State of Malaysia's political parties

Patience wearing thin over the economy

Public-sector spending, which makes up a fifth of GDP, is flat, and the Malaysian economy is starting to feel the effects of the 5.2 per cent year-on-year fall on the investment side. PHOTO: ST FILE
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But with inflation stalling, there seems to be a push to focus on wages than prices. The Sunday Times understands the government is planning a stimulus package aimed at uplifting poorer Malaysians.

"My suggestion is that the government transform subsidies into salaries," Malaysian Institute of Economic Research (Mier) executive director Zakariah Abdul Rashid said on April 16, sharing the sentiment of think tanks like the Institute for Democracy and Economic Affairs. This would boost consumer spending, which Mier studies show has been subdued in the first quarter of 2019, while the first two months saw money growth decline and loan approval and disbursement falling to eight-month lows.

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A version of this article appeared in the print edition of The Sunday Times on May 05, 2019, with the headline Patience wearing thin over the economy. Subscribe