I think the Malay Rulers will find it difficult to support the declaration of emergency because unlike in 1969, today they are heavily invested in the economy esp the stock market.
I also feel that my colleagues in Khazanah, EPF, Tabung Haji, and PNB will be worried that the hundreds of billions of ringgit these GLICs have in their stock market investments or in their listed companies.
How does this affect the ordinary Malays? There are about 15 million Malays who have invested their savings in the funds created by ASN, ASB. EPF contributors are about 14 million. These funds invest a lot in KLSE. If the stock market collapses, they cant pay good dividends to the account holders.
In 1969 there was no PNB , so ordinary Malays did not bother about the economy collapsing.
It’s a different Malaysia today. Over the last 50 years, since the early eighties, the Malays are invested in the stock market directly or indirectly through ASN, ASB .
The emergency will push back the progress under the NEP for the middle-class Malays. Many pensioners are now dependent on their ASN, ASB dividend income to supplement their pension.
Entrepreneurs will also feel the pain. They use their stock holdings to apply for bank loans. If their shares lose in value, the banks will be reluctant to accept them as collateral for bank loans. Without access to bank borrowing, no business can plan their expansion.
So Mr. PM, think hard before you declare an emergency. Tell frankly to the Rulers all the possible economic and social implications not only on their own wealth but also on the savings of their rakyat.