The expiry of the loan moratorium for housing and car loans at the end of 2021, no more EPF withdrawals after 2022, and the end of Covid-19-related assistance at the end of 2022;
Above normal headline inflation rates of more than three percent in 2022 and between 2.5 percent to three percent in 2023 due to supply chain disruptions from Covid-19, the war in Ukraine and increased imported inflation due to the weak ringgit and less disposable income from rising interest rates; and
The increasing strength of the Singapore dollar to RM3.56/SGD1 today has made Malaysia less attractive as a place to work, especially for those living in Johor.
A sudden increase in electricity prices in December 2022 because of delays by the previous government in implementing the Industry Cost Past Through mechanism;
A shortage of foreign labour which resulted in upward wage pressure for existing and new staff (without seeing increases in productivity);
Increase in costs to comply with changes in the Employment Act in 2023;
Increase in costs because of the weaker ringgit, the war in Ukraine and supply chain disruptions; and
Increase in costs in hiring new foreign labour (including expensive “agent” fees).
The government should acknowledge the challenges it is facing in managing the economy and stop blaming the past governments for everything including 1MDB causing the slide in the ringgit.
This makes the current government seem ineffective to the public and also brings attention away from some of the positive government policies which have been announced such as the National Energy Transition Roadmap (NETR) and the New Industrial Masterplan 2030 (NIMP 2030) which will take some time to actualise.
Have policy consistency so that families and businesses can plan for issues such as an increase in diesel and petrol prices when the subsidies are gradually withdrawn this year.
Until now, we don’t have any concrete timelines on when these withdrawals will take place and more importantly, what is the amount of targeted subsidies that will replace these targeted subsidies and who will be eligible for them.
Announce rollout plans for the important initiatives that were in Budget 2024 including funding details for the NIMP 2030, NETR-related funding schemes, and tax incentives for Global Business Centers, just to name a few examples. The longer these are delayed, the less confidence the public will have in the implementation agenda under this government.
Announce and roll out initiatives related to important economic catalysts with significant multiplier effects.
These would include rolling out the new Malaysia My Second Home (MM2H) categories (important for the property, tourism, and education sectors), announcing the MRT3 Line 3 Project (important for the construction industry) and working on specific initiatives that were identified in the joint press statement between Malaysia and Singapore on the Special Economic Zone for Johor, just to name a few.
These announcements will not only get the market excited, but they will translate into quickly felt economic benefits on the ground.
Finally, this government needs to have better strategised and coordinated communication plans so that it doesn’t end up shooting itself in the foot.
One recent example was the announcement by the National Action Council on Cost of Living’s food prices and cost of living committee chairperson and Bukit Gantang MP Syed Abu Hussin Hafiz Syed Abdul Fasal on the introduction of a single category of Madani Rice costing RM30/kg which had not even been decided by the Agriculture and Food Security Ministry or the cabinet.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.