SHAH ALAM, 12 Dec: Analysis from a few ‘economics professionals’ that the country’s economy will crash should the Umno-BN government collapse in the upcoming elections did not take into account the weaknesses in the Federal Government’s financial management.
Their perception did not take into account corruption, leakages and the attitude of increasing the national debt by the Umno-BN government as well as privatisation policies that is disadvantageous to the people and profits companies belonging to cronies, said Chief Minister, Tan Sri Abdul Khalid Ibrahim.
Their analysis also does not take into account Pakatan Rakyat’s (PR) success in governing states like Selangor and Penang where leakages have reduced and the state reserves as well as investments have increased.
There are also wrong interpretations that the change in administration would bring about instability because countries such as Thailand and Indonesia have continued to experience a favourable growth rates despite a change of government.
Abdul Khalid said that the belief that political change will bring about negative impact on the economy is the result of political fear that is being sowed by the Umno-BN government currently.
It was reported previously that international annalist companies such as JP Morgan had released reports that say that the Malaysian economy would improve in performance only if the Umno-BN government continues to administer the Federal Government.
“The state of the Malaysian economy continues to slide and the most significant indicator is that the national debt has increased and the Federal Government is continuing to borrow billions of dollars which will burden the next generation.
“In the long term, Malaysia’s economic performance can only be guaranteed if the Federal Government is free from corruption, cronyism and management failure which is being practised by the Umno-BN Government,” he said in a press conference.
Abdul Khalid urged JP Morgan and other international companies to be careful and to ensure unbiased analysis as well as to respect the democratic rights of the people in electing the government.
“For example, although the process of political change was quite significant, however, Thailand and Indonesia have recorded economic growth of 4.2 percent and 6.4 percent (respectively).
“This proves that a change in government does not necessarily bring about adverse economic impact. On the contrary there are times when a change in government is needed to realise reformation and to improve the overall economy,” he explained.