SHAH ALAM - Malaysia needs is a visonary and brave leader to restructure the country's economy as the world braces for global recession next year with the impact to last for the next few years, say experts.
Associate Professor Ahmed Razman Abdul Latiff said Malaysia’s economy will also face uncertainties next year regardless of the election’s outcome.
"Even the World Bank has reduced Malaysia’s gross domestic product (GDP) growth next year to 4.2 per cent, from 4.5 per cent.
"Nevertheless, the election outcome will shape the investors perception and confidence in investing and doing business in Malaysia," he told Sinar Daily.
On Oct 10, JPMorgan Chase CEO Jamie Dimon said a recession in the global and US economy is likely by mid-2023.
Dimon had further said inflation climbing in the US and globally, interest rates rising more than expectations, and Russia’s war in Ukraine are considered "very serious" factors that could cause a recession, according to the head of the US-based multinational investment bank and financial services company.
Ahmed Razman said a stable government with a big majority will make it easier to execute the initiatives under 12 Malaysia Plan and Budget 2023, while taking the advantage offered by Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreements.
However, he further commented the projected may be held back if the elections resulted in a hung government and would indirectly impact lower confidence among investors.
Universiti Tun Abdul Razak (UniRazak) Economist Professor Dr Barjoyai Bardai said the leader needs to start economic transformation to ensure nation's wealth is distributed accordingly.
Barjoyai said Malaysia’s economy has been leveraging on foreign direct investment.
"We want to change the economic growth to seven to eight per cent per annum and structurised the economy so everyone can enjoy the development,” he said.
Due to that, he said a brave leader was needed to made drastic changes.
"But it may take the brave leader time to make structural changes and to ensure everyone earns more than RM5,000, own homes, that’s what people want,” he said.