PETALING JAYA: Holding the 15th general election as soon as possible will benefit the national economy, according to an economist.
Carmelo Ferlito of the Center for Market Education said the current political instability was turning investors away and a general election would probably bring a welcome change to the political landscape.
He told FMT investors currently did not know what to expect in terms of policy, strategy, direction and implementation.
“Investments are blocked when investors have the feeling that the economic direction is uncertain or bad,” he said.
“The political struggle between the government and the opposition blocs is creating uncertainty. So the emergence of a clear majority expressed by the voters will boost investor confidence in the country.
“A general election now can potentially help economic growth because it will end the confusion and uncertainty.”
He was commenting on Umno deputy president Mohamad Hasan’s call for GE15 to be held this year.
However, Ferlito also said a general election would not be a cure-all for the country’s economic ills.
He said the new government must embark on economic reforms.
“It is necessary that the winning coalition emerge with a sound manifesto to address the fundamental economic problems of the country. A commitment to implement that manifesto is very important.
“We need a non-demagogic manifesto, but one that acknowledges that there are structural issues to be addressed and there are contingent problems that have been created from bad management of the pandemic.”
Ferlito also called for a review of the gross domestic product.
He said the country had put too much reliance on consumer spending and government intervention while private investments were lagging behind.
He also proposed rebuilding a business-friendly environment and restructuring labour legislation.
Malaysian International Chamber of Commerce and Industry executive director Shaun Cheah also supported the call for an early general election, saying political instability and corruption among leaders were some of the key concerns that were turning away both domestic and foreign investors.
He said it would be good for business if GE15 could produce a stable government that would govern well and make pro-business policies.
Source: https://www.freemalaysiatoday.com/category/nation/2022/03/24/early-ge15-good-for-economic-growth-says-economist/