Mahathir’s and Daim’s cronies were the hardest hit by the Malaysian Central Bank, Bank Negara’s
decision to reduce the non-performing loan limits from 6 months to 3 months (non-servicing of interest or
loan repayment) ostensibly to be line with international norms. House, hire purchase, project and personal
financing came to almost complete standstill (and have not returned to any sense of normalcy) while
Malaysians battled against rising interest rates, rapidly deteriorating share prices, falling currency values and
uncertainty of property values. Infrastructure projects were put on hold and many prestigious projects such
as the Kuala Lumpur monorail stopped for lack of continued funding.

Spending on the facilities for the Commonwealth Games went on, however, as the government strived to
find some justification in continuing with the Games to save the tremendous loss of face and goodwill
abandoning the Games would entail, in spite of the growing realization that many Malaysians were becoming
increasingly unable to afford even the cost of tickets to the Games. Free tickets galore were made available
to the disadvantaged, but many could not even afford (or be bothered) to turn up at the Games' various
venues.

Anwar was given the nickname "Mr. IMF" by Dr. Mahathir in UMNO and openly criticized for toeing the
line and echoing the criticism of diabolical foreigners who wished to destabilize and control Malaysia’s
economic and political sovereignty. While no doubt Mahathir had his own agenda (chiefly his own political
survival and the economic survival of his cronies upon whom he depended) in making these allegations,
Anwar’s image has taken a drastic beating (coupled with the as-yet unproven - notwithstanding the
existence of the purported affidavits, witness and other evidence - allegations of bisexual misconduct against
him in a book "50 Dalil Kenapa Anwar Tidak Boleh Jadi PM" or "50 Reasons Why Anwar Cannot
Become PM" widely distributed for free by the official party machinery itself amongst UMNO members at
the last General Assembly and which has now become subject of a court case for libel with the court
granting an injunction against further distribution until disposal of the case). The judge who granted the
injunction was inexplicably transferred out of Kuala Lumpur at short notice.

Many Malaysians were beginning to feel that Anwar was a lame duck and unlikely to become Prime
Minister notwithstanding his subdued protestations to the contrary at the time. His sacking from the
government has probably given him a far better opportunity to push the Reformasi agenda from outside
rather than within.

Mahathir’s resumption of "full control" has allowed him to prescribe a different and apparently more
palatable (yet still equally ineffective) medicine for Malaysia’s economic malaise. The good doctor’s
medicine was no longer working, however, and there are no signs that it will continue to be palatable - on
the contrary there are indications that Mahathir in his usual dictatorial style will force-feed that medicine
down the throats of Malaysians (and the rest of the world as well) whether it is the right medicine or not. It
may even turn out to be poison, and the worst fears of most Malaysians will thus be realized.

While all this political drama is taking place, Malaysia’s economic woes continue to remain unresolved and
the situation has even deteriorated further and will most likely continue to do so. The Malaysian Institute of
Economic Research made the statement a few days before the UMNO General Assembly that the worst is
yet to come, a feeling shared by most Malaysians. Malaysians are now left wondering when the final crunch
will come and just how bad it will be.
 
 
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