Welcoming the year with trepidation

As uncertainty develops globally with the pending change in American leadership, Malaysians must be united in focusing on not just the economy but national unity and good governance.

A NEW year with new beginnings, as the saying goes. But as we look towards a bright new year, there are dark clouds on the horizon, and one cannot help but feel a sense of trepidation.

Has globalisation run its course and are we heading towards an era of regionalisation? Donald Trump’s Jan 20 inauguration as president of the United States would indicate a period of isolationism for America.

He has vowed a no-nonsense approach with the other two superpowers – China and Russia. And with three nationalistic “tough guys” at the helm of their respective countries – Trump, Vladimir Putin and Xi Jinping – this does not augur well for the rest of the world.

The Harvard Business Review predicts that geopolitical tensions could fracture the world economy into rival blocs. And this in turn will have a negative effect on the growth of cross-border trade and capital, information and people flow.

This “globalisation in reverse” may be exaggerated and a tad alarmist but for a small country like Malaysia the trend is worrying.

Many scenarios are being played out. Could tariffs impact our exporters? And will this lead to rising inflation with prices of goods skyrocketing?

On the flipside, some economists are predicting that Foreign Direct Investments (FDIs) especially from China could improve if Trump follows through with his tariff imposition on foreign goods.

Could the influx of Chinese-made goods (we are already seeing the auto industry disrupted with China-made cars) cause prices to come down for the average Malaysian?

The only thing that is certain is that there is uncertainty.

Now is the time, more than ever, for Malaysians to come together and really focus on improving our prospects, which means politicians need to step up to promote national unity and to strengthen good governance.

FDIs only come when foreigners believe that we have good governance, so, for goodness sake, enough with the racial rhetoric!

We seem to be regressing in every way, from increased animal abuse to bickering between the races.

Even Christmas trees are not spared, as according to some, they can affect one’s religion.

We are Malaysians. It’s time we depend on each other when the world is in such a tailspin. Ratio to population wise, we have one of the world’s largest civil services. They really need to discard their sense of entitlement and improve their level of service.

And for us, the average rakyat, we need to also make more effort to stop spewing racial innuendos, especially on social media platforms.

We need to collaborate better and work harder. The increase in minimum wage and the introduction of Employees Provident Fund to foreigners is a good chance for Malaysians to be given more opportunities in the workplace.

For example, and I have written about this before, we need residential properties and shopping centres and others to hire more Rela or Polis Bantuan.

Enough with billions leaving our nation with the hiring of workers for such positions, which means corporate Malaysia must also step up.

Some Malaysian companies are raking in millions of ringgit in profits, some billions. They need to do more in this area of supporting the national economy.

On this note, the recent announcement of increase in electricity charges by TNB is a total mockery.

Our neighbours down south who have no natural resources are reducing their energy cost for Singapore citizens.

Instead of increasing rates, TNB should step up and manage the nation’s energy resources better.

Khazanah Research Institute’s (KRI) latest study is damning because it reveals that only the Top 30% (T30) income earners exhibit middle-class spending patterns, while the Middle 50% (M50) – the group between the B20 and the T30 – remains economically vulnerable, experiencing trade-offs between essential and aspirational expenditures.

Our wages have not grown exponentially in line with the rising costs, and this has resulted in a diminishing middle class.

Things may get worse, TNB rates notwithstanding, when the RON95 petrol subsidy is removed in the middle of this year.

Let us hope that the government’s promise of this not affecting 85% of the population is kept.

As we look to the New Year, and despite the cast of dubious characters that drag down our nation, we should be encouraged by the fact that we have enormous potential as a country.

There are those who would like to see our unity destroyed for selfish, short-term gain, but most Malaysians are aligned with wanting to see the nation and her people progress.

We will celebrate 68 years of independence in 2025. It’s time we believe more in ourselves, more so as the world becomes less globalised.

So, to all our readers, happy new year and here’s to a year of peace and goodwill – in mind, body and spirit.