YUM: Solid government is of utmost urgent for Malaysia’s economic stability

With the challenging global economic situation expected to worsen in 2023-2024, Yayasan Usahawan Malaysia and the business community are hoping that a solid and stable government can be formed quickly without delay. Malaysians have voted and want stability and continued economic growth to position Malaysia as the ASEAN economy hub.

“Prolonged political instability and a hung Parliament will affect the country’s economy. Investors will also hold back until a government is formed. A government is needed fast to steer the nation’s economy post-election,” said Nitesh Malani, Chairman of Yayasan Usahawan Malaysia.

“Bursa Malaysia has been plundered with billions of losses within the past three days post-GE15. After a certain coalition announced that it was ready to form the government after the results of the elections were known, the stock exchange plummeted to levels that we as a nation can’t afford now. This is usually an indication of what the business community wants. Foreign investors will not be comfortable pouring funds into our country if the government of the day does not have a strong mandate from the people and a stable government. After the (Prime Minister and MPs) are sworn in, investors will evaluate and consider whether or not to invest in Malaysia or look to others in the region. We shall lose the competitive advantage,” he said.

Bursa Malaysia has seen a three-day losing streak before GE15 polling day and continues with a weak start on Monday. Local stock market investors are dumping shares in early trade as Malaysia faces a hung Parliament situation after the 15th general election.

Nitesh suggested that the new government should form an economic advisory committee comprising industry experts and business-related non-governmental organisations that includes leaders of the next generation, like Khairy Jamaluddin and Nurul Izzah, in such advisory roles.

“Whichever coalition becomes the government should have leaders who can deliver good governance and an investor-friendly environment. Otherwise, we will lose out when the foreign and domestic investors look at other regional locations,” he added.

-NIAGATIMES

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