Let’s talk: The effect of power struggle on economy

What have 16th September rhetorics done to Malaysia’s economy?

American Government is doing all things possible to avoid another major economic slump. But it looks like all is not enough. Freddie and Fannie buyouts will not save the world as told by the great American economist. World is expecting another round of economic downturn.

Britain’s Gordon Brown assure Britons he can single-handedly save Britain from this recession, now he’s having a leadership crisis in Downing St.

Brian Cowen, Taoiseach of Ireland, brought forward the tabling of Budget for next year two months ahead for proactive and extra measures to fight and to save the Celtic Tiger reputation, now many jobs have been cut off, retrenchment is nothing uncommon to hear everyday in Ireland.

Malaysia is still not awaken from General election mood, we are still talking about who’s going to be Prime Minister, some may do anything possible to clinch the PM’s seat. On economy? We just don’t care, we don’t want to miss this political drama of power struggle featuring so many potential ‘kermits’ (the frog). 16th September had passed, let’s talk about economy now, yes I understand that there’s one PM-in-waiting have the numbers, but I’m afraid the numbers are not enough to take Malaysia out from incoming economic slump. Plus 10 years ago he failed to help Malaysia, can he do it this time around?

Let’s talk about this!

Excerpt taken from Malaysian Insider.

The rising cost of living and the slowing down in economic growth have become a major issue affecting politics, with Prime Minister Abdullah Ahmad Badawi’s government swiftly losing popularity due to high oil prices.

Opposition leader Datuk Seri Anwar Ibrahim’s constant threats to topple the ruling Barisan Nasional government, and challenges from within Umno against Abdullah, have also undermined investor confidence.

Earlier this month, financial services group Credit Suisse told investors worldwide in a report to avoid buying stocks in Malaysia.

Credit Suisse pointed out that the power struggle between Anwar and the government was heightening risks to the Malaysian economy.

Tricia Yeoh, an economist attached to the Centre for Public Policy Studies, said Malaysia needed a leader to get rid of institutionalised weaknesses.

“The best leader is the leader who can get rid of corruption and one who can transform the economy in light of the current slowdown.”

Another market analyst said Abdullah’s reputation for “flip-flop” – policy reversals – also did not inspire confidence.

“This kind of flip-flop does not bode well for investors with regards to strategies,” he said.

The only thing that appears certain at this point is that Abdullah is no longer seen as a viable candidate to remain as prime minister for much longer.

Said Dr Ooi Kee Beng, political analyst with the Singapore-based Institute of South-East Asian Studies (Iseas): “Where Abdullah is concerned, he should retire. He was given the mandate five years ago and he failed.”