PUTRAJAYA (July 14): Political stability is one of the important elements in managing inflation, economic issues and investors, chairman of special task force on inflation jihad Tan Sri said Annuar Musa.
Annuar, who is also the Minister of Communications and Multimedia, said political stability is in fact vital to attract investors to the country and ensure sufficient supply of all goods.
“If we want sufficient supply, there must be investors investing in production. They will not invest in political uncertainty, they will wait.
“When they wait, the supply chain will slow down. When the supply slows down as the demand increases, the price will go up,” he said when asked if the political uncertainty in the country would affect the inflation rate.
At the press conference after chairing the third meeting of the task force here on Thursday, July 14, Annuar said that all government systems would go haywire if the country’s political environment was unstable.
“Political instability will lead to many other problems, not just inflation. It will affect the economy and investments,” he added.