A Doctor in The House: A Memoir of Tun Dr Mahathir Mohamad (82 page)

We also had support from South Africa, which has a very big aircraft industry, developed when sanctions were applied against them for their apartheid policy. The Red Arrows from the British Royal Air Force, one of the best aerobatic teams in the world, were also with us from the start. Their aerial displays were a daily highlight at LIMA, and everyone would come out of the indoor exhibition area to the tarmac to watch them.

We attracted warships from different countries for the show’s maritime component. In any case, naval ships often sail to different countries as part of their exercise. They welcomed the invitation to participate in LIMA where they could promote the sale of their ships. Of course, Malaysian ships came in full force as well.

I had not planned LIMA to be so established and so grand, but it quickly grew by itself. I always made sure I spent at least three days at LIMA and saw all the exhibits, watched the aerial displays, inspected the ships and interacted with all those involved. I wanted to show the Government’s support, but I was also personally interested in the aircraft and engineering technology that had gone into manufacturing them. It was very satisfying when Malaysian companies were able to show the progress of their aero-engineering capabilities. Malaysian aerial services, components and simulators attracted a lot of attention and sales.

Just as I had hoped, Langkawi benefited greatly from LIMA, which became one of the most important features in its events calendar. In the beginning there were not even enough taxis to handle all the visitors to the island during the show. We actually built a 200-room hotel in two months to accommodate the personnel of foreign air forces. Still, this was not enough and local visitors ended up having to sleep in mosques. The island’s growth after that was phenomenal. We built hotels and kept lengthening the airport’s runway, until it was long enough to handle a 747. In 1991 we had tents to house the participants’ booths, but for the second LIMA in 1993 we built a permanent hall for the exhibition.

By 1995 we had to double the size of the hall and increase the parking space for visiting aircraft, of which there were hundreds. It was a scene that Langkawi never expected to see. Today I’m the adviser to the Langkawi Development Authority and I love to see how things have grown. Land has become so valuable that some people have been able to sell their property for RM1 million per acre. The island’s biggest town, Kuah, is now five times the size it used to be, and you can even see buildings there that you won’t see in Alor Star. There are many restaurants selling foreign food and one of the most beautiful hotels in the world is now operating in Langkawi.

The locals also benefited—they operated restaurants and food outlets and found good jobs easily. With the proceeds from the sale of their land they built modern houses, bought cars and now travel to the mainland frequently. In fact, their standard of living is higher than that of the rest of Kedah state.

LIMA’s participants did not come to Langkawi expecting immediate sales, only a chance to promote the capabilities of their aircraft and helicopters. Still, sales and the number of defence contracts signed at LIMA were quite healthy. But that has since changed. LIMA 2005 was not that successful because people have begun to lose interest. Participation was down and even the Red Arrows did not come to perform their aerobatics anymore.

People sensed that the Tun Abdullah Badawi Government was not as keen to promote the show, and unless that changes, LIMA’s popularity and relevance will continue to dwindle. That would be a shame, not just because of all that the show has been able to achieve but also because many Malaysians look forward to it. It is their chance, once every two years, to see the best and most expensive planes in the world go through their paces.

The automotive and aerospace industries complemented the other manufacturing industries in the conversion of Malaysia from an agricultural country to an industrialised one. Today, with fewer opportunities for business in the country, Malaysian engineering companies are able to bid for contracts to build and also to operate engineering facilities in foreign countries. If we had not made the effort to acquire engineering know-how through the national car project, our people would not be able to tide over the slowdown in Malaysia’s economic expansion.

ENDNOTES

[
1
] Datuk Mohammad Nor Khalid, or “Lat” as he prefers to be called, was a crime reporter at the 
New Straits Times
before an editor accidentally discovered his talent. He has since become Malaysia’s
 
best-loved cartoonist.

[
2
] Proton won two gold medals and one bronze at the International Motor Exhibition in Birmingham, UK, on 18 October 1988. It won two more gold medals there in 1990, and two more again in 1992.
 

