Tuesday, July 29, 2008

Daim - environment now not good for FDI

A FEW months before the March 8 general election, former Finance Minister and Umno Treasurer Tun Daim Zainudiin warned the Barisan Nasional to watch out for the political restlessness in Kedah, Penang, Perak and Selangor.

As it turned out, the four states in the peninsular's west coast fell to the Pakatan Rakyat in an unprecedented show of the people's displeasure against the national coalition spearheaded by Umno.

Daim's warning then met with disbelief in some quarters. Today, Daim spoke again but this time on the national economy. "The Government must come out with various innovations to win public confidence. Malaysia also needs political stability. Without political stability, there is uncertainty and many fear there will be chaos."

Daim made these remarks in an interview with the Malaysian Business in its July 16 issue. Busy as ever in his international banking businesses, Daim answered questions ranging from the ringgit, the stock market, non-performing loans of banks, inflation and fuel prices.

One has to read the full interview to get the complete perspective of what Daim has to say. He was also asked to compare the financial crisis of the 1997/98 years with that of today, particularly in the manner in which it was handled then and today.

Some quotes from the interview: "People want to know whether the Government has options. They want to know if the Government is on top of these problems. If they know, then they will have faith in the Government and continue to support it....

"I think the Government should tell people the facts. Share with them the figures you have. Prepare for the worst. They will support the Government if they are told the truth. But the Government must have a plan on how to handle this tough problem.

"Once the Government has got the Action Plan, implement it and stick to it. No flip-flops." I think Daim's words should be heeded this time, considering his warning earlier this year on the political developments in the four states.

Mind you, he was asked to take the country out of the financial crisis in 97/98, which he did successfully, and was later drafted into the Cabinet for the second time in 1999. He left two years later and is happy tending to his crop of banks all over the globe.


jojo51 said...

kandarLike it or not, we have to make comparison between the success story of TDM era and the utter chaos under premiership of the current PM. Whereas the previous PM is totally in control and in charge of the country's economy, the present PM is more interested in dismantling the innovative and successful formula of the previous premier.

Whereas TDM went against conventional wisdom in generating growth, Pak Lah prefers the play safe approach. Its Malaysia Boleh spirit against cemerlang, gemilang & terbilang. TDM creates growth opportunities strategy and then look for funding. For Pak Lah there must be fund available first, otherwise the growth opportunities have to wait.

Pak Lah is a good house keeper only during good economic times. When the economy goes bad he is utterly loss and could not provide the much needed leadership. His lack of knowledge and indecisiveness in managing the country's economy has been completerly exposed by the crisis that is currently engulfing the country. I surely missed the good and bad times during TDM's era. The bad time became better and the good time became the best time.

Anonymous said...

Assalamualaikum Dato

Since Daim do not blog and the Government do not tell, may I suggest YOU reveal what you know in your blog.

Thank you.