LETTER | Political instability hampers economic progress, affect society

LETTER | Recently, there have been rumours that there will be another episode of political instability.

Many studies have shown that political instability can serve as a stumbling block to economic development. When a country is embroiled in political instability, it encounters innumerable challenges that can hinder economic progress and detrimentally impact society.

The disruption of development projects may loom on the horizon, as changes in government often lead to the discontinuation or abandonment of projects initiated during the previous administration, at the district, state, or even national levels.

These projects were expected to offer numerous benefits, including boosting the economy, providing more job opportunities and alleviating poverty.

The discontinuation of development projects can result in a significant waste of resources. Billions of ringgits that have been spent on these projects go down the drain when they remain abandoned.

This waste of funds not only creates a financial burden for the government but also represents a missed opportunity to stimulate economic growth and create employment opportunities.

Furthermore, political instability has negative implications for foreign and even domestic investments.

Investors are hesitant to invest in a country plagued by political instability, thus hindering economic development and limiting the inflow of capital.

Consequently, many job opportunities that could have been created through investments are lost. Additionally, reduced foreign investment may lead to the depreciation and weakness of the ringgit due to a decline in the demand for the currency.

In addition, holding elections to elect a new government entails substantial spending, which can have serious repercussions.

Large-scale campaigns usually involve various costs, including advertising and campaign staff salaries. Political parties and candidates need to allocate significant resources to fund these campaigns.

Therefore, the importance of political stability cannot be overstated when considering the development of Malaysia's economy.

This is because the people will bear the brunt of the consequences of political instability, and Malaysia's goal of becoming a developed nation may remain unfulfilled.

Author is a senior lecturer from the Faculty of Business and Communication, Universiti Malaysia Perlis.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.