[
3
] Tan Sri Yahya Ahmad became Director and Chairman of Proton and was President of DRB-HICOM, Proton’s holding company. During this time he oversaw the latter’s acquisition of some 200 transportation and automotive companies, including the Lotus Group of the UK.
 

[
4
] Yahya and his wife Rohana Othman died in a helicopter crash on 8 March 1997, near Kuala Lipis in Pahang.
 

[
5
] Tengku Tan Sri Mahaleel Tengku Ariff was Chief Executive Officer of Proton from 1997 to 2005.
 

[
6
] The EAA AirVenture Oshkosh is a seven-day-long air show and is one of the leading experimental aircraft exhibitions in the world today, drawing 10,000 to 15,000 aircraft each year.
 

One man I’ve known and worked with for many years has long been a source of fascination for many people. They describe Tun Daim Zainuddin as an enigma, and that description fits him perfectly. He is seemingly a reluctant politician, yet he has played a crucial role in Malaysian politics. He guided Malaysia’s economy during its most difficult years but did not stay to savour the success of his policies. He resigned but remained at the beck and call of the Government, contributing his ideas and criticisms freely without fear or favour. When he was recalled he willingly came back to serve, and when the time came again for him to resign, he just as willingly gave up his high post as Minister of Finance—no histrionics, no tears and apparently no grudges against those who had vilified him.

I knew Tun Daim’s family before I met him. Their house was further up Seberang Perak where I lived. His eldest brother Senawi was a close friend of my brother-in-law Abdul Ghani so I got to know him as he often came to see Ghani in my house. When I organised the Kesatuan Pemuda Melayu Kedah (Kedah Malay Youth Association), I persuaded Senawi to become its Treasurer.

I first heard about Senawi’s younger brother when I became a Member of Parliament. Tun Daim had started a salt farm, but it had failed. Then he went into housing and he did very well. I had a housing project myself in Alor Star and despite my poor management, I made some money. Tun Daim must have made a lot because his project was big and he managed it far better than I did. In fact, I believe he was among the first Malay millionaires.

He was close to Datuk Harun Idris, then the 
Menteri Besar
 of Selangor. Harun approved his application for land in Kuala Lumpur. The value of land was not so high in those days and the property boom had yet to come, but when it did Tun Daim prospered and was grateful to Harun. Yet in time Harun fell foul of Tun Razak Hussein and Tun Hussein Onn, and when Tun Hussein became Prime Minister, he proceeded to have Harun charged with corruption. When it was clear that Harun was headed for jail, Tun Daim came to see me. I was the Deputy Prime Minister at the time and he thought I could intercede with Tun Hussein and get him to be more lenient towards Harun.

Tun Daim was very casually dressed for our meetings—no necktie, just an open shirt and slip-on sandals. He was very precise about what he hoped I should do. I listened and then explained to him that I had already interceded and all I got was to have the files on Harun thrown at me. Tun Hussein had erupted when I spoke about Harun and it was clear that he was not going to change his views if I brought the matter up again.

Tun Hussein appointed Tun Daim a Senator in 1980. He proved to be an enormous help when I became Prime Minister the following year and had my first brush with the United States. As I related earlier, the US’s General Services Administration was releasing its stockpile of tin into the market and this was depressing the already low price further. Official representations to the US produced no result. At that time Malaysia’s two main exports were tin and rubber, so a fall in their prices inevitably had a dire effect on Malaysia’s economy and Government revenue.

Tun Daim, who did not hold a Government position at the time, suggested that I send an unofficial team to talk to US officials. I was sceptical. Who in Malaysia knew senior US officials well enough to meet with and persuade them? But I decided to give the suggestion a try and authorised him to go to Washington, DC, accompanied by Tan Sri Alex Lee. The Americans initially proved unbending and did not care if Malaysia suffered economic problems. Moreover, the tin stockpile operation was not crucial to their economy. Only canners would suffer if tin prices went up and, since all canners worldwide would incur higher costs, their relative competitiveness would remain unaffected, whatever the price of tin.

