THE uncertainty over the transition to the next prime minister is among the factors weighing down the economy, said former minister Mustapa Mohamed.

It is a combination of things for the poor show of the economy, including the leadership succession plan between Prime Minister Dr Mahathir Mohamad and PKR president Anwar Ibrahim, he said.

“Well, you have to put everything together in a holistic (way)… it’s a few things together. It is not just one single issue,” said the Jeli MP who joined Bersatu from Umno.

He said this after an event in Kuala Lumpur today when asked if the succession plan was spilling over to the economy.  

A Pakatan Harapan agreement stipulates that Anwar will take over from Dr Mahathir.

However, no certain time scale has been mentioned although a two-year term has been popularly cited by PH leaders. At the same times, there have been calls for Dr Mahathir to remain in power until the next elections.

Dr Mahathir himself caused further confusion by saying that he wants to stay until he has solved all the mess Barisan Nasional left behind.

As for Anwar, he continues to stress that he is confident Dr Mahathir will hand over power to him.

Meanwhile, Mustapa, who is also the chairman of the Budget Select Committee, said the committee has convened a few meetings and extended its recommendations to the finance minister on Budget 2020 yesterday.

The former international trade and industry minister said bread-and-butter issues should be the priority for the government in the upcoming budget.

“New taxes are the prerogative of the government but we don’t have much proposals on taxes.” 

This is in line with the government’s move not to introduce new taxes in the upcoming budget.

Finance Minister Lim Guan Eng said recently it’s unlikely that there will be new taxes in Budget 2020.

Malaysia’s economic growth is expected to slow down but remain healthy at 4.5% this year from 2018’s 4.7% because of steady domestic demand.

The FTSE Bursa Malaysia KL Composite Index has fluctuated and been on a downtrend recently because of uncertainty from a prolonged US-China trade war.

Analysts believe the economy would grow slower and Budget 2020 will most likely adopt an expansionary stance.

Budget 2020 will be tabled on October 11. – August 29, 2019.