Race ‘considerations’ will still guide govt policies, says Fitch Solutions

 

Fitch Ratings’ research arm says it remains to be seen if Anwar Ibrahim’s administration will be able to effectively tackle corruption from within the government. (Facebook pic)

PETALING JAYA: Fitch Solutions Country Risk and Industry Research expects race-based “considerations” to continue to guide the Anwar Ibrahim-led government’s policies.

This is despite Pakatan Harapan’s continuous pledge to move towards needs-based rather than race-based policies, the research arm of US credit rating agency Fitch Ratings said.

Citing the upcoming state elections, Fitch Solutions pointed out that Perikatan Nasional held the predominantly poorer Malay states of Kelantan, Terengganu and Kedah. Meanwhile, PH governed Selangor, Negeri Sembilan and Penang.

“A clear victory by PN could put pressure on the coalition government to implement more pro-Malay policies in order to shore up support among this core group,” it said.

It also predicted future gridlocks in policymaking within the unity government, with the administration comprising multiple parties of differing ideologies.

It cited how Penang deputy DAP chief P Ramasamy came under fire for urging Putrajaya to address the racial imbalance in the civil service, which eventually led to Anwar saying the government did not intend to reform the civil service.

“The diverging views between top leaders in the coalition instil little confidence that parties will be able to see eye to eye on other ethnicity-related matters,” it said.

Malaysia’s policymaking score still low

Fitch Solutions maintained Malaysia’s policymaking score at 72.9 out of 100, noting that this was still low and below the score of 75.6 recorded by the Dr Mahathir Mohamad-led PH government in April 2018.

It said it remained to be seen if Anwar’s government would be capable of formulating and implementing reforms on more “politically contentious matters” as effectively as the Barisan Nasional government led by Najib Razak.

It said Budget 2023, which was passed by the Senate yesterday, did not introduce any major fiscal or tax reforms that could ruffle feathers whether politically or socially.

Fitch Solutions also foresaw Anwar’s government struggling to pass extensive anti-corruption reforms, saying the administration’s efforts have been targeted at the opposition so far.

“It remains to be seen if the government will be able to effectively tackle corruption from within,” it said. - FMT