KUALA LUMPUR (May 10): Election pledges by the Pakatan Harapan coalition — which looks set to form the new Malaysian government — including one to review all infrastructure mega projects, may lead to some initial selling in the construction and cement sectors, according to Aberdeen Standard Investments Malaysia.

On the other hand, Aberdeen Standard chief executive officer Gerald Ambrose said that PH’s agenda to mitigate high living costs may enhance consumer sector stocks, such as food manufacturers, consumer staples and retail plays.

“Over the medium to longer term, we think the election outcome reflects a growing level of political maturity and respect for democracy that would be beneficial for the country’s appeal to foreign investors and economic prospects,” he said in statement today.

Aberdeen Standard, which is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments, said the election results marks a new political dawn for Malaysia.

“This was a stunning election outcome that few could have predicted. We would expect some market volatility from the election result and possibly some spillover impact on investments.

“It is likely that larger companies, many of which are government-linked, will bear the brunt of any index-linked selling which might take place in the near term,” Ambrose added.