Populism, nationalism in advanced economies a threat to Malaysia’s economic growth
KUALA LUMPUR: The power of populism and nationalism in advanced economies is the most apparent risk affecting Malaysia’s economic trajectory in the spectre of the global economic slowdown, says a prominent economist.
Harvard Club Malaysia president Professor Tan Sri Dr Lin See-Yan said advanced economies today generate the most disruptive political risk to businesses.
“US President Donald Trump’s shift to protectionism is one example and disruptive Brexit is another,” he said at the Asian Strategy and Leadership Institute (Asli) Economics Conversation here yesterday.
“Italy’s fiscal choices could yet roil markets while in Sweden and Germany, the need to build coalition is already weakening traditional parties,” he added.
Lin also said another risk was the rising regulatory chaos that had already begun to constrict opportunities for cross border transactions.
“In recent years, we have seen competition regulators outside of a multinational firm’s domestic market kill- off some transactions, delay others for months and force divestitures when there seem to be little evidence of monopoly,” he said.
He added that regulators were weighing in on major transactions using different criteria, often with little transparency. Lin said the increasing use of an elastic definition of “national security” was also disrupting trade, investment and supply chains.
“More importantly, the threat of enhanced regulatory constraints is making it almost impossible for some multinationals to plan for the long term,” he said. — Bernama