Be calm, Kan Seng urges Singaporeans

Last Thursday (Nov 20), Malaysian Prime Minister Mahathir Mohamad suggested that Singapore was the source of negative rumours last week about his health. Last night, Home Affairs Minister Wong Kan Seng said Singaporeans should react calmly, although they continued to respond with puzzlement and annoyance in views expressed to the Sunday Times.

SINGAPOREANS should react calmly to allegations by Malaysian Prime Minister Mahathir Mohamad that they are spreading negative rumours to bring Malaysia down, Home Affairs Minister Wong Kan Seng said last night. Speaking to reporters at a grassroots event at the new Bishan Community Club, he said: ''Whatever that is being said about us by political leaders of Malaysia, I think we should act rationally. If we react irrationally, it will not do us credit, because that is not the way we conduct our relations with other countries.''

Dr Mahathir had lashed out on Thursday night about rumour-mongers, and asked if Singapore was the main source of negative rumours on Malaysia. This followed a week of rumours about Dr Mahathir's health, the suspension of the stock exchange and runs on Malaysian banks.

The rumour began after he cancelled an official visit to Ottawa last week, saying he needed to recover from a cold before attending this week's Asia Pacific Economic Cooperation summit in Vancouver.

Dr Mahathir had said: ''From Singapore, you get three rumours a day and Malaysians react in full faith on those rumours ... Malaysians, however, are very good. They do not start rumours about Singapore. They only spread rumours about their own country.''

He had said he did not know why rumours seemed to emanate from Singapore and added: ''I don't know but I think it's natural. I suppose we are competing economies, so the rumours come.''

Mr Wong said: ''I think many Singaporeans are probably very unhappy about being blamed for problems in Malaysia. No doubt some of them are outraged by these comments about Singapore.

''But Singaporeans should take it in their stride, understand the difficulties that Malaysia is facing, and be calm about it and not over-react.''

He said he did not know what was the basis of Dr Mahathir's remarks that rumours started from Singapore, and that Dr Mahathir must have had his reasons for those remarks.

''But definitely it is to no Singaporean's advantage or benefit to spread such rumours and bring down or affect Malaysia's economy, stock market or currency, because our economies are inter-related and if Malaysia's economy doesn't do well, it will have an effect on Singapore.''

He added that both countries should seek ways to improve bilateral ties and to find common ground, as they were bound by ties of history and kinship, and should work together to solve problems that were affecting the whole region.

Meanwhile, some Singaporeans last night said they could not understand why Dr Mahathir made his remarks.

Workers' Party MP for Hougang Low Thia Khiang said: ''I don't know why he has to react to such rumours in the first place. Rumours are just rumours.''

Other observers expressed unhappiness at what appeared to be Dr Mahathir's use of Singapore to make political points to a domestic audience.

Speaking to the Sunday Times at the WP's 40th anniversary dinner, party chairman Tan Bin Seng said: ''Ask Dr Mahathir to prove his accusations. If he has evidence, show it.''

Veteran grassroots leader S. Bala, 50, said: ''Mahathir has an inferiority complex. He thinks that just because Malaysia was worse hit than us, then it must be Singapore's fault. They should look at their economic fundamentals before making such comments.''

Political science lecturer Shee Poon Kim, however, suggested that Singaporeans should not jump on the bandwagon and start criticising Dr Mahathir, because his remark was not directed at Singaporeans but only at brokers and analysts.

''The rumours may have started here but we have to remember that there may be non-Singaporean brokers or analysts here who have a different agenda,'' he said.

Business Times reported yesterday that Singaporeans and analysts based here reacted with a mixture of puzzlement and annoyance to the allegations by Dr Mahathir.

A Singapore businessman said: ''He's looking for a scapegoat, and traditionally Singapore has been the whipping boy. First it was Soros, then it's the Jews and the US government, and now it's our turn. Politically, it goes down very well with his Malaysian audience.''

A puzzled money broker based in Singapore added: ''Why would we want to hurt them when we are so interdependent? To pinpoint Singapore is really baseless.''

A Singapore lawyer said: ''I agree the West has not always been fair to countries in this part of the world. But when you go around attacking your own neighbour and ally, you are going to end up all alone.''

Others pointed out that there was nothing unusual about rumours in the stock markets - on both sides of the causeway.

A company director, who, like the others, asked not to be named, said: ''There's no Singapore-inspired conspiracy against Malaysia. Anybody can make stupid statements, and fools and crackpots abound on both sides of the causeway.

''What good does it do for a Singaporean to see Malaysia suffer? Anything adverse happening in Malaysia always affects us, sooner or later. So it makes no sense to do Malaysia in, or for that matter vice versa.''

A stockbroker, commenting on the rumours on Dr Mahathir's health, said: ''They could have originated from Malaysia. They could then have returned to Malaysia from here, or passed on to investors overseas.

''But, really, why should Singaporeans want to sour relations with Malaysia? We make money dealing with them and they make money from dealing with us. This is really crazy.''

Most of the people the Business Times spoke to pointed out that many Singaporeans as well as companies had investments in Malaysia and had an interest in seeing Malaysia succeed.

''Don't they realise how many Singaporeans have lost money in Malaysian stocks this year?'' asked a bank executive.

The head of a Singapore finance company said: ''We are all suffering from the drop in the Malaysian market. Who are among the biggest investors in the Malaysian market? Do you think we want to screw ourselves? Dr Mahathir is trying to blame all his problems on everyone else.''

Malaysia's own policies came in for sharp criticism. ''Look at the Renong-UEM deal, for example. There are a lot of small shareholders that are going to get burnt,'' said the bank executive.

''When what you do was not right in the first place, don't act so hurt and jump to conclusions when people lash out their frustrations.''

An American analyst based in Singapore, commenting on Malaysia's economic policies, said: ''They've been trying to juggle three balls in the air - interest rates, ringgit and the equity market - using their own brand of unorthodox macroeconomics.

''Now that the balls look like falling down, they are looking for people to blame when it's really all their own doing.''

Another typical response came from a company executive: ''Singaporeans are always being blamed for Malaysia's woes. So what's new?''

Last night, Malaysia's Information Minister Datuk Mohamed Rahmat, who was in Singapore to attend Music Gala, a joint performance by Radio and Television Malaysia and Television Corporation of Singapore, called on the media of both countries ''not to pick up too many unnecessary stories to the extent that we feel very uncomfortable with one another''.

Published in the Straits Times. November 23, 1997