MALAYSIA’s financial recovery faces significant challenges as the nation scrambles to boost a slowing economy and par down its massive debt, said Council of Eminent Persons (CEP) chairman Daim Zainuddin in an interview with Channel NewsAsia.

Daim has been tasked with scrutinising Malaysia’s budget for 2019, which is due to be tabled by Finance Minister Lim Guan Eng on November 2.

While Lim has repeatedly given assurance that the country’s economic fundamentals remain strong, Daim said the government’s task of improving the fiscal situation was proving much more complicated.

“It’s far, far more difficult and complicated this time because it’s the (previous) government that had created the problem; lots of money were wasted and stolen,” Daim told the media agency.

“I was asked to look into figures, analyse and send back to the prime minister. It will take some time before we can put the economy back in shape.”

Daim was the finance minister twice when Dr Mahathir Mohamad was prime minister the first time. Dam was appointed in the 1980s and again during the 1997 Asian financial crisis. He is seen as having helped steer the country out of economic difficulties both times.

He said the Pakatan Harapan government should be honest about the fact that it was unlikely to fulfil everything on its manifesto due to financial constraints.

“Malaysians are very kind, patient and understanding. If you explain to them, they will understand and accept. Deliver what you promised in the manifesto and if for any reasons you cannot, explain clearly. The people are reasonable if you are honest with them,” he said.

Daim also said the CEP’s interviews with more than 300 individuals, including bankers, businessmen, civil servants, civil society members and union officials had revealed a culture of turning a blind eye to corruption.

“For to raise (an alarm), it means you are out. So, people were silent – no backbone and no principle stand,” he said.

Since Pakatan Harapan took power in May, Dr Mahathir has removed some 17,000 political appointees in the civil workforce and government-linked agencies. – October 8, 2018.