BMF scandal ‘extended’ into Malaysian ex-PM Mahathir’s govt – CIA files

Source: Asian Correspondent

Recently declassified documents by America’s Central Intelligence Agency (CIA) said the Malaysian government under longest-ruling Prime Minister Dr Mahathir Mohamad had a hand in the largest financial scandal the country had seen during the 1980s.

The CIA’s claim was revealed last week after its move to declassify more than 13 million documents, making them accessible online for public viewing.

During the first few years of Dr Mahathir’s tenure, Malaysia was ensnared in a massive graft debacle involving government-owned Bank Bumiputera (Bank Bumi), whose reputation was tarnished by the “questionable” operations of its wholly-owned Hong Kong subsidiary Bumiputera Malaysia Finance Ltd. (B.M.F.).

Widely known as the BMF scandal, the Malaysian bank and its offshore subsidiary dished out billions in bad loans to numerous Hong Kong property speculators, including the Carrian Investment Limited (Carrian Group) between 1979 and 1983. The scandal also saw the brutal murder of a young Malaysian Bank Bumi auditor.

The BMF scandal has been described as an embarrassing episode in Dr Mahathir’s premiership, which dogged his leadership and saw hundreds of millions of dollars disappear into thin air following the defunct Carrian group and its former chief executive George Tan’s move to declare bankruptcy.

As BMF was heavily involved in providing loans to property speculators during Hong Kong’s property boom in the late ’70s, the CIA said BMF — unlike other banks in the the British colony — continued to extend credit to real estate despite concerns of a weakening market.

As a result, the Malaysian bank, which was initially set up to uplift impoverished Malaysians from the ethnic Malay community, had lost US$1 billion and prompted a delayed and wide scale probe into the scandal.

In the document entitled “The Bank Bumiputra Scandal: More Trouble Ahead for Malaysia’s Mahathir?”, the CIA said although Dr Mahathir had admitted BMF’s “imprudent” practices, the government’s response to the losses incurred was “surprisingly restrained”. Continue reading

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Why Mahathir did a U-turn?


Source: Malaysia Today

Mahathir accidentally let slip that DAP wants the post of Deputy Prime Minister. Kit Siang is really upset about this because he knows this is going to cost the opposition Malay votes. Worse still it is going to cost them Chinese votes as well because the Chinese know that such a move would be detrimental to race relations if the Malays view this as them losing political dominance. So Mahathir had to do a u-turn and say it was MCA and not DAP who wanted the post of Deputy Prime Minister.

When it was revealed that on 3rd December 2016 Tun Dr Mahathir Mohamad and Lim Kit Siang had entered into a secret deal (which is Mukhriz would be made the Prime Minister while Kit Siang would be the Deputy Prime Minister and Finance Minister) Kit Siang asked those who are making this allegation to state the time, date and place of that meeting or else he is going to sue.

Actually no one said they had met face-to-face so it is silly to ask those making this allegation to state the time, date and place of that meeting. What was actually said was that after the Umno assembly on 3rd December 2016 Kit Siang panicked (because Prime Minister Najib Tun Razak had said the next general election is going to be fought between an Umno-Malay-led Barisan Barisan and a DAP-Chinese-led Pakatan Harapan) and he phoned Mahathir to ask Mahathir to attend DAP’s convention the following day.

Mahathir says DAP wants the DPM post, Kit Siang denies a meeting took place, but Chin Tong says a meeting did take place

But then a week before that DAP had announced that Mahathir was not invited to DAP’s convention. This is because Kit Siang knew that the DAP supporters were not too happy about DAP’s collaboration with Mahathir and there is a danger that many Chinese would abandon DAP because of this. So Kit Siang wanted to distance DAP from Mahathir but then Najib’s speech that same day changed everything. DAP now needed Mahathir to attend their convention to give it a Malay face. Or else Najib would be proven right if the DAP convention is seen as a purely Chinese affair.

Mahathir, however, felt slighted about the earlier announcement that he was not invited to the DAP convention so he was not going to just say yes as if he is too hard-up for an invitation. So Mahathir said he would agree to attend only if Kit Siang agrees to Mukhriz as Prime Minister in the event Umno and Barisan Nasional are kicked out in the next general election.

