THE instability of the Perikatan Nasional government would continue to put a damper on the country’s business sentiment and private investment growth, said former second finance minister Johari Abdul Ghani.
The perceived instability is caused by, among others, a lack of a majority in Parliament, Johari said in an interview with Malay-language news publication Kosmo.
“The recovery of the economy post-Covid-19 depends on political stability. If the majority is only by one or two (seats in Parliament), it will be difficult to attract investors to Malaysia,” said Johari.
As Malaysia is an open economy, political stability with sound policies is important for economic growth, he added.
“We need to send a clear message to Malaysians and foreign investors that the government can govern well and that the country is peaceful, so that we can begin production and create jobs with the aid of those two parties,” said Johari.
The government has to also watch its spending as it recovers from the Covid-19 crisis, said Johari, especially when drafting the medium-to-long-term Economic Recovery Plan and Budget 2021. Both documents are expected to be tabled in October and November respectively.
“The government needs to focus on the sectors that can bring multiplier effects to the national economy,” Johari added. – July 20, 2020
