CASE STUDY LEADERSHIP
PROGRAMME
MALAYSIA : CAPITAL & CONTROL
BY ZAINUL ABIDIN SAAD
KAJIAN KES INI ADALAH BERDASARKAN :
STRATEGI PEMBANGUNAN MALAYSIA –
DASAR-DASAR DEP
•
1970
Promote export growth of manufactured and high-tech – Intel & National
Semiconductor
•
1980
Heavy Industry Development – HICOM & PROTON
•
1982
Privatisation Policy * Private Sector Contribution to Economy e.g. North
South Highway, PLUS
* Reduce government spending
•
•
1985
* Commodity prices plummet
* Drastic cut public spending
* Allow ringgit to depreciate
* Restriction on foreign borrowing
1990
* Economic growth had been rapid – 7% average
* Poverty rate had fallen
* Distribution of wealth as in NEP not achieved Bumiputra
portion only 22%
* Vision 2020 – to become fully developed country within 30
years
* Labuan as offshore financial centre
•
Feb 1994
Bank Negara impose direct control on foreign capital inflow
* Controversy and resolve the policy in August 1994
•
1997
* Bank can borrow and lend foreign exchange to resident and
non-resident
* Fee & unrestricted inflow and outflow of capital
* Economy booming
* Massive capital inflow
* Stable exchange rate
Those are the scenario of Malaysian economy till 1997 before Asian
Financial crisis
Malaysian Financial Crisis (1997-1998)
Causes of Crisis
• Massive outflow of capital
• Currency speculators trading
• External factor
Effect
• Depreciation of ringgit
• Non-performing loan increase
• Price of share and asset deflated
• Bank and finance company weaken e.g. MBF Finance & Bank
Bumiputra
• Widespread corporate failures e.g. Renong
Solution/Objective
• To regain monetary independence
• Eliminate offshore trading and currency speculation
• Restrict outflow of short term capital
Courses of Action Taken
• Identify resources available, expert – Daim, Nor Mohamed Yakup,
NEAC i.e. National Economic Action Council – MTEN
• Form
• Set up National Economic Recovery Plan
• Impose regulation by Bank Negara:- All ringgit held offshore be repatriated within one month
- Prohibit ringgit credit facilities to non-resident
- 12 months waiting period for non-resident to withdraw ringgit
proceed from sales of shares, assets
- Export of good only paid in foreign currency only
- Resident/Non resident traveler can import/export RM1,000 only
- Pegging ringgit at RM3.80/US dollar
- Reduce interest rate from 8.9% to 5.5%
- Establish Danaharta, Danamodal for NPL
- Freezing CLOB – Singapore counter for Malaysian share
Monitoring/Controlling
• Setting up communication system, control measures
• Website – updating and clarification
• Bank Negara extensive education campaign
• 24 hours hotline
• Press release
• Constant dialogue with foreign investors
Review
• Constantly review the policy if necessary
e.g. - Limitation on profit repatriation was reviewed
- Sept. ’98, permission is given for traveler to import any
amount of ringgit
- Exit taxes on capital gain was reduced to 30% and finally
abolished in 2001
Daripada kajian kes di atas dapatlah dirumuskan ciri-ciri/kualiti
kepimpinan Tun Dr. Mahathir semasa beliau mentadbir urus ekonomi
Negara Malaysia dengan strateginya melalui dasar-dasar DEB dan
semasa mengendalikan Krisis Kewangan Malaysia (Pengurusan Krisis)
Di antara ciri-ciri/kualiti kepimpinan yang ditampilkan beliau adalah
1.
2.
3.
4.
5.
6.
7.
8.
9.
Decisiveness/Firmness
Leadership
Teamwork
Integrity
Willingness to work hard
Analytical ability
Ability to adapt to changes
Willingness to take risk
Ability to deals and negotiate
“I’ve been trained as a doctor. And unless
you get your diagnosis right, you’re not
going to cure the patient.”
- DATO’ SERI DR. MAHATHIR BIN MOHAMMAD -
Sekian, terima kasih.