Is Malaysia Heading in the Wrong Direction?

More Malaysians are growing pessimistic about the country’s future. According to a survey by Ipsos Malaysia from January to March, 47 percent of the respondents believed Malaysia was not on the right track. This is nearly double the percentage recorded in January last year, which was 26 percent. A total of 500 respondents, aged between 18 and 74, participated in the latest survey. As for what concerns them, Ipsos said most respondents cited political corruption as their primary concern, which stood at 50 percent.

It was a three percent increase compared to the previously recorded figure. Other concerns include inflations (38 percent), unemployment (32 percent), poverty and social inequality (31 percent) and taxes (23 percent). Notably, Malaysians are less concerned about crime and violence than global population trends.

The Consumer Confidence Index, derived from the same study, reflected fluctuating sentiment among consumers. Malaysia's quarterly consumer confidence has decreased from 54 percent to 49 percent throughout the past year, with a significant dip in the last quarter of 2023. The global average has remained constant, hovering between 48 percent and 49 percent.

In a nutshell, the duo said Malaysians are becoming concerned about their finances and are reluctant to spend.

Malaysia’s policy thinkers are hoping for a rise in domestic consumption and an increase in foreign direct investment (FDI). 

On domestic consumption, it is probably going to be muted as people are becoming cautious with the rise of water, electricity tariffs and soon RON 95 to follow. Will the Madani government be a little courageous in withdrawing tariff increases until conditions are better?

On FDIs, we seem to forget only 30% approved investments get implemented and that too over 2-3 years. So, the brouhaha of new investments may not be realised in 2024.

Meanwhile, exchange rate declines, the food import bill increases, and the PM goes for Madani Raya parties.

If I were you PM, I would do the following in Year 1 of office:

(i) fight corruption by putting all suspected corrupt leaders in jail (use AMLA or ACA, 1997) or detention centre until stolen assets are returned – just target 30%.

(ii) make MACC report to Parliament;

(iii) impose the Tobin tax on forex transactions, excess profit tax on banks and collect RM30-30 billion in a year;

(iv) withdraw tariff increases on water and electricity;

(v) improve food security;

(vi) control cost of key items – rice, eggs, etc.;

(vii) change the education syllabus and have Malay, English and Mandarin as key languages and Maths as a core subject;

(viii) sort the doctors’ grouses and other health-related issues:

(ix) get a new Home Minister to address foreign labour, citizenship and other issues;

(x) pursue the “Green” initiative on renewables vigorously with a good subsidy for residential roof-top units.

Can you follow that Mr PM?

Reference:

Survey: M’sia heading in wrong direction, graft key concern, Malaysiakini, 18 April 2024