PKR points to BN's wasteful ways in face of slowdown warning

In the face of CIMB Group Holdings chairperson Nazir Razak's warning of global slowdown in the second half of the year, PKR said the BN administration's wasteful ways has left the country in a weak position.

"In an economic situation that is increasingly weak, it is certain the government needs to manage the country's finances prudently from the point of debt and fiscal deficit.

"The government needs to manage the finances well in order to be resilient (to global forces).

"However, I feel this situation would not have arisen if the Umno-BN government under Prime Minister Najib Razak did not continue to see wastage, leakages, abuse and corruption, to the point the country's debts keep growing," said PKR secretary-general Saifuddin Nasution Ismail in a statement today.

Nazir earlier this week said the cautious global economic growth in the second half of this year could dampen the improved gross domestic product (GDP) of 5.8 percent announced this month.

According to the Edge, Nazir speaking to reporters on the sidelines of the Asean Roundtable Series on 'Deepening Capital Markets in Asean: Opportunities and Challenges' in Kuala Lumpur said, “I think we should lower down our expectations for the second half of this year.”

“If you look at analysts’ expectations, they are expecting a gross domestic product (GDP) of about 5% for 2017, which by definition would equate to a slower second half,” he was reported as saying on Tuesday.

Saifuddin said the weak ringgit has further exacerbated the situation.

He cited The Economist in an August 2015 report noting the slide of the ringgit against the US dollar by 9.8 percent as compared to the Thai baht's 6.4 fall.

"If the government does not take action to strengthen our financial policies, the ringgit may fall even further this year.

"Till today, the ringgit has continued to fall to RM4.28 to the US dollar," said Saifuddin.

He said the BN government should not be complacent with the present situation, adding the 1MDB scandal being probed in several countries abroad has also scared off investors.

"I hope the government will be more frugal, considering our financial situation is still in difficulty because of economic slowdown.

"With such a large debt burden, the government shouldn't gamble on the people or make them victims who will take the burden of all the leakages done by the government themselves." - Mkini