Why the Emergency is good for the economy
Foreigner investors actually welcome the declaration of the Emergency. They would even be happy if the Emergency is forever so that there is no political instability and threats of a coup. The Emergency will in the long-term help Malaysia’s economy recover and the Rakyat will be able to see better times again. That is what Pakatan Harapan is not telling you.
NO HOLDS BARRED
Rajat Petra Kamarudin
In the 1970s and 1980s, foreign investors chose Singapore and Malaysia as the number one and number two investment destination respectively — Singapore because of its trained workforce and Malaysia because of its political stability. In fact, Rafidah Aziz said so when she was the Trade and Industry Minister (I was there when she said it).
Indonesia, Philippines, Thailand, Laos, Burma, Cambodia, Vietnam, etc., may be cheaper than Malaysia and Singapore. However, back then, those countries were politically unstable and there was always the threat of coups.
Foreigners don’t care about the Emergency, they just want political stability
Eventually, the Vietnam War ended, Indonesia and Philippines saw political stability (of sorts), and the chaos in Thailand, Laos, Burma and Cambodia subsided. In time, Malaysia dropped from number two to number six or seven on the “preferred country” list for foreign investors.
Are those five or six countries ahead of Malaysia more democratic and allow more freedom and civil liberties? Are all the governments of those countries more democratically elected and do not have military regimes or authoritarian governments? Are all those countries free from corruption and kleptocracy?
Not quite! Their human rights track record is terrible, worse than Malaysia by far. Corruption is rampant. However, more importantly, their labour force is cheaper and there is some sort of political stability. You will not wake up from sleep one morning and discover that the government has been ousted and there is a regime change.
Indonesians prefer a booming economy even if an Emergency has to be declared
Yes, democracy, freedom, human rights, civil liberties, etc., are not important to foreign investors. They will not come to your country to invest because of that. Political stability and a cheap labour force are what matters. And that was what Malaysia offered in the 1970s and 1980s.
But that changed since the 1998 political turmoil that Anwar Ibrahim triggered. In the meantime, Indonesia, Philippines, Thailand, Laos, Burma, Cambodia, Vietnam, etc., saw the opposite happen. So, foreign investors left Malaysia and went to these other countries.
The biggest problem with the Covid-19 coronavirus pandemic is not the number of infections or the death rate. It is the backlash to the economy. And millions of Malaysians are suffering financially because of the downturn to the economy. And for Malaysia’s economy to recover, we need foreign investments.
Political stability and not democracy, human rights and civil liberties is what attracts foreign investments, as China has proven
But with this constant threat of a coup, ousting of the Prime Minister, etc., foreigner investors are scared and are staying away from Malaysia. And if foreigner investors are staying away and refuse to invest in Malaysia, the economy is never going to recover, and the Rakyat are going to continue to face hardship.
Foreigner investors actually welcome the declaration of the Emergency. They would even be happy if the Emergency is forever so that there is no political instability and threats of a coup. The Emergency will in the long-term help Malaysia’s economy recover and the Rakyat will be able to see better times again. That is what Pakatan Harapan is not telling you.
