BOMBSHELL - KEMAMAN-BOUND MAHATHIR TO GET PAS LIFTOFF TO SAVE THE RINGGIT? - RETURN OF DR M HITS A CHORD AS CONFIDENCE IN ANWAR FIZZLES OUT - WITH RINGGIT HITTING 25-YEAR-LOWS ONE AFTER ANOTHER WITHOUT BOTTOM IN SIGHT

Written by Wong Choon Mei, Politics Now!

KUALA LUMPUR (Politics Now!) - Call him legendary or call him evil doctor - whichever pleases Malaysians who are torn in their view of Mahathir Mohamad, their former prime minister, but many are starting to wonder if he could make a comeback and make a difference - starting with 'saving' the ringgit.

And now is the best time for the 98-year-old cantankerous but still ambitious Mahathir to bring down his long-time nemesis Prime Minister Anwar Ibrahim as the ringgit keeps plunging to new 25-year-lows.

"I don't know if this can be considered a wish to save the ringgit or if it will turn out to be a death-wish on the country but to have Mahathir back at the helm is more like nostalgia to me," a former head of money at a foreign bank told Politics Now!

Mahathir had famously defied world financial authorities including the International Monetary Fund and World Bank. He even grappled and crossed swords with billionaire money speculator George Soros to stop the ringgit's free fall. Known and feared for autocratic ways, Mahathir daringly imposed currency controls and slapped on a peg on the ringgit - trapping by the dozens big-time hot money speculators who consequently lost their shirts.

But his unorthodox moves also caused many genuine investors to lose millions and many have never forgiven him. Even so, like him or not, Mahathir did save the ringgit at a time when Anwar, who was then his deputy prime minister and finance minister, played to the gallery in West - supporting their textbook dogma that could not work due to the over-frenzy in the markets and could have put Malaysia into serious debt if Mahathir had agreed to implement his recommendations.

At 9 am, the local currency fell to 4.7775/7830 against the U.S. dollar from Thursday's close of 4.7680/7710. Adding fuel to the ringgit's fire is Malaysia’s overnight policy rate, which at 3% is now at a record 250-basis point discount to the U.S. federal fund rate, a gap triggering even greater sales of ringgit for the greenback. 

AGAIN, THE BUCK STOPS WITH ANWAR - BUT HAS HE STOPPED HIS MESSY WAYS

Mahathir and Soros

The ringgit’s steady decline has put intense pressure on Malaysia's central Bank Negara. Like Anwar, who is now also Finance Minister again, they seem to have run out of possible solutions. 

Indeed, this is not an easy situation for whatever level of experts to handle at all - with investor confidence being both the biggest problem and the most needed solution. That the ringgit is continuing its slide shows a sheer lack of confidence in the administration of the day and instead of passing buck and being in denial, Anwar would do better to confront the facts and find out what it is that investors want to see in Malaysia before they come in or even come back.  

The local note had plunged to a new all-time low of 4.7703 yesterday - the first time it hit a level not seen since the 1998 Asian Financial Crisis, when Anwar was controversially sacked and removed from all posts over sodomy charges and amid accusations that he and his coterie of loyalists were secretly masterminding the ringgit's fall so as to force Mahathir's resignation and take over the PM's post. 

"Nobody really wants Dr M and his nasty mouth back in charge and the fear he will fly off the dementia tangent like Joe Biden is stronger than the belief he can strong-arm Malaysia's economy back to safety," said the banker.

"But this is a real reflection on Anwar's wishy-washy and disorganized style of governance. Even when he was in Umno, he was accused of creating messes wherever he goes. Now he and his inner circle of advisers seem only interested in projecting and protecting the myth that Anwar is Malaysia's only hope and that alone makes many here and overseas want to giggle. Comes a point, no amount of PR can save a PM - he has to come out and show his capability. If he does not have any, then the ringgit and the economy sinks, like now!" 

MAHATHIR TO GET PAS LIFTOFF IN KEMAMAN?

Agree with the banker or not, Mahathir may soon get his third shot at the PM's post - thanks to of all people, his once bitter enemy - Hadi Awang, the president of PAS party, now the shining star in the PN opposition coalition.

PAS is also the most influential political party in the country with the most seats in Parliament, controlling four state governments in the Malay heartlands, namely Kelantan, Kedah, Perlis and Terengganu collectively termed as SG4.

“Perhaps it’s Mahathir, perhaps someone else. We have not decided,” PAS secretary-general Takiyuddin Hassan told reporters at the sidelines of the party's annual general assembly in Shah Alam on Thursday evening

EASING IN SANUSI & SAMSURI INTO THE TOP JOB

Mahathir has already been appointed by PAS as investment adviser to the SG4 and Takiyuddin's refusal to dismiss outright the speculation he could now be named as the PAS candidate for the upcoming Kemaman by-election straightaway reignited a fresh round of rumours.

Leaders in Anwar's ruling coalition including Umno's Salleh Syed Keruak, a former minister in the Najib Razak administration, had predicted the appointment was “the first move of many other bigger moves to come”. 

Indeed, pundits and watchers of Malay-land politics have warned Mahathir could easily return as the 11th prime minister if the current Anwar regime continued to stay in 'Sleeping Beauty' mode. 

They cited PAS' domination of the Malay vote bank, calling it a smart tactical move to ease their own leaders, including the fast-rising Kedah MB Sanusi Md Nor and Terengganu MB Samsuri Mokhtar, into the top rungs of federal government. 

"At the moment, PAS has to admit it is still remembered as a mosquito party that can turn Malaysia into another Afghanistan-type of economic disaster," a political commentator told Politics Now!

"Hadi may secretly be eyeing the PM's post too but he knows PAS cannot move suddenly or they will scare off investors who are already wary of PAS' radical ways. Sanusi and Samsuri still lack federal experience - so to shield them with Mahathir's umbrella, so to speak, is one way to ease them into the top job. For sure, the future belongs to these two more than Anwar who is already 76 and considered to be doing a poor job by many."

"In the eyes of Malay voters, there's no reason why Sanusi and Samsuri can't do better than Anwar or Zahid and I don't think they will sit back and accept Sarawak's premier Abang Jo as Malaya's Prime Minister either." Written by Wong Choon Mei, Politics Now!

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