Mahathir is cause of 1997 Financial Crisis Thru Mismanagement

Mahathir is NOT an Economist and had NEVER faced such a Financial Crisis BEFORE. Therefore, Mahathir did not know the solution.

By Dr Robert Chan

In 1995, World Bank, IMF and Economists warned Mahathir Mohammad the Prime Minister that if Malaysia did NOT manage its economy and finance properly, it would suffer the same fate as Mexico whose peso plummeted very seriously.

Instead of finding out WHY and HOW to prevent the situation, Mahathir immediately rebutted and scolded them by saying that they were jealous of Malaysia’s development and economy and they were trying to embarrass us.

In 1997, when the Financial Crisis hit us, we were all shocked. Mahathir did not know what had happened and therefore did not know what to do.

Mahathir and his Ministers were confused by the various statements that they made. Apparently, Mahathir spent billions to support the currency ringgit but was unsuccessful.

When US Secretary of Treasury, Robert Rubin came, his advice was sought. Robert asked Daim and Mahathir to reduce interest rates. Daim is only a Lawyer and a businessman. He is no great Economist. IF Mahathir and Daim claim that they are experts in Economics and Finance, I would like to give them a Test – Theory and Viva.

Professor Paul Krugman wrote an open letter to Mahathir asking him to implement the Exchange Control.

Finally, the value of the Malaysian currency RM fell by more than 50% from RM2.50 to RM3.80 to USD.

Mahathir is NOT an Economist and had NEVER faced such a Financial Crisis BEFORE. Therefore, Mahathir did not know the solution. He took advice. Rumours in KL said Nor Mohamed Yaacop was responsible for the loss of US$10 billion in currency trading!!! Ask the Bankers and his classmates in University of Malaya. Malaysians became poorer by more than 50% because the idiotic Prime Minister Mahathir was stubborn.

So what so great about Mahathir???

When I was in Britain there was a Debate where Nobel Prize Winner Milton Friedman, Margaret Thatcher British PM and etc participated in discussing the Economy of Britain. Milton Friedman and Margaret Thatcher both said, “You cannot spend money you have not earned.”

Even a normal housewife knows that. She will run on a budget. A housewife is given a certain sum of money a month by her husband to manage the family and house. If she over-spends, she will be scolded by her husband. Most of the time, the housewife will spend less than what was given so she has some money for rainy days!!! A normal housewife can manage the economy better than Prime Minister Mahathir.
Mahathir the Prime Minister ran current accounts deficits for several years with little reserves.
Mahathir blamed everybody except himself.
Mahathir had to find a scapegoat and he pointed his finger at George Soros.
Mahathir is good at finding scapegoats!!!

When Malaysia was in the midst of this Financial Crisis 1997-8, he led a huge delegation to Argentina. WHAT FOR??? He should have stayed at home to LEARN ABOUT THE CRISIS, its causes and its remedies. But he did not care!!! If a Japanese PM did that, he would be forced to resign.

Mahathir did NOT treat the people with respect. His attitude is, “I can spend the peoples’ money any way I like. What can you do? I am the PM. I have the power.”
Mahathir travelled around the world more frequently than the US President or any leader of his time, using the nation’s money. Mahathir also went to Antartica and Vladivostock!!! He can justify anything.
After retirement, he admitted the 1997-8 Financial Crisis was the biggest headache he ever had as PM.
When I went to Argentina for a holiday, I was told by some Argentinians that our Prime Minister, Ministers and businessmen had bought properties in Argentina.
Is that the reason WHY Mahatir (after retirement) flew to Argentina using a “private jet”??? Whose private jet was that???
Mahathir is an arrogant and stubborn person.
Mahathir built the crooked half bridge without first getting Singapore to agree and sign the Agreement.
Now the half bridge, hanging in the air, is rotting in the sun.
Mahathir wasted RM350 million of the peoples money. But he doesn’t care.
He always said he did not care.
See how stubborn and idiotic he is.
Mahathir is an irresponsible Prime Minister.
The RM350 million could be used to build 3500 homes for the poor Malays. These homes could accommodate about 18,000 people. Are Architects and Engineers taught in Universities HOW to build crooked half bridges??? I don’t think it is in their curriculum. I think it is unethical for Architects and Engineers to build HALF bridges. Who made the MONEY from building the HALF bridge???
Mahathir built the RM600 million Convention Hall in Putrajaya for the OIC Meeting. Now it is hardly used. Such a waste of money!!! Why doesn’t Mahathir use the KLCC Convention Hall or PWTC Halls or other big Halls in KL?
Because Mahathir just doesn’t care.