Heavy task of managing the economy
Prathab V | 01 Jun 2018 00:30
As the euphoria over Pakatan Harapan’s emergence to form the new government subsides, the political excitement is slowly giving way to harsh economic reality.  

The change in government, the first ever since Independence in 1957, comes at a time when the domestic and world economies are facing challenging times.     
Malaysia’s debt is at an all-time high, the ringgit is weak, stock prices are sliding, bond yields are rising and the country is staring at a possible ratings downgrade.   

Internationally, global markets are growing more volatile and the United States has stepped up its trade war with China as the two economic giants play a game of chess. Then you have the US’ nuclear battle with Iran and North Korea, causing regional Asean markets to show signs of nervousness. 

But it’s not all bad news. The good news is, Prime Minister Tun Dr Mahathir Mohamad plans to slash the country’s debt by RM200 bil and reduce govermment expenditure by shedding jobs and irrelevant government agencies. The rising world oil price also means more revenue for the government.