Political cooperation must prioritize national stability for economic growth, says UMNO VP

Any political party arrangement or cooperation must safeguard national stability, a fundamental prerequisite for economic development, according to UMNO Vice President Datuk Seri Johari Abdul Ghani. He emphasized that unstable politics hinders a nation's ability to develop its economy, a lesson learned from experiences in other countries.

Johari, who also serves as the Minister of Investment, Trade, and Industry, explained that economic progress relies not only on domestic efforts but also on attracting foreign investors to create job opportunities. "Whatever the arrangement or political cooperation between these parties, the most important thing is that we must ensure that we do not undermine the political stability of our country," he said. "Because when there is political stability, that is where we can start developing the economy."

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Whatever the arrangement or political cooperation between these parties, the most important thing is that we must ensure that we do not undermine the political stability of our country.

Frequent leadership changes can create uncertainty for investors, as shifts in government often lead to policy changes. "That is why if you look at it, when this country experiences too frequent leadership changes, three to four people changing in one term. So where will investors follow?" Johari questioned. He pointed to the transition from the Goods and Services Tax (GST) to Sales and Service Tax (SST) as an example of how policy changes, even if they involve similar tax types, can disrupt economic activities and require adjustments from businesses.

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Because when there is political stability, that is where we can start developing the economy.

He stressed that while both GST and SST are taxes, the adjustment process for those engaged in economic activities is significantly affected. This highlights the need for consistent and predictable economic policies, which are fostered by political stability. Investors require a reliable environment to commit their capital, and frequent political upheaval creates an atmosphere of risk that can deter them.

Therefore, Johari's message underscores the critical link between political stability and economic prosperity. He urges political actors to prioritize the nation's stability above all else when forging alliances or cooperating, ensuring a conducive environment for both domestic growth and foreign investment. The goal is to create a predictable policy landscape that supports long-term economic development.

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That is why if you look at it, when this country experiences too frequent leadership changes, three to four people changing in one term. So where will investors follow?