This system was put into place by policies of the prime minister, whose actions indicate he feels capable of determining what is best for everyone, and thus justifies his heavy hand on all aspects of both the economy and society. He says he can do this efficiently. He can't.

The prime minister has attempted to protect over-extended debtors by a series of delaying tactics. Non-paying corporate loans are extended indefinitely. Public money is diverted to forestall bankruptcies. An enormous shuffling is in progress. But the huge overhang of debt remains.

Now, after more than 30 months of evasion tactics, the reality is beginning to sink into corporate and banking consciousness. The accounting just cannot be evaded any longer. The inevitable and long-awaited corporate restructuring has begun.

Restructuring on the corporate level is much like a declaration of personal bankruptcy. Whatever tangible assets remain are given a new appraisal based on current fair market values.

Any shares owned in other companies also bankrupt are given today's actual market value instead of being carried on the company books at an inflated pre-1997 value or at their cost value.

New balance sheet

The process is well illustrated by the case of Idris Hydraulics, which has finally decided to end the charade. The share price has collapsed, but at least now they can begin again with a fresh new balance sheet.

The executives of Idris have perhaps learned something about easy credit in boom times. They have shown the way, and are certainly soon to be followed by others. It will be painful for them, as it has been for Idris and its shareholders.

Malaysia is now, at last, beginning to experience the first phases of the final fallout of a fantasy manufactured flimsily from the prime minister's folly. Malaysia will eventually survive to benefit from the experience, though some of the favoured few may be fleshed a bit.

In old western movies the removal of a bullet without an anesthetic calls for a swig of whiskey. A lead slug from a pistol is placed between the clenched teeth. It is known as "biting the bullet". It is time for Malaysia to emulate the wounded cowboys.