U.S. adopts Malaysia-style economic remedies

KUALA LUMPUR, Oct. 13 (Xinhua) -- The United States is adopting similar measures as Malaysia did in 1997 to cope with the financial storm hitting Asia, a Malaysian senior official said here on Monday.

In 1997, the World Bank, International Monetary Fund and the United States criticized Malaysia for not practicing liberal capitalism, said Malaysia 's Second Finance Minister Nor Mohamed Yakcop, adding that now the Unites States was assisting its banks and adopting similar measures as Malaysia did in 1997.

Nor Mohamed was quoted by local newspaper The Star as saying that the frequency of financial global crises was caused by weaknesses in the system of liberal capitalism, led by the United States.

Such a system has minimal supervision and the government role in the economic sector was reduced, where privatization was implemented on a large-scale, including selling national assets to outsiders, he said.

The world needs to find a new alternative to create a fair and balanced financial infrastructure, he said. [read more]

This clearly proves what Tun Dr. Mahathir did 10 years ago was no doubt, the right thing. Note that this piece of news was reported by Xinhua, the Chinese government news agency.