PETALING JAYA: The dissolution of Parliament yesterday is likely to cause some political uncertainty but only in the short-term, an economist said.
However, he expects order to be restored and an equilibrium reached once the election is held, and that will be good for business.
Shankaran Nambiar of the Malaysian Institute of Economic Research pointed out that the private sector had been unhappy with several factors that had made it difficult to do business.
Among them, he said, were the depreciation of the ringgit against the US dollar, the shortage of labour, and the uncontrolled hike in the prices of intermediate goods.
“A stable political environment is important for business, and repeated calls for elections have not helped. Insinuations that the prime minister is weak have added to the problem,” he told FMT Business.
“The uncertain political climate has also made it look as if economic issues are not receiving the full attention they deserve.”
Nambiar believes that as far as Prime Minister Ismail Sabri Yaakob is concerned, a government with a fresh start through a clear mandate will do more good for the economy than “trying to pull together opposing forces”.
“The prime minister must have felt it unwise to be tugged this way and that way. It will be a disservice to the economy to have one eye on the economy and the other on keeping the political side of things on balance,” he said.
Another economist, Barjoyai Bardai of Unversiti Tun Abdul Razak, said it would be business as usual for the private sector given that the administration would continue to function.
However, he also expressed concern that there would be little time left after the election to table and then pass a new budget for 2023 before the year-end.
He pointed out that the budget proposal tabled last Friday by finance minister Tengku Zafrul Aziz would now be considered null and void.
“If we fail to have a new budget passed before the year ends, there will be no money for the civil service come January. It will be left ‘hanging’,” he told FMT Business.
Barjoyai said the government could be forced to deal with the predicament by introducing an emergency fund.
He also expressed hope that the anti-inflation task force led by Annuar Musa would continue to function given that its role remains crucial until the year-end in an environment of increasing prices of goods and services.
Source: https://www.freemalaysiatoday.com/category/highlight/2022/10/11/dissolution-of-parliament-to-pave-the-way-to-stability/