By DayakDaily Team
KUCHING, July 30: Sarawak United Peoples’ Party (SUPP) Kuching branch has expressed concern over Malaysia’s economic trajectory under Prime Minister Datuk Seri Anwar Ibrahim, arguing that his reliance on aid distribution and increasing civil servant salaries is akin to using a cup of water to extinguish a raging fire.
Its treasurer Jong Yean Pin criticised the current economic direction and policies under the Pakatan Harapan-led unity government, noting that they are entangled in racial and religious issues which resulted in policies that address immediate problems but lack long-term vision.
“Malaysia’s GDP (Gross Domestic Product) growth has weakened in 2024 compared to the previous year,” he claimed.
Jong pointed out that the Malaysian ringgit has depreciated by approximately 44 per cent over the past 11 years (from 2014 to 2024).
On April 17 this year, the ringgit briefly fell to 4.80 against the US dollar and 3.51 against the Singapore dollar.
Jong attributed part of this pressure to global rising interest rates, particularly by the US Federal Reserve, which have impacted Asian currencies, including the ringgit.
He noted that countries like Japan, South Korea, Thailand, India, and Vietnam have intervened to stabilise their currencies, while Malaysia’s efforts have been lacking.
“Attempts to stabilise the MYR by pegging its exchange rate against the USD would weaken imports. Raising interest rates could burden citizens with higher loan repayments. With limited reserves available, the government faces a Catch-22 situation. Waiting for the US Federal Reserve to lower interest rates seems to be the only passive economic strategy, underscoring Malaysia’s weakening economic position,” he said.
Additionally, Jong noted the increase in Goods and Services Tax (GST) from 6 per cent to 8 per cent this year, along with a 55 per cent rise in diesel prices in Peninsular Malaysia following subsidy adjustments.
“Although Sarawak’s diesel prices remain unchanged, imported goods from Peninsular Malaysia are now more expensive. Furthermore, the Inland Revenue Board’s mandatory implementation of an electronic invoicing system in August has worried small businesses and petty traders,” he added. — DayakDaily
