Malaysian election prospects

Malaysian election prospects

With a general election around the corner, Malaysia's Prime Minister Mahathir Mohammad leaves nothing to chance. Politically, he continues to bait the opposition. On the economic front, the giveaway budget will win votes for his ruling National Front coalition.

Just how many votes he can garner with generous handouts remains to be seen. But look at the goodies for the lower income groups and civil servants: tax cuts, pay increases, bonuses, bigger allowances, waivers. Banks are encouraged to lend more, and those which restructure are given financial incentives.

Clearly, Dr. Mahathir is encouraging spending to fuel the economic recovery. The government plans to spend US$20 million, up 20 percent from last year, to build new roads, bridges, schools and homes. All this will go some way to sweeten the ground for the National Front to fight what could possibly be its toughest election yet in the wake of the Anwar Ibrahim saga. The Front's victory is not in doubt. The question is whether it can win yet again another landslide victory and retain its two-thirds majority in Parliament.

-- The Straits Times, Singapore