In the wake of the tsunami that swept the Malaysian opposition alliance Pakatan Harapan and Dr Mahathir to power, the iShares MSCI Malaysia ETF promptly tanked 6% in US trading to close near to its 1 year low.
Source: Yahoo Finance
The investor in me started to click into gear. Putting aside all the political rancor and name calling, what does this earth shattering election mean for Malaysia businesses and equities? Is it time to buy?
Personally, I usually don’t follow Malaysian politics too closely, but here are some of my initial ignorant thoughts / ramblings.
What Mahathir and Anwar stand forThroughout the 11 day campaigning process, there has been little discussion on economic policy except for a few stated populist measures (which I will cover later). As such, I could only form my opinion based on their past terms in office more than 15 years …