KUALA LUMPUR, Feb 3 ― Prime Minister Datuk Seri Najib Razak should rededicate his leadership to pushing for economic growth now that he has been cleared of any wrongdoing in the 1Malaysia Development Bhd (1MDB) saga, a New York-based economic impact analyst said.
Richard McManus in his opinion column on international magazine The Diplomat wrote that Attorney-General Tan Sri Mohamed Apandi Ali's clearance of Najib meant the Umno president can now focus his energy on more important matters like trade, noting that Malaysia is on its way to signing the Trans-Pacific Partnership (TPP) agreement, which he said could help boost the country's competitiveness.
“With the specter of the corruption investigation now lifted, Najib and his political coalition should rededicate themselves to trade, labor, and other liberalization policies that will drive renewed growth and make Malaysia a hub for international commerce and a driver of regional growth.
“The TPP, which was approved by both houses of Parliament this past week, offers the government a vehicle to make Malaysia more attractive to foreign companies (thanks to new intellectual property protections) while boosting its competitiveness in international trade,” McManus said.
The analyst further noted that Najib, although a strong business-oriented leader with the ability to promote economic growth, has been forced to direct his energy towards fending off allegations of his involvement in the 1MDB affair.
“Najib’s government has been a strong proponent of these economic opportunities, but the 1MDB affair and the debate over his future at home had limited his ability to focus abroad as much as he would like.
“With his political position secure, the Prime Minister should now have far more political capital to spend,” he wrote.
Last week, Apandi exonerated Najib of any wrongdoing in relation to the receipt of a RM2.6 billion deposit that was initially linked to 1MDB, but later determined to be a donation from the Middle East.
Apandi also closed the case on the movement of RM42 million from a former 1MDB unit, SRC International.
McManus said the announcement brought to a close a political saga that had rocked Malaysia’s ruling Umno party and the country’s economic performance since last year.
But despite the fiasco, the analyst noted that Najib maintained strong support from his party.
McManus added that the Najib administration should immediately get back on track with its liberal Economic Transformation Programme and ensure the ratification of the TPP, which could help regain investors' confidence.
“The uncertainty surrounding the country’s politics and the fate of Najib had contributed to weakened investor confidence, adding to prevailing external headwinds and putting a dent into what has otherwise been stellar growth since the current government took power,” he said.
