I am writing in response to certain media reports that a Perikatan Nasional victory in the upcoming polls would be a setback for the economy (such as this one: https://www.freemalaysiatoday.com/category/highlight/2023/07/31/pn-win-will-be-a-setback-for-economy-say-experts/). Such claims are without basis.
First of all, the upcoming polls are for voters to elect their state legislators, and by extension, the state cabinet, including the respective Menteri Besar and Chief Ministers.
As we know, under Malaysia’s Federation system, the national and state governments have different jurisdictions. For the most part, the economy falls under the Federal government.
Chief among the architects and stewards of the country’s economy are the Finance Ministry, International Trade and Investment Ministry and the Economy Ministry – all of which are under the Federal Government. There are many other agencies involved directly or otherwise in our economy, but they all report to the Prime Minister, who is also the Finance Minister.
So, it’s a fallacy to say that just because there’s changes in governments in several states, the country’s economy will be affected. While state governments have jurisdictions over economic matters, they are mostly very localised as much of the power still lies in the Federal government.
As for claims that Selangor, Penang and Negeri Sembilan are more advanced because they are under PH rule, that is another lie. These three states were already more advanced than many other states even before they fell to PH rule (Selangor and Penang in 2008 and Negeri Sembilan, a decade later).
There are many reasons why this is so. One of them is their close proximity to the Federal capital (Selangor and NS) or due to historical legacy (such as the colonial British’s policy of bringing in immigrants and developing Penang as a port).
It is presumptuous to claim that PH’s rule over the past 5 to 15 years have turned these states from backwaters to economic powerhouses in a country that has been Independent for 66 years. In Penang in fact, it was ex-Gerakan CM the late Tun Dr Lim Chong Eu’s visionary leadership that catapulted the state into a regional industrial hub, not the DAP.
Besides, PN chairman and ex-PM Tan Sri Muhyiddin Yassin has shown that he has been able to navigate the economy well when Covid-19 hit. He introduced a series of rescue and economic stimulus packages such as Prihatin, Pemerkasa and Penjana. They helped groups like the B40 and micro enterprises tide over during the trying times. They also helped prop up the economy and expedited the recovery post-pandemic.
But what has the current Federal Government done? The ringgit has been losing its value, causing dearer imports which has only burned a bigger hole in the pockets of ordinary Malaysians. Prices of essential goods are rocketing and the Government’s RAHMAH programme is too little too late. Unlike during Muhyiddin’s administration, there’s no crippling pandemic now.
The hike in OPR has also reduced the disposable incomes of many Malaysians, especially those with bank loans, including SMEs and this will have knock-on effects on the economy as a whole.
In other words, it is not PN’s victory that is worsening the economy. Far from it, it is the unity government’s “yet unclear” policy direction (to quote a Maybank Investment report that has since been retracted under pressure) that is weighing heavily on the economy.
Wong Kah Beng
Petaling Jaya
* This is the opinion of the writer or publication and does not necessarily represent the views of Agenda Daily.