Selangor Menteri Besar Khalid Ibrahim has dismissed investment bank JP Morgan’s analysis that Malaysia’s economic outlook would be positive next year if Barisan Nasional remains in power.

The bank had also reportedly predicted that BN would win the next general election “with a decent majority” and there would be “some risk” if Pakatan Rakyat were to take over.

NONE “JP Morgan and others should take care to ensure that their analyses reflect a neutral stance towards politics and respect the democratic right of the rakyat to choose a government without being influenced by unfounded economic fear-mongering.

“Perhaps international investment banks should take heed of the example of Lehman Brothers and others, and start making broader economic analyses that take into consideration the well-being of the masses,” Khalid said.

The former corporate figure was responding to several media reports today quoting JP Morgan Securities (M) Sdn Bhd executive director Mak How Kit saying, “We are now ‘neutral’ on Malaysia because of the general election overhang.

“Investors will be worried if the opposition wins. When there is uncertainty, investors typically act negatively”.

However, Khalid said the analysis was “shallow” and did not account for the effects of privatisation, which he said is “a classic case of privatising profit while socialising losses”.

‘Held hostage by politics of fear’

He added that Malaysia’s long-term economic health can only be guaranteed by a clean government – which he said the BN-led government is not – and changing the government is the only way to reverse Malaysia’s poor economic performance.

One of the indicators of Malaysia’s “dismal economic prospects” include the country’s growing national debt, he said.

malaysiakini interview loh seng kok 061108 05 “To believe that any political change will have uniformly negative effects on the economy is to be held hostage by the politics of fear – a fear that will undoubtedly maintain those responsible for our current poor state of economic affairs in power and prolong the mess they have created,” added the Ijok assemblyperson.

As a counter-example to JP Morgan’s analyses, Khalid pointed out that Thailand and Indonesia has recorded a year on year economic growth of 4.2 percent and 6.4 percent respectively, despite its political climate.

Meanwhile, in a separate statement today, MCA deputy publicity chief Loh Seng Kok ( above ) urged the Chinese Malaysian community to welcome the market’s positive outlook for a BN-victory including JP Morgan’s analysis, and to support BN.

“Although Pakatan Rakyat has dismissed and belittled our Economic Transformation Programs and accused the government of bluffing its economic achievements, the positive outlook of businesses and markets has effectively answered Pakatan Rakyat’s malicious slander,” he said.