9 December 2019

Malaysian Economy: A debt-ridden, mis-managed one

The keystone of a nation is its economy. As such, it is vital for the government to be on their toes with market developments for any opportunity to cooperate with or assist market players. However, judging from the way Pakatan Harapan (PH) governs the country, ministers appear to have tunnel-vision on politicking but not on making constructive efforts to remedy the ailing economy.

For example, during Lim Guan Eng’s tenure as Finance Minister, his go-to method to generate income for the national coffers is to increase tax. We have seen the implementation of the departure levy, soda tax, and soon the digital tax, as well as a series of tax collection efforts. However, despite the Finance Minister’s “honest” efforts, did we see leaps and bounds in the economy’s footsteps? No. In fact, we see him extending his influence towards TARUC’s grant, which is rightfully under the Education Ministry.

Since PH took office, direct government debt rose by RM94 billion. According to Lim Guan Eng, the debt to GDP ratio, had increased by 2.5% to 52.6% in June 2019 from 50.1% in 2017. If the nation relies on taking up loans to cover up its expenditure, and even resorting to sale of national assets, how can this be sustainable in the long run?

Economies worldwide are slowing down, leading to many Asian countries upping their stimulus package. Yet, has the PH government done, or even announced anything convincing investors through the economic blueprint? Doubtful. Moreover, regardless of the assets sold, the national debt remains at an all-time high, nearly tripling the amount during BN’s administration.

Faced with a RM9.9 billion foreign capital outflow, a 5.77% drop on the Asia Pacific Stock Market, low foreign exchange rate, a 6.7% drop in exports, has Pakatan Harapan gotten their wake-up call?

Lim Guan Eng probably thought that increasing the NATION’s income is a job well done, but he does not realise that increasing the RAKYAT’s income is also vital. If the people’s wallets are thicker, they will have more buying power, leading to heightened quality of living, and simultaneously a booming economy. Hence, if PH Ministers continue to be trapped in their bubble, it is no surprise that the 2030 Shared Prosperity Vision will simply ‘pop’ and disappear.

Datuk Lim Ban Hong

MCA Vice President

-MCA online-