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Press Release

Malaysia sole market in red yet government plans to buy Vellfire for ministers

Jan 2, 2020

Datuk Dr Dominic Lau Hoe Chai, Gerakan’s National President is questioning the Government’s plans to buy Vellfires for the cabinet ministers when the country is the sole market in Asia Pacific to have underperformed in 2019.

“They have put the country’s economy poorly, scaring off investors with irresponsible remarks on global stage, polarizing communal politics, lack of vision of leadership transition and political infighting. All these have to stop. Malaysians are suffering. Yet they are planning to buy Vellfires,” Datuk Dr. Dominic Lau lambasted.

It was reported that the government is planning to appoint a company to supply a new fleet management contract which will cost RM300 million ‘annually’ for 15 years.

He added, due to the litany of uncertain influences on the policy-making by Pakatan Harapan government, Ringgit is still volatile and unfavorable in the foreign currency exchange. Weak sentiment also persists in the property market.

“What is officially announced and reported is not felt by the general public on the street. Prices of goods have increased. We are paying more but getting less products. The domestic political situation remains uncertain where racism and religious fundamentalism has reared its ugly head once more. Many foreign investors are adopting a wait and see attitude due to the inconsistency in dates of handover of Prime Ministership, causing our share market to experience a drop.”

KLCI shed 6% through 2019, was the worst-performing index in the region. It was trading at a four-year low. 2019 saw more than RM10 billion net of foreign funds exiting Malaysia’s stock market.

“Our Finance Minister need to stop staying on cloud nine and start having plans to address the economic situation and face the reality,” Datuk Dr. Dominic Lau said in contention to Financial Minister’s claim that Malaysia economy is stable.

He urged the government to focus on economic development and release statements responsibly instead of eyeing for political mileage, causing the people to suffer.

“If such statements are released continuously, this will not reassure them at all, causing them to lose confidence in our market by cancelling their investment,” he opined.

At the same time, Datuk Dr Dominic Lau said the EPF should be more careful in its investment and should ensure the integrity, competency and transparency of its board and investment panel. Through investing in companies with better prospects, this will generate a better dividend. He believed that this will increase the income for EPF which will create more good news regarding the dividend to the people.