Malaysian politics and will continue to be a potential source of instability. Although ethnic Malays make up around -- of the country s population, their equity share of Malaysian corporate wealth currently stands at only -- , which is well short of the government s target of -- . ...These politicians are well-known household names, which would serve to bolster the opposition coalition s image among the electorate. Rise Of Internet-Driven Politics: We believe that increasing online penetration � especially in the predominantly rural East Malaysian states of Sabah and Sarawak � will lead to a greater number of votes going to politicians who are best able to harness the power of the internet as an effective political media, which -- Business Monitor International Ltd www malaysia Q- ---- social stability a Major risk long-Term Political Risk Rating Source: BMI has been favouring the opposition PR coalition thus far. One example is the opposition victory in Sibu in May ----. ...The influence of the internet was greatest in the most wired regions, such as the Federal Ter- ritory of Kuala Lumpur, where -- out of -- parliamentary seats were won by the opposition. This development also saw the rise of bloggers-turned-politicians such as Jeff Ooi and Tony Pua, who ran on opposition tickets and became first-time legislators in the federal parliament.
...Source:BMI and Indian vote for PKR saw a slight increase. The swing in the Chinese vote towards the BN coalition is a worrying sign for the opposition PR (Pakatan Rakyat) coalition, particularly given that the Sungai Limau by-election held in November last year, which was won by PAS (Pan-Malaysian Islamic Party), also saw the Chinese voters shift towards BN. ...For example, the BN, led by the right-wing UMNO (United Malays National Organisation) has often resorted to cash handouts around elec- tion times to boost its support among the poorer population. Fiscal reforms suggests Bn resisting populist pressures However, the recent bold attempts to reduce subsidy spending in the face of widespread opposition, and the pledge to introduce a goods and services tax in April ---- are positive signs that the BN coalition is taking a pragmatic approach to economic policy, rather than heading down the path towards greater populist measures. With the government s pledge to continue narrowing the fiscal deficit, we are optimistic that business friendly policies will be maintained over the coming years. On the divisive issue of pro-Malay policies, which continue to act to the detriment of the Malaysian business environment, and became a key elec- tion issue in ----, we do not see much scope for change.
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