In fact, the problems Malaysia is facing today - the root cause of the
disease - may perhaps be traced even
further back than the mid-1980’s to the mid-1970’s, when Dr. Mahathir
was then the Deputy Prime
Minister. From the time of his appointment in 1975 by Hussein Onn,
the Prime Minister, over the heads of
two other more senior Vice-Presidents of UMNO, the main party in the
ruling coalition, Ghaffar Baba and
Tengku Razaleigh Hamzah, Mahathir probably knew that sooner or later
he would have to face a challenge
from Razaleigh who was then Minister of Finance and was also in a better
financial position and had
arguably better support among the grass-roots of UMNO than Mahathir
at the time.
The man Mahathir chose to be the key-man in his defence campaign was
Daim and it was Daim’s job
essentially to raise the funds which this entailed. Daim’s main vehicle
for this purpose was a company called
Peremba, which also became the grooming ground for the young managers
who in their 30’s in the late
1980’s were appointed by Daim to head large public-listed companies
but still reported to him even though
he himself did not appear as a shareholder or director. At the same
time he maneuvered himself into control
of Fleet (and directly and indirectly into many other companies as
well), UMNO’s investment vehicle, which
had before that been controlled by Razaleigh and his men. Fleet was
then in control of the New Straits
Times group, the largest media group in Malaysia and which also owns
TV3, the first private TV station in
Malaysia.
Under Daim, Fleet made many blind and questionable investments, including
the purchase of a controlling
stake in Faber Merlin, a public-listed hotel and property company which
had been mismanaged and bled
dry by Chang Ming Thien and which by the mid-1980’s had accumulated
losses running into the hundreds
of million ringgit. Interestingly, Chang Ming Thien was also the Chairman
of the United Malayan Banking
Corporation, UMBC, in his capacity as a Trustee of MCA (the main Chinese
party component of the ruling
coalition).
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