KUALA LUMPUR: Intense speculation about a new political coalition and change of government will affect the local economy, Deputy International Trade and Industry Minister Dr Ong Kian Ming said.
Ong said the ministry must work hard to bring back foreign investors’ confidence in Malaysia.
What was needed now was to strengthen economic development, he added.
“We need to work hard to let them know that Malaysia is really a good place to invest. Certainly this kind of political uncertainties is not good for the economy. That's why we need to have a future direction in terms of government,” he said.
Uncertainties arising from local political wranglings have led the ringgit to extend its downtrend, opening lower at 4.22 against the US dollar today.
The ringgit was also traded lower against other major currencies.
Ong is hopeful that an economic stimulus package could still be announced this week.
“The country needs this kind of economic direction more than ever,” he added.
Prime Minister Dr Mahathir Mohamad is slated to announce on February 27 the economic stimulus package aimed at mitigating the impact of the novel coronavirus outbreak.
According to Finance Minister Lim Guan Eng, the stimulus was intended to mitigate the adverse external economic impacts of the outbreak on Malaysia while preserving the welfare of the rakyat.
Meanwhile, Ong said Pakatan Harapan was still the ruling government and he and other officials at the ministry would continue to carry out their duties
“We stand by what I said, we are still the government of the day until we are told otherwise. I will still work and carry on our duties as deputy minister.