Let's dive into a controversy surrounding Daim, explore how Daim gained Mahathir’s favor, and examine the extent of his wealth. Daim, who is currently under investigation under the MACC, filed a court application last week in an attempt to block the investigation.
In his supporting affidavit, he revealed that had he not transitioned from business to politics in 1984, the value of his liquid assets today could have exceeded 50 billion ringgit. At that time, his liquid assets stood at over 750 million ringgit or 250 million dollars.
According to Kini TV, Daim also claimed that if he had invested that amount in an SNP 500 Index Fund in 1984, its value today would be over 42 billion ringgit. About a year after joining the cabinet, a directive from the cabinet required Daim to liquidate his investments in publicly listed companies and UMBC.
Daim described it as his personal cost he suffered after joining the government. Daim’s liquid assets were 250 million dollars 40 years ago. This substantial wealth led Daim to be dubbed the hidden richest man in Asia by the Far Eastern Economic Review in 2004.
In 2021, the Pandora papers exposed overseas companies or trusts under the names of Daim’s family and close associates amounting to over 141 million ringgit. Responding to criticism, Daim asserted that he paid taxes on all earnings from business conducted in various jurisdictions and that his wealth was amassed through various business activities since the 1960s.
However, Daim’s exact net worth has always been unknown; despite MACC investigating him based on the Pandora papers and requesting him to declare his assets, Daim has applied for an extension five times, culminating in the seizure of Ilham Tower in December last year.
Daim served as the minister with special functions in 1998 and then returned as finance minister, holding the position until 2001. During his two stints as the finance minister, he concurrently held the Treasury post within Umno. Daim’s role as the finance minister, UMNO’s finance chief, and businessman was associated with contentious transactions.
This includes the scandal involving the privatization of the north-south expressway awarded to UMNO and the conflict of interest scandal related to the United Milan Banking Corporation Bhd. Daim released part of his shares in the Malaysian French Bank in 1984 in exchange for a 40% stake in UMBC.
The following year, as Finance Minister, he increased his ownership of UNBC by 5% through rights issues. By the end of 1986, he had sold the UNBC shares at a higher price to the state-owned Perbadanan Nasional Pernas.
Facing criticism for alleged abusive power for personal gain, the cabinet ordered Daim to divest his shares in 17 companies. Another scandal involving Daim is the recent and widely discussed Renong stock trading case that has come to light.
The MACC confirmed last May that they are investigating a former senior minister and a prominent businessman with a Tan Sri title for their involvement in embezzlement in the 1990s, suspected of orchestrating a stock trade that contributed to Malaysia’s economic downturn in the 1990s.
It is believed the MACC may be referring to the stock transactions involving the acquisition of Renong Berhad by UEM in 1997. The reported 2.3 million ringgit stock deal led to a 20% plunge in the KL Composite Index.
After resigning as a finance minister, Daim quietly ventures into international markets, including serving as an advisor in investment institutions in Singapore and Brunei. His ICB financial group was involved in commercial activities in at least 14 countries.
In 2004, Daim mentioned that he had retired and did not want to compete with Malaysians at home. Often dubbed the Godfather of corporate Malaysia, Daim is known for having great influence in politics and business. He amassed a huge fortune from a global banking empire he built over many years.
However, with the change of political leadership and the initiation of the investigations by the MACC in the era of Anwar Ibrahim, the fate of this 85-year-old man remains uncertain.
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