Better than average performance

Positive growth sets the mood for a joyful National Day

ASTRONGER-than-expected gross domestic product growth for the first two quarters of the year is cause for much optimism and an upward revision of Malaysia’s projected annual growth. In January, the Malaysian Institute for Economic Research (MIER) was still forecasting between 4.3 and 4.8 per cent growth. They have been proven wrong. The better-than-forecast figures will certainly boost investor confidence because it is bucking global trends where economic uncertainty prevails. Not since the first quarter of 2015 has the country seen a quarterly growth of 5.8 per cent, as clocked up by this year’s second quarter, putting the overall growth for the first half of the year at a splendid 5.7 per cent, almost a full percentage point above projections for the year.

Driven by domestic demand, it can be safely presumed that consumers’ disposable income remains healthy, which is further boosted by a moderating inflation rate. The good news, coming as it does in Merdeka month, should set the mood for celebration. Sixty years of independence led by Barisan Nasional and its predecessor, the Alliance, have proven that the voters are not wrong in placing their trust in the governing coalition. Contrast this with the states that have been in the hands of the opposition coalition for nearly two terms now

— inheriting as it did dynamic economies, namely, Selangor and

Penang, the former the richest state in the country. If the opposition is worth its salt, these two states would be runaway successes by now. Instead, water shortages threaten to impede economic development in the former, and the latter is regularly blighted by serious flooding due to imprudent development.

The inflow of mainland China’s infrastructural development investment has begun. Recently, the East Coast Rail Link was launched. Detractors are claiming that this project cost way too much, but the economic benefits of a rail link are a proven fact and far outweigh any risks. Lay down the rail links and the economic knock-on effect is assured. And, some are wary of the possible Chinese influence. But, take a close look at what China has done for parts of the African continent. Not only is the rail infrastructure modernising states of East Africa, providing employment and technology transfer, Beijing has, too, promised to write off debts of the poorest countries. And regionally, Malaysia is not the only country welcoming Chinese foreign direct investment. Indonesia, too, is modernising with investments from Chinese state corporate entities.

To date, therefore, the economic management of the country is effective as evidenced not only by continued growth in the face of unstable foreign export markets, but also a betterthan-average performance. If the detractors were correct, then Malaysia should have been another Greece, where austerity is seeing massive unemployment and an increasing suicide rate. Malaysians, however, are blessed with success in every field of endeavour — gold medallist Olympians, scientists of international repute, and even a Bond girl. Malaysians now await their own Nobel Laureate.

Sixty years of independence led by Barisan Nasional and its predecessor, the Alliance, have proven that the voters are not wrong in placing their trust in the governing coalition.