PETALING JAYA: The Pakatan Harapan Government should prevent the Finance and Economic Affairs Ministers from discrediting the economy, said Umno.
“What is the benefit of telling foreign investors the country is going bankrupt? Foreign investors will be afraid to invest here and those who invested here would want to leave Malaysia.
“This will have a negative impact to the economy and the rakyat. Please stop politicising the economy. The campaigning period for GE14 has ended. Pakatan was meant to win. So it is time to manage the economy properly,” the Umno strategic communications unit said in a statement on Tuesday.
It pointed out that former Selangor Mentri Besar Datuk Seri Azmin Ali, who is Economic Affairs Minister, had told Financial Times that he is “moving from the richest state in Malaysia to a bankrupt nation”.
Azmin also said that “the whole economy is a mess”.
Umno argued the main reason foreign investors are selling shares was due to the “politicking activities” against Barisan Nasional and the claim by the Government that the national debt has reached RM1 trillion.
Umno also claimed foreign investors have reacted negatively due to several drastic moves taken by the Pakatan Government.
“The investing community has rejected several decisions by the Pakatan Government to cancel mega projects and the abolition of the Goods and Services Tax (GST), as shown with a decline of more than 100 points in FBM KLCI, ” it said.
The continuous decline in the stock market will affect the dividend payments of the Employee Provident Fund (EPF) and Lembaga Tabung Haji (TH), it said.
Umno said a month after the general election, the market value of EPF in 10 listed companies has declined 12% or RM6.09bil, from RM51.21bil to RM45.12bil, within a month.
The 10 stocks that performed badly over the month include Cahya Mata Sarawak Bhd (CMS), Malaysian Resources Corp Bhd (MRCB), IJM Corp Bhd, Gamuda Bhd, Telekom Malaysia Bhd (TM), Axiata Group Bhd, Tenaga Nasional Bhd (TNB), CIMB Group Holdings Bhd, Malayan Banking Bhd (Maybank) and Genting Plantations Bhd.
The construction sector was the worst performing sector after the Government decided to review mega infrastructure projects such as the East Coast Rail Link, KL- Singapore High Speed Rail and the Klang Valley Mass Rapid Transit Line 3 (MRT 3).
Umno said the party is worried and warned that if the local stock market continues to go south, it will affect the performance of EPF and its ability to pay dividends in the future.
It could be the same for Permodalan Nasional Bhd (PNB), the Retirement Fund Inc (KWAP), Tabung Haji and other funds.
“The allegation that the national debt has reached RM1trillion and creating the Tabung Harapan Malaysia fund is to divert the rakyat’s attention from Pakatan’s manifesto,” it claimed.
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