SHAH ALAM - Perikatan Nasional (PN) Chairman Tan Sri Muhyiddin Yassin voiced concerns about Malaysia's economic trajectory, citing a negative trend in the Producer Price Index (IHPR) as evidence of worsening conditions.
He condemned the current administration for its perceived inaction and urged concrete measures to address the situation.
"The IHPR continued to record a negative trend of 1.3 per cent in Dec 2023 compared to a negative 1.5 per cent in Nov of the same year.
"There has been a slight increase, but the IHPR is still in the 'negative territory,' meaning demand from abroad is very low below the base level," Muhyiddin said in a statement today.
He stressed the repercussions on domestic manufacturers who, in response to the declining demand, are compelled to curtail production, impacting working hours, raw materials, and the entire factory chain.
This, he noted, not only affects producers but also intensifies the financial strain on individuals, limiting savings and exacerbating the cost of living burden.
Muhyiddin warned that if the negative trend persists, manufacturers may resort to workforce reduction, leading to a domino effect on national unemployment rates and individual income losses.
"This, in turn, amplifies the existing challenges of the cost of living burden faced by the populace.
"The decline in export earnings and the increase in import costs largely influenced by the uncertainty of overseas markets contribute to this problem.
"Consumers and traders alike are grappling with rising living costs, and despite efforts to recover, many businesses are still struggling," he added.
Expressing disappointment at the government's failure to take immediate and decisive actions, Muhyiddin cited the ringgit's fall, declining exports, rising prices of imported materials, and weakened purchasing power as additional factors contributing to the economic downturn.
Fearing a further worsening of the country's economic state, he urged the government to implement effective measures to address the crisis and revive businesses.