Honeymoon’s over for Anwar to start delivering on healing the economy

 No News Is Bad News

 It’s all so rosy, don’t you think so?

For image info, go to https://www.mida.gov.my/malaysia-investor-confidence-ticks-uprm123-3-billion-of-approved-investments-recorded-for-january-june-2022/ 

Honeymoon’s over for Anwar to start delivering on healing the economy

KUALA LUMPUR, Nov 8, 2023: After close to a year of governance, the honeymoon is clearly over for Anwar Ibrahim’s Madani Unity Government (UG) to deliver on the economy.

The UG’s most pressing need is to stimulate business and economic growth to ease the pressure exerted by the RM1.5 trillion nation al debt.

Has Anwar been spending adequate time, efforts and resources to do that? Nay!

With two-thirds majority control of the 222-seat Parliament, it is mind-boggling why Anwar still feels insecure.

He is distracted by time-wasting politicking with the Opposition (the Taliban-like PAS and Perikatan Nasional) and costly international matters that only add to the misery of low-income Malaysians.

Why in the world is Anwar feeling so insecure politically? Successfully healing the economy for the rakyat dan negara (people and country) by attracting investors will automatically cripple the Opposition.

No News Is Bad News reproduces below a news report on investor frustrations:

Investor frustration over delays in Anwar’s Madani projects

CGS-CIMB has detected frustration among investors over an apparent lack of urgency to kick-start catalytic projects.

FMT Business - 07 Nov 2023, 9:10pm

Anwar Ibrahim’s Madani economic framework aims to make Malaysia a leader among Asian economies. (Bernama pic)

PETALING JAYA: While investors have growing confidence in Malaysia’s policy direction, they remain frustrated by sluggish progress in project implementation, and critical parliamentary and Cabinet approvals for key economic projects, said CGS-CIMB.

In a note today, the research house detected some frustration over a perceived slow start to critical projects under the “Madani Economy” agenda set by Prime Minister Anwar Ibrahim.

Thus, CGS-CIMB has underscored the need to drive key initiatives forward. These include securing approval for an energy exchange and advancing a range of development projects, to propel economic growth and align with the government’s objectives.

Referring to the government’s aggressive development expenditure budget of RM90 billion, CGS-CIMB believes it is imperative that several project awards take place between November 2023 and March 2024, to generate greater confidence that it is “serious about taking the economy to the next level”.

Anwar launched the “Madani Economy: Empowering the People” economic framework on July 27. It aims to restructure the economy to make Malaysia a leader among Asian economies, and ensure the enlarged wealth benefits the people equitably.

It also serves as a foundation for policies such as the National Energy Transition Roadmap (NETR), the New Industrial Masterplan 2030 and the Mid-Term Review of the 12th Malaysia Plan.

CGS-CIMB also noted the Cabinet has given the green light to the energy exchange project. “This is essential to catalysing the NETR.”

“We will be closely monitoring the potential awards for the Pan Borneo Sabah Phase 1B (RM15.7 billion), Sabah Sarawak Link Road (RM7.4 billion), MRT 3 (RM40 billion to RM45 billion), flood mitigation projects (RM11.8 billion) and the Bayan Lepas LRT (RM10 billion),” it added.

Given its greater confidence in policy continuity, the research house has a “double overweight” position on the construction sector. Its top picks include Sunway Construction Bhd, Sunway Bhd, YTL Corp Bhd, IJM Bhd, Malayan Cement Bhd, Muhibbah Engineering Bhd, and HSS Engineers Bhd.

Improved communication

The research house said there was a “general acceptance” that the government has significantly improved its communication of medium-term plans and strategies.

“Several investors were keen to understand the potential areas in which subsidies could be reduced and if major reforms are needed to achieve the government’s 3.5% deficit target by 2025,” it said.

It indicated there are already savings coming from normalising global commodity prices, while targeted subsidies in areas such as electricity, diesel and RON95 are sufficient to consolidate the fiscal balance.

“We also highlighted that the GST (goods and services tax) could be introduced gradually in a phased manner, as the added revenue lift is not needed to achieve the 3.5% target,” it added.

On a more positive note, domestic economy-focussed sectors like utilities and telecoms are now gaining investor interest thanks to the removal of uncertainties and favourable tax rates.

It noted that the consumer discretionary sector displays promise, although concerns about consumer sentiment and inflation are present.

Meanwhile, CGS-CIMB said the property sector had done quite well in the past few months, with the property index up 32% year-to-date.