The Late Daim: From Ex-Banker And Realtor To Nation's Economic Troubleshooter

By Zarul Effendi Razali

KUALA LUMPUR, Nov 13 (Bernama) -- Tun Daim Zainuddin, who passed away this morning at the age of 86, is best known as former Prime Minister Tun Dr Mahathir Mohamad’s chief economic troubleshooter.

Daim, whose real name is Che Abdul Daim Zainuddin, served as Finance Minister from 1984 to 1991 and held the position again from 1999 to 2001.

Even before his political appointment, the self-made Daim had earned fame and respect in real estate and finance.

Characterised by business observers as restrained yet fiercely shrewd as an economist and businessman, he played a major role in extracting Malaysia from economic turmoil in the 1980s and again in the 1990s.

Daim was born on April 29, 1938, in Alor Setar, Kedah, the youngest of 13 siblings. 

He received his early education at the Seberang Perak Malay School, Alor Setar, Kedah. He later attended the Sultan Abdul Hamid College, an English-medium school, and finally finished his upper secondary education at St Xavier’s Institution, George Town, Penang.

Tun Daim then furthered his studies as a barrister-at-law at Lincoln’s Inn in 1959 and in Urban Planning at the University of California, Berkeley, in 1979.

During his first tenure as the finance minister, Daim helped restore the country’s economy, enabling Malaysia to record an economic growth that was among the highest in Asia.

From a negative growth of 1.03 per cent in 1985, the gross domestic product (GDP) rebounded to 9.06 per cent in 1989, setting the nation on a sound footing for greater expansion. 

Contributions in real estate and finance

Beyond politics, Daim made significant contributions to the business sector.

His initial attempts in the salt and plastic production industries were met with challenges, but in 1973, he ventured into real estate development, where he established Syarikat Maluri Sdn Bhd.

The company played a key role in developing two townships in Kuala Lumpur, namely Taman Maluri and Taman Bukit Maluri.

In 1981, Daim acquired the Indo-Suez Bank and renamed it the Malaysian-French Bank. He later exchanged his predominant ownership in the Malaysian-French Bank for a smaller share in the United Malayan Banking Corporation, now known as RHB.

His contributions to the Urban Development Authority (UDA) and UMNO’s investment company, Fleet Holdings Sdn Bhd, showcased his influential role in shaping Malaysia’s business landscape.

In a strategic pivot after his ministerial roles, Daim founded the International Commercial Bank (ICB) in Switzerland in 1991, signalling his intention to play a significant role in the global financial arena.

The move showcased Daim’s foresight in establishing a financial institution in Switzerland, a recognised hub for international banking.

Over the next decade, ICB, under Daim’s guidance, expanded its operations globally, venturing into Sierra Leone and Gambia.

Return to the government 

Despite enjoying great success in the banking industry, he had to relinquish his banking sector ventures upon assuming the role of finance minister in 1999 at the request of then Prime Minister Tun Dr Mahathir during the Asian Financial Crisis, which threatened to destroy Malaysia’s economy.

After spending a year in the role, he resigned and completely exited the political scene to focus on his business ventures.

Daim, who was also known as Dr Mahathir’s ‘right-hand man’, made a comeback in the country’s political and administrative arena in 2018 after the 14th General Election, when the former finance minister was given the responsibility of leading the federal government’s Council of Eminent Persons.

The council included former Bank Negara Malaysia governor Tan Sri Zeti Akhtar Aziz, former Petronas president Tan Sri  Mohd Hassan Merican, tycoon Robert Kuok, and economist Jomo Kwame Sundaram.

The council’s purpose was to advise the government on economic and financial matters.

-- BERNAMA