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Election Pushes, Slower Global Demand Pulls The Malaysian economy has been receiving two different signals since our last quarterly report. First, we judge the net result of general elections held in early May to be a largely positive signal. Despite a stronger showing from the opposition, the ruling Barisan Nasional (BN) coalition of Prime Minister Najib Razak was re-elected with a simple majority in parliament (133 seats out of a total of 222). We see this as an endorsement of existing market-friendly policies, and in particular of the Economic Transformation Programme (ETP). We are expecting a post-electoral boost to investment. Sectors such as infrastructure, higher-value manufacturing, and financial services are likely to outperform going forward. We also expect domestic consumer demand ...
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