The Hon. MP for Bangi, Dr. Ong Kian Ming,
suggested the above in a letter to FMT on February 1, 2021.
Today, the real “sick man” in South-east
Asia is Myanmar. If the army remains in power, Myanmar has a poor future. That
applies to Pakistan or Thailand. Most armies love power. And most dictators
love power. Some establish a symbiotic relationship, like Pakistan. Many
African states – Uganda, Nigeria (at some point), or the Central African
Republic – have dictators for life! It’s a rule in many communist states –
Russia, China or North Korea. The U.S. came close with Trump!
What is the impact? Capital “flight”;
decline in FDI; and, “bonsai” growth – of course, China is the exception.
For Malaysia, the declaration of
Emergency for a health reason was unprecedented. According to the Centre for
Civil and Political Rights (CCPR), a total of 79 countries have declared state
of emergencies with varying degrees because of Covid. So, we are not alone,
except our constitution does not provide emergencies for health reasons!
The downside is not just restricted to
FDI flows. Stock markets are usually impacted, and the general investment
climate will turn into a tailspin. According to UNCTAD, for 2020, Malaysia’s
FDI inflows fell by 68% - this is a higher drop than for Singapore, Indonesia
and Thailand. The Philippines had an increase of 29% (in 2020). The stock
market in Malaysia was supposed to collapse, according to former PM, Mahathir
Mohamad. It didn’t because institutional investors like EPF and PNB are
rumoured to hold 40-45% of Index shares.
The government is in a “fire” fighting mode
because it does not have a majority to ensure political stability; incompetent
and flip-flop policies (and Ministers); and, a poor execution of the Covid
containment measures.
The Finance Minister and the MITI Minister are in “Alice in Wonderland”:
Reference:
Malaysia on way to becoming new ‘sick
man’ of Southeast Asia? 1 Feb 2021, Free Malaysia Today
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