The Malaysian Insight

WITH a state of emergency now off the cards, business leaders hope politicians will heed the Yang di-Pertuan Agong’s decree to stop squabbling and focus on fighting Covid-19 pandemic and recovering the economy.

They said political instability, “flip-flop” announcements and bloodless coups to change the government will affect investor confidence.

“The haphazard ‘shoot from the hip’ policies and announcements have seriously damaged foreign investors’ confidence in Malaysia’s thought leadership abilities,” said Shaun Edward Cheah, executive director of Malaysia International Chamber of Commerce and Industry (MICCI). 

Cheah said Malaysia’s reputation as a good  investment destination has been tainted by the “kleptocracy” label, which was earned because of the financial wrongdoing in 1Malaysia Development Bhd. 

“And it does no favours by having kleptocrats being courted and are still in the government of the day, and possibly in the next permutation of a government in-waiting.” 

In order to regain investor confidence, Cheah said Malaysia needs to change this perception, into one that showcases its stability and a business-friendly government.

“Even if incentives are given to investors ... such as tax holidays and preferential treatment, these can be overturned by a successive government as demonstrated by the already flip-flop announcements lately.”

The king after a meeting of the Conference of Malay Rulers yesterday decreed that there was no need for a state of emergency in Malaysia or any part of the country.

An emergency was proposed by Prime Minister Muhyiddin Yassin’s cabinet, ostensibly to combat the Covid-19 pandemic.

Critics, however, warned of devastating effects to the economy which is already weakened from movement restrictions to curb the spread of Covid-19.

Muhyiddin, whose government is in danger of collapsing after eight months in power amid discord with ally Umno, would also have avoided a test of confidence as prime minister, had Parliament been suspended because of an emergency.

The king also decreed that politicians stop politicking to ensure stability.

Fresh doubts over Muhyiddin’s grip on power have flared since September, when PKR president Anwar Ibrahim said he had support from MPs to form a government. This sparked speculation that some Umno MPs would back the PKR leader. 

It is not clear what Muhyiddin’s next move will be, amid speculation that he might consider resignation. As yet, there isn’t a clear candidate for prime minister who commands majority support.

Senior Fellow of the Malay Economic Action Council (MTEM) Azlan Awang said continued political squabbling will lead to serious economic and financial problems, especially among the working class and small businesses.

“The people want their problems solved, not the problems of politicians. 

“The people want the government to continue to assist them in the difficult period of the pandemic.  

“In the long run, we must address jobs, low wages, better social protection, and better deals for workers,” he said. 

MTEM said Malaysia is already ranked as one of the best destinations in the world for investments.

“Our physical and institutional infrastructure ais fairly good and of international standard, if not among the best in the world. 

“The level of education and skills of our workers are better than average compared to other developing countries,” Azlan added. 

While the country can breathe a sigh of relief in having avoided a state of emergency, MTEM urged politicians to practice more bipartisanship. – October 26, 2020.