The economic legacy of Dr M

WHAT MALAYSIAN PREMIER DATUK SERI DR MAHATHIR MOHAMAD did in the 80s should have pleased the International Monetary Fund. When he assumed office in 1981, the Malaysian economy was so public-sector dependent it was a structural impediment to progress. The public sector was mired in deficit spending and ballooning debt. At its peak in 1982, budget deficit was running at 15% of GDP. Consequently, total Federal government debt surged to a peak of 101.7% of GDP in 1987.