Tough Times ahead, says CIMB Group Chairman, Nazir Razak

COMMENT: We can agree with Dato’ Nazir Razak, Malaysia will face tough times ahead. The ordinary man in street does not need high-flown economics to know this because he is living it everyday. Malaysians are now frustrated with the Prime Minister’s management of our economy and have no confidence in his political leadership.

Markets are saying the same thing. This lack of confidence and trust is having its effects on the Ringgit. Most Malaysians feel that our Prime Minister must leave office. We need a new leader and  capable Cabinet ministers who are  serious about good governance and can manage an imminent economic crisis; so no amount of assurances from the incumbent can help.

We have reached a tipping point with Bersih 4.0. And how the Najib administration handles this potentially massive protest on August 29 — 30 will be decisive. The world is watching and since Malaysia is not an island onto itself, it will be foolhardy for our  leaders to take international opinion and capital and financial markets for granted.

Let us face it– a man who creates the economic mess cannot be expected to clean it.  In fact, when our Prime Minister talks, the Ringgit takes a beating. It is time for him to look at himself in the mirror and acknowledge that he has done a miserable job as Finance Minister and Prime Minister. The message is clear. It is time for him to go. It is better to resign of his own volition than be forced to leave in humiliation. –Din Merican

Malaysia: Tough Times ahead, says CIMB Group Chairman, Nazir Razak

http://www.malaysiakini.com

Prime Minister Najib Abdul Razak held a meeting with several economists from local and foreign financial institutions while his brother Nazir, who helms CIMB, predicted tough times ahead for the banking and financial markets over the next one to two years

“I appreciate their candid views on various aspects of our capital and people economies.These opinions are useful for the government to proactively manage our economy going forward,” the Prime Minister posted on Facebook.

Najib, who is also Finance Minister, said he is looking forward to meet more subject matter specialists and corporate leaders representing the broad range of Malaysian economy in the coming weeks.

The meeting comes amid economic warnings and a weakening Ringgit. Bloomberg reported that Malaysia is paying the price for weak foreign currency holdings and messy politics as the cost to protect its debt soars to near a four-year high.

It said UBS Group AG predicted even more pain ahead.On Monday, the Prime Minister’s Office said Najib would engage corporate leaders and seek their views on current economic developments.

It said their feedback would help the government undertake measures to set Malaysia on the right trajectory to become a developed, harmonious and prosperous nation, according to Bernama.

Meanwhile, Nazir (photo), speaking at the “Bumiputera of Tomorrow” programme today, said on its part, the CIMB Banking Group is bracing itself for the economic and political turbulence ahead.

“You can have plans for one to five years, but you must always be sensitive to the environment. The fact is that for the banking and financial markets, in the next one to two years – these are going to be difficult times.

“So we have chosen to reduce our cost structures very early on. (In terms of) manpower, we have let go about 4,000 people in Malaysia and Indonesia.

“We will make sure that we weather the current financial storm that is going on not just for Malaysia but in the region,” he was quoted as saying by The Edge Markets.

According to Nazir, Malaysia also needs to recalibrate as the country is sailing through difficult waters in terms of politics and economy.He said the time has come to review and reset the way the country is going forward

“How business is conducted going forward, how the government implements its policies, how the government is too involved in businesses.

“I have asked the government that we should set up a National Consultative Council 2, in the same way we did back in 1969 and 1970,” he added.