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Malaysia’s ruling Barisan Nasional (national front) coalition that was returned to power in this month’s election faces some serious economic problems, notably the country’s poor export performance.

Exports have shrunk in the last two months in response to weakening global demand that has also hit other Asian exporters. But unlike its rivals, Malaysia faces a more deep-rooted export challenge – a serious decline in the export role of its manufacturers that has been partly masked by increases in commodity exports. Chart of the week takes a look. Continue reading »

Malaysia’s ruling coalition since independence has once again emerged victorious in an election. But David Pilling, the FT’s Asia Editor, says that the election marks an important shift in the country’s politics and isn’t just a continuation of the status quo.

Malaysia’s general election produced what many did not believe was probable, even if certainly possible: a respectable win for the ruling coalition, known as Barisan Nasional.

Yet some are now saying it will also produce something far less probable: a sudden end to its victor’s career. Really? Continue reading »

As Jeremy Grant writes in Friday’s FT, Malaysia’s election this weekend is likely to be the closest in the country’s history. The ruling Barison Nasional party, which has dominated Malaysian politics since independence in 1957, faces the first real challenge to its power and while prime minister Najib Razak says he is confident of winning a two-thirds majority, the outcome is far too close to call. More Malaysians than ever before seem ready for change. Are they likely to get it? Continue reading »

So, your reputation has taken a battering in recent years and you’re now just about out of the spotlight. And, even if you’re not deeply loved, at least most people have got bored of calling you the Vampire Squid.

What do you? A: Try to ensure you do everything you can to keep your nose clean and stay away from controversy? Or B: Take on what looks like a highly lucrative private bond deal for a government-linked entity in Malaysia, barely a month ahead of what is expected to be the closest fought election since elections began in the late 1950s.

If you’re Goldman Sachs, the answer is… B! The question is: why? Continue reading »

Finally it’s happening. On Wednesday morning Malaysian prime minister Najib Razak dissolved parliament in preparation for a general election. The date has yet to be set, though it’ll come by the end of the month.

More importantly for investors, it is likely to be the most closely fought race in the country’s democratic history, and nerves about the pending election have been clear in both the debt and equity markets for some time. Continue reading »

Waiting for Najib Razak, Malaysia’s prime minister, to call a much-anticipated general election is getting to be painful.

First it was to have been called at the beginning of the month. This would have meant polling in the last week of March, a convenient time since schools are out and classrooms are often used as polling stations in Malaysia. Continue reading »

Election give-aways are the oldest political trick in the book.

But in Malaysia the prime minister, Najib Razak, is taking them to a new level with the distribution of cash handouts to low-income workers as he prepares to fight a tight election with the country’s opposition.

With the opposition making its own splurge pledges, the voters face some tempting offers. But investors may be less enthralled by the potential pressure on future budgets. Continue reading »

Bose, the US maker of speakers and home entertainment systems, has chosen what to some might seem an unexpected location for its first manufacturing plant in Asia: Penang, on Malaysia’s western coast.

The plant will be the sixth for Bose worldwide, allowing it to supply markets in Asia more easily than from places such as Mexico, where it already has a plant. Continue reading »

David

It’s not the first time that somebody from the emerging markets has tried to challenge the dominance of the world’s three big credit rating agencies – S&P, Moody’s and Fitch.

But a consortium of companies based in Brazil, South Africa, India, Malaysia and Portugal is bringing a novel approach to the problem. Together they aim to have the critical mass that they couldn’t hope to have alone. Continue reading »

Foreign direct investment into the Asean countries has risen strongly in the past few years and is now on a par with FDI into China. As Hak Bin Chua, Asean economist at Bank of America Merrill Lynch writes in a report on Friday, this “is in sharp contrast to a decade ago, when there were widespread fears that Asean would be marginalised by China’s rise.”

The change is partly a result of political issues such as recent territorial tensions between Japan and China which are diverting some Japanese investment south. But is is also driven by social and economic factors such as demographics that will not change direction any time soon. Continue reading »

By Christian Lewis and Shaun Levine of Eurasia

The government is unlikely to be unseated in Malaysia’s upcoming parliamentary election, which is good news for the business environment. A win by the ruling Barisan Nasional (BN) coalition will eliminate most investors’ concerns about instability that have recently contributed to market volatility.

That said, given the complexities of Malaysian politics, a reduced margin of victory for the incumbent could still impact the speed with which BN’s ambitious reforms are introduced. Continue reading »

Clashes between Malaysian security forces and the followers of a Philippine Muslim royal family leader trying to reclaim Sabah have been confined so far to two remote districts in North Borneo but the economic side effects of the conflict are already evident in the Philippines’ southernmost province, Tawi-Tawi. Continue reading »

Promoting investment into places like Sabah, on the eastern tip of Malaysia’s bit of Borneo, isn’t easy at the best of times. It is a remote part of Southeast Asia known mostly for spectacular diving and eco-tourism in lush rain forests.

But with the launch on Tuesday of air and ground assaults against Filipino insurgents in eastern Sabah, a few brave souls from the Sabah Economic Development and Investment Authority appeared at a Singapore hotel at an exhibition showcasing investing in Malaysia. Continue reading »

Last year was supposed to represent the pivotal moment in which sukuk debt – Islamic versions of bonds – came into their own as a deep, mature and liquid source of funding.

Issuance data from January suggest the jury is still out. Continue reading »

BB: time to register

Dear beyondbrics readers,

After more than three years of fully open access, we are taking the step of asking our readers to register on FT.com to read our articles. Beyondbrics will still be free but we'd like to know a bit more about you, our readers. Other FT blogs (including Alphaville) already do the same thing. Registration is active on beyondbrics from May 6.

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Stefan Wagstyl, emerging markets editor

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