Financial Times

Foreign investors will go away if decisions keep changing with successive governments
Don't change policies - Mahathir
By Feizal Samath
Former Malaysian Prime Minister Mahathir Mohamad, ending an event-packed 24-hour visit to Sri Lanka, urged the country to have a consistent policy particularly in relation to foreign investors even if there are frequent changes in ruling parties.

"A new government must respect the decisions made by the old government. If changes are made in policy decisions and agreements, there is no stability. Foreign investors will not come again," he told The Sunday Times in an exclusive interview on Friday.

Responding to the question on rapidly changing governments in Sri Lanka and attracting genuine investors in such a turbulent environment, Dr Mahathir said it was important to attract the genuine investor by checking out their track record, credentials and company profile.

But, he noted in the interview at the Colombo airport lounge just before returning to Malaysia, that, "it is also important not to make it too difficult for investors (particularly at Sri Lanka's level of development). Also once decisions are made, they should stay that way."

Though the interview was brief, the former politician credited with Malaysia's economic success answered questions on a range of issues like economic lessons for Sri Lanka; IMF and World Bank policies and living beyond one's means. He also had some harsh words to say about leaders of the US, Britain and Australia. (See main section)

Visiting Sri Lanka for the first time as a world leader, Dr Mahathir was bestowed with the inaugural "Adams Peak" award by Sri Lanka's Muslim Council for outstanding leadership to the global Muslim community, and made the keynote address at the CIMA Global Leaders' Summit.

He was accompanied by a business delegation that included Kadir Deen, a former Malaysian High Commissioner to Sri Lanka and Tan Sri Azmi Hamzah, a prominent businessman who once had a majority stake in the Oberoi-now-renamed- Colombo Plaza hotel.

Dr Mahathir said he thanked President Chandrika Kumaratunga, who hosted the delegation for dinner, for the government's hospitality towards Malaysian businessmen.

"We generally discussed bilateral issues apart from my thanking her for being hospitable towards Malaysian businessmen." Asked whether aid-dependant Sri Lanka had no choice other than to follow IMF and the World Bank policies, he said, "A country must learn to live within its means and not borrow too much. People should understand that if you can't afford it, don't borrow. If the country is poor, the people can't live like the country is rich. Because once you start borrowing money, you'll get stuck."

He said Malaysia was expected to show substantial progress in the next decade but could also "slow down a bit." Asked how he spent his time after retiring from active politics and government, the respected Asian leader said he had many speaking engagements in the world and a lot of visits to do.

"After this visit, I have to go to Sarajevo, Bosnia and return home before going to Japan, Colombia and other countries," he said.

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