10 May 2019
Mahathir, who inherited a debt-laden economy, has focused much of his administration’s attention on cleaning up public finances following a multibillion-dollar corruption scandal involving state fund 1MDB and former prime minister Datuk Seri Najib Razak.Meanwhile, deep divisions within the ruling coalition have curbed efforts to boost government revenue, attract investment or create jobs.
Most of the poorest people in the country are Malay and for decades they have been the beneficiaries of subsidies and other affirmative action policies pushed by Umno. In recent months, Malaysia has rolled back efforts to abolish the death penalty and revoke repressive security laws, as well as reversed plans to ratify two UN human rights treaties, after pro-Malay groups raised objections.
Reform ambitions are also hampered by fractures within Pakatan, a coalition of parties that was aligned in its goal of removing Najib and Umno, but doesn’t seem to agree on much else. Investors in the survey also expressed concerns over currency fluctuations and slowing economic growth. The ringgit currency has slumped this year and stocks are underperforming regional rivals.