This article first appeared in The Edge Financial Daily on March 7, 2018

KUALA LUMPUR: Second Finance Minister Datuk Seri Johari Abdul Ghani has rejected a lawmaker’s argument that the slowdown in the retail market indicates the economy is not doing well.  

Instead, he said, Malaysians’ expenditure overseas shows the economy is strong. “Spending by Malaysians who go abroad has grown from RM41 billion in 2015 to RM46 billion in 2016 and 2017. That shows the people’s spending power is stronger,” he said in the Dewan Rakyat yesterday during the question and answer session.

Johari was responding to member of parliament Khalid Samad (Amanah-Shah Alam) who said despite various economic indicators showing positive growth, Malaysians are finding it hard to cope with the rising cost of living.

“We are also seeing hypermarkets closing down. These are facts, and not mere perception,” said Khalid.

Insisting that “it’s difficult to explain to people who don’t understand the economy”, Johari said hypermarkets close down due to many factors. “It could be due to weak management; what do you want the government to do about that?

“When people say the retail market is bad, that’s because the number of retail outlets has been increasing despite the economic slowdown. In 2016 to 2017, retail outlets increased from 66,000 to 73,000 — that’s the reason.”

Johari also said the statistics department had reported that from 2015 to 2017, 1.1 million jobs were added to the economy.

Khalid then interrupted, saying the government’s action in implementing various measures to help people facing economic problems is an admission that the economy is not doing well.

“If the economy is good, why are we wasting time in things like BR1M (1Malaysia People’s Aid scheme) and subsidies. The government itself is admitting that the economy is not doing well, and this is more than just perception,” he said.

However, Johari dismissed the notion that providing financial aid is reflective of a weak economy.

“In the US, where the economy is worth some US$18 trillion (RM70.2 trillion), a very big country, they are providing financial aid to their people. It is the same in Singapore. So it is very normal for Malaysia to help our people, not to mention our GDP (gross domestic product) is only US$320 billion,” he said.