[Mahathir tentunya akan mengambil langkah yang akan menyelamatkan dirinya di saat sokongan semakin tiada. Pemergian Daim akan mengalihkan fokus kepada Daim seorang sahaja padahal Mahathir sendiri sebenarnya sama sahaja. Jika tidak takkan Abul Hasan yang sudah tercemar dengan skandal di EPU itu diambil semula. Tiada reformasi sebenarnya kerana semua kunci kewangan negara kini sudah dipegang oleh Mahathir seorang sahaja. Dengan itu lebih mudah dia mengerjakannya kerana wang itulah segala-galanya untuk membeli dan menipu sesiapa sahaja agar menjadi hambanya. Itu termasuk Agung yang mendapat kereta baru yang datangnya entah dari mana tanpa pembentangan belanjawan di mana-mana. - Editor]

The Asian Wall Street Journal
4th June 2001

Finance Minister's Departure Offers New Chance for Malaysian Reforms

By LESLIE LOPEZ
Staff Reporter of THE WALL STREET JOURNAL

KUALA LUMPUR, Malaysia -- Daim Zainuddin's resignation as Malaysia's finance minister gives Prime Minister Mahathir Mohamad direct control of the country's economic management.

The question now is whether Dr. Mahathir will push ahead with economic reforms and stop state-backed rescues for Malaysia's debt-heavy corporate sector, a policy that featured prominently during Tun Daim's tenure and was widely blamed for souring investor sentiment.

"This break definitely gives the government a chance to adopt a new approach on economic policy," said Christopher Wood, Asian equities strategist for ABN Amro in Hong Kong. Mr. Wood and other economists contend this will be crucial if Malaysia is to weather a global economic slowdown that is undermining exports, which are the country's main growth engine.

No Public Comment

Tun Daim -- a lawyer-turned-businessman who became one of Malaysia's wealthiest tycoons during the Mahathir era -- submitted his resignation Friday. Probably the most influential minister to serve Dr. Mahathir in his nearly 20 years in power, 62-year-old Tun Daim had been on leave for the past two months and hasn't commented publicly on his decision to quit.

However, government officials and businessmen close to the two politicians, said their relationship had soured, largely because Dr. Mahathir felt Tun Daim's policies were undermining him politically. The officials said several controversial Daim-endorsed corporate bailouts and other transactions involving businessmen close to him created headaches for 75-year-old Dr. Mahathir. "They weren't seeing eye-to-eye anymore and the P.M. felt he [Daim] was becoming a liability," said a senior government official close to Dr. Mahathir.

Dr. Mahathir says he hasn't decided on a replacement for Tun Daim, who served two terms -- totaling more than 10 years -- as finance minister in the Mahathir government. But several senior administration officials said the premier is likely to take over the finance minister's portfolio himself and is expected to assemble a new economic-management team headed by two former central bankers, Nor Mohamed Yackop and Ali Abul Hassan Sulaiman.

Tan Sri Nor Mohamed, who was appointed adviser to the premier in May 2000, was the chief architect behind Dr. Mahathir's experiment with currency controls that began in September 1998. Tan Sri Ali Abul Hassan, a former central-bank governor who supervised the consolidation of the banking sector after the 1997 financial crisis, was brought back to government in April to oversee plans for state-funded projects to help revive the economy.

Tun Daim's departure ends one of the most enduring political partnerships in modern Malaysian history. Beginning as an informal trouble-shooter and confidant for Dr. Mahathir in 1981, Tun Daim assumed increasingly bigger roles on Malaysia's political and economic stage. He first served as finance minister between 1984 and 1991, overseeing the beginning of Malaysia's privatization program and a rapid economic expansion fueled by relaxed investment rules and easy credit. When Dr. Mahathir dismissed his former deputy prime minister and then-finance minister Anwar Ibrahim in 1998, he reinstalled Tun Daim as finance minister to help revive the economy.

Tun Daim, who shunned the public eye and conventional politics, wielded considerable political clout. That stemmed from his status as Dr. Mahathir's closest adviser and from his position as treasurer for the ruling United Malays National Organization. In this position, which he has held since 1984, Tun Daim collected and managed the political funds that helped keep Dr. Mahathir and his party in power. Senior UMNO officials say the former finance minister has yet to resign the treasurer post, but they expect him to do so soon.

Several political analysts say Dr. Mahathir's falling out with his most trusted lieutenant highlights the depth of the premier's political problems.

Many ethnic Malays, who account for more than 60% of Malaysia's 22 million people, have soured on Dr. Mahathir's government largely as a result of its treatment of Datuk Seri Anwar, who is now serving long jail sentences for corruption and sexual misconduct. Datuk Seri Anwar's supporters claim that he is the victim of a political conspiracy hatched by, among others, Tun Daim.

The government's penchant under Tun Daim to salvage politically well-connected business groups with public funds has angered Dr. Mahathir's political foes as well as many UMNO members, who are hurting financially because a weakening economy has derailed the party's patronage machine.

