointment is all about. I personally think it is to provide Daim with official portfolio so that he may deal forthrightly with counterparts in other governments. I also do not think Mahatir, even with Daim at his side, has the currency to disposses Anwar without risking a huge internal revolt and the complete contempt of the international community. Reference your article concerning the Johor Bahru UMNO youth head blaming Singapore for Malaysia's troubles it would be a mistake to assume that all Malay's would accept such a premise as it would be far from the truth. The national UMNO Youth leader is currently undergoing extreme censorship for his anti cronyism remarks for example. There are Malays who are very aware of the mistakes of the past and there are Malays who are still deep in denial. The same could be said of the Chinese and Indian segments of the population here. It is sad to see the leaders responsible for allowing the people here to get labeled by their very public hubris. Try to imagine what it would be like if all American men were assumed to have the same moral turpitude that Clinton is widely regarded to have. If that were true we would have a given congressional medals of honor to the inventors of Viagra. Best, Stitch

To: Bill Ounce who wrote (4823)	6/25/1998 9:43:00 PM
From: B Tate	Read Replies (1) \| Respond to of 9980

Bill Having watched part of this "news conference" televised on the local news programs last night, a couple of observations. 1. The assembled 'reporters' were all locals, as far as I could see when the camera panned. Usually when he holds these conferences he speaks in Bahasa Malay. This was meant for international sound clip distribution as I see it. 2. One significant new whipping boy was raised as causing the problem that Malaysia faces. "We tried to follow the ground rules established by the IMF in our interest rate policies. We have found out that this has done imeasureable harm to the Malaysian economy. It is now too late to rectify this since once put in place you cannot repair the damage done. Diam is here to help is figure out how to correct this error in IMF policy".......... (paraphrased slightly due to memory loss at my advanced age) Anybody else surprised at the reference to IMF policies? Correct me here Stitch, but all I've ever heard was that Malaysia would never, NEVER go along with the "stupid" policies of the IMF. Some mighty funny ideas floating around Merdaka Square as far as I can see.... On another note. Last week during discussions with one of the local professionals, he assured me there will be race riots etc. within 60 days. He claims that the "Penang Incident" was only the beginning of the unrest. His view was that in the urban areas the education level is such that riots etc. will be avoided, but look out in the Kampungs where the hatred has been suppress forcibly for the last 10 - 23 years. "They are only looking for a reasonable excuse to blow up". Sad commentary from one of my best friends. Regards bt