Similar to the” Wall Street versus Main Street” phenomenon in the United States, and this is due to both sentiment and delay. In a research based on Robert J. Shiller’s groundbreaking work, Why Do People Dislike Prices?, Harvard economist Stefanie Stantcheva argued that people are against inflation because they have a “widespread belief that it weakens their purchasing power, leading to anxiety, emotional responses, and a sense of injustice.  ,
It did n’t matter if this was n’t true, as people typically ignore the potential positive associations with inflation, such as rising incomes, reduced unemployment or enhanced economic activity, said Ms Stantcheva. This would lead them to blame the government, businesses, and the” system” in general for their conditions.  ,
Another reason for the connect between powerful economic data and weak sentiment is the “referred pain” assumption, where the dreary mood from non-economic reasons such as distrust in the system, rising ethno-religious polarisation, and public uncertainty takes prominence. The life-altering Covid-19 pandemic, which saw people go through a life of hardship, has a long-tail influence that cannot be ignored, as ordinary Malay ‘ perceptions of financial optimism become more persuasive.  ,
Other than attitude, there is also a natural slowdown in financial realisation on the ground. Foreign direct opportunities take time to get approved and realized, and factories must be constructed before high-quality positions may be offered.  ,
Also, stock market profit-taking may benefit those who invest instantly, before increased income translate to higher monetary activity and income. Imported goods become less expensive as a result of a solid money, but it takes time for both customer spending and company profits to increase.
It will take time for the changes to Malaysia’s economic framework to fully manifest, and it is anticipated that regular Malay may also feel their lives are largely unchanged.  ,