KUALA LUMPUR (Nov 28): Fitch Solutions Country Risk and Industry Research has slightly raised Malaysia’s score on its Short-Term Political Risk Index to 67.3 (out of 100), from 64.8 previously, to reflect the progress made in the formation of the new government, which has eased some political uncertainty.
In a note dated Nov 25, the firm nevertheless said that it remains to be seen if the Pakatan Harapan (PH)-led government will be able implement policies, and if newly-appointed Prime Minister Datuk Seri Anwar Ibrahim will be able to prove that he has the support of more than 112 Members of Parliament (MPs).
Fitch Solutions said it also remains unclear as to which parties or alliances will be ultimately involved in the ruling coalition.
The research firm said that although Anwar has been appointed as prime minister, he will have to garner and maintain support from parties with diverse interests, which will likely weigh on the policymaking process.
Additionally, it said the leader faces a challenge from rival Tan Sri Muhyiddin Yassin, leader of opposition party Perikatan Nasional (PN), who claims to have obtained signed declarations of 115 lawmakers and is demanding that Anwar proves his majority in Parliament.
Fitch Solutions added that Anwar has responded by saying that he plans to test lawmakers’ support for his leadership with a confidence vote on Dec 19 in Parliament, during which the PH-led government also plans to re-table the 2023 budget, which was introduced before the election was called for but has yet to be passed.