27.1 C
Sunday, November 27, 2022
HomeEconomyMalaysian currency, stocks slide amid hung parliament | Business and Economy

Malaysian currency, stocks slide amid hung parliament | Business and Economy

Markets react negatively after the first hung parliamentary election results in the Southeast Asian country’s history.

Malaysia’s stock market and currency fell after national elections created the Southeast Asian country’s first hung parliament, beginning a scramble to form a coalition before the Monday afternoon deadline.

The ringgit recovered to 0.1% after falling almost 0.8% against the US dollar in early trading on Monday.

Kuala Lumpur’s benchmark index fell by 1.5%.

Trinh Nguyen, senior economist for Asia at Natixis in Hong Kong, told Aru, “A hung parliament was largely expected, but it could mean that a coalition would have to re-form to rule. is still viewed negatively by Jazeera.

“In other words, politics comes first and it is still unclear who will win and to what extent they will be able to carry out their duties. We expect investors to hold back until there is more certainty in the political and policy direction.”

Malaysian parliamentary elections on Saturday failed to produce a clear winnerneither the Pakatan Harapan (PH) nor the Perikatan Nasional (PN) coalition has secured the 112 seats required to form a government.

The PH, led by opposition Anwar Ibrahim, won 82 seats, while the PN, led by former Prime Minister Muhyiddin Yassin, won 73 seats.

Both Anwar Ibrahim and Muhyiddin Claims to have sufficient support Form a new government among legislators.

Sultan Ahmad Shah, King of Malaysia’s Sultan Abdullah, has given politicians a deadline of 2 p.m. (06:00 GMT) on Monday to notify the palace of their preferred government.

An ethnically diverse country with a Malay majority, Malaysia, along with significant overseas Chinese and Indian communities, has been plagued by political instability since PH’s historic victory in the 2018 elections. It’s been done. Union.

PH collapsed in February 2020 amid political infighting and Muhyiddin was appointed prime minister. Muhyiddin was kicked out a little over a year after him and replaced by BN’s Ismail Sabri.

Singapore, Southeast Asia’s fourth-largest economy, has bounced back strongly from the COVID-19 pandemic after suffering the biggest contraction since the 1998 Asian financial crisis.

Gross domestic product (GDP) surged 14.2% in the July-September period after growing 8.9% in the second quarter.



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments