Worry about the economy

It’s irrational for our politicians to be more preoccupied with fighting for power rather than fighting to stave off the financial tsunami and saving the jobs of Malaysians.

The political tsunami that swept Malay­sia is already a year old although the manner in which our politicians are going for each other’s throats may suggest otherwise. But it is the financial tsunami that we should be worried about.

The reality is, no one can answer how long the global economic crisis will last and how bad it will be.

Several countries, like Latvia, have slipped into depression, resulting in social unrest.

Some European leaders have admitted they do not know what to do, saying there’s no precedent or textbook formulas for them to rely on to tackle the problems.

In the United Kingdom, only one bank has not been nationalised or rescued by the government. That’s how bad the situation is now.

The United States, the world’s largest market, has been badly hit, resulting in an unemployment rate of 8.1% – the highest in 25 years with 651,000 jobs lost last month alone.

In China, especially in Guangdong, thousands of factories, which relied mostly on the American market, have shut down, resulting in millions losing their jobs.

Last week, Chinese Premier Wen Jiabao said that this year would be the country’s most difficult year in this century.

He has declared an annual growth rate of 8%, with analysts saying that anything less than that could lead to political problems.

As for Singapore, the country’s benchmark stock index may fall about 20% more as the city-state sinks deeper into recession.

In Malaysia, the economic tsunami has yet to affect us but the sign of a deteriorating economy is showing.

We will not escape the impact of the global financial crisis although the authorities have refuted claims that the country is facing a recession.

Malaysia’s economy, which is heavily dependent on manufacturing, grew by a mere 0.1% in the last three months of 2008. This took annual growth to 4.6%, below official targets.

The second stimulus plan, in which the Government is spending another RM10bil, has been tabled in Parliament to revive the economy. This takes it to a total of RM17bil.

For Malaysians, especially in the private sector, it means re-looking their working patterns. By now, the orders are already out – no more new staff, no extension for staff reaching retirement age unless absolutely necessary, cut on business trips and, for sure, no bonuses.

Employers are scrutinising their operating expenditures, looking hard to find items that can save their companies money during this doom-laden period.

As with any economies, Malaysia is no different. The brunt of the layoffs would be on workers in factories, the retail sector, construction and hotels. That means it would hit the less educated ones the most.

At the Asia News Network meeting in Bangkok last week, many newspaper editors expressed their bewilderment at the excessive politicking in Malaysia.

Many of these media practitioners have friends and relatives in Malaysia and they voiced their concern at what is happening in our country, where our leaders seem more preoccupied with fighting for power instead of fighting to keep jobs for Malaysians.

In the assessment of their companies performances, whether in print or multi-media, the results will be the same – drops in revenue and circulation – as they grapple with the credit crunch.

The priorities of our politicians, however, are mixed up, and more Malaysians are becoming frustrated and even alienated at what they see as the failure of leaders, regardless of their political beliefs, to face the financial tsunami that is coming our way.

It is time that Malaysians insist that our politicians stop their antics, call a truce and get on with the real job of governing the states and the country.

- THE STAR