EARLIER this week, Standard & Poor’s maintained its A- rating for Malaysia. But what does all this mean? What does it mean to the rakyat? How does it benefit the rakyat?
Government is doing the right thing
By affirming its ratings, Standard & Poor’s is telling the rakyat that the Malaysian government is doing the right thing. S&P is telling Malaysians that the government, led by Prime Minister Datuk Seri Najib Razak is taking the right steps to ensure that the country will continue to record economic growth.
This is very important because the world economy is weak right now and Malaysia needs a strong leader such as Datuk Seri Najib Razak right now to steer and manage the country’s economy.
When the ratings are good, the rakyat can enjoy the economy
Why are ratings important to the rakyat? The ratings are important because investors use it as a yardstick before they can invest. As an example, when investors see Malaysia being rated such at A+ or A negative, investors will continue to come to Malaysia to invest. But if a country is rated C or D, then investors will shy away and this will be bad for people of that particular country.
Once investors such as Coca Cola or Toyota come to Malaysia, they will provide jobs to Malaysians in various positions such as factory operator or engineer. Once Malaysians are earning an income, they get to bring back their salaries home, feed their families and spend on clothes.
All these shopping activities will spur the country’s domestic economy which will help Malaysia grow.
Positive ratings show that the government can do better when the economy is good
S&P said that the Malaysian government is flexible in managing the economy when the economy is challenging. What this means is that, once the economy recovers, the Malaysian government will without a doubt be doing much better to steer the country’s economy to greater heights.
At this time, we are doing okay. Just imagine how the government will perform when the economy is better. Once the global economy recovers, the government will be able to attract more investors, foreign direct investments and tourists.
Once this happens, our economy will be much, much better and the rakyat will be able to earn better salaries and a better standard of living.
Malaysia’s name will be known all over the world
At a time when the world economy is challenging, S&P will tell the whole world that a country such as Malaysia on the other hand, is doing well. When this happens, this will be good for Malaysia as other countries would want to learn on how we manage our economy.
As a result, our institutions such as Bank Negara Malaysia and ministries such as the International Trade and Industry Ministry and Finance Ministry will be sought after. S&P will share with the the world on how Malaysia has succesfully managed its economy and other countries will come to Malaysia and learn on how they can do the same.
Once that happens, Malaysia’s name will be good and recognised all over the world and they would want to learn from us on how to manage their economies so that the people can enjoy a better standard of living.
Nik Haikal Nik Ibrahim is an independent analyst and Malaysian Access reader. Article written is strictly his personal view. Malaysian Access does not necessarily endorse the opinions given by any third party content provider.