Malaysia is open for business and the facts are scientific evidence that the nation’s economy is healthy and regardless what detractors tried to manipulate and lie about it. Hence, it is going concern.
We would like to share a comment that one of our regulars here in this blog pertaining to Fourth Prime Minister Tun Dr. Mahathir Mohamad of “Failed economy”, shared in the last posting.
PM Najib’s performance in managing the economy in the first seven years of premiership is rather impressive, even taking Dr Mahathir’s first seven years’ performance.
It is a fact that Najib’s transformation policies did bring about steady reduction of annual budget deficit.
Comparatively to Dr Mahathir’s time his first budget saw a 16.3% deficit. six years later was brought down to -7.5%.
When he first started, the Malaysian Govt debt is 54% of GDP. Within six years, it shot up to 103.4% of GDP. 62% of that public debt was in foreign currency.
That simply translate Dr Mahathir borrowed 64% of GDP from foreigners.
Foreign reserves than was only at USD6billion. There was a minus current account. Then again, in Dr Mahathir’s first year as PM, the current account was at -13.4%.
How could the economy today is a “Failed state”?
There are more people working. The BOP in the current account is good. The unemployment rate is a little over 3%. It simply means those who are unemployed is by choice.
Income per capita is all time high.
Even market capitalisation of Bursa Malaysia is RM1.8 trillion. The foreign reserve is a healthy near USD100b.
The Malaysian economy is on-going concern. It’s evidently clear.
Malaysia was never a ‘Failed Economy’ then despite the ghastly figures. The fact is that, Malaysia is a going concern state.
The global rating agencies in the likes of Fitch, Moody’s and Standard and Poor issue very encouraging rating scores for the Malaysian economy.
It is organic. It is industrious. The people are productive and there raw materials to work on and goods to produce.
Thus, the industrialisation grew and more and more exports are generated year on year. When economic activity grew, the support system also would naturally grew.
This include banking and other services, like food and beverage and other ancillary services.
Economic activity also promotes more demand for transportation, energy and above all, infrastructure.
Naturally as the population grow, the demand for dwellings increase as well. The trickle effect is endless.
If comparable against present day, the economic vital statistics is even much better. There fundamentals are strong and the economic base is very solid.
Therefore, the confidence on the principle of ‘going concern’ should be higher.
However, there are some rogue personalities who are trying to frighten the majority with the ghost stories about the economy is sick and the nation slow is failing.
To the majority, they are unable to decipher even basic economic data. Along with rising cost of living, they are easily bought over.
The fact, many ordinary people are not putting the measurement ruler to the right pole. They simply simplify everything with a common viewing glass.
With the exception of unaffordable homes in the major metropolitan, everything else should be in the right context of affordability.
A quick example is a car. The same car with equivalent specifications today is actually cheaper than what it was ten years ago. If adjusted to the purchase power parity, then the affordability of a common car is accessible to all.
This is true considering that more and more cars are being sold and even to group of consumers previously, are unable to have access to such goods at their current state.
More and more Malaysians are travelling and taking holidays, regionally and even further abroad.