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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
ASIA
Prime Minister Anwar Ibrahim and his Pakatan Harapan alliance are preparing for a suite of state elections this summer, after the states of Selangor, Kelantan, Terengganu, Negeri Sembilan, Kedah and Penang moved to dissolve their legislatures. All of them refused to hold elections alongside last year's general election and allowed their assemblies to serve full terms.
- The election will be the first big test for Prime Minister Anwar Ibrahim since he took power late last year. The Election Commission (EC) is yet to convene to determine the date of the elections, as well as the timelines for the nomination of candidates and campaigning. All six state elections are expected to be held on a single day, which must be within 60 days from the dissolution of the first assembly, i.e. on August 21 at the latest.
- Anwar's Pakatan Harapan controls three of the contested state assemblies - in fact, Penang, Selangor and Negeri Sembilan are the only three states governed by the bloc. Losing even one of them would be a big reputational setback for Pakatan Harapan. The other three states are ruled by Parti Islam Se-Malaysia (PAS), a member party of former Prime Minister Muhyiddin Yassin's conservative Perikatan Nasional alliance.
- As a reminder, Anwar's Perikatan Nasional failed to win majority in last year's general election but formed a national unity government with former rivals from Barisan Nasional to prevent front-runner Perikatan Nasional from coming to power. There are concerns that a big win for the opposition would apply pressure to the fragile unity government and could revive historic tensions between its constituent political blocs.
- Although the ringgit has ticked higher this week, on a month-to-date basis it has been the worst performer in emerging Asia save for the Chinese yuan and Thai baht. The New Straits Times ran a report last week, where local economists noted that the upcoming state election may have added some pressure to the MYR.
Fig. 1. Malaysian states holding elections this summer
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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