Malaysiakini News

'Najibnomics' is just rubbish

Rais Hussin Mohamed Ariff  |  Published:  |  Modified:

COMMENT | Economics, as anyone who has had the benefit of studying it, is divided into two streams: microeconomics and macroeconomics.

Najibnomics does not understand the distinction between the two, yet jumped right in to transform Malaysia.

Not surprisingly, the transformation produced a slew of feel good numbers, what is otherwise known as 'Syiok Sendiri Economics' (SSE), that verges on a farce.

To begin with, inflation is not tracked holistically. Thus annually, the official inflation ranges between 4.5 percent to 5.5 percent, which effectively negates any meaningful growth of the same.

Not surprisingly, Malaysia is caught in a middle income trap, with private consumer debt of some 80 percent of the total GDP.

Invariably, the Malaysian economy is now within a whisker of being wiped out by any property burst in China, or, the explosion of the debt bomb, again in China.

By taking Malaysia closer to China, in the name of being integrated into China's One Belt One Road, Malaysia has imported all the risks that now confront this massive project.

Indeed, Moody's has downgraded the credit rating of Hong Kong the week before last, on the grounds that Hong Kong has embraced the Belt and Road initiative without a clear sense of where the risks may be.

Malaysia, for the lack of a better word, walked where it should not thread blindly, jumped when it shouldn't be hopping in joy...

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