This month has been full of political turmoil and controversy, beginning with the election of Nurul Izzah as Deputy President of PKR, the resignation of two ministers from the same party, and the peculiar request by Anwar Ibrahim for legal immunity in a civil suit filed against him by Yusoff Rawther, which was subsequently rejected by the Kuala Lumpur High Court.
Yet amidst this confusion, statesman Tun Dr. Mahathir Mohamad calmly demonstrated that his economic thinking remains relevant. This was evident when he was recently invited to the Future of Asia Forum, organized by Nikkei in Tokyo.
“I don’t think the United States will recover and return as the number one power. China looks set to become the most influential country in the world.”
At the remarkable age of 100, Tun Dr Mahathir Mohamad has once again proven that his intellect and foresight remain intact — not only ahead of his time, but perhaps sharper than many who are far younger. In his keynote address, the former Malaysian prime minister not only forecasted the decline of American global dominance, but also proposed a radical solution to the growing imbalance in the global financial system: the creation of a new gold-backed international trade currency.
This wasn’t mere rhetoric. His call came at the very moment when global markets and analysts were signaling a deeper, systemic shift away from the US dollar.
The World Is Moving Away from the Dollar — Mahathir Saw It Coming
The Edge (Singapore) dated June 2, 2025, reported that global investors are increasingly questioning the long-term credibility of the US dollar as the world’s reserve currency. Under Trump’s administration, aggressive fiscal policies — including sweeping tax cuts despite mounting deficits, and the looming possibility of forced debt restructuring — have shaken market confidence.
Bank of America reports that de-dollarization is already well underway in ASEAN. Institutional and retail investors are reducing their dollar holdings and converting them into local currencies. In countries like Indonesia, Malaysia, Thailand and the Philippines, a combined total of US$230 billion in foreign currency deposits is now exposed to the dollar’s declining strength.
This is no fringe theory. It’s market reality. And as always, Dr Mahathir had seen the signs long before the world reacted.
Why Gold? Because It Endures — Not Because It Shines
Dr Mahathir has long warned about the unchecked power the US holds over the global trade system through the dominance of the dollar. Since the collapse of the Bretton Woods system in 1971, the dollar has remained the standard for international trade, not because of gold backing — which ended — but because of America’s economic size and global financial influence. Yet this dominance has allowed the US to unilaterally impose sanctions on other nations, a practice Mahathir views as unjust and dangerous.
His proposal: create a new gold-backed trade currency, used strictly for international settlement — not domestic circulation.
That idea, once considered idealistic, is now aligning with market behavior. Data from the World Gold Council shows that developing countries like China and India are increasing their gold reserves. Demand for gold is growing not only for physical holdings, but also through ETFs and institutional portfolios. Gold is no longer a conservative relic — it is a strategic asset in an age of uncertainty.
India Is Not China, and the World Is No Longer Bipolar
Beyond currency, Mahathir also addressed geopolitical imbalances. To him, China’s rise is inevitable — and cannot be stopped by American tariffs or provocation. In fact, Washington’s stance on Taiwan, he argued, benefits the US arms industry more than it helps maintain peace.
India, though emerging as another Asian power, is unlikely to rival China in the same way. Its diverse and decentralized political landscape, Mahathir said, makes a unified model of governance and projection of power much harder to achieve.
What this shows is not just Mahathir’s grasp of economics, but a deeper understanding of cultural dynamics, sentiment, and geopolitical nuance — all elements often missed by those with a purely technical lens.
Malaysia Should Heed Mahathir—Wisdom Beyond Political Lines
So the real question is: why aren’t we giving space to voices like Mahathir’s in shaping national economic discourse? Though he holds no official position, his ability to interpret global change, identify systemic risks, and offer proactive solutions remains unmatched by many self-proclaimed experts.
If Malaysia is serious about crafting resilient economic strategies amid de-globalization, currency shifts, and changing power structures, we cannot afford to sideline this voice. We must engage it — while we still can.
There are many young minds, but not all can read the times. Experts abound, but few dare to swim against the current. At 100, Mahathir seeks no title — only to be heard. And perhaps, that is the grace of longevity: To remain just long enough to awaken a generation sleepwalking through the storm.
Amir Al Fateh (malaydigest@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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