PETALING JAYA: Economic recovery plans and promised aid packages will continue without interruption even if Datuk Seri Anwar Ibrahim takes over as prime minister.
In fact, if Anwar has the “formidable” majority that he claims to have, it can bring economic stability, economists told theSun yesterday.
The Perikatan Nasional (PN) government led by Tan Sri Muhyiddin Yassin has a razor thin majority of only two seats in the Dewan Rakyat.
Sunway University professor of economics Dr Yeah Kim Leng said a change of government is unlikely to rattle investors.
“Those already in Malaysia are now familiar with our political environment, so it’s not a matter of concern.”
He said potential investors will just adopt a wait-and-see approach. “They may just hold back until the political dust settles.”
Yeah explained as long as there is political maturity, and changes in administration are smooth so that there is no disruption to the economy, the market recovery process will not be derailed.
“In Malaysia, both sides of the political divide have market-friendly policies,” he said, adding that aid already budgeted by the incumbent government is unlikely to be withdrawn if a new government takes over.
“Such aid to alleviate the people’s hardship will help garner political support, so whatever is beneficial for the masses will continue.”
Early this week, Muhyiddin announced another stimulus package worth RM10 billion to bolster the economy.
Economist Dr K. Kuperan Viswanathan agreed that the aid will continue even if there is a power shift.
He said Anwar would need at least 125 of the 222 seats in the Dewan Rakyat to ensure stability. “We need a government that cannot be toppled easily so that the prime minister gets to run the show with ease.”
