Of the two economists FMT Business spoke to, one insisted that early elections were essential to set the country back on the right track, but the other felt that giving the current government more time to deal with the problem was the answer.
Carmelo Ferlito of the Center for Market Education said Malaysia was already heading for hard times and he blamed it on “wrong policies implemented by the government”.
“The mistakes done with the lockdown (to curb the spread of Covid-19 in 2020 and 2021) have proven to be very costly for the people,” he said.
“As such, it does not make sense to wait for the economy to recover from the effects of the pandemic before holding elections.
“Holding the general election sooner rather than later will be better for the country.”
Describing the lockdown as an “ideological move”, Ferlito claimed that it had disrupted the economic structure, leading to some of the “price tensions” that Malaysians experienced now.
He likened the strategy of injecting money into the system and keeping interest rates at ultra-low levels to a “patch-up job”.
He noted that the government, the opposition, the people and many businesses had initially assumed that the lockdowns were necessary to fight the Covid-19 pandemic.
“But now, Malaysia does not only need a new and stable government but also one with a clear agenda to put the country back on track,” he said.
Ferlito pointed out that a government with the wrong policies, even if it was strong, would only bring more pain to the economy.
However, he said, hoping for drastic changes now would be futile. “There is no government that is courageous enough to take the necessary measures when elections are in sight.”
Viewed in this perspective, he said, holding the 15th general election earlier would be welcomed. “It will bring hope that a new government will have the courage to change the policy,” he said.
On Sept 12, international trade and industry minister Azmin Ali recommended giving the economy more time to recover from the shock of the Covid-19 pandemic before holding elections in order to prioritise helping the people.
He said the matter of holding elections early had yet to be brought up for discussion at the Cabinet.
“Nonetheless, those who have already discussed the matter want to emphasise to Prime Minister Ismail Sabri Yaakob that more time is needed before (the country is ready for) the polls,” Azmin said.
Economist Barjoyai Bardai of Universiti Tun Abdul Razak said rather than hold elections now, the government should capitalise on the memorandum of understanding signed with Pakatan Harapan last year to work with the opposition to initiate structural changes in the economy.
“This is the best time to make these changes. Right now, we have a problem with employment,” he said.
He said the government and the opposition should use the opportunity to train and develop as well as re-skill the 15 million people in the country’s workforce.
This, he said, would help to raise productivity.
Barjoyai said there was no guarantee that stability would be achieved post-GE15 given the potential of a weak government taking over.