KUALA LUMPUR: The government must take immediate action to ensure the declining economy is restored and moves in the right direction, said former prime minister Datuk Seri Ismail Sabri Yaakob.
Raising the alarm on Malaysia's current economic situation, Ismail (BN-Bera) said Malaysia is facing a serious investor confidence crisis following the lowest fall of the ringgit since the Asian Financial Crisis.
"After the Covid-19 pandemic, the national economy recorded positive growth in 2022 and was highest in the region under the 'Keluarga Malaysia' (Malaysian Family) government.
"However, the current situation is concerning, particularly as the exchange rate of the Ringgit continues to decline, reaching its worst performance in 25 years and the Bursa Malaysia index also remains around 1,400 points.
"Both of these indicators signify that Malaysia is facing a very serious crisis in investor confidence. Hence, I hope that the government takes immediate action to restore the situation and ensure that the national economy moves in the right direction," he said during his debate on the 2024 Supply Bill in the Dewan Rakyat, today.
On Oct 19, Bloomberg reported that the Malaysian Ringgit had dropped by 0.3 per cent to 4.7635 per US dollar, the weakest since 1998.
The drop in the Malaysian currency also signified the worst performance in Asia, after the yen, this year.
Meanwhile, in terms of the implementation of targeted subsidies, Ismail added that the government must also ensure that any decision made on the policy must be efficient as well as business and people-friendly.
He said it was also essential that the mechanism for targeted subsidies is refined as subsidies are considered structural components of the economy.
"The implementation of targeted subsidies is not a new idea, it was planned during the tenure of former prime minister Datuk Seri Najib Razak and even during the Pakatan Harapan (PH) administration under the leadership of Tun Dr Mahathir Mohammad.
"During PH's administration, the then Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail had also announced the government's plan to introduce targeted subsidies.
"However, to this day, targeted subsidies have not been introduced and this is because they require a transparent and efficient mechanism to ensure no one is left out.
"Hence, I would like to inquire about the government's mechanism for the implementation of targeted subsidies as it was not detailed in the 2024 Budget tabled (in Dewan Rakyat)."