The Hong Kong-based Political and Economic Risk Consultancy Ltd (Perc) has come up with its Asian Risk Prospects for 2009. It has identified India, Thailand, Malaysia and Indonesia as high-risk countries for 2008/09. This is what its Executive Summary is saying about Malaysia for 2009.
2008-10-28 15:37 Malaysia political struggle is aggravating long-standing racial and religious sensitivities. Although the odds favor the UMNO-led coalition staving off an attack by the opposition led by Anwar Ibrahim, the status quo is changing in ways that will see a stronger political opposition than in the past and UMNO forced to share more power with non-Malay groups, including parties from Sabah and Sarawak. This sharing will both give the other partners in the ruling coalition more senior political posts and ensure that they get a larger share of the budget.
I am not quite sure if it’s the “political struggle” that is aggravating racial and religious tensions. Rather, it looks to me like it is certain politicians in Umno and the other BN component parties, certain newspapers, as well as segments within Pas that are stirring such sentiments in an effort to whip up support. Attempts to reform the economy have also fuelled insecurities, as Najib himself found out after his comments on Malay “special privileges” and the Pakatan government in Selangor discovered after trying to put in place someone best qualified to lead PKNS.
How will our main trading partners in the region, China and Singapore, fare?
