Rival coalitions claim edge in Malaysia as deadline looms
Al JazeeraJUL 2022
All coalitions are market-friendly and significant political unrest is unlikely to occur in Malaysia. However, this electoral uncertainty will inevitably create economic turbulence, continuing to affect the ringgit and stock market ahead of what economists anticipate will be a difficult year. To make things worse, the next government may prioritize implementing populist policies to stay in power following an inevitably gloomy term.
A hung parliament should be no surprise as rotation governments have, more recently, become commonplace. Volatility may indeed see investors get nervous in the short-term until a new government is finally formed, but Malaysia's economy is strong, and fiscal consolidation will remain a top priority in the country.