The Selangor state government is alarmed that the Malaysian government has yet to issue any statement on how the country plans to mitigate the contingent effect from the economic storm that is due to come when the equity market continue plummet as the US failed to come out with practical solutions to solve its financial woes. More so, the state government is worried on how the situation will affect the state's economy. Given the strength of the Malaysian's reserve the country would enable to hold its international trade position and weather the effect for the next year but, this is not excuse for complacency.
The state calls on the federal government to establish a professional task force to monitor and safeguard the interest of the business sector in the country with special interest to the small and medium business organizations who are likely to bear the brunt of the economic blow due to the impediment of credit shortage. Failure to do so will create uncertainties and therefore, business organisation may not be able to make the correct and proper decisions.
Following the Hari Raya holidays, the state government will convene a series of discussion with business individuals, groups and NGO to discuss on how the state can appreciate the contingent effect of the US' financial bailout to its economy. At the same time, the state will also need to review its business and business strategies to really understand its investments promotion strategies in order to ensure that the current investors and future investors could be insulated from the impact.
The state also calls on the federal government, who are the custodians of the taxpayers' interests, to educate the rakyat of this situation by issuing a well-researched statement which can explain the impact of the situation in real-time economy. As a parliamentarian for Bandar Tun Razak, the Menteri Besar also expects an explanation from the Prime Minister or the Minister of Finance with regards to the situation.
The state also believes that its timely for the country and the Asian region to appreciate the impact on the capital market considering that the size of a day's trading of the New York stock market is equivalent to the entire size of the economic activities in the US for one year. It is very obvious that there is a dichotomy between real economic market and capital financial trading. The Malaysian government should seek the opinions of its friends in the East Asian group to come out with a plan of action to create reasonable real economic activities with healthy investment flows among each other.
Menteri Besar of Selangor
Tan Sri Abdul Khalid Ibrahim