Taken together, these laws will help enhance the macroeconomic environment, promote growth, and improve investment prospects in the country. As we all know, investments are fundamental to economic growth and development, especially amid an increasingly integrated global economy.
But what warrants more attention is its effect brought through sentiment. Specifically, if business sentiment were to deteriorate, reflecting uncertainties over the outlook for emerging and commodity-exporting economies or reflecting volatile developments in the financial markets, there is a risk that firms’ fixed investment stance and price- and wage-setting stance will become cautious.