Rais, who has held several ministerial posts, told reporters he had the privilege of working closely with former finance minister Daim, along with other key figures in Umno such as Tengku Razaleigh Hamzah and Syed Hamid Albar, during the crisis which slumped currencies and devalued stock markets across Asia.
Rais said Daim’s “precision” and “attention to detail” in managing the nation’s finances were especially important, and his strategic decisions helped Malaysia avoid turning to the International Monetary Fund (IMF) for a bailout like several other countries in the region.
“Malaysia faced severe economic instability at the height of the crisis in 1997 and 1998, with currency devaluation and a liquidity crunch threatening to push the country into a recession,” he said.
“It was during this period that Daim played a crucial role in guiding the nation through the financial storm. He recommended bringing in local capital without imposing taxes, which allowed wealthy Malaysians to repatriate their savings back into the country.
“The move proved to be a game-changer, and a total of around RM28 billion was brought back to Malaysia as a result of this initiative. This influx of local capital was crucial in helping Malaysia avoid borrowing from the IMF, which would have imposed stringent conditions on the country’s financial and political independence,” he said.
Former prime minister Muhyiddin Yassin also hailed Daim’s role in steering Malaysia through the financial storm of the late 1990s and developing the country’s economy.
“His major contributions as the finance minister twice – from 1984 to 1991 and then in 1998 to 2001 – saw the rapid development of the country’s economy,” Muhyiddin said in a Facebook post.
“His service to the country in managing the economy and steering the country safely out of the Asian Financial Crisis should be remembered in the country’s history,” said Muhyiddin, who served as the youth and sports minister when Daim was appointed finance minister for the second time in 1999.
Daim died this morning at Assunta Hospital in Petaling Jaya. He was 86.