GE13 And It's Economic Implications

When it comes to managing the nation's economic growth, Prime Minister Datuk Seri Najib Tun Abdul Razak had made a point that BN have the capability to take up the task, in spite of the current global economic climate. 

With Europe entangled with the Euro Crisis,  the United States with it's Fiscal Crisis and the political instability in the Middle East, Malaysia has managed to attain encouraging economic growth. This  has enabled the government to implement development programmes and channel aid to the people.  

According to Najib, the country's economic growth rate also received praise from the Chairman of the Executive Board of the International Monetary Fund (IMF), Christine Lagarde whom he had met recently.

Therefore, victory of the ruling Barisan Nasional (BN) coalition in Malaysia's 13th general election will ensure that growth projects like those under the Economic Transformation Programme (ETP) be implemented smoothly.

What The Experts Have To Say?

a) Investment bank JP Morgan

The equities market and economic outlook in 2013 will be positive if the ruling Barisan Nasional (BN) coalition continued to remain in power. JP Morgan are  now 'Neutral' on Malaysia because of the general election overhang. JP Morgan Securities (M) Sdn Bhd executive director of equity research Mak Hoy Kit opined that Investors will be worried if the Opposition wins. When there is uncertainty, investors typically act negatively.

b) Goldman Sachs 

In their report, Goldman Sach's analysts led by Timothy Moe noted that they have downgraded Malaysian stocks to underweight on the same concern. In his words, he wrote that “The Malaysian equity market has corrected in recent weeks, in part due to potential political uncertainty surrounding upcoming elections and investors rotating out of the year's earlier winners into other markets”; which was published on Nov 29.

c) Nomura Singapore Ltd

Nomura Singapore Ltd executive director and economist Euben Paracuelles said a win by Barisan will ensure the country's future economic growth. The generous budgets announced in the last two years will help the ruling government to garner support from different sectors of the economy, alongside the new and existing investments under the ETP which would continue to support growth in the long run. A weaker than expected coalition or a win by the Opposition will raise questions about the political transition and the reform agenda.

d) Malaysian Institute of Economic Research

Malaysian Institute of Economic Research (MIER) executive director and economist Zakariah Abdul Rashid said a Barisan win would ensure crucial reforms in the public sector accounts are carried out.He said reforms were needed as oil and gas revenue had mainly been funding public sector expenditure through dividends from Petronas.

e) Maybank

Maybank Investment Bank chief economist Suhaimi Illias said should there be political continuity, it was crucial for the government, social and economic reforms as well as restructuring be stepped up to avoid the perception that the Government was backtracking after the elections, or that the transformation programmes were pre-election gimmicks.

f) RAM Rating Services Bhd

RAM's chief economist, Dr Yeah Kim Leng believed that a win in the upcoming general elections by the Barisan Nasional coalition will ensure growth projects like the Economic Transformation Programme (ETP) projects will be pursued “smoothly”.