MB crisis adversely affecting Selangor economy – Analysts

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KUALA LUMPUR: The protracted political imbroglio in Selangor has not just unsettled the people but also begun to cast a pall on the state’s economy, says a leading economist.

Kolej Universiti Insaniah (Kuin) Rector Prof Datuk Mohd Yusof Kasim said the Selangor economy was among the important matters which would end up imbalanced, following the conflict in the tussle for the post of menteri besar.

“There will be an effect on the economy of Selangor but it will be temporary in nature, until a new administration takes over the state,” said the political analyst when contacted by Bernama here yesterday.

He said the situation, however, depended on who would take over the post of menteri besar, whether he would be from among individuals who were skilled in economy or otherwise.

“If the new menteri besar is skilled in economy, the situation in Selangor will become stable again. Otherwise, there is a need to form a special advisory committee,” he noted.

Mohd Yusof said the current situation in Selangor politics would result in investors adopting a wait-and-see attitude because they would feel skeptical until they knew who would fill the post of menteri besar.

If investors were still not confident of the new leadership in Selangor, they might shift to other states with a more stable political situation.

Mohd Yusof’s views were also shared by Universiti Utara Malaysia’s Law, Government and International Studies College Dean, Associate Professor Dr Ahmad Marthada Mohamed who believes foreign investments will cease for a while when the political situation becomes unstable.

“Investors will take precaution by waiting and watching how far the conflict will go because among the factors which prompted them to invest in the first place was political stability,” he said. — Bernama