Gambling: It’s in Malaysia’s genes
In fact, gambling has long been a part of Dr Mahathir’s strategy to make Malaysia a developed nation. It is well known that Mahathir in his first year as prime minister gambled in the tin market with disastrous results. Speculating in tin caused Malaysia – then the world’s leading tin producer – about RM660.5 million in losses.
Written by Dr Lim Teck Ghee, CPI
Life as a gamble
The cabinet decision not to issue a sports betting licence to Ascot Sports Sdn Bhd is the right one but it was made for the wrong reasons. According to prime minister Najib Razak, the reason for not legalizing sports betting was “the impact it will have from the perspective of religion and politics.”
To get a proper perspective of the issue, it is necessary to get off the religious and political high horse and acknowledge that we are a nation that loves the occasional flutter. And also let us admit that there’s nothing wrong with gambling so long as it is not taken to extreme lengths and becomes a pathological, compulsive or destructive habit.
In a sense, all of life and the various decisions that we make are gambles. Although it may be too much to say that we all have gambling in our genes, scientists have been debating on the extent to which gambling is a manifestation of human behavior for a long time – at least during the last 200 years or so.
In an article, ‘Human Behavior and the Efficiency of the Financial System’ (February 1998) Robert Schiller, the noted financial economist, wrote that “a tendency to gamble, to play games that bring on unnecessary risks, has been found to pervade widely divergent human cultures around the world and appears to be indicative of a basic human trait.”
Further he pointed to studies that estimated that 61% of the adult population in the United States participated in some form of gambling or betting in 1974. They estimated that 1.1% of men and 0.5% of women are “probably compulsive gamblers,” while an additional 2.7% of men and 1% of women are “potential compulsive gamblers.” These figures are probably much higher today.
Similar numbers are recorded in all the highly developed countries whose status the country aspires to. All the countries that our elite regard as role models whether in the East or West, North or South take a liberal position on gambling or gaming as it is sometimes referred to.
Dr Mahathir: Nation’s No. 1 gambler
Even if we do not view gambling as part of normal human behaviour, it has certainly been part of Malaysian culture and politics – not only of the Chinese or non-Malay communities but for the majority of the country’s inhabitants, especially amongst the elite and leaders.
When Dr Mahathir Mohamad stated that he would have approved the sports betting licence for his long-time buddy Vincent Tan, he was being unduly coy and modest in leaving out his own addiction to trying to beat the odds.
In fact, gambling has long been a part of Dr Mahathir’s strategy to make Malaysia a developed nation. It is well known that Mahathir in his first year as prime minister gambled in the tin market with disastrous results. Speculating in tin caused Malaysia – then the world’s leading tin producer – about RM660.5 million in losses.
This staggering loss does not appear to have cooled off the gambling habit of our prime minister at that time. Using Bank Negara money, Mahathir speculated in currency, principally on the British pound which resulted in an even bigger multi-billion ringgit loss when the sterling collapsed in 1992. Estimates of this loss have placed it at over RM30 billion.
The details of Mahathir’s super high stakes betting which went dreadfully wrong have been given some attention in Barry Wain’s book, ‘Malaysian Maverick’. It could be that it was this content rather than any other part that led the Malaysian authorities to think twice about permitting the book’s distribution in the country.
