KUALA LUMPUR (June 8): Fitch Solutions sees a worsening of political risks in Malaysia as more citizens become increasingly dissatisfied with the government's handling of the Covid-19 pandemic.

The research house said in a note today pointed out that this could further enhance the already profound political risks in Malaysia, which in turn will adversely affect policymaking and policy continuity, as well as social stability.

The dissatisfaction arose from a resurgence in Covid-19 cases — which have swelled to thousands, touching fresh highs — while coping with multiple lockdowns and confusing instructions amid high-profile cases of celebrities and politicians flouting social distancing and lockdown rules.

Fitch Solutions also said public anger could also affect the unity of the Perikatan Nasional (PN) government led by Prime Minister Tan Sri Muhyiddin Yassin, and expects an escalating blame game over the issue ahead of the general election.

Accordingly, Fitch Solutions revised downward its short-term political risk index score for Malaysia to 65.2 out of 100, from 66.7 previously, to reflect these risks.

It also added that the worsening situation — despite the declaration of the state of emergency in January that Muhyiddin said was aimed at tackling the third wave of the pandemic — was an aggravating factor of the dissatisfaction of the electorate.

“Indeed, perceptions are likely to have turned significantly against Muhyiddin, and it is likely that the move is now viewed more widely as a bid to stave off challenges to his rule, which he had been vulnerable to due to a slim majority in Parliament rather than a sincere attempt to control the outbreak,” it said.

The research house added that it had consistently been highlighting various risks to government unity since the inception of the PN government in March last year, and its views continued to play out amid the worsening public fallout over the government's handling of the pandemic.