Malaysia safe
With diverse resources, country not at risk of suffering same predicament as Sri Lanka: Experts
PETALING JAYA: The Malaysian economy is well diversified, making it resilient enough to avoid a financial crisis such as that which has hit Sri Lanka, said economists. They were commenting on fears expressed on social media about Malaysia going down the same path as the South Asian island nation, that was tethering on the edge of financial collapse before its government recently announced that it was suspending repayments on all external debts.
Universiti Utara Malaysia professor of economics Prof Dr K. Kuperan Viswanathan said Malaysia’s well-diversified economy is able to shield the country from such turmoil.
He pointed out that the economy is not reliant on one main product, with natural resources, commodities, services, foreign investment, tourism and other sources contributing to it.
“The main problem with Sri Lanka was that 80% of its economy relied on tourism. When the Covid-19 pandemic hit, the country lost its major source of income,” he told theSun yesterday.
“This is very unlikely to happen to Malaysia, but we have to be careful with our borrowing by keeping it below 70% of gross domestic product. However, if the country goes above the limit, there might be some problems.”
Kuperan said to get the economy to greater heights, the government needs to stop short-term economic decisions.
He added that a major difference between Malaysia and Sri Lanka was that there was very little upheaval here as the people do not take to the streets to protest, therefore the economy does not suffer.
“The national reserves are still high, the economy is strong and the currency is stable. The ringgit has remained in the same bandwidth against the US dollar, euro, Sterling and the Singapore dollar.”
Kuperan called for focus on social cohesion to enable the economy to grow further, adding that people may have taken to social media to compare Malaysia with Sri Lanka because of concerns over social cohesion.
“They may be worried because the economy could be affected,” he said on a social media discussion on the matter.
“There is a growing racial and religious divide, that the government needs to tackle. There are those who see economic issues through the lens of race and religion, although the issues may have nothing to do with that.”
Iskandar Puteri MP Lim Kit Siang said Malaysians must ensure the country does not end up like Sri Lanka, that he said “took a wrong turn” on nation-building policies and is now on the verge of becoming a failed state.
“Sri Lanka has defaulted on foreign debts for the first time. The people are facing crippling power cuts and scarcity of food, fuel and essential items,” said the veteran DAP leader who recently quit active politics.
Universiti Tun Abdul Razak economist Prof Emeritus Dr Barjoyai Bardai agreed that Malaysia would not end up like Sri Lanka.
“Malaysia’s economy is doing well. Government borrowings might be high, but it is still manageable,” he said.
PETALING JAYA: Road safety experts have welcomed the Transport Ministry’s latest regulations to prevent accidents during the Hari Raya season.
However, they urge travellers to be extra cautious when heading back to their hometowns.
Universiti Putra Malaysia Road Safety Research Centre head Assoc Prof Dr Law Teik Hua said human behaviour on the road is vital in bolstering the ministry’s guidelines to ensure public safety.
Law, who emphasised public participation in limiting road tragedies, said road users should be wise with their clothing choices and aware of their vehicle condition before leaving for their destinations.
“Legislative limits are not always the best option. As one of the public health issues, road safety problems can only be completely resolved by all stakeholders, including public and road users.
“For example, following the law on the use of rear seat belts. This is being disregarded by many now and implies that the safety problem will not be solved by relying on laws alone. I believe that the support and involvement of other parties are required to comprehend the nature of the issues and potential solutions.
“Please make sure that your vehicle is in good condition, especially the tyres and that they have adequate tread depth and optimum pressure. I advise people to wear bright coloured outfits, such as a reflective jacket or shirt, and white helmet to boost visibility. Road users should also remember to keep a safe distance between themselves and the driver in front,” he said.
Meanwhile, the Consumers’ Association of Penang education officer N. V. Subbarow said authorities should strengthen the rules so that travellers do not feel tempted to flout them.
He also recommended that authorities keep watch on motorcycle convoys and reckless motorcyclists who may race on the roads, adding that this could end in tragedy.
Subbarow also said that authorities should not grant discounts on summonses as it would encourage road users to repeatedly violate the law.
“Human behaviour is difficult to change unless strict regulations are enforced. It was a smart move to push individuals to go to court if they commit an offence. Only then would they learn from their mistakes as nobody wants to attend court.
“The Transport Ministry and police should not allow any motorcycle convoy during Hari Raya. For instance, if there are more than five motorcyclists on the highway, the Road Transport Department or police must issue summonses to them.”