PETALING JAYA: Socio-political stability in Selangor is important for the state and nation, said Federation Of Malaysian Manufacturers president Tan Sri Soh Thian Lai.
Speaking particularly of Selangor, he said such stability will enable the continued implementation of government policies and plans to further propel the state forward.
“This will ensure that Selangor continues to prosper and support existing investors, as well as attract new ones in key industries to garner higher returns and grow the economy.”
Stressing that Selangor is the country’s economic powerhouse, he said last year alone, it recorded 11.9% in economic growth while contributing 25.5% – the highest by a state – to the country’s gross domestic product (GDP).
He said Selangor continues to play a key role in the country’s economic performance and trade because the state has a well-developed logistics infrastructure and an established investment environment, and is centrally located in Southeast Asia.
“With its mature ecosystem within the state, appropriate policies and systems have been put in place for investors and new industries to easily set up operations.
“State executive councillors and civil servants are also attuned to assisting investors, and all these go towards the state’s efficiency and prosperity,” Soh said.
Malaysian Employers Federation (MEF) president Datuk Syed Hussain Syed Husman said employers require long-term stability to plan their expansion and growth.
He said employment and labour policies are important to the government’s economic growth and as such, a stable government will ensure tried, tested and established policies are continued.
“More than 98% of all registered businesses in Malaysia are micro, small and medium enterprises (MSME). Many are still recovering from the effects of the Covid-19 pandemic.
“We cannot have a major change in business policies as this will have a direct impact on businesses and the cost of doing business. Having a stable environment is best to plan operations and growth,” he stressed.
Syed Hussain said with Selangor being an economic powerhouse, MEF hopes businesses would not face disruptions through policy changes as this would ultimately affect the state’s economy as well.
He added that over the years, the Selangor government has supported businesses to prosper with investment-friendly policies.
“We hope this relationship and the business friendly policies will continue so that there is further growth. Stability is key to our success.”
Syed Hussain said with over seven million people in the state, its 11.9% economic growth outdid the national GDP of 8.7% by 3.2%.
“Last year, Selangor’s manufacturing sector, which grew by 9%, accounted for about a third of Malaysia’s manufacturing sector, while its construction sector contributed more than one-third of the national construction figures.
“Even the services sector saw the highest growth last year, at 13.6% compared with the rest of the country. There is no doubt that Selangor is the engine of Malaysia’s economic growth”.
He said Selangor’s economic performance is a showcase of local and international investor confidence.
“Socio-political stability is critical to maintaining economic growth in Selangor. This is especially so as the World Bank has forecast that global economic growth will fall from 5.7% in 2021 to 2.9% this year. The Organisation for Economic Cooperation and Development also expects global economic growth to hover around 3% per annum from this year to next year, about the same as last year.”
Syed Hussain said the projections are based on adverse global economic conditions, such as the Russia-Ukraine conflict and trade sanctions, the ever-deepening inflation and cost of living challenges.
He added that studies show economic growth can best be achieved when there is stability as it allows for the fluid and efficient implementation of economic plans.
“Next year will be challenging as the global economy is expected to be somewhat discouraging. So, it is critical to maintain socio-political stability to ensure national and state economic growth are further enhanced.”
Source: https://www.thesundaily.my/local/stable-govt-in-selangor-will-ensure-continued-national-growth-stakeholders-AD11308459