5 Pakatan states join forces to weather economic storm

Instead of losing sleep over the Barisan Nasional-led federal government’s alleged discrimination, the five Pakatan Rakyat-led states have decided to work together to survive the impending global economic crisis.

Their main concern is mitigating an expected influx of over half a million jobless Malaysians in the local employment market due to massive retrenchment, both in and outside the country.

The Penang, Kedah, Perak, Selangor and Kelantan governments are expected to work closely to create more jobs for unemployed workers by drawing on value-added investments, retraining workers to add value to existing skills and preparing them for the job market post-crisis.

Other areas of cooperation are in the management of the supply of raw water, agricultural and food industries, cost-cutting measures on unnecessary administrative expenses and upgrading of infrastructure systems, especially information and communications technology.

Penang Chief Minister Lim Guan Eng, Perak Menteri Besar Mohammad Nizar Jamaluddin, Selangor Menteri Besar Abdul Khalid Ibrahim and Kelantan executive councillor Husam Musa, representing Menteri Besar Nik Abdul Aziz Nik Mat, collectively announced the unofficial Pakatan socio-economic caucus at a press conference in Georgetown today.

The leaders were also attending a two-day international conference entitled ‘The New Economic Vision for Penang and Malaysia', organised by InvestPenang.

The only notable absentee was Kedah Menteri Besar Azizan Abdul Razak, who is believed to be ill.

Although the Pakatan states do not wish to isolate themselves from the rest of the country, Lim said they decided to work together to benefit each other in light of the imminent economic crisis.

"We are also willing to work with the federal government and with all other states to help the country and people to overcome the economic recession," stressed Lim, who earlier officiated the conference.

'Time for action'

Khalid did not mince his words, hitting out at the federal government for being lukewarm in extending financial assistance to Pakatan states to handle and overcome the crisis effectively.

"It's time for action and interaction, not politicking and policy searching," he said, referring to the federal government’s stimulus package to mitigate the crisis, which critics have argued is inadequate and insufficient.

Khalid said it was wrong of the federal government to sideline the five Pakatan states, which collectively account for nearly 60 percent of the country's annual gross domestic product and at least half of the nation's industrial workers.

Selangor contributes 25 percent to the GDP while Penang contributes 30 percent of the country’s yearly manufacturing output.

Perak is a major contributor of the country's palm oil business and is planning to revive its tin-mining industry, once Perak's main income earner. Tin is currently enjoying a revival in the international market.

Khalid took to task certain federal government leaders for claiming that Malaysia would not be badly hit by the recession, pointing out that the country was very much dependent countries like the United States, Europe and Japan.

He cautioned that since these countries, which account for an estimated 70 percent of Malaysia’s export revenue, are expected to be badly hit by the crisis, so "surely Malaysia will be hit hard".

Meanwhile, the Perak menteri besar expressed hope that the federal government will provide Pakatan states with adequate financial aid to weather the economic storm.

He said the Putrajaya administration should urgenly convene a national council meeting of all heads of state governments in the country, not just BN menteris besar and chief ministers.

Mohammad Nizar also pointed out that Perak is working closely with the Selangor and Penang governments on the supply of raw water.

Plans are also underfoot for the Kelantan government to build pipelines to the other Pakatan states to supply gas and petrol for industrial and domestic use.