KUCHING: The best role for Gabungan Parti Sarawak (GPS) to play after the 15th general election is to throw its support behind the coalition with the most seats from the peninsula to form a strong federal government that can ensure political stability.
Economist Professor Dr Geoffrey Williams said this could avoid creating an ad hoc arrangement between multiple groups or parties who have been opposed to each other and which might fall apart with or without GPS’ support.
Under current projections, he said, this would also mean supporting Pakatan Harapan, which is forecast to get the most number of seats.
He said the overall trajectory of the economy in the country will depend on who wins.
If Barisan Nasional (BN) wins, he said, it is likely to implement the Budget 2023, which was already tabled by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in the Dewan Rakyat last month.
“If PH wins, we have a chance to have a new budget with independent scrutiny under the Parliamentary Budget Office that PH is proposing.
“If we have a slim majority and instability like we have seen before then this will damage investor confidence,” he said.
Williams said political stability does not mean having the same party or same people in power, but a stable business environment with predictable policies and a peaceful transition to the next government.
He said this was crucial for economic growth as well as necessary so that local and international investors can plan long-term investments.
He felt that the next federal government should relook Budget 2023 and to have more long-term economic plans.
“The Budget 2023 should be scrapped and rebuilt with fewer hand-outs and a more structured approach.
“We need to have good ideas in subsidies reforms to avoid high inflation which will cause high interest rates,” he added.
Williams said it is crucial the winning coalition as well as the new finance minister help the people go through difficulties expected next year.
He said structural reforms would be necessary to reinvigorate the economy and these must promote competition, agility and innovation.
“Whoever wins should also consider adopting policies from other (coalitions and parties) manifestos. For example, the BN assistive basic income, the PH parliamentary budget office and the PN incentives for flexible working are good ideas from all sides,” he said.
The reform of higher education, he said, appeared in both BN and PH manifestos and a new commission should be established to iron out the consensus on National Higher Education Fund Corporation (PTPTN) reform.
