The market sabotage of Pakatan

At this moment, weeks before the next general election, there are undeniable signs that a large majority of the capitalists in and outside the country are not in favour of Pakatan.

COMMENT

Claims that the market would collapse and that it would bring down the nation’s economy if Pakatan Rakyat wins the 13th general election, could be true, in the end.

However, the truth could be stranger than fiction, and the scenario exposed here shows how the contrary could be real. It would also show how the country is now divided, more or less, on an economic line rather than on racial or ethnic line.

MCA has warned the people of a huge financial disaster if Pakatan comes to power. The Barisan Nasional faction has predicted that the KL stock market indicator or KL Composite Index (KLCI) would likely drop 500 points. It added that this could happen within a week after Pakatan is in power.

This scenario is a possible one. The warnings are true, so true that we must all be prepared for a long-drawn battle between the government and the economic powers of the country. And these economic powers are the filthy rich, the capitalists, hence the cronies of the BN regime.

These multi-millionaires and billionaires hold the key to the KLCI, hence a fall of 500 points – though dramatic as it would seem – would only be an attempt to squeeze Pakatan out of its political might.

An electoral victory for Pakatan in the next general election would mean it would form the next government, thus it would be a powerful political group. Whether the victory would be by a slim or large margin, would not be important. Once Pakatan has a stronghold on power, it would be the one ruling the country.

At this moment, weeks before the next general election, there are undeniable signs that a large majority of the capitalists in and outside the country are not in favour of Pakatan. Besides the huge banners showing support to BN, statements of market panic and the bankrolling of BN campaigns, it could be said that the rich among the rich are not pro-Pakatan.

It could also be said, without much ado, that these elements have a tight grip on the local marketplace and the stock market depends largely on their mood. They are enjoying the current economic boom – with the spilling of contracts and whatnot across the board.

There is little doubt they would do everything to attempt a sabotage, if necessary, of a Pakatan regime.

This has been predicted – to a certain extent – by the now famous Bank Islam chief economist Azrul Azwar Ahmad Tajudin. Azrul forecast that a fallout would result from the Pakatan win, with the stock market set to respond in “knee-jerk” fashion as well as an extended period of perceived instability.

He did not rule out the possibility of “economic sabotage” by businesses and the civil service aligned to BN.

Taxing the rich among the rich

The recent claims by MCA president Dr Chua Soi Lek, if it were to be taken seriously, falls right into Azrul’s estimates that capitalists would try to sabotage Pakatan.

Nevertheless, the people should not worry too much about the 500-point fall, as predicted by Chua.

“So either the country would go bankrupt within two years, or Pakatan would target taxpayers for more funds.” said Chua.

“If that happens, the Chinese would suffer the most because they are the single biggest taxpayers group in the country,” he added.

The point is, why would the Pakatan attack its own voters with more taxes when it could simply tax the rich among the rich? Since it is being proven that the filthy rich are not pro-Pakatan, it would not be difficult to overtax them.

BN itself claimed that the strength of Malaysia is in its ability to arrest market turmoils and economic downturns. With Pakatan in power, and its prowess of achieving economic success in Selangor, Penang and even in Kedah and Kelantan to a certain extent, things should be under control.

Nonetheless, with the Petronas billions firmly under the scrutiny of the Pakatan regime, there would be sufficient cash to bail out the nation in the event of a massive pullout of capital by pro-BN capitalists.

It has been said, since last year, that large amounts of money have left the country for foreign shores.

This may indicate that most of the pro-BN capital is in flight, amid rumour of a potential Pakatan victory in the next polls.

The giving away – in a rush and somewhat hush-hush manner – of billions of dollars of contracts (such as the MRT project) is an indication of the consolidation of the pro-BN cronies.

This consolidation would mean that the cronies would have a stranglehold over the small people, users of the MRT and LRT and other public transport.

Would Pakatan take action, by invalidating these contracts or by nationalising them, in order to save the poor men and women on the streets?

That is to say, the Pakatan government, once in place, would have many tools in its hands to leverage with the goons who would want to cause more sufferings to the people by brandishing economic sabotage.

Ali Cordoba writes extensively on local politics.