Thinking about our Economy
I received an e- mail from an office bearer of MCOBA. His name is Zin Dahari bin Zainal Abidin. He is the assistant Hon. Sec. of MCOBA (special functions).
I have been writing recently about an old boy of MCKK. That gives us a chance to communicate.
Mr Zin Dahari said the vexing issue which he and his colleagues are debating now, is whether our economic fundamentals are that strong. On a small scale, here are my thoughts about the matter.
What started as an American problem, the explosion of the subprime lending scam, eventually became a worldwide economic slump. Malaysia which at one time said everything is OK is now saying different things. Recently, we were told that our economy contracted by 6%. This will make the prediction of our growth of negative 1% a gross understatement. It was meant more as a political palliative.
Maybe the economy will contract by 4%. If that is so, then our leaders have not been telling us the truth and not honest to us. It means our fundamentals are not healthy. The manufacturing sector which depends on worldwide demand is not alright. The much hyped resurgence in biotech and all that stuff have not produced the desired rescuing effects. The prices of our traditional commodities are not good.
In the meantime, our energies are being sapped by endless political feuds. By playing to the game of opposition parties, we the holder of overall power are contributing to the political mess. In Perak for example, our insistence of matching brinkmanship has further eroded our credibility and with it, our pledge to manage the economy. We should be cutting our losses there.
