Come clean about our ailing economy, ex-NST chief tells Putrajaya
(Malay Mail Online) – Former New Straits Times group editor chief Datuk A. Kadir Jasin today accused Putrajaya of being dishonest about the country’s economy, by glossing over the figures to mask the country’s poor finances.
In his latest blog posting, Kadir said the government continues to mislead Malaysians with an optimistic outlook when real data have shown that the country was in for a rough ride amid a slump in the price of oil and a sharply weaker ringgit.
“Is our economic fundamentals really strong when not only the price of our most valuable commodity has plunged, but our currency too has dropped.there are many more forecasts that show our economy is going to be rough for next year.
“The main point now is to share information rationally with the the rakyat. Do not be dishonest or try to mislead them with contrived news,” the former NST editor said.
Kadir noted that analysts have highlighted a drastic drop in performance in three of Malaysia’s key economic sectors ― services by 58.5 per cent, commodity by 37.7 per cent and oil and gas by 29.3 per cent ― while most listed companies have recorded negatives in the local stock exchange.
He also pointed to The Star report quoting senior analyst at Alliance DBS as saying Malaysia could suffer a twin deficits (trade and finance) as exports weaken due to slow growth in rich economies as well as in China, one of Malaysia’s biggest trading partners.
“I admit rough figures and the GDP appeared to be satisfactory. But rough figures can be misleading,” he said.
The glut in commercial properties is a clear example of underlying problems, Kadir said, noting that while pump-priming may contribute to “growth”, the quality of such growth is not convincing.
“This is what economists would describe as low quality growth or misallocation of resources. When houses, shops and offices are not used then there will be no value added or trickle down effect”.
Putrajaya is insisting that it could meet its target of reducing its budget deficit to 3.0 per cent of gross domestic product next year despite pressure from tumbling oil prices.
On Tuesday FInance Minister II Datuk Seri Ahmad Husni Hanadzlah said the deficit targets for 2014 and 2015 remain in place, although this depends on a final decision on Petronas’ payments to the government.
State oil company Petronas, which accounts for most of the government’s revenue from oil and gas, warned on Friday that its various payments could fall by 37 per cent next year if oil stayed at around US$75 (RM256.88) a barrel.
Amid these concerns the ringgit suffered one of its worst drops since the 1997/98 Asian financial crisis.
Kadir said it was the best policy for the Najib government to lay down the truth about the economy to the public now before the situation worsens.
“They know oil palm and rubber prices have plunged because they are the ones producing it. They know the ringgit is not as strong because they do their shopping everyday.
“Don’t wait until their resentment boils over. Tell them the truth. Don’t ever think they are dumb, stupid, foolish and are chumps.”
