Is Malaysia reasonably well prepared to handle the country’s food security, medical supplies and the people’s daily needs, in the wake of the wars in Ukraine and West Asia?
The country increasingly relies on imports of food, clothing and raw materials. Given this, will Malaysia be able to weather the fallout from conflicts and wars that are already crippling global supply chains? This includes the supply of oil, gas and essential food items.
Yet, against this scenario, Malaysia’s economy is currently reported by Bank Negara as ‘robust’. Statements in the media announce that the country is driven by strong investment growth, increased household spending and a rebound in exports. The economy grew by 5.1% in 2024.
However, are certain quarters being too optimistic?
Although official reports indicate improvements in workforce education levels, some quarters suspect the entire education system badly needs reforms.
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In recent years, Malaysia also has had to confront several political issues that may have affected national, social and political stability as well as the economy.
Domestic economic indicators may be strong because of increased household spending. But is this spike only because people are paying more for fewer goods, given higher inflation rates in many countries, including Malaysia?
Malaysia’s economic growth is also fuelled by favourable labour market conditions. But when companies in affected nations cut back on their foreign investment plans given higher risk factors in these dangerous times, Malaysia’s manufacturing sector could be hit. Unemployment could then hit the country hard.
For now, private and public sector investments are contributing to Malaysia’s economic expansion. But how long will it take for cutbacks to happen in the face of shortages?
Petronas has already shown signs of a slowdown. The national oil company announced in June it would cut over 5,000 jobs – about 10% of its workforce – due to falling crude oil prices and a challenging global situation.
Will Malaysia be able to sustain its exports? Or can the country continue to bank on increasing tourist arrivals?
Malaysia cannot deny or downplay the volatility in foreign exchange markets either. The ringgit may not be spared, despite Malaysia wanting to strike a balance between the US dollar and Brics currencies. The core concern is whether the country can indeed maintain such a balance.
Behind all these concerns lies a pertinent question. Is Malaysia politically stable enough with our divisive policies, its incessant power struggles, and the string of domestic issues for it to cope with these uncertain times? Or is the country merely favouring and safeguarding elite interests?
Malaysia needs concerted efforts to foster economic stability, wipe out corruption and promote national unity if it wants to weather the impending storm.
AGENDA RAKYAT - Lima perkara utama
- Tegakkan maruah serta kualiti kehidupan rakyat
- Galakkan pembangunan saksama, lestari serta tangani krisis alam sekitar
- Raikan kerencaman dan keterangkuman
- Selamatkan demokrasi dan angkatkan keluhuran undang-undang
- Lawan rasuah dan kronisme
