Faltering Economy: Ultimate Test To Mohd Najib

AFTER months of hesitation, uncertainty and denial, the government finally accepted the reality that its 2015 Budget has been torn to shreds by plummeting petroleum prices and the growing uncertainly of the global economy.

Today, Tuesday January 20, the Prime Minister, Mohd Najib Abdul Razak, who is also Finance Minister will present, what the media calls, budget readjustment.

The Star quoted economists as saying that the government might cut spending by as much as RM15 billion.

It said, the new strategies include ensuring “reasonable” economic growth, helping flood victims and rebuilding destroyed infrastructure, addressing the effects of falling crude oil prices, managing the value of the ringgit and rationalizing capital flows.(Read here).

This is as good as re-tabling the 2015 budget that pegged government revenue and the overall economy at the crude price of US$100 to US$105 per barrel. Global crude prices had since fallen below US$50 per barrel and with no signs of immediate recovery.

It will also put to ultimate test Mohd Najib’s leadership and the worth of his hordes of economic, financial and monetary advisers – local and foreign.

Politically it is an explosive time. His own party Umno is in danger of imploding and the oppositions are moving ever closer to the gate.

But what we are facing today goes beyond politics. If our democracy is anywhere near maturing, we should stop being partisan. We should get together in a bi-partisan dialogue to save the country.

Opposition parties must bear in mind that if the economy collapses and the Barisan Nasional is shown the door by the rakyat, the burden of reviving it falls on their shoulders. Are they prepared for this?

Wallahuaklam.