ANTI-KHAIRY SENTIMENT CAUSED POLITICAL AND ECONOMY INSTABILITY?

The alleged anti-Khairy Jamaluddin sentiments seem to be one of the main factors that cause the Bursa Malaysia halted trading and the major economy slowdown of Malaysian economy.

Khairy Jamalduin is the son-in-law of the current Prime Minister Abdullah Ahmad Badawi and was alleged of influencing the Prime Minister when making critical decisions, thus creating the anti-sentiment that cause the major set back of the general election. The negative trend is continuing, as the negative factors had emerged and the feel good factor is deteriorating unless new measures being introduced.

The negative factors such as: The Raja Perlis has consented to the appointment of Bintong assemblyman Datuk Dr Md Isa Sabu as the new Menteri Besar of Perlis, replacing the embattled Datuk Seri Shahidan Kassim, who still claimed that he had the prime Minister's authority to continue as MB but that the Ruler has ignored it.

Datuk Mukhriz Mahathir’s coy play seeking the Prime Minister to “do the right thing” has bloomed into what the phrase really meant: a letter circulated among Umno members and played up by the blogs has Mukhriz categorically pleading to Abdullah to resign and take responsibility for BN’s dismal performance for the sake of Umno's survival.

In Trengganu, Umno is still undecided as to who should become Mentri Besar after Datuk Idris Jusoh seemed unable to garner support to continue with his stewardship.

In MCA, the fight for the MCA leadership is on. The challenger Datuk Chua Jui Meng, serving 15 years as a vice-president of MCA and a former health minister, he is wrestling the MCA president Datuk Seri Ong Ka Ting. He accused Ong should bear full responsibility toward the dismal performance in the general election.

Neither MIC is in good shape, no positive sign shown that Datuk Seri Samy Vellu will be accepted fully by MIC as well as Indian community.

Ironically, due the political scenario of the ruling BN component parties, the current snapshot of the economic outlook and future economy performance of Malaysia strongly suggested a major slowdown. The economic scenario is dramatically different before the 12th general election. The feel factors had lost totally. As long as the political uncertainty remains unsolved which continue to create uncertainty to the growth. This applied to Bursa Malaysia too.

Despite the fundamental economy of Malaysia is strong, but the downturn should be accurately foreseen and address. On the other hand, Malaysia's shock election results, which have left an untested opposition ruling Penang, Selangor, Perak, Kedah and Kelantan states, have raised fears over economic growth and investment prospects.

The stock market will remain under substantial short and mid-term selling pressure. The future market will depend on the political dust to settle, but undeniable, the growth could be affected if the new 5 state governments failed to get the support of the federal government over planned infrastructure mega-projects and funding allocated.

External factor too put a great pressure to Malaysian economy. Externally, US are facing economic recession due to the losses suffered by banks and hedge funds. More and more details emerge of the losses suffered by banks and hedge funds due to investments centered on the troubled US housing market. Thus the performance of Malaysian economy has been adversely affected by the greater-than-expected slowdown in the economy, particularly in the United States as well as the continuing weak fear political sentiments, which affected the domestic and foreign direct investment climate.