Daim Zainuddin, man behind Malaysia's economic recovery, dies at 86

Daim Zainuddin, one of Malaysia's best-known finance ministers who was recalled from political retirement and oversaw economic recovery efforts during the Asian financial crisis, has died.

He was 86 years old.

Daim, who was hospitalised several times in recent months, passed away this morning at Assunta Hospital in Petaling Jaya.

Born Che Abdul Daim Zainuddin, he was a businessman before joining the government as finance minister under the administration of Dr Mahathir Mohamad.

Despite his ailing health, Daim had been in the spotlight in recent months and was the target of attacks from Anwar Ibrahim who accused him of amassing wealth illegally, a frequent claim by the prime minister against his political enemies.

An investigation into him by the Malaysian Anti-Corruption Commission (MACC) quickly became embroiled in controversy following a damning report that the probe was launched under pressure from Anwar.

On Sept 26, financial news Bloomberg cited three informed sources as saying that MACC chief commissioner Azam Baki had told his officers that the investigations into Daim and Mahathir were launched on Anwar's instructions.

The revelation triggered a police report by Daim, filed on his behalf by his wife Naimah Khalid, calling for a full investigation into allegations that Anwar had abused his powers and interfered in MACC affairs.

Despite the attacks on him, Daim will be best known as the man who won Mahathir's trust to oversee Malaysia's economic transformation in the 1980s and 1990s.

From Kedah to London

The youngest of 13 siblings, his father worked as a government employee and his mother as a housewife.

After completing secondary school at St Xavier's Institution in Penang, Daim went to England to study law, with the money raised by his mother who sold the family land.

At the age of 21, Daim was called to the English Bar.

Upon his return, he worked in the legal profession in various states as a lawyer, a magistrate and a deputy public prosecutor.

In 1969, he opened his own law firm, Daim & Gamany, but soon ventured into business.

He achieved great success in this field, becoming among Malaysia's most prominent corporate figures, working in manufacturing, property development and banking.

Daim was never really interested in politics and was planning to retire in the late 1970s when Mahathir persuaded him to stand in the general election.

He always earned Mahathir's trust and was often sent overseas as a government envoy to negotiate complicated issues.

Mahathir's deep faith in Daim's business and financial acumen was best demonstrated by his appointment as finance minister in 1984, when the Malaysian economy was just emerging as the industrial centre of the region with massive foreign investment.

Twice recalled to oversee recovery

When the economy took a hard turn in the mid-1980s, Daim was credited for the recovery efforts, which soon opened the path for Malaysia's rise as an Asian economic powerhouse. In 1991, after overseeing Malaysia's economic transformation, Daim resigned as finance minister and retired from politics. Mahathir had no choice but to fill the post with Anwar, then a rising star in Umno who also owed his political rise to Mahathir.

Daim's services were called upon again during the Asian financial crisis that began in 1997, as Mahathir felt that Anwar was unsuitable not only morallly, but also because he believed his deputy was unable to fend off pressure from international financial bodies such as the International Monetary Fund.

After successfully leading the economic recovery efforts, Daim once again withdrew from politics and returned to his business endeavours.

In the run-up to the 2018 general election, Daim decided to ignore his quarrel with Anwar and join the effort to oust Najib Razak by campaigning for PKR and Pakatan Harapan candidates.

After the historic return of Mahathir as prime minister for the second time, he was appointed to head the Council of Eminent Persons to advise Mahathir on political and economic reforms in the aftermath of the 1MDB scandal.

Daim's health deteriorated in recent years after he suffered a stroke that left him with speech problems, confined to a wheelchair and partially blind. Despite this, prosecutors had questioned his medical certificate when he was not present at his trial on a charge of failing to declare assets.

Early last year, his first wife Mahani Idris passed away. Daim is survived by his wife Naimah and seven children.