Kit Siang was expecting this so he replied he would agree to that if Mahathir can agree to him as Mukhriz’s Deputy Prime Minister and Finance Minister. That would effectively make Kit Siang more powerful than Mukhriz. But all Mahathir wanted was for Mukhriz to become Prime Minister so he agreed to Kit Siang’s proposal. Continue reading

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U-Tun

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Johor Milik Warga Asing…Benarkah?

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Dr M. You Are Arrogant!

Mahathir’s arrogant reply to Sultan of Johor betrays that his economic outlook is still stuck in the past.

He continues to demand that investments in Manufacturing is what is needed even though manufacturing investments normally provides lower income jobs that are now majority filled by migrant workers.

He continues to ignore the Services sector, which developed economies know is essential to higher-value jobs.

Mahathir seems to be stuck in “developing country” mode rather than to be a developed country – a key reason why Malaysia was stuck in the middle-income trap for so long due to this policies.

Mahathir continues to say that manufacturing investments will provide jobs for locals.

However, the problem with this is that we no longer have an unemployment problem. In fact, due to reliance on cheap labour, manufacturing requires huge amount of foreign workers.

Walk into any factory in Malaysia and you will see that the majority are foreign workers nowadays.

As very evident in Mahathir’s thinking, Malaysians are still “low-cost labour” to him.

This is why since 2009, the Najib govt’s focus was to put greater emphasis on developing the services sector – rather than just the manufacturing sector,

Manufacturing investments are not ignored and still heavily promoted but with an emphasis on higher value and automated manufacturing. Various incentive are still offered to them.

As you can see from the graph below, manufacturing investments are still strong – and much higher than Mahathir’s era.

But a new focus is on the services industry and services exports. Services are now the biggest sector and comprised 53.9% of our GDP in 2015. In a sign of success, our services sector exports continue to grow with RM135 billion recorded that year.

In the USA, the services sector comprises 80% of their GDP and 81% of their employment.

As you can from the graph, the services sector investments have grown dramatically since 2009 and have now overtaken the manufacturing sector.

This is where the future of Malaysia lies – high value knowledge-based services jobs filled by locals.

Not low-value manufacturing jobs filled by foreigners as promoted by Mahathir.

Also, Mahathir is wrong to accuse the Johor Sultan of “selling the country” as that Forest City land is fully to be reclaimed and is not even land now. So how can you say sell Malaysia?

After reclamation, it would just add to the size of Johor and its sovereign area.

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Pribumi’s Weekend of Utter Confusion


Source: Malaysia Today

It has been a weekend of utter confusion during Pribumi’s party launch. So many people are issuing statements and one person is contradicting the other. Ultimately Mahathir is playing a double-game and the contradictions are meant to hide the truth through confusion. As the saying goes: if you have no explanation then confuse them. Najib, however, knows what game Mahathir is playing, which is the same game since 2014.

Lim Kit Siang did not attend the party launch so as to not upset PAS

Last Saturday was the official launch of Parti Pribumi Bersatu Malaysia (a.k.a. PPBM or Pribumi) at the Malawati Stadium in Selangor. However, I can only describe this whole episode as a weekend of utter confusion and it appears like Tun Dr Mahathir Mohamad and his gang of Pribumi leaders, plus their comrades from Pakatan Harapan, do not know whether they are coming or going.

First of all, the newspapers reported that PAS attended the party launch. Today, however, PAS Selangor announced that it did not attend the launch as reported.

PAS also did not attend Pribumi’s launch as what the newspapers wrongly reported

Then Mahathir announced that BR1M will be continued if the opposition comes to power. Selangor Menteri Besar Azmin Ali, however, contradicted Mahathir and insisted that BR1M is a bribe and will be discontinued if Pakatan Harapan comes to power (READ HERE: Azmin maintains that BR1M is ‘corrupt’, won’t be continued if opposition win GE14).

