Author: Curator

Speech (Part 1) by Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjong, Lim Kit Siang, in the Dewan Rakyat on the Royal Address debate on Monday, April 11, 1994

The colossal forex losses in the last two years have knocked out a big hole in Bank Negara, not only making it insolvent but destroying it credibility and authority as the ‘banker’ and guardian of banks in Malaysia.

Parliament is debating Bank Negara’s colossal foreign exchange losses for the second consecutive year and it is apt that we start with the story told by Tan Sri Jaffar Hussein at a lecture in New Delhi in December 1988 on the topic, “Central Banking in an Era of Change”, which was also used as the book title for Bank Negara’s “landmark speeches from 1959-1988”. Continue reading The colossal forex losses in the last two years have knocked out a big hole’ in Bank Negara, not only making it insolvent but destroying it credibility and authority as the ‘banker’ and guardian of banks in Malaysia

Tuan Yang di-Pertua, 10thApril 1994
Dewan Rakyat,
Parlimen.

YB Tan Sri,

Motion of urgent public importance under standing Order 18(1) with regard to RM5.7 billion Bank Negara foreign exchange losses for 1993.

This is to give notice under Standing Order 18(2) that I wish to move the following motion to adjourn the House to discuss matter of urgent, definite public importance, viz. the RM 5.7 billion Bank Negara foreign exchange losses for last year.

“That under Standing Order 18(1), the House gives leave to the Ketua Pembangkang, YB Lim Kit Siang, to adjourn the House to discuss a matter of urgent, definite public importance, namely the RM5.7 billion Bank Negara foreign exchange losses for last year, because:

“Firstly, Parliament would be failing in its duty if it does not take a very serious view of the massive RM5.7 billion foreign exchange losses in 1993, after Bank Negara had suffered from RM10.1 billion to RM14 billion foreign exchange losses in 1992;

“Secondly, the urgent need to ascertain the full extent of Bank Negara’s forex losses for 1993, which could exceed RM10 billion- bringing the total Bank Negara forex losses in 1992 and 1993 to between RM20 billion to Rm25 billion- as the Bank Negara’s balance sheet for 1993 had been as misleading and unconventional as for the year 1992;

“Thirdly, the Finance Minister owes Parliament and the country a full explanation why Bank Negara had again incurred such massive foreign exchange losses as he had given an assurance to Parliament last year that he would personally be evaluating its foreign exchange dealings;

“Fourthly, the Finance Minister should also explain why he had misled Parliament last July when he denied that Bank Negara was still incurring further massive forex losses from its forex tradings, when in fact Bank Negara had already piled up even greater forex losses than provided for in its 1992 report;
“Fifthly, to uphold the principle of public accountability and transparency to ascertain how Bank Negara could incur such massive forex losses since 1992 by demanding for full details as to how such losses could be incurred;

“Sixthly, to ascertain whether there are other Bank Negara forex losses apart from the RM5.7 billion admitted in the 1993 Bank Negara report;
and

“Seventhly, to ascertain the lessons to be drawn from the massive Bank Negara forex losses since 1992.”

Yours sincerely,
(Lim Kit Siang)
Ketua Pembangkang