KUALA LUMPUR – Political stability is a crucial component to ensure that the policies which have been formulated by the unity government can be implemented consistently, and further increase investor confidence.
Bank Muamalat Malaysia Bhd chief economist and social finance head, Dr Mohd Afzanizam Abdul Rashid, believes that political stability will help the government machinery implement the planned policies.
Citing the Madani Economy framework as an example, he said that the initiative, which will shape the direction of the country’s economy for the medium and long term, requires time to be implemented.
“Stability is crucial, especially in issues related to the contribution of salaries and wages in the national economy, where the contribution is currently 32% in 2022 and is expected to be increased to 40% (this year); current development and women’s participation in the economic sector, as well as the low fiscal deficit position.
“These targets are not easy to achieve, and they need time to be implemented,” he said when contacted by Bernama.
Apart from that, Mohd Afzanizam said if political stability can be maintained, it will make it easier for investors and traders to make decisions, especially in carrying out due diligence.
Yesterday, the Sultan of Johor, Sultan Ibrahim Sultan Iskandar said that Prime Minister Datuk Seri Anwar Ibrahim should be given more time to improve the country’s economy.
Associate professor Dr Rusmawati Said, from Universiti Putra Malaysia (UPM) School of Business and Economics, said the economy is not something which can be changed quickly, since the change needs to involve the entire ecosystem.
She said for example, to increase the wage rate of workers, the economic ecosystem is interconnected between the skills of the workforce and human resources.
“It usually does not involve only one sector, but involves many sectors. In the economy, in principle, one sector cannot be changed while another sector is not changed.
“I believe that he (the prime minister) has to change many sectors, which involves short, medium and long term planning. It just depends on whether the government is proactive in determining that the plan is carried out consistently,” she added.
According to Rusmawati, governing a country cannot be seen as the same as governing a company, as national administration has a broader perspective.
“Governing the country involves various sectors, and in one ecosystem, if you want to improve the country’s economy, you have to improve the entire ecosystem.
“It will indeed take some time to change the ecosystem, but the planning must be right,” she said. – August 28, 2023