Lim Guan Eng then announced that not only will GST be abolished but highway toll charges as well (READ HERE: DAP: No GST, toll if Pakatan takes Putrajaya). However, Guan Eng did not announce how much this entire exercise is going to cost the government, which in the end is going to cost billions and will be borne by the taxpayers who do not even use the toll highways (as opposed to now: you pay only if you use the highways).

Mahathir then announced that since GST is going to be abolished and the government is going to lose RM40 billion a year, the GST will be replaced by a sales tax. So that means the government will still be collecting RM40 billion a year from Malaysians but they will just change the name from ‘GST’ to ‘Sales Tax’. Nevertheless, collecting RM40 billion in Sales Tax every year is better and fairer than collecting RM40 billion GST.

Mahathir then insulted PAS in his speech but at the same time said that the opposition must be united and avoid three-corner or more contests in the next general election. So this means PAS must join the opposition coalition. But it will be impossible for PAS to join Pakatan Harapan after DAP closed down Pakatan Rakyat and announced that a new coalition called Pakatan Harapan would be formed and PAS will not be invited or allowed to join the new coalition.

So, to save face for both PAS and DAP, Muhyiddin Yassin announced that Pakatan Harapan would change its name to Barisan Rakyat. Continue reading

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Bunch of Clowns!

Source: News Straits Times

Azmin maintains that BR1M is ‘corrupt’, won’t be continued if opposition win GE14

PKR deputy president Datuk Seri Mohamed Azmin Ali is standing firm by his belief that the 1Malaysia People’s Aid (BR1M) scheme is ‘corrupt’ and that it will not be continued if Pakatan Harapan were to win the 14th General Election.

He maintained that it is a form of bribery.

“BR1M is corrupt and I will fight against corruption.”

“Why should I condone such acts,” he asked when met by reporters at the state secretariat building after addressing the monthly state assembly, here today. His stand appears to be in stark contrast with that of Parti Pribumi Bersatu Malaysia (PPBM) chairman Tun Dr Mahathir Mohamad, who has since backpedaled on his earlier claims that BR1M should be abolished.

At the launch of PPBM over the weekend, Dr Mahathir had said that the BR1M assistance would be continued if the opposition pact succeeds in taking over Putrajaya. Dr Mahathir had said that the financial assistance to the people will be made into ‘statutory assistance’ which will determined by the law and budget.

Azmin noted that Dr Mahathir had said that if necessary, BR1M will be maintained through an institution which will be more transparent. “It will not be managed by politicians, unlike what is happening now. Such financial assistance should not be included in the election manifesto,” said Azmin. Last year, Dr Mahathir had claimed that BR1M was a form of corruption. He had accused Prime Minister Datuk Seri Najib Razak of using the aid to win public support for the coming 14th General Election.

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Dr M reverse again…BRIM this time!


At yesterday’s PPBM launch, despite saying that introducing a new tax called GST tax has caused inflation and menyusahkan rakyat, Mahathir says he will abolish GST and in its place, he will introduce a NEW sales tax with a different name.

Firstly, the one-off spike in inflation for GST is already over. It will not be used as an excuse again by merchants to increase price. If you abolish GST and introduce a new tax, it will certainly be yet another excuse for merchants to increase prices and spike inflation again.

Secondly, sales taxes are ancient and 95% of the majority of countries have already moved to the more modern GST/VAT to combat tax evasion, mitigate the illegal “black: economy and to reduce illicit outflows.

Moving back to sales tax just allows his cronys to resume tax evasion and engage back in illicit outflows.

What kind of party would move back from a modern tax system to an ancient tax system already rejected by the modern world?

For years, Mahathir also frequently attacked BR1M and allege that it is corruption and a bribe that would make people lazy and over-dependent on the government.

But now he says BR1M will be retained and put into statutory law. So he wants to put into law a system that is corruption and a bribe that would make people lazy and over-dependent on the government?

The fact that there are some people who had cheered Mahathir and agreed on every word he says despite the multiple U-Turns shows that Mahathir and parti Cap Bunga supporters have backward thinking and simply not too smart.


Source Article: The Malay Mail Online

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