Malaysians stayed up till the wee hours of Thursday morning for official confirmation that the unexpected has indeed happened. The 14th General Election results have ushered in a new coalition party, Pakatan Harapan, led by Tun Dr Mahathir Mohamad, to form the next federal government. The former ruling coalition, Barisan Nasional, had been ruling the country for the last 60 years. Hence, the change is nothing short of a major upset to former Prime Minister Datuk Seri Najib Tun Razak.
As the country moves into uncharted territory with Pakatan Harapan’s win, the near term market correction underway is not expected to last long as Malaysia’s economy is still solid. iFAST Sdn Bhd analyst Tan Wei Yine tells FocusM that the overall Malaysian economy remains on a strong footing.
“While the fiscal deficit and government budgets are probably one area that foreign investors and credit rating agencies will look at closely, a lot of reforms and new measures are likely to come in place to strengthen Malaysia's economy because the new government will have to answer to the people's calls and expectation,” Tan observes.
“Fundamentals. Always look at fundamentals. Malaysia's institutional funds' presence and resiliency have always been a plus within the region, and that explains why we are one of the top performing equity markets in the world despite the external factors and issues we had this year.”