New normal: Covid-19 is here to stay, so we need to learn to live with the coronavirus and hold a general election amid the health crisis. – THOMAS YONG/The Star

IT doesn’t take a genius to suss out investors’ feelings about Malaysia. It’s not the most attractive place to do business in for a variety of reasons, and if our politicians care to speak to the various commerce chambers, they will hear it straight.

Topping the list of hindrances is the protracted political instability that has plagued the country since the 2018 general election.

We’ve had three Prime Ministers since then, and while we now have some resemblance of political stability because of the truce between the government and the opposition, we’re still explicitly aware of its finite lifespan.

The Memorandum of Understanding inked by both sides ends in July, which is less than five months away. We all know that it’s a fragile relationship glued together at the behest of the palace to ensure that we can ride the storm of the pandemic. Even before the MOU’s expiration date, the political decibels have gone up a few notches with demands from Umno – a major stakeholder in the Federal Government – for a general election.

There have been reservations from Prime Minister Datuk Seri Ismail Sabri and some Cabinet members, including those from Umno, over the chorus for a GE, but it will be difficult to go against the tide of Umno members.

Yes, Malaysia hasn’t broken free of the shackles of Covid-19, but it’s now endemic. It’s here to stay, so it can’t be a convincing reason to stall an election.

Besides, we’ve already had the Sabah, Melaka, Sarawak and Johor state elections.

But let’s put political reasons aside. Investors are not taking Malaysia seriously because they see the present government as a floating one headed by a PM who needs to earn his mandate.

That mandate can only be obtained if there is a GE. It doesn’t bode well that he’s not the head of his own party.

Financial analysts have long warned that such a political impasse would cause problems in raising national borrowing limits and stymieing spending.

It has also blighted Bursa as Malaysia continues to be the worst performer in the region. While politics isn’t the only reason since there’s also an absence of tech stocks, bickering politicians aren’t helping the cause.

If there’s no clear leadership, even with Ismail replacing Tan Sri Muhyiddin Yassin, the country will still be dogged by further uncertainty, which just translates to economic stagnation.

And here’s the irony. The media reported on Aug 13, 2021, the then PM, Muhyiddin, pledging that GE15 will be held latest by July 2022 end.

Despite the positive economic narrative and projections, it’s difficult to see how Malaysia can engineer a different growth trajectory.

There will still be direct foreign investments coming in, but we’re fighting regional counterparts including Vietnam and Indonesia.

Politics isn’t just the monopoly of politicians. The sentiments of foreign investors do matter because foreigners contribute about 40% to Malaysia’s sovereign debt.

It’s no secret that foreign money has been flowing out of the country because the pandemic and political instability have delayed economic planning and stalled attempts at tax reform.

The priority for investors is for a stable leader to emerge because the economic outlook could turn cloudy. But how do we resolve this political crisis?

Political stability was Malaysia’s bestselling story to investors once. Imagine that.

No one wants to hear a bad story. The word among foreign investors is that certain ministers haven’t even met stakeholders to hear them out.

If that’s true, it’s scandalous because a few are, in fact, revenue earning ministries.

These ministers seem to be placed there because of power sharing and as reward for keeping the Federal Government intact. However, question marks remain over their interest in their portfolios, or if they’re even qualified for the job.

Such a perception, true or false, doesn’t endear Malaysia to investors.

Investors see the current Federal Government as precarious and, truth be told, not many are in the mood to extend the MOU.

But calling a GE isn’t a panacea either if the result from the poll continues to be fragmented and unconvincing.

One thing is certain, though – dragging on with an unsalvageable broken relationship is simply unrealistic.

Having a general election soon can be the way out of the country’s political and economic conundrum, says the writer. – AZHAR MAHFOF/The Star

For economic reasons and the sake of political stability, Malaysia needs to head to the polls soon.

IF there’s one thing that Malaysia needs to do soon, now that the Johor state election is over, it’s to call for the general election – once the Memorandum of Understanding between the Government and Opposition expires in July.

After the huge amount spent for these state elections, don’t forget we have to spend it again when the GE is called to elect Members of Parliament for these states.

The Johor polls, which concluded last night, cost taxpayers over RM100mil. State polls since the last general election in 2018 have cost the country an eye-watering RM420mil.

