Aliran is gravely concerned about Second Finance Minister Mustapa Mohamed's recent statement that "biased reporting" by the foreign media about Malaysia's economic standing has been the biggest stumbling block to economic recovery.

By making the foreign media a scapegoat, the Malaysian government is in effect suffering from ''denial syndrome", preventing itself from effectively tackling the country's economic woes. Such a stance may only further jeopardise foreign investors' confidence in our economy.

We agree that there are elements of the foreign media that have been irresponsible and erroneous in their coverage of Malaysia. We would, however, argue that the foreign media has not been entirely off the mark in reporting that Malaysia's economic woes are the result of not only speculation by international fund managers but also domestic financial mismanagement.

Restoring foreign investors' confidence in the Malaysian economy requires more than just painting a rosy picture of the economy. It also demands critical assessment and reporting of the country's economic situation.

Mustapa should be extra careful when proposing that the country should "promote itself more aggressively to repair its tarnished image"; foreign investors may construe the suggestion as a deliberate attempt to hoodwink them and, at the same time, to deceive Malaysians. Mustapa should also reflect on whether the local media have been biased in their reporting of the activities of public-interest groups and opposition parties.

Aliran Executive Committee

21 January 1999