S&P: Malaysia faces uncertainties

Standard & Poor's said that the general election in Malaysia has created some short-term uncertainties, noting that the government, which won 199 of 219 parliamentary seats in the 2004 election, will have only 140 out of 222 seats in the new legislature, losing the majority needed to pass legislation for the first time since 1969.

While the result has no immediate effect on the sovereign ratings on Malaysia (foreign currency A-/positive/A-2, local currency A+/stable/A-1), the agency said that the focus is now on the impact from the loss of the ruling Barisan National coalition's two-thirds majority.

The ratings on the sovereign could be affected if there is evidence that the loss of the ruling party's two-thirds majority in parliament could impede the normally smooth passing of legislation or result in significant policy shifts, S&P noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.