‘Foreign investors not put off by talk of debts’

LONDON: Prime Minister Tun Dr Mahathir Mohamad brushed away suggestions that talks on a nation saddled with debts will scare investors away.

On the contrary, he said after meetings with investors in the United Kingdom, and telling them about efforts to repay the debts inherited from the previous government, the new government of Malaysia had become a pull factor for investors.

He was speaking to Malaysian journalists before flying back to Malaysia at the end of his two-day working visit here, a stopover on his way back from attending the 73rd United Nations General Assembly in New York.

He described his meetings, especially with British investors, as productive.

He had closed-door meetings with investors like Mark Tucker, chairman of the HSBC Group, Lord Powell, who represented Jardine Matheson, Charles Holliday, chairman of Royal Dutch Shell Plc, as well as British High Commissioner to Malaysia Vicki Treadall at the Four Seasons Hotel here. Dr Mahathir was also briefed on debt and equity.

The country’s debts and the 1MDB scandal featured prominently in his speeches.

But he said it was necessary for him to explain that efforts were underway by his new government to service the loans, which would otherwise render the country bankrupt.

On the international platform, Dr Mahathir had had dialogues at Chatham House, where much interest was on the “elephant in the room” issue — 1MDB.

He had also given a lecture titled “The Challenge of Good Governance in the Muslim World”.

Dr Mahathir said there were investors who had voiced apprehension and some had even pulled out when they heard about the magnitude of the problem.

“I explained that in spite of the bad situation, we are making efforts towards recovery.

“And there have been successful results.”

He added that the new government had reduced the debt and Malaysia was now conducive to new investors because it was a country which liked to be “friendly” to the private sector.

He said Malaysia recognised the private sector as a partner in nation-building.

Speaking about 1MDB, he said investigations into the issue of money laundering did not include Britain. He expressed confidence that Britain would cooperate if there was any information on the alleged misappropriation of funds.

Nearer home, Dr Mahathir said the Malaysian Anti-Corruption Commission (MACC) and police, overstretched in the wake of arrests and ensuing investigations, would be effective if they wanted to make their priorities right.

“If they placed their priorities on which case should be dealt with first, they will be effective.

“But there are numerous cases. We can’t leave it just like that. So we work with the most important ones first.”

When asked about the most important case, Dr Mahathir said: “(Former prime minister) Datuk Seri Najib is believed to have misused the government’s money. We have evidence and he has been charged in court. We will have to wait for the hearing.

“There are so many cases and to follow the rule of law, it will take a long time.”

He said efforts were underway to find Low Taek Jho, known as Jho Low, the businessman said to be at the centre of the scandal.

Dr Mahathir, during his meetings and speeches here, had often mentioned second prime minister Tun Abdul Razak Hussein in the most respectful way.

It must, however, pained him to speak of the son of the man he admired in less glowing terms.

“That is true. When I retired, the person who replaced me was Tun Abdullah Badawi and I asked him to make Najib his deputy. He became the deputy prime minister and then prime minister.

“Then suddenly, I found that he was not like his father at all. His father was very concerned about the fate of the kampung people. He was the one who introduced rural development.

“His son is not like that. He suddenly told me that ‘cash is king’. This means with money you can do anything. So, without money, does one steal?”

On Datuk Seri Anwar Ibrahim standing as a candidate in the Port Dickson by-election, he laughed off any suggestion that there might have been candidates planted to spoil the votes.

“When there are too many candidates, the votes will be split. So, I am very confident that victory will go to Anwar.”

He said there was nothing wrong with the way the seat was made vacant to make way for the former deputy prime minister to contest. And by doing so, it paves the way for him to be a member of parliament and succeed him.

Dr Mahathir was accompanied by his wife, Tun Dr Siti Hasmah Mohd Ali, Foreign Minister Datuk Saifuddin Abdullah and Chief Secretary to the Government Datuk Seri Ismail Bakar.