KUALA LUMPUR: Malaysia’s long-term economic prospects are likely to be dimmed as a result of political uncertainty and increasing polarisation, said Fitch Solutions Group (FSG). The state of political affairs in the country remains blur after Prime Minister Tun Dr Mahathir Mohamad’s resignation yesterday, with reports indicating that the formation of a new government is on the cards. The King has accepted Dr Mahathir’s resignation as the prime minister, but has appointed him as interim premier until a new prime minister is appointed. With political upheaval facing the nation, FSG said it expects significant delays in meaningful fiscal measures to support the economy, even if they were announced as planned. In light of the political developments, FSG said it has revised down its Short-Term Political Risk Score to 69.8 (out of 100) from 72.5 previously, to reflect the risks to social stability, policymaking and policy continuity.

Source: The Edge Markets February 25, 2020 01:30 UTC