Country risk: Politics and Covid-19 put Malaysia in a spin

The country is showing one of the more concerning trends among Asia’s emerging markets as politics and economics combine to increase investor risks.

It has been a challenging time for Malaysian investors.

The coronavirus crisis has taken a swipe at economic growth, sovereign debt is rising, and the political landscape is in flux.

This follows then-prime minsiter Mahathir Mohamed’s snap resignation in February and a factional tug of war that has seen current PM Muhyiddin Yassin, a Malay nationalist, gain the upper hand to become prime minister after pulling out of the Pakatan Harapan coalition to form a new alliance.

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Najib Razak talks to the media On July 28  

Muhyiddin gained a narrow victory after more recently ousting the lower house Speaker to install his own man, Azhar Azizan Harun.

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