The Phantom of the Pakatan Opera
Foreign selling of Malaysian shares accelerated to RM1.21 billion last week from RM903.1 million the week before.
On average, RM301.5 million left Malaysia each and every day of last week compared to RM180.6 million each and every day the week before.
The foreign selling steak has now extended to 28 consecutive market days.
This does not include the RM20 billion that has been pulled out by foreigners by our bond markets since GE14.
Over the past two weeks, our new Finance Minister kept on saying that financial data from Malaysia is not accurate and that even Moody’s does not know the true grim situation of our country’s finances.
Then our new Economic Minister Azmin Ali told the UK’s Financial Times that the whole economy is a mess and that he came from the richest state to a hold a post in a bankrupt nation.
Basically, our top two ministers in charge of our economy has just told the world that Malaysian data cannot be trusted and that our country is already bankrupt.
How do those messages help to instill confidence in our economy, stop foreigners from pulling out money from Malaysia or encourage foreign investment into Malaysia?
That is why Japan’s top financial media Nikkei just came out with an article that said that the PH government’s quick reversal of crucial reforms such as the GST and fuel subsidy rationalisation represented a medium-term risk to our country.
Nikkei then warned that Malaysia is in danger of falling into a *downward spiral* in a deadly combination of continuing large capital outflows and weaker currency which will be made worse when the financial markets starts believing that Malaysia’s financial situation is deteriorating and that our country’s credit rating will soon be downgraded
This is where the politics of trying to continue bad-mouthing Najib and the previous BN govt will end up hurting the entire Malaysia.
If Nikkei is proven correct and Malaysia falls into a bad economic crisis, you can safely point the blame on the senseless politicking of the PH Govt and the mulut buruk of their ministers.
Source: The Phantom of the Pakatan Opera