Investors preparing for political uncertainty in Malaysia

In this photo taken on Sept 1 last year, Parti Keadilan Rakyat chief Anwar Ibrahim (right) is seen chatting with Economic Affairs Minister Azmin Ali at the Future of the Bumiputera and Nation Congress held in Kuala Lumpur.
In this photo taken on Sept 1 last year, Parti Keadilan Rakyat chief Anwar Ibrahim (right) is seen chatting with Economic Affairs Minister Azmin Ali at the Future of the Bumiputera and Nation Congress held in Kuala Lumpur.PHOTO: BERNAMA

Malaysia's investors are preparing themselves for political uncertainty after recent speculation on whether Prime Minister Mahathir Mohamad will step down for his designated successor Anwar Ibrahim before the next election, which is due to be held in 2023.

Observers said most investors have already factored in the risk of Tun Dr Mahathir not handing over the reins to Datuk Seri Anwar, defying what was agreed by their Pakatan Harapan coalition.

Capital flight is also unlikely to ensue if there is a leadership battle, as investors are pouring money into companies considered less likely to be affected by changing politics.

SEE WORLD

A version of this article appeared in the print edition of The Straits Times on August 12, 2019, with the headline 'Investors preparing for political uncertainty in Malaysia'. Print Edition | Subscribe