This article first appeared in The Edge Malaysia Weekly on December 27, 2021 - January 2, 2022

OUR instincts tell us that we must brace ourselves for some serious troubles as we head into the new year. No one could doubt that we will face multiple challenges on the social, economic, political and environmental fronts in the year ahead.

Nevertheless, the new year is a time for hope, optimism and good cheer.

In the mood that attends a new beginning, it is helpful to see that these crisis points can turn towards better outcomes if we approach them positively.

On the social front, an antidote is needed for the chauvinism that is poisoning relations among our communities. No thanks to the indiscriminate sharing of hate speech and vicious posts on social media, the public space has become tainted with ill-feeling and mutual suspicion instead of fellowship and trust. As people share negative comments about incidents that confirm their prejudices, the sense of hurt and betrayal they feel tends to create a feedback loop.

To change this narrative, let us embrace a progressive and inclusive mindset as a people, celebrating our amazing tapestry of cultures and making Malaysians comfortable about their place in the world.

As for the economy, the blend of systemic and structural weaknesses that continue to weigh down the country’s prospects are begging for attention. These are captured in a nutshell in the latest World Bank Malaysia Economic Monitor, entitled “Staying Afloat”. With government revenue on a decline and rigid operating expenditure taking up two-thirds of its revenue next year, the report warns that discretionary spending is being crowded out.

That is a tight spot, to say the least. Before the going gets any tougher, we must take stock of where we stand.

When tabling Budget 2022, Finance Minister Tengku Datuk Seri Zafrul Aziz promised economic reforms and financial consolidation to rebuild the country’s fiscal resilience in the face of future challenges.

Also in the works is a public expenditure review in collaboration with the World Bank to ensure that public spending is effective and efficient.

Repairing the country’s finances won’t be a pleasant task and the review team must not lose sight of their goal, which is to restore the resilience of the economy.

It is a prize worth fighting for. If we find the courage to curb the misuse of public funds, 2022 may be the year Malaysia’s future is redeemed.

Crucially, for fiscal discipline to be attained, the country must embody the principles of transparency and accountability. With that in place, it can only bode well for the future.

In the political sphere, next year promises to be a watershed. With Umno regaining the power it lost in the 2018 general election, the lead party of the Barisan Nasional coalition will be focused on sealing its six-decade-long grip on the federal government.

On the other side of the aisle, the Pakatan Harapan coalition will be striving to reverse a series of setbacks that has eroded its standing since its historic win over BN in the 2018 general election. Its future lies in whether it will be able to rejuvenate itself by presenting a younger line-up of leaders to attract 5.8 million new voters who will be eligible to cast their ballots with the lowering of the voting age to 18 years.

But as the past decade has shown, identity politics has intensified, as the struggle for power has gained pace. Our hopes must therefore lie in the maturity of voters to distinguish between leaders who champion communal issues in their attempts to win support and those who present sound policies that will ensure a better future for the people.

Further, as the country comes to terms with the effects of the devastating floods this month that displaced more than 60,000 people and caused severe property losses that have yet to be estimated, the time has come to re-examine our development priorities so that we are better able to deal with extreme weather events, which experts say are likely to happen more frequently due to the changing climate.

While we weigh the costs of mitigation and adaptation strategies to cope with disruptive weather events, it would benefit us to ponder whether we can continue to roll out development projects without including comprehensive environmental management measures that sustain the natural hydrological system of the environs.

And while we consider our impact on the environment, let us hope the lessons of the Covid-19 pandemic have not been forgotten as we plunge into the post-pandemic economic recovery.

As we prepare to welcome the new year, let us stay safe and be mindful of the things that matter.

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