Rain or shine: A trader selling his wares from his truck in Kuantan. Experts are saying that the country’s recovery calls for a balance between leadership and economic progress. — Bernama
PETALING JAYA: From policymakers to ordinary folk, every Malaysian has a role to play in helping ensure the country is on the right path to economic recovery, say experts.
Although Malaysia has survived the Covid-19 pandemic, economists and political analysts are of the view that the next 12 months will not be a walk in the park.
It is important that people play their role amid a global recession risk, said Sunway University economics professor Prof Dr Yeah Kim Leng.
The government, on its part, must boost investor confidence and public investment should be in the right places, he said.
He said that jobs, income, credit flows and consumer confidence would need to be maintained to sustain household spending.
“Government expenditure, which contributes close to 14% of the GDP, also requires timely and efficient spending to sustain domestic demand.
“Likewise, public investment in various infrastructure projects, rural development, health, housing and education programmes can be synchronised and implemented expeditiously to boost the multiplier effects on the domestic economy,” said Prof Yeah.
He said the resilience of domestic spending, particularly private consumption and investment, would need to be propped up by appropriate counter-cyclical monetary and fiscal measures.
“More effective and targeted government spending, well-calibrated market reforms and growth-enhancing policies that boost investor confidence are necessary to absorb the fall in exports and foreign direct investment,” he added.
Political experts said the country’s stability, which will spur economic recovery, would depend on the give-and-take attitude of politicians on both sides.
Universiti Sains Malaysia’s political science expert Prof Dr Sivamurugan Pandian said the burden lies on Prime Minister Datuk Seri Anwar Ibrahim to balance leadership with economic progress.
“All eyes will be on how well he will be able to tackle the economic issues facing the country.
“The collaboration between the members of the unity government will need to be strengthened to ensure stability and certainty.”
He also spoke about the saga of Umno politics, with its general assembly to be held this month.
“It remains to be seen if Umno leaders in the government are able to show a sense of leadership and avoid creating a confidence crisis,” he said.
Prof Sivamurugan said the onus for stability was also on the Opposition, Perikatan Nasional, not to rock the boat unnecessarily.
Dr Mazlan Aliwas, a political analyst at Universiti Teknologi Malaysia, believes that Anwar’s recent vote of confidence in Parliament promises more stable politics in the next 12 months.
He also said the politicking would be based on economic performance indicators. “Economic issues and the cost of living will be the determinants of current political change.”
