The Cost of Doing Business, K.L.-Style

Prime Minister Mahathir Mohamad is rightly credited with leading Malaysia along the road to economic prosperity. But his tenure is also littered with costly bailouts and questionable business decisions that Malaysian taxpayers have had to underwrite. Some examples:

1981 The Malaysian government forms Maminco to corner the London tin market. But tin prices plummet in 1982, and Maminco loses an estimated $150 million.

1984 Kuala Lumpur channels 2.26 billion ringgit ($964 million) into Bank Bumiputra to cover the latter's losses. The government bails out the bank again in 1989 and in 1998.

1992 Bank Negara, the central bank, reportedly suffers massive losses speculating in the forward foreign-exchange market. The government does not admit to any forex losses that year but reports "paper losses" of 9.3 billion ringgit ($3.7 billion).

1997 The government takes over the controversial Bakun dam project, "reimbursing" tycoon Ting Pek Khiing's company Ekran for work already completed. The main dam structure will now cost an estimated 7.2 billion ringgit ($1.9 billion).

2000 The Treasury's investment fund buys a 30% stake in a troubled unit of Renong Group. Malaysian Airlines executive chairman Tajudin Ramli sells his 29% stake in his indebted carrier to the government. State-owned oil conglomerate Petronas purchases DRB-Hicom's 25.8% stake in the national car project Proton.