Wrong to say PN win will be ‘setback’ for economy

 

From Wong Kah Beng

I am writing in response to FMT’s article, PN win will be a setback for economy, say experts.

The article claimed that a Perikatan Nasional victory in the upcoming polls would be a setback for the economy. This claim is wrong on so many fronts.

First of all, the upcoming polls are for voters to elect their state legislators, and by extension, the state Cabinet, including the respective menteris besar and chief ministers.

As we know, under Malaysia’s federation system, the national and state governments have different jurisdictions. For the most part, the economy falls under the federal government.

Chief among the architects and stewards of the country’s economy are the finance, international trade and investment and economy ministries, all of which are under the federal government. There are many other agencies involved directly or otherwise in our economy, but they all report to the prime minister, who is also the finance minister.

So, it is a fallacy to say that just because there are changes in the governments in several states, the country’s economy will be affected. While state governments have jurisdiction over economic matters, they are mostly very localised, and much of the power still lies in the federal government.

As for claims that Selangor, Penang and Negeri Sembilan are more advanced because they are under PH rule, that is another lie. These three states were already more advanced than many other states even before they fell under PH rule – Selangor and Penang in 2008, and Negeri Sembilan a decade later.

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There are many reasons why this is so, including Selangor’s and NS’ close proximity to the federal capital and for historical reasons, such as the colonial British policy of bringing immigrants in and developing Penang as a port.

It is presumptuous to claim that PH’s rule over the past five to 15 years has turned these states from backwaters to economic powerhouses in a country that has been independent for 66 years.

In fact, in Penang, it was the visionary leadership of ex-Gerakan CM, the late Dr Lim Chong Eu, that catapulted the state into a regional industrial hub, not DAP.

Besides, PN chairman and ex-PM Muhyiddin Yassin showed his ability to navigate the economy well when Covid-19 hit.

He introduced a series of rescue and economic stimulus packages such as Prihatin, Pemerkasa and Penjana. These initiatives helped groups like the B40 and micro enterprises to tide over during the trying times. They also helped prop up the economy and expedited the recovery post-pandemic.

What has the current federal government done?

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The ringgit has been losing its value, causing dearer imports which has only burned a bigger hole in the pockets of ordinary Malaysians.

Prices of essential goods are rocketing and the government’s Rahmah programme is too little, too late. Unlike during Muhyiddin’s administration, there is no crippling pandemic now.

The overnight policy rate (OPR) hike has also reduced the disposable income of many Malaysians, especially those with bank loans, and SMEs, and this will have knock-on effects on the economy as a whole.

In other words, it is not PN’s victory that will worsen the economy. Far from it. It is the unity government’s yet unclear policy direction that is weighing heavily on the economy. - FMT

Wong Kah Beng is an FMT reader.

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The views expressed are those of the writer and do not necessarily reflect those of MMKtT.