Don't underestimate Tun Daim Zainuddin, diminutive in stature, wearer of golden silky shirts, especially when he tells you he's just a simple man longing to retire. He's probably the most important figure in Malaysia's post-independence economic history. Nothing happens in corporate Kuala Lumpur without Daim's knowledge - and usually his say-so. A successful businessman in his own right, a former finance minister (1984-91) and treasurer of the ruling party, Umno, he's also Mahathir's closest confidant. The 59-year-old is now back at the centre of government as executive director of the newly created National Economic Action Council.
A lot of foreign bankers think overlending to Malaysia's tycoons could cause a worrying rise in non-performing loans.
We feel that prudent measures addressing this matter have been put in place since 1982. Based on these measures, banking institutions are not allowed to have exposure to a single borrower in excess of certain prudential limits.
Will foreigners be allowed to buy controlling interests in Malaysian banks, or is this viewed as a possibility only in extremis?
Foreign participation in the Malaysian banking system is already relatively high. It accounts for over 30% in terms of deposits, total loans and paid-up capital and over 40% in terms of pre-tax profit.