No Elections During State Of Emergency

Clarification after earlier reports of a state of emergency from Malaysia, arguably the most important point of the announcement is that the order will extend until August, and there will be no elections or by elections while the state of emergency is in place.

• The United Malays National Organization, or UMNO -- which props up the government and has held power for all but two years since 1955 – is seen to be setting the stage for a political realignment.
• Members throughout the UMNO ranks are apparently urging leader Ahmad Zahid Hamidi to contest the next election under the party's own banner, dissociating itself from the governing National Alliance and PM's Muhyiddin's Malaysian United Indigenous Party, known as Bersatu. The PM has labelled UMNO irresponsible for calling for an election during the pandemic.
• MYR weakened sharply in the wake of the announcement but has since pared the move. USD/MYR last up 77 pips at 4.0608 after being as high as 4.0760.