|Harakahdaily,||14 December 2012|
Dec 14: An economic research think-tank has disputed the claim by an analyst representing JP Morgan Securities that Barisan Nasional’s holding on to power after the coming general election was good news to investors.
Research for Social Advancement (REFSA) said the rosy appraisal on the government’s Economic Transformation Programme by Mak Hoy Kit, the executive director of equity research at JP Morgan Securities, was completely opposite of REFSA’s findings on the ETP and other related government tools including the Performance Management & Delivery Unit (PEMANDU).
“Our extensive analysis of the ETP, all freely available at http://www.refsa.org and widely carried by the on-line community, found basic numbers that did not add up, projects that looked dubious, decisions which made little economic sense and worst of all, perception manipulation and outright lies by this powerful unit in the prime minister’s department,” said REFSA executive director Teh Chi-Chang in a statement to Harakahdaily.
He pointed out that economic progress was much slower than PEMANDU’s claim, adding that only 7 per cent of its projection of some RM179 billion investment had been realised.
“Most shockingly, we discovered that PEMANDU was not being truthful about its progress. The most audacious lie is PEMANDU claiming 100% credit for the construction of a 200mm wafer fab in Dec 2011 when in actual fact the company that was supposed to build and operate this RM1.9 billion wafer fab was in the process of being declared insolvent,” said REFSA, adding that there had been no action against PEMANDU officers who claimed that the wafer fab plant was complete despite not existing at all.
As such, REFSA said JP Morgan should support its view that the ETP is resulting in “positive structural changes”.
Earlier, Mak (left) came under heavy criticism from netizens after several BN-controlled media published his comments.
Among others, he warned of “some risk” if Pakatan Rakyat comes to power.
“Investors will be worried if the Opposition wins. When there is uncertainty, investors typically act negatively,” he was quoted as saying.
In response, Selangor Menteri Besar Abdul Khalid Ibrahim advised JP Morgan to be politically neutral.
“JP Morgan and others should take care to ensure that their analyses reflect a neutral stance towards politics and respect the democratic right of the rakyat to choose a government without being influenced by unfounded economic fearmongering,” Khalid reportedly said.