Although Barisan Nasional looks set to take over the government of Perak, the business community does not expect changes in the state’s pro-business policies. As long as there is a smooth handover of power, the negative effects on the state’s economy should be minimal.

The president of the Perak branch of the Malaysian International Chamber of Commerce and Industry (MICCI), Lim Si Boon, said: “The previous Barisan Nasional state government under Tajol Rosli encouraged foreign investments, set up the Pemudah business task force and was pro-business.

“(Then) the new (Pakatan Rakyat) government (under Mohd Nizar Jamaluddin) continued this… there were no signs that they would make changes in policies.”

MICCI is one of the largest and oldest business organisations in Malaysia and represents many local and foreign investors.

Investors don't like policy filp-flops

Lim added that foreign investors were impressed by the maturity shown during the previous handover of power in Perak.

“Within a month after the handover we had regular meetings again with the new mentri besar,” said Lim.

But he stressed that political stability should not be taken for granted.

“As long as there is no strife and no civil unrest it’s okay… investors invest here because of the political stability. They don’t want policy flip-flops. They don’t like volatility.”

Because many MICCI members in Perak are engaged in exports, they are more worried about the global recession than the local political situation here, Lim told Malaysiakini .

On whether there should be a state election in Perak, Lim said that elections do cost money but added that “elections are the prerogative of the government. We just want the most practical way with the least disruption.”

The Perak economy faced a slowdown following the decline of the mining industry in the 1980s. Since then, investments in manufacturing, agriculture and tourism have brought the state greater prosperity.