‘Market will plunge if Pakatan takes over’

The country will go bankrupt within two years of opposition rule, says MCA chief Dr Chua Soi Lek.

KUALA LUMPUR: Malaysia will witness a huge financial disaster if Pakatan Rakyat comes to power in the 13th general election, says MCA.

Its president Dr Chua Soi Lek said the KL stock market indicator – the KL Composite Index (KLCI) – will likely drop 500 points “within a week” should there be a change of government.

He issued this dire warning at a ground-breaking ceremony for the Kepong MCA building here today.

He said the market turbulence would be caused by political instability due to the change of political leadership (in Putrajaya).

“If the country is not stable, then the economy will be severely affected. The Chinese would end up being the biggest casualty.

“I can openly declare that if there is a change [of government], and the opposition pact is dominated by PAS, our stock market will drop to 500 points within a week.

“The stock activities are inter-connected with our daily life, with many businessmen using the stock market to guarantee their assets, to take loans.

“If there is a drop, many of their shares would be wound up. Many shops will close down. Investment confidence will deteriorate and foreign investors will turn away from Malaysia,” he claimed.

Populist policies

In contrast, Chua said a vote for Barisan Nasional in the coming general election would ensure the country would move forward with clear direction and become a high-income nation.

He said this was evident by Prime Minister Najib Tun Razak’s ability to increase the national income per capita from about RM20,000 in 2009 to RM30,000 in 2011.

Chua, a former health minister, also reiterated that Pakatan’s proposals to abolish highway tolls and provide free education were populist policies, and not accompanied by efforts to increase the national revenues.

“So either the country will go bankrupt within two years, or Pakatan will target taxpayers for more funds.

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

On another issue, Chua warned the BN component parties that the allocation of seats is not set in stone, hinting that MCA might fight to contest in the Kepong parliamentary seat.

The seat is traditionally contested by BN’s Gerakan, but it has been held firm by DAP’s Dr Tan Seng Giaw for close to two decades.

“Our colleagues [in BN] should not regard our support as something that is [there] forever. Seat allocation [within BN] is not set in stone, and they m

“So in those areas where we got a higher chance of winning, we won’t give up our fight to contest. Likewise, they [other BN colleagues] can take our seats if they fare better in our constituency,” Chua said.