Political impasse affecting Perak’s economy

(The Star) – Although the Perak government had stated that the state’s investment climate remained robust, manufacturers here said the state’s month-long political gridlock is further worsening its economic health.

The Perak branch of the Federation of Malaysian Manufacturers (FMM) chairman, Gan Tack Kong, said two multinationals that had earlier expressed interest in investing in the state were now reluctant due to the political uncertainties.

He said both companies had approached the federation to enquire on the state’s political situation since the fall of the Pakatan Rakyat government.

The two multinationals were expecting to invest tens of millions of ringgit in the state, he added.

Gan said the federation had reassured them, including other potential investors, that Perak was a safe place to invest in.

“We even offered ourselves as intermediaries for the state government should they face any problem,” he said, adding that the state’s infrastructure should be upgraded to attract investors.

Even lawyers who depended on conveyance work have been affected by the gridlock.

Echoing Gan’s sentiments, a legal adviser of a leading developer in the city said lawyers like him have been badly hit with fewer development projects due to the slowdown.

Meanwhile, the state government has assured the public that new local councillors were being selected and that there was no standstill in the administration.

State Health, Local Government, Consumer Affairs, Environment, Public Transportation and Non-Islamic Affairs Committee chairman Dr Mah Hang Soon said things would be back to normal in three weeks.

He noted that delays in the appointment and swearing-in of local councillors had been due to internal problems within the previous government, adding that normally all appointments would be finalised by December the year before.

Former executive council member Nga Kor Ming expressed sympathy for businesses and the public for the political and economic situation of Perak.

“The Pakatan Rakyat government had planned for the future of Perak but was unable to implement all its policies in too short a time,” said Nga, who noted that the state’s economy had been further affected by the “power grab”.

He urged both parties to call it a day and to pave way for new elections as it was the only way to resolve the political crisis.