Risk # 1 POLITICAL CONFLICT
Key issues to watch:
a) Anwar's Sodomy trial
b) Leadership struggle in MCA
Risk # 2 ECONOMIC REFORM
Whilst the government has promised further economic reform to attract increased foreign investment, the PM has rolled back elements of a four-decades old Malay affirmative policy, relaxing the rule that companies must offer stakes to indigenous ethnic Malays.
The Reuters report said: "Despite the moves, Najib is wary of upsetting the Malays, a critical vote bank, and treads carefully on economic reform. This may cause him to dilute or abandon his plans as he attempts to remain in power."
Key issues to watch:
Government policy implementation and announcements. Reuters argued that a further set of liberalisation has been trailed by the government, although while investors have greeted positively measures so far, little money has flowed into Malaysia's markets as they are wary over implementation.
Risk # 3 RACE AND RELIGION
Key issues to watch: If the government tries to woo Muslim voters with more conservative policies based on Islam, investors may be spooked.
Risk # 4 CORRUPTION
Reuters reported HERE:
Malaysia used to be regarded as one of the region's more reliable countries but worsening corruption and a perceived lack of judicial independence have damaged investment. UMNO's policy of handing out government contracts to what critics say
are cronies under a long-entrenched system of patronage within the party has hit Malaysia's competitiveness.
Key issues to watch:
How Najib handles the dilemma of bolstering his core support bloc while also cracking down on corruption. Investors are watching to see whether promised reform materialises.
Indicators gauging corruption in Malaysia. Transparency International's 2009 Corruption Perceptions Index, released last month, saw a significant deterioration in Malaysia's ranking to 56th out of 180 countries from 47th the previous year.
RISK # 5 SECURITY
Two issues were reported:
a) The insurgency in southern Thailand has implications for Malaysia, particularly if it starts to draw more attention and sympathy from Malaysians for the ethnic Malay fighters across
the border.
b)A less likely danger is that al Qaeda-linked groups managed to establish a foothold in the area.
Click HERE for more.
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Next post should be up in one or two hours. I am still researching the topic. In the mean time, do leave a comment if you wish to share your views. Thanks! Have a lovely day.
Crankster Good stuff. I'll keep my eyes open.