Three state elections have seen RM130mil spent in Sabah, RM45mil in Melaka and RM149mil in Sarawak. Elections have progressively become more expensive because everything is costlier these days, and the Election Commission, which handles the polls, isn’t spared this economic conundrum.

The necessary items to comply with Covid-19 SOPs constitute additional costs.

We can’t have more state polls after Johor due to political reasons. It needs to stop.

The only way out is to have GE15 after July. There’s no use trying to avoid it, and the reasons given by those who don’t want it are far from convincing.

The MOU has served its purpose in keeping the federal government intact when Covid-19 was at its peak because the collapse of a federal government with no Prime Minister would have been disastrous.

The Rulers made it clear at that point, in no uncertain terms, that Malaysia could not afford excessive politicking.

But much has changed since the historic MOU – to strengthen political stability amid the pandemic – was inked last September for a bipartisan cooperation.

The MOU covered the Covid-19 plan, administrative transformation, parliamentary reform, judiciary independence, Malaysia Agreement 1963 and the setting up of a steering committee.

But the reality today is, the federal government, comprising the Barisan Nasional and Perikatan Nasional as the core coalitions, no longer functions as a unit.

The political marriage has broken down. The feuding couple is bickering openly and bad mouthing one another, and in state polls, they are contesting against each other.

The Muafakat Nasional, formed between Umno and PAS when Pakatan Harapan came into power in 2018, is as good as over. It was devised purportedly to unite the Muslim community for electoral purposes, but it has run its course.

Umno no longer sees a need for its alliance with PAS as it continues its winning streak and is now even eyeing PAS’ state and national level seats.

PAS, with a mere 18 of the 222 parliamentary seats, certainly seems to have enjoyed tremendous clout and holds powerful posts because it can cause the downfall of the federal government.

Has PAS president Tan Sri Hadi Abdul Awang, who is the special envoy to the Middle East, helped us secure investments worth billions of ringgit like Indonesia did with US$32.7bil (RM137bil) from the United Arab Emirates?

Yes, of course. It’s easy to forget he met the Taliban in Doha and helped provide a link to the Malaysian government. Thank you, a job well done then.

But seriously, the longer we hold back on the general election, the greater the financial impact on Malaysia.

No investors would put money in Malaysia if they’re unsure of who will helm the country in the long term.

The continuous mudslinging by politicians, including those in the Federal Government, is hardly inspiring to anyone wanting to invest here.

Malaysia is sending the wrong messages to the world, as if the 1MDB scandal hasn’t already made us the butt of jokes. Let’s be brutally honest – we are viewed as a corrupt country.

Our politicians spend an inordinate amount of time making silly statements, which are reported worldwide and earn us unflattering headlines.

Why would anyone advise husbands to beat their wives “gently” to discipline them, for example?

And why even bother making a statement like Singapore would be more developed if it were led by Umno. That was totally unnecessary.

Of course, we have a wellspring of such foot-in-the-mouth remarks by our politicians.

But a strong government is necessary, and for that matter, a Prime Minister who has an ironclad mandate. To complicate matters, for the first time, we have a PM who is not the boss of his own political party.

As international borders reopen, investors would want to have a final decision, and that means visiting Malaysia – and other options – personally to see the country and talk to the stakeholders, and possibly even the ministers in power, to get assurances.

We have a window period, which unfortunately, is fast diminishing. The clock is ticking away ominously.

Malaysia remains the only country in Asean where investors are continually in the dark about its political direction. We used to have the edge of a strong political leadership and stability.

Last week, DAP organising secretary Anthony Loke and Pejuang president Mukhriz Mahathir both expressed reservations about a general election being held soon.

Mukhriz said the current Parliament should run its full term until May 2023, while Loke wants the MOU to be extended, citing the Covid-19 pandemic and proposed an MOU 2.0, but only after the anti-hopping law is passed.

However, Covid-19 has been declared endemic and, whether we like it or not, the virus won’t go away.

We must live with it and even if the MPs serve the full term, infections will still be present.

The impression given is that the Opposition is reluctant to face a general election because its performance in the past state elections have been dismal.

The big question isn’t whether the GE would be held after July or in 2023, but whether we will end up with another weak government and multiple partners with a lame duck PM.