How Did WE Get Here? An Alternative View
Najib in his speech to the House briefly reviewed recent economic developments. This review was selective and must be rebutted.
Contrary to his view, the danger signals were already there in mid 2008 when the budget for the current year was presented. However, the Government remained in a state of denial and continued to assert that Malaysia would not be affected by the global meltdown.
Ministers and the Governor of Bank Negara continued in parrot fashion to mouth the mantra of the economy attaining a growth rate of 3.5% in 2009 despite mounting evidence of declining industrial production, a fall in exports, lower commodity prices, sharp falls in FDI and growing evidence of capital flight.
On the global scene alarm was being expressed and country after country was taking measures. The two Finance Ministers remained sanguine and repeatedly provided the mainstream media with sound bites indicating that Malaysia was miraculously immune from global trends. They propounded the so-called theory of immunity via the notion of “decoupling”.
Despite these protestations, which rang hollow, the markets took due note and lowered the risk ratings. Yet, the euphoric expressions of growth continued to be mouthed relentlessly. Najib is thus stretching credibility by suggesting that it was only late in the 4th Quarter that there were “negative” developments. Continue reading “Najib’s roll of the dice – RM60 billion economic stimulus package (3)”