KUALA LUMPUR: While this week’s political turmoil in Malaysia would have an impact on the country’s economic recovery from COVID-19, the management of the pandemic is still a more pressing issue from the businesses’ perspective, said experts interviewed by CNA.
However, if the political vacuum is prolonged, there will be more severe impacts on the economy, they added.
The resignation of Mr Muhyiddin Yassin as Malaysian prime minister on Monday (Aug 16) has plunged the country into yet another political vacuum.
This will be the second change in government within two years, since Pakatan Harapan unseated the long-time Barisan Nasional government in May 2018, only to be replaced by the Perikatan Nasional government in March last year.
The deadline for Malaysia’s 220 members of parliament (MPs) to send in their statutory declarations to nominate the next prime minister came and went on Wednesday afternoon.
With no clear successor announced yet, it would appear that the political uncertainty may persist for at least a few more days.
On Monday, ratings agency Fitch had slashed Malaysia’s gross domestic product (GDP) growth to 0 per cent, from an earlier 4.9 per cent forecast.
It warned that although the country’s real GDP had grown 16.1 per cent year-on-year in Q2 2021, the true economic picture was best reflected by the -2 per cent quarterly growth rate.