The economics of transition

AmBank group chief economist Anthony Dass says change is not necessarily bad if the right policies can be instituted. “Now is a good time to reset, but the immediate priority should be on tackling the Covid-19 situation to reach herd immunity for a safe reopening of the economy,” he tells StarBizWeek.

WHENEVER new governments come into power, there is always the risk of an immediate impact to the economy, as new policies get implemented and old ones are dismantled.

Such was the case in 2018, when after 61 years of Barisan Nasional (BN) rule since the country’s independence in 1957, a new government was elected. The new Pakatan Harapan (PH)-led government implemented several populist economic policies that were drawn from its election manifesto.