SERC executive director Lee Heng Guie says an unstable political environment may undermine investors’ confidence, reduce investment and hinder economic development.
At a press briefing on its 2020 economic outlook, SERC executive director Lee Heng Guie said the growth rate in private investments has been slowing from 9% in 2017 to 4.3% in 2018. Prime Minister Dr Mahathir Mohamad is supposed to hand over power to PKR president Anwar Ibrahim as agreed by Pakatan Harapan before the 14th general election, though no time frame has been set.
He said Putrajaya must also come out with short and medium-term plans to ease the high cost of living where food, essentials, transport, healthcare, housing and education are concerned. “So, it’s important that the government creates the right sentiment, support consumer sentiments and work hard to grow private investments,” he said.
He said challenges facing the people include a possible increase in unemployment rate to 3.4% from 3.3% in 2019, and higher headline inflation of 2% compared to the average 0.7% previously.