KUALA LUMPUR – The government should take the recent Fitch Ratings downgrade, the first for the country since the Asian financial crisis 20 years ago, more seriously, said opposition leader Datuk Seri Anwar Ibrahim.
He said today the response by the finance minister to the downgrade is both "alarming" and "disturbing".
Fitch Ratings had downgraded Malaysia's long-term foreign-currency issuer default rating (IDR) to BBB+ from A-.
“The minister failed to address the key areas of Fitch’s concerns, namely, political stability and governance. The so-called Sheraton Move in February not only triggered political chaos, but also marked the beginning of a reversal of the institutional reforms that Pakatan Harapan had been championing,” he said.
He added that today's minority government, unrepresentative of both the peoples’ mandate and aspirations, has been blatant and unapologetic about misusing government-linked companies (GLCs) as tools to reward political sycophants.
“The Covid-19 pandemic has highlighted how interconnected we are in this global village. This applies to both matters of public health and commerce, as well as the need to highlight the safety of capital, clear and unequivocal clarity in governance and an inviting investment-friendly environment that together will help shape Malaysia's pandemic exit plan.”
He added that taking comfort through comparing Malaysia to countries that are worse off is misleading.
“We should only be comparing Malaysia today to the days when our beloved nation was a regional, if not a global, economic powerhouse. Our government is stuck in analog, whilst the likes of Indonesia, Singapore and Vietnam are embracing and creating a more digital world.”
He added that, while the appointment of a technocrat as finance minister should minimise the impact of political machinations, it does not appear to be the case now.
“It is increasingly clear that he has not grasped his key role of building the nation and providing hope for growth with an exit strategy. We do not know for sure where funding for the Covid-19 vaccine will come from, nor do we have adequate safety nets for the backbone of our economy, the small and medium businesses (SMEs).”
He added that the downgrade served to highlight the obvious – that Malaysia requires a strong government committed to reform and is transparent, inclusive and firm in its actions.
“What we do not need is what is being presented now; the lack of substance and clarity. The time has run out for more excuses; smoke and mirrors will no longer work.” – The Vibes, December 5, 2020