Several analysts say that by forcing out Tun Daim, Dr. Mahathir is hoping to defuse criticism of his leadership at a crucial UMNO meeting later this month. "The Daim affair will take the attention away from Mahathir because it shows that he is doing something to pacify his party," said a senior Asian diplomat in Kuala Lumpur.

Policy Rift

Indications of a policy rift between Tun Daim and his boss first surfaced in 1999, when Malaysia moved to consolidate its wobbly financial sector. Tun Daim pushed for the consolidation of Malaysia's 58 financial institutions into six so-called anchor banks, several of which would have been controlled by the finance minister's business allies. But Dr. Mahathir backed a central-bank plan to create 10 banking groups to disperse Malaysia's financial assets more broadly.

More recently, senior government officials said Dr. Mahathir was irked with Tun Daim over the handling of several controversial corporate rescues involving business groups linked to the former finance minister. They include the government's 1.8 billion ringgit ($473.7 million) purchase of a controlling interest in Malaysian Airline System and the acquisition of shares in a telecommunications unit of Renong Bhd. by state pension funds. The main beneficiaries of those transactions were former business proteges of Tun Daim.

"Each deal was bringing more political problems and the prime minister found that he was the only one defending the government position," said a businessman close to Dr. Mahathir.

http://interactive.wsj.com/

The Business Times, Singapore
4th June 2001

Mahathir gives no hint of Daim's successor

Others name Zeti; her deputy; former central bank governor; and Razaleigh as candidates

(KUALA LUMPUR) Malaysian Prime Minister Dr Mahathir Mohamad said he has no replacement in mind yet for Daim Zainuddin, who resigned as finance minister last Friday.

'Belum fikir lagi (I've not thought about it yet). Anybody want the job?' Dr Mahathir reportedly said.

The New Sunday Times yesterday quoted the prime minister as saying that Mr Daim's intention to resign was never discussed by the cabinet.

'It is not a cabinet matter, so it was not discussed,' he said. Cabinet appointments are the sole prerogative of the prime minister.

Malaysian media yesterday speculated furiously about which government heavyweight Dr Mahathir will pick to succeed the country's newly-resigned economic chief.

The predictions for Malaysia's next finance minister were eclectic - including the current central bank governor, a state chief minister and a former finance minister previously banished into the political wilderness after challenging Dr Mahathir in 1987.

The prime minister announced on Saturday that Mr Daim had resigned after a two-month leave of absence, ending weeks of speculation amid rumours that he had fallen out with the Malaysian leader. Mr Daim, 63, gave no reasons for his resignation, which took effect immediately.

His decision blew open one of the most important government posts at a time when Dr Mahathir's potential successors are jostling for power.

Citing unnamed sources, the Malay-language Utusan Malaysia newspaper said that a top official from the central bank was being 'observed' for the post. Zeti Akhtar Aziz, whom Dr Mahathir chose as the first woman to head the central bank last year, and her deputy, Awang Adik Hussin, were two names mentioned, reported the paper, which has close links with Dr Mahathir's United Malays National Organisation, or Umno.

Rival The Sun newspaper tipped Ali Abul Hassan Sulaiman - the man whom Dr Zeti replaced - as the likely new finance minister, as a reward for supporting Dr Mahathir during a difficult bank merger exercise.

Utusan reported that Mr Daim was rumoured to have met the Sultan of Johor last week to get permission for Abdul Ghani Othman, the state's Chief Minister, to succeed him. Johor, which borders Singapore, is one of Malaysia's wealthiest states.

The national Bernama news agency suggested that Nazri Aziz, the Entrepreneur Development Minister who is presently acting as finance minister, could be appointed permanently. Yesterday, Mr Nazri said Mr Daim's exit is a big loss to the nation.

The minister, who stood in for Mr Daim when he went on two months' leave which ended on May 31, believed that Mr Daim had resigned to keep his earlier promise to hold the post temporarily to help revive the country's economy.

Mr Nazri said he was saddened by Mr Daim's decision because in his brief tenure in the cabinet he had learnt a lot from Mr Daim who was an expert in economics matters.

He said the question of him succeeding Mr Daim did not arise because he was only standing in for Mr Daim in the cabinet in routine work.

Utusan and independent Internet newspaper Malaysiakini both named Razaleigh Hamzah, finance minister between 1976 and 1984, as a candidate. Mr Razaleigh, a member of Malaysian state royalty, challenged Dr Mahathir for the premiership in 1987, but lost. He rejoined Umno in 1996.

The Star newspaper, Malaysia's leading English-language daily, said Dr Mahathir could temporarily take over the finance job himself - as he did for more than four months after firing his previous finance minister, Anwar Ibrahim, in 1998.

Anwar, who was then Dr Mahathir's deputy and anointed successor, is serving prison sentences totalling 15 years for corruption and s###my.

Opposition leaders urged Dr Mahathir to announce a replacement as soon as possible for Mr Daim, who was made finance minister in January 1999.

http://business-times.asia1.com.sg