By KINIBIZ
In the fourth part of the series, Daim Zainuddin takes a trip back in time as KiniBiz asks about the 1994 stock crash, why he decided to go into business and his political connections. Among others Daim weighs in on whether a BN loss in the next general elections is a realistic scenario and comments on the subject of political funding.
____________________________________________________________________
With Daim Zainuddin’s recent divestments of his banking interests, is there a possibility that the money will go towards keeping Barisan Nasional (BN) in power amid increased competition from Pakatan Rakyat (PR)?
“I don’t have that kind of money,” responded Daim to KiniBiz. “And I don’t waste money like that.”
Reiterating that his divestments are meant for charity, Daim also thinks that BN may not be overthrown in the next general elections provided that the ruling coalition maintains “good and correct policies”.
However he also cautions that BN would face problems if promises to the people are not kept and if the leaders are arrogant.
Among others, in this part of the interview Daim also explains why it took him nearly two weeks to respond after the Bernama interview with him, which was run by The Star in January 1994, crashed the Kuala Lumpur Stock Exchange (KLSE) by nearly 30% within two days.
Daim also responds to questions on his link to former Selangor Mentri Besar Harun Idris and former prime minister Dr Mahathir Mohamad, whom Daim said gave him a choice when becoming prime minister in 1981.
Here are excerpts of the interview.
The Daim Interview Part 4 – Will Barisan Nasional lose the next general elections?
After the 1994 crash, there were accusations revolving around the length of time you took to comment on the Star report (a Bernama interview with Daim) that caused the Kuala Lumpur Stock Exchange (KLSE) to plunge. Can you comment on why your response did not come immediately after the Star ran the story?
I was not asked to respond. I also waited to see how MOF (Minister of Finance), Anwar (Ibrahim) would respond. Obviously Anwar was at a loss. I don’t think he knows the stock market. Can’t blame him as he did not have any work experience other than ABIM (Angkatan Belia Islam Malaysia).
Some quarters call you ‘the godfather of corporate Malaysia’ given your vast influence. What would be your response to such a title?
They call me that, that title should go to my friend Robert Kuok.
What led to you leaving legal practice to venture into business?
By the time I went into business, I had practised law over 10 years both in government service and private practices. They money was good but opportunities in business to my mind were better and there were hardly any Malays in business and if there were, people hardly know. I wanted to prove that Malays can succeed and it was tough. Malays need role models. They wanted someone successful.
What was the big break for you in business?
It was property, when Harun sold me the land (in 1973). I first retired in 1977.
There are allegations that your venture into property in 1973 was made possible due to your close association to then-Selangor Mentri Besar Harun Idris. Is that true?
Yes, I know Harun. I am not the only one who got land from Harun. I paid for that land but it was a mining land, so basically I got big ponds. Many applied for the same land, but Harun said mine was the best. Harun and I had a mission, to show Malays can succeed in business. Don’t think we disappointed anybody or ourselves.
And then you went to Berkeley University (University of California Berkeley)?
Berkeley, yes. The reason I went to Berkeley was UDA (Urban Development Authority). UDA was established to help Bumiputeras get into urban areas. I thought they weren’t doing a good job so I might as well go study urban planning. And that’s why when I came back in 1979 I became chairman of Peremba.
They say you were offered to be chairman of UDA in the first place but declined.
I don’t remember but I think so. I said no (to the UDA chairman post) and I suggested that we form Peremba.
Manan (Abdul Manan Othman), the minister for public enterprises then, was a good friend of mine. Many people think it was (only) Dr Mahathir but no, I’m (also) a good friend of Manan, a good friend of Tengku Razaleigh, of Hussein Onn — we were all contemporaries.
It was actually Tengku Razaleigh that recommended that I be senator, not Mahathir.
So when did you get close to Dr Mahathir?
