As opposition leader Datuk Seri Anwar Ibrahim was named prime minister less than two hours ago, the political deadlock that has existed since the general election last week has reportedly been broken, and the Malaysian ringgit has seen its finest day in two weeks.
The ringgit increased by as much as 1.5%, and it was expected to have its strongest day since November 11. The Kuala Lumpur stock market was poised for its highest performance since November 2020.
After a parliamentary election on Saturday that resulted in a historic hung Parliament and 5 days of confusion as parties jockeyed for position, Anwar will be sworn in as prime minister at 5 p.m. today.
According to Khoon Goh, head of Asia research at ANZ, “While we know for sure that Anwar will be the 10th prime minister and head an alliance of Pakatan Harapan and Barisan Nasional, in regards of what it implies for policies or cabinet appointees, we need to await further clarification.”
He also noted that investors will be interested in learning who will be appointed finance minister, whether the previous administration’s budget will be altered, and whether there will be any indications that Pakatan Harapan will implement a GST.
Bloomberg predicts that Malaysian stocks are now headed for their biggest jump in 2 years.