Opposition Leader Anwar Ibrahim slammed Umno for unnecessary bickering over a long-standing 30 percent Bumiputera equity target, saying that the ruling party was just trying to deflect attention from the fact that Malaysia’s economy has been mismanaged to a critical stage.
"It has become modus operandi for the federal government to throw a lot of big numbers and hide behind assumptions and premises that are eventually proven wrong,” Anwar told a press conference on Thursday.
"The debate is real income, not a 30 percent equity target squandered by a few. If the policy creates 10 billionaires but you only earn RM800 a month, would you still be proud?"
Underlying economy is still weak
Bank Negara had a day ago announced a slower economic growth of 8.9 percent in the March-to-June period following a 10.1 percent expansion in the first-quarter from a year ago. The central bank attributed the second quarter growth to higher private and public sector spending as well as expansion in external demand.
However analysts have said the moderation was a sure sign of an economic downtrend in the months to come. Anwar, who was once a star Finance Minister, also said part of the reason for the strong numbners especially in the first quarter, had been due to a low-base statistical-comparative effect rather than any real boost in the underlying economy. He pointed out that GDP shrank 1.7 percent in 2009.
"Between the idea of dramatic increases in private investment and the reality that prevails at present falls a shadow," he said, adding that Malaysia’s full-year performance was likely to lag behind regional peers Singapore and Indonesia.
Singapore is forecasting GDP growth of between seven to eight percent for 2010, while Malaysia is targeting 6 to 6.5 percent.
"On the other hand, Indonesia is anticipated to register a growth of above six percent for 2010, continuing a 4.6 per cent growth in 2009 when Malaysia was in a recession," Anwar added.
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