Well we were from the same village. My brother and his brother-in-law are very close (Mohd Senawi, who has passed away, as has Dr Mahathir’s brother-in-law). I got close to Dr Mahathir after he became Deputy Prime Minister.
When he became prime minister, didn’t he straightaway invited you to become Umno treasurer?
No. When he became prime minister then he gave me a choice: become president of the chamber of commerce or bank bumiputera. I chose Fleet (UMNO’s investment arm Fleet Holdings Sdn Bhd).
Why Fleet? It was the most political among the three.
It was a question of influence.
But why are you writing on me this time?
Basically we hear that you are coming back in a big way into the country and you are raising cash by divesting your overseas holdings and bringing back the money here, apparently to invest here at the right time. And also some of your associates are doing the same thing, it appears.
I don’t think they’re following me, no. If I have money overseas, why should I bring back? I might as well keep it overseas.
Some people have linked this to, say, a possible return of Anwar (Ibrahim), and saying that perhaps the next round Barisan Nasional (BN) might lose. Do you think BN losing is a realistic scenario?
It’s up to voters to decide, although if policies are good and correct, if people are happy, I don’t think people will want change.
But you see under Dr Mahathir – we were there through five elections – people can criticise Dr Mahathir but they were happy with the policies. And always we get two-thirds majority.
When you don’t keep to your promises, are arrogant and ignore the wish of the voters, then you are going to face problems. If I think Anwar is going to win, why should I bring back my money here? (laughs)
I think the argument is that you can use your money to keep BN in power, to help the economy, the stock market, even for funding if necessary for political purposes.
No, no. I don’t have that kind of money. And I don’t waste money like that, you know me, I never waste. I don’t believe in using money.
In politics, you mean?
In politics — I don’t believe in using money. I never spent one cent. In the end it’s (about) your policy and how you handle things. That’s important.
You have to make people comfortable with you, make them happy and trust you. That’s all.
A lot of people give you credit regaining Kedah for instance, due to your influence.
No, we won this time because PAS (Parti Se-Islam Malaysia) messed things up (laughing).
So that’s why I said BN must not mess things up, otherwise people will reject you. You have to make clear policies so that people understand what you’re going to do for them. You plan it for them and say trust me, I will deliver.
When I first came in (as finance minister), nobody trusted me. I said give me 18 months, if I don’t deliver I’ll quit. I had no experience running a finance ministry. But in the end people must have faith in you. They must see that you are serious that you mean business, that promises are kept, that policies are great.
So you’re getting into cash at this point of time. You’re saying it’s not an attempt to return in a big way to Malaysia?
No, not interested. Yes cash for charity. I’m old already.
You said you’re liquidating to donate to charity. What about your children and your proteges?
My children have had an education and they do what they want. My parents gave me an education and if I succeeded, thank God. I’ve given them (Daim’s children) the best education.
So you being cash-rich at the moment is not to look out for investing opportunities also?
No, no. It’s up to trustees what they want to do, I’m not involved.
How much have you given to charity and which are the charities that you have set-up?
I’m getting old. The banks are all over the world and therefore involves a lot of travelling. My older children are not interested and are busy with their own things.
My younger children are still studying.
What I have will go to charity. My parents gave me a good education and thank God I succeeded I believe that the greatest gift I‘ve given to my children is the best education money can buy. I’m also a great believer in what Warren Buffett said that you give your children enough to do something with their lives but not enough for them to do nothing at all.
As for the charity, in Islam it is said that in giving charity, what the right hand gives the left hand should not know. I don’t believe that when you give, you should announce to the world and stand up there with big mock cheques and make all the recipients wait in line for hours.
I have two foundations here and one overseas. We donate both here and particularly in Africa, Indonesia, Sri Lanka, Pakistan, Thailand and the United Kingdom. We give loans and scholarships. Loans, most people don’t pay back! We do water and wells, mass housing for the poor, and build schools and hostels. We also do collaborations with international organisations in respect of further education.
You must be logged in to post a comment.