Then Tun Daim played his surprise card. He pointed out that lower tin prices would affect the livelihoods of labourers in the mines, who might on that account be persuaded to join the communist insurgents then harassing the Malaysian Government. At that point, the US officials began to listen. Their ignominious defeat in Vietnam was still fresh in their minds and American fear of the communists was quite pathological. By invoking that fear, Tun Daim managed to stop the release of the United States tin stockpile. As his mission was unofficial, his activities in Washington, DC remained publicly unreported but I was impressed that he had been able to contact and persuade decision-makers in the US Government. That he did so as head of an unofficial delegation convinced me of his versatility. Later, he was also instrumental in bringing the “Buy British Last” policy to an end.

When I decided to call a General Election in 1982 to validate my accession to the highest post in the country, I decided that Tun Daim should give up his Senator’s seat and contest a seat in the Dewan Rakyat. I wanted him to be available should I need him for a post in the Government.

Tun Daim contested the Kuala Muda constituency in Kedah after Tan Sri Khir Johari, a veteran Cabinet Minister who had been a Member of the Federal Legislative Council and then Member of Parliament since 1955, decided not to contest. Although Tun Daim was not in the local UMNO division, there was no objection to his being a candidate and he won the seat quite easily against his PAS opponent.

He made no greater effort than was necessary to win the seat, which was typical of his style as a politician. He did not like to waste effort, to do any more than was required to ensure his position. He had other priorities and other claims on his attention and energies. Being a Member of Parliament was not his aim but was simply a means to secure the position to pursue his far-reaching, strategic objectives. Yet, he was well-accepted by his constituents. He has always been charitable and generous and liked to build mosques. He also always helped the party’s local division with his own money. But Tun Daim never tried very hard to be popular with people. He always did what he wanted, what he considered right. Campaigning was also not his style and he didn’t do much of it.

Initially I invited him, as a new Member of Parliament, to take over Bank Bumiputra or to head the large cooperative Ko-op Bersatu, but he declined both positions. Instead, he agreed to take over Fleet Group, which controlled the newspapers in the 
New Straits Times
 stable.

After the 1984 UMNO General Assembly however, I moved Tengku Razaleigh Hamzah to the International Trade and Industry portfolio, which left his former position as Minister of Finance vacant. I had no hesitation in appointing Tun Daim to the post. As expected, he was reluctant at first, but I would not take no for an answer. He had made enough money for himself, I thought—now he should give his time to the people and the Government. The economy was not doing well at the time as foreign debts were high and a number of banks were facing scandals, crises and failures.

Some people questioned the suitability of my choice and many suggested that I was favouring a friend. But I could not appoint a total stranger. I had to know the man who was to take over one of the most important Ministries in government. With his business experience, I felt fairly certain that he would be able to handle the work, and there were few others who were inside or close to UMNO who knew about business or finance.

When Tun Daim took over the Ministry of Finance, Malaysia’s foreign reserves stood at only RM9 billion but its foreign debt was RM20 billion. During his time he had to tackle the Bumiputra Malaysia Finance (BMF) scandal involving Bank Bumiputra Malaysia Bhd (BBMB). The bank lost RM2 billion in Hong Kong, where it lent huge sums to the Carrian Group of Companies. In a bailout, the Government had to sell Bank Bumiputra to PETRONAS, which was chosen simply because it had the money.

The BMF fiasco resulted in a number of prominent Malay businessmen being charged with fraud. These included Datuk Hashim Samsuddin, Lorraine Esme Osman and Dr Rais Saniman (BBMB’s former Executive Director, former Chairman and former alternate Director respectively). But BMF was not an isolated case. Tun Daim had to resolve a number of other banking and financial problems as Finance Minister: Perwira Habib Bank, Supreme Finance, First Malaysia Finance, Kuala Lumpur Finance, Kewangan Usaha Bersatu Bhd (KUBB), and the Cooperative Central Bank were all in trouble and Tun Daim took them all on.