Huge conglomerates arising from multinational mergers will colonise Malaysia and the rest of the world if there are no laws to control them, said Prime Minister Dr Mahathir Mohamad today.

"Governments must strengthen their rules and laws to deal with the takeover by these conglomerates," said Mahathir during a question-and-answer session with participants of the International Conference of Globalisation in Kuala Lumpur.

"Big mergers are not good, and with the effects of globalisation, once the borders open up, they will march in to control us."

The conference, attended by 500 academics, corporate leaders, and public servants, was jointly organised by the Institute of Strategic and International Studies and the Finance Ministry.

Mahathir added that the mergers between large international companies paint a very "frightening scenario".

He said that the powerful mergers would give rise to conglomerates that could start dictating terms and conditions in Third World nations and eventually control them.

They will be very powerful and the people will suffer and pay a very high price, added Mahathir.

Governments as moderators

The prime minister also added that it was the role of the government to introduce laws to curb any excessive monopoly.

"In their quest for profit, businessmen will not be concerned with the social or economical implications of the country. The government must act as a moderator so that these business ventures do not destroy people," he said.

Mahathir also said that there was a need for reforms in the international financial structure, which was open to manipulation that could impoverish countries.

He however said that the powerful countries which control the international financial structure do not respond to ideas promulgated by less powerful people.

He said that it was very difficult to have a mass uprising of people to oppose the concept, adding that he has done his part in seeking a change by making "small agitations here and there".

Asian ideas

Mahathir also said that the Boao Forum for Asia, which starts in China tomorrow, was aimed at obtaining Asian views on economics and globalisation.

Mahathir will be delivering a keynote address at the conference. He said that the forum, which was inspired by the annual World Economic Forum in Davos, Switzerland, was for Asians to discuss ideas, such as on globalisation, that are being imposed on the world.

He said that people should accept the need to regulate globalisation and capitalism, adding that any deregulation would lead to anarchy.

Earlier in his keynote address, Mahathir said that he was not opposed to globalisation and capitalism.

"I must confess to being a believer in the market system, capitalist system and globalisation... you merely have to look around you at the Malaysia that exists today (to see this)," he said.

Compassionate globalisation

Calling for a more caring and compassionate new globalisation in a New World Order, Mahathir said that despite him being termed as xenophobic by the foreign media as a result of his unorthodox currency control in 1998 and the sacking of his former deputy Anwar Ibrahim, Malaysia has embraced globalisation, which puts it amongst that half dozen of most globalised and open countries in the world.

"The new globalisation that we must foster must rightly reward enterprise and excellence, but it must contribute to and not detract from this more just, more caring, kinder, gentler, more compassionate New World Order."

He added that despite obvious flaws and dangers, the market system, capitalism and globalisation have a tremendous potential for good.

Mahathir however warned that the absolute market system, untempered by responsibility and civilisation, was a grave threat to mankind.

"Absolute capitalism, inconsiderate of humanity and caring, is a monster machine for misery and injustice. Absolute globalisation, unguided by rationality and sound judgment is perhaps the greatest danger to the world at the dawn of our new century.

"We must not let absolute globalisation roll all over us. We must make sure that productive globalisation will work for us and for the bounteous benefit of our people," he concluded.