A historic win at Malaysia’s general election by the opposition alliance led by the country’s former leader, Mahathir Mohamad, has sent the Bursa Malaysia markets on a wild ride a few weeks ago.
Indeed, a number of stocks listed on the Singapore bourse with Malaysian exposure took a hit on the next day after the unexpected win.
In this article, I will list out some sectors that are affected by the shocking political change in Malaysia.
Construction Sector: Loser
Construction and cement sectors are facing downward pressure, as the new government planned to review all infrastructure mega projects in Malaysia.
These include the High-Speed Rail (HSR) project, which will connect Kuala Lumpur and Johor Bharu with Singapore. The project was proposed by the sixth Prime Minister of Malaysia, Najib Razak.
Mahathir Mohamad is opposing the HSR project, questioning the project’s financial feasibility. He said that the HSR contract