Khairy: Investment dropped due to absence of power transition timeline

PARLIAMENT | The absence of a clear timeline for Prime Minister Dr Mahathir Mohamad to hand over power to PKR president Anwar Ibrahim has led to uncertainty among the local and foreign investors, said Rembau MP Khairy Jamaluddin.

This was among the causes that held the private investors back from investing and expanding their businesses in the country, he said.

Khairy added that it led to a drop of 1.9 percent in private investment in the first half of 2019.

"They were not investing in machinery, equipment due to lack of a clear direction from the economic perspective and the political uncertainty. While the investors joked about it but deep down they felt insecure," he said in his budget debate at the Dewan Rakyat today.

"I want to mention here because many foreign investors I met said the transition of power was not merely a political problem or political joke, but a serious matter.

"Without a clear timeline on the transition of power, they do not invest. These were among the feedbacks I received from the local and foreign investors who said Malaysia is unique, in the sense that investment has a lot to do with political certainty," he said.

Khairy added that the drop in investment is a bad indicator as it showed businesses are not investing to buy new machinery.

In January 2018, Harapan agreed that Anwar should succeed Mahathir as the eighth premier without stating a transition timeline.

Mahathir has repeatedly pledged that he will hand over power to Anwar.

During a dialogue session in New York last month, the premier said: "I cannot guarantee that somebody who succeeds me will do well, or maybe not too well". 

Meanwhile, Khairy also criticised Putrajaya for not addressing climate woes in Budget 2020.

"Last month, the world was shaken by the climate strike, but not even one single word mentioned about the climate change by the Harapan government.

"It mentioned the electric buses, but maybe an afterthought. There was no mention of ocean cleaning, corals rehabilitation and other related efforts.

"So, I am worried about (our) future as the whole world went on strike over climate change issue, but our government is silent about it," he said.

It was reported under the Budget 2020 that the government will exempt the green investment tax allowance and the green income tax exemption incentives will be extended to 2023.

Companies undertaking solar leasing activities will enjoy 70 percent income tax exemption for up to 10 years.  - Mkini