Malaysia's "Economists"

I have to say, last week's statements on the economy were the most disastrous and contradicting ones I have ever read since Pak Lah's administration.

1. Malaysia may slip into a double-dip recession if European countries face a similar slowdown, said Tun Dr Mahathir Mohamad. (TDM, Bernama)


2. The Malaysian economy is on the right track towards achieving the projected annual six per cent growth, according to Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop (TSNMY. Bernama)


3. Malaysia’s recovery may slow in the second half of this year, Prime Minister Najib Razak said, as risks to global growth increase ahead of this week’s central bank decision on interest rates. (Najib Razak, Bloomberg)


4. "Along with the better manufacturing data in May, we reckon it would likely support a reasonably high GDP growth in the second quarter. Our estimates are that GDP could grow at least eight per cent to nine per cent in the second quarter," it added. (Kenanga Research, Bernama)

Seems to me TS Nor Mohamed Yakcop and the PM have different views of the economy. But never mind. That's not the issue and the PM can always lecture his own Minister if he made any mistakes.

Now let us go back to basics. When an economy is expected to slow down, the agencies which deal with the economy should consider appropriate actions and policies.

Though we understand that Central Banks revise the monetary policy based on reported data, Bank Negara Malaysia's decision to increase the OP rates in Malaysia could put a strain to Datuk Seri Najib Tun Razak's economic transformation efforts.

First year's achievements are always the decider of whether to believe the ambitious programmes and efforts or not laid by national leaders in any country.

And there is no point to be Number One ahead of our regional Central Banks to push the rates up in view of high growth in Quarter One when we are looking at gloomy days in the 2nd half of the year.

Well, this is the problem when independence is accorded to the Central Bank by law. It was also one of the contributing reasons why John Howard lost the election and thus his position as Prime Minister of Australia back in 2007.

In future, I hope that the "bright, young, talented" Economists in the Government can be more proactive and engage all Government related agencies that handle our economy.

Together we transform and develop the nation.