Malaysian stocks fell the most in a decade after the ruling coalition's worst election result in fifty years raised doubt over Prime Minister Abdullah Ahmad Badawi and his public spending program.
The Kuala Lumpur Composite Index tumbled 9.5 percent as opposition parties took control of almost half the states contested in March 8 elections. The ringgit posted its biggest drop since June and bonds slumped the most in four months. The risk of Malaysia's government defaulting on debt rose to a record....MORE
From the Wall Street Journal:
Malaysian Shares Suffer 9.5% Plunge
Malaysian shares plunged 9.5% yesterday after the country's ruling coalition suffered its biggest election setback, leaving investors uncertain about the government's policies including plans for infrastructure spending and fuel-subsidy cuts....MORE
From The Economist:
GLANCE at the front pages of Malaysia’s newspapers the day after the general election on Saturday March 8th and you would assume that the opposition had won. “Political tsunami” is how the Sunday Star summed things up. Even the prime minister, Abdullah Badawi, seemed to accept the analysis. “We’ve lost; we’ve lost” was all he could muster when confronted by baying pressmen at 4am.olitical tsunami?...MORE
From Al Jazeera:
Huge gains for Malaysia opposition
Barisan Nasional (BN) won enough seats – 112 of the 222 parliamentary constituencies – to form the government, but failed to get the crucial two-thirds majority for the first time since 1969.
The outcome of the country's 12th general election was a shocking change from the previous polls in 2004 when Abdullah Ahmad Badawi, the prime minister, led his coalition to a record victory....