Govt advised to take threat of losing FDI seriously 16 Jul 2021 / 10:30 H.
PETALING JAYA: It is a warning that Malaysia ignores at its own peril. This is the view shared by economist Tan Sri Ramon Navaratnam in response to indications by foreign investors that they may be forced to pull out of the country if the Covid-19 pandemic and lockdown persist.
Ramon, who spoke with theSun yesterday, also wondered if these were all signs of a crumbling economy.
“If FDI (foreign direct investments) are pulled out, it will be disastrous for our economy,” he said.
“I am aware that many have already countered the narrative that Malaysia is a failed state. However, with such (possibility of investors pulling out) coming to light, I cannot help but worry about the future of our nation,” he added.
July 11, 2021
A woman sits on an art installation at Trans Studio in Jakarta, Indonesia. Photo: Reuters
Before Covid-19 hammered the Malaysian economy, Kuala Lumpur native Jeremy Johnson made 7,000 ringgit ($2,250) a month as the general manager of a coffee company, and even had a car as part of his work benefits.
His family of six were firmly entrenched in the middle class: what Malaysia calls the M40 – for the 40 per cent of households considered “middle income” – defined as those earning 4,850 ringgit to 10,959 ringgit a month.
But movement restrictions forcing people to work from home and cautious spending from consumers hit his company hard and Johnson lost his job in August last year.
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Is Covid-19 terminal for the rising middle classes of Malaysia and Indonesia? A woman sits on an art installation at Trans Studio in Jakarta, Indonesia. Photo: Reuters
Before Covid-19 hammered the Malaysian economy, Kuala Lumpur native Jeremy Johnson, 43, made 7,000 ringgit (US$1,670) a month as the general manager of a coffee company and even had a car as part of his work benefits. His family of six were firmly entrenched in the middle class - what Malaysia calls the M40, for the 40 per cent of households considered middle income , defined as those earning 4,850 ringgit to 10,959 ringgit a month.
But movement restrictions forcing people to work from home and cautious spending from consumers hit his company hard and Johnson lost his job in August last year. Since he was the sole breadwinner, that one change swept his family into the low-income group. He is unable to access government handouts and relies on assistance from his family and friends from church.