Commentary: The People Stand Hand in Hand with Malaysia

KUALA LUMPUR: "Hand in Hand" was the revered Olympic theme song when South Korea hosted the 1988 global sporting event in Seoul. When hit by the Asian financial crisis a decade later, the South Koreans had already learnt how to stand hand in hand again to surmount it.
For the love of their country, which was on the brink of bankruptcy and at the mercy of the International Monetary Fund's (IMF) policy recommendations, the people mooted a national campaign to donate gold and other valuables to the government, to raise up to US$20 billion (RM80 billion) to help put the nation back on its feet.
This patriotism and dedication shown by the people, is what has today, made South Korea a name synonymous with outstanding success and great technology.
Fast forward to 2018 and we can see how Malaysians as a country, have been similarly inspired, and as it was in the spirit of patriotism shown by the older generation in the quest for independence from the British, as they donated jewellery, money and valuables to raise funds.
The move by the people followed the shocking revelation of RM1.087 trillion in government debt which also spooked the markets.
For Malaysians, the word "debt" and "bankruptcy" became feared terms, driving them to initiate among others, the "Go Get Funding" campaign called 'Please Help Malaysia!", in an effort to help the government ease the debt burden.
The concern shown by the people led to the setting up of a trust fund called Tabung Harapan Malaysia on May 31 and managed by the Finance Ministry. To date, the fund has drawn over RM50 million in contributions from among people of all walks of life.
It has been lauded by many, including the Indonesian media which has showered praise on the patriotism shown by Malaysians.
As highlighted earlier, we have South Korea to thank for showing the way where patriotism, love for the nation is concerned.
During the 1997/98 Asian financial crisis, businesses were forced to close down in South Korea as rising non-performing loans caused banks to collapse, the Won plunged and foreign investors pulled out about US$18 billion from the country.
Hundreds of thousands lost their jobs in the process, and South Korea's liquidity dried up, and the only thing the country had was its people.
The government, led by President Kim Dae-jung at that time, had only one choice which was to seek help from the IMF with an enormous US$58 billion bailout package approved in December 1997, the largest in history, with conditions attached.
However, the government wasted no time in raising the funds to pay back the loan, and on Jan 5, 1998, a national campaign was launched, where citizens donated gold to the government, a move that showed a high level of patriotism and self-sacrifice. It was one which the world had not witnessed before.
The Republic literally rose from the ashes and headed towards greatness.
So, is Malaysia's current financial situation similar to that of South Korea?
The initiative that was seen as noble in the eyes of some Malaysians, also received straight criticism, even from among some economists, who questioned whether the country was really in financial trouble.
Their contention was that Malaysia managed to pull through during the Asian financial crisis and despite it having gone through a recession with negative growth in the economy, the ringgit depreciating to 4.7 against the US dollar, the stock market barometer dipping below 270 points, with the introduction of various defensive measures or capital controls to overcome the crisis.
Despite thousands having lost their jobs and the economy at its worst, they pointed out that no crowd funding was done then. So, was it necessary to have one now?
Former Universiti Sains Malaysia social science lecturer, Zainab Wahidin said it would depend on the people's perspective of what was meant by a country's debt.
"Some might think, why they should contribute to solving the national debt. It was not that Malaysia was going bankrupt. Singapore and Japan had a higher debt to gross domestic product, but were still thriving and that it was all just a political game.
"Others think that it is important to help the new government as they are struggling to save Malaysia from the debt hole caused by the previous administration. To me, it depends on what the people believe," she told Bernama.
However, she emphasised that the current government needed to have a solid economic plan for the future of the country, while building and creating a reliable public transport system, and enhancing the quality of education.
"These are the key points for a better future for Malaysians and for us to be a sustainable and developed nation," she said.
MIDF Amanah Investment Bank Bhd Chief Economist Dr Kamaruddin Mohd Nor said the donation drive was initiated by the people as they wanted to contribute to lessen the debt burden of the government.
"I personally think the gesture is patriotic in nature and the response very encouraging. The move by the people was reciprocated by the government in setting up a proper channel to contribute," he added.
Meanwhile, individuals, companies, associations and even school children have to date contributed to the Tabung Harapan Malaysia.
In the interest of transparency, the total donation is announced daily. Malaysians are also hoping that the government will make public how the money will be spent. — Bernama