Kuala lumpur: Political stability is crucial to ensuring Malaysia remains a trusted investment destination, Prime Minister Datuk Seri Anwar Ibrahim said today. Anwar, who is also Finance Minister, emphasized that investors needed confidence in a country's stability before committing funds, in addition to assessing its economic strength and prospects.
According to BERNAMA News Agency, Anwar highlighted the importance of political stability at the closing of the Budget 2027 engagement session. He noted that the perception of stability influences investment decisions, making it a priority for the government to maintain a stable political environment to support economic growth.
Anwar further explained that balancing political and economic considerations sometimes required compromises, which could limit the government's ability to implement certain policies. He acknowledged criticism for these compromises but emphasized the necessity of such decisions to prevent economic decline. "That is why people criticise me when they see compromises. But I have a choice. Fight, and the economy declines. Compromise, and there will be constraints on the measures we can take. Those are the two choices. So I choose to maintain political stability and allow the economy to grow," he stated.
The Prime Minister mentioned that stronger economic growth would provide the government with greater capacity to increase spending and allocations to address public needs. While Malaysia's economic fundamentals have positioned the government comfortably to consider additional allocations, each request must be evaluated within the broader macroeconomic framework and fiscal constraints.
During the Budget 2027 dialogue, Anwar stressed the importance of engaging with various stakeholders, including the business and trade sectors, chambers of commerce, and banking institutions. Such engagement plays a crucial role in strengthening confidence and economic capacity. He also acknowledged that despite progress in sectors like artificial intelligence and digital technology, some industries and SMEs continue to face challenges requiring government intervention.