Prime Minister Abdullah Ahmad Badawi will lose his credibility if his prediction that the Kuala Lumpur Composite Index (KLCI) may breach the 1,350 mark does not come true, said an opposition leader.

In a statement today, DAP secretary-general Lim Guan Eng said investors may even claim losses from the prime minister should they lose money by taking his stock advice.

Lim was responding to the premier's statement during the Chinese New Year that after hitting a 10-year high of 1,262.1 points last week, the KLCI might breach the 1,350 mark which would be the highest in Malaysia's history.

He said Abdullah, who is also finance minister, spurred a stock market frenzy and buying boom in blue chip counters.

"Abdullah based his confidence that the KLCI would break its record on the rise in foreign reserves, the lower deficit, the record RM46 billion invested by local and foreign investors, national trade volume of RM1,069 billion last year, up 10.5% from the previous year.

"However, such goods news may be an inspiration to the rich and those with cash to invest but not to the many small businessmen and workers," he added.

Lim said these small businessmen and workers face financial hardships from rising inflation and costs caused by the refusal of the government to reduce fuel prices in line with the drop of international oil price to less than US$60 per barrel since the beginning of Jan 1, 2007.

"How can Malaysian workers have money to invest in the stock market when many for the first time did not even receive 2006 annual bonuses?

"How can Abdullah claim that this is an inspiring achievement when there is no sense of well-being amongst Malaysians that business is booming or that pay is rising?" he asked.

Many complaints

The opposition leader said he received many complaints from ordinary retail businesses that this year's Chinese New Year is worse than last year and many cannot understand how the economy can be performing as well as claimed by the government.

He said for workers it is worse as many multi-national companies and even listed companies failed to pay annual bonuses for the first time in history.

"Many believe that talk of good economy is just a propaganda exercise to deceive the public in preparation for the coming general elections.

"If the prime minister is inspired by the performance of the economy, why is it that many Malaysian small businessmen and workers are not equally inspired?

Quoting the Ninth Malaysian Plan (9MP), Lim said the mean monthly household income for a Malaysian family was RM3,249 in 2004.

"This is misleading as it is doubtful that a Malaysian family would have even a monthly household income of RM3,249 now," he said.

"With the economy performing at such an "inspiring" level in 2006, the mean monthly household income should even be higher. But does every Malaysian family get to enjoy the fruits of the country's economic success equally?" he asked.

According to Lim, the answer lies in the United Nations Human Development Report which consistently list Malaysians as suffering the worst income inequality between the rich and poor in South-East Asia.

"Malaysians want real inspiration in the form of bonuses and real wage increases, not false inspiration of good economic performance that is not shared by all but enjoyed by only the few," he said.