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from THE MALAYSIAN-CHRONICLE.COM:~~~~
Tuesday, 07 July 2015 20:36
NAJIB TRIGGERS MARKETS BLOODBATH: MPs, civil society demand new polls as ringgit hits shock 3.81 level
Written by Malaysia Chronicle-
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KUALA LUMPUR - Amid plunging public confidence and a massive
sell-off in the Malaysian shares and currency markets, Opposition
Members of Parliament unanimously agreed to adopt demands made by NGOs
and social activists following news that Prime Minister Najib Razak had
allegedly 'bought' the country's 13th general election held in May 2013,
and had some RM2.6 billion of 1MDB-linked funds illicitly transferred
to his personal accounts.
"Najib has become a tremendous liability to Malaysia, yet his Umno party refuses to chastise him or take action to restore confidence such as demanding he go on leave to allow for a neutral probe," MP for Batu Tian Chua told Malaysia Chronicle.
"This sort of attitude and corruption are no longer tolerated by the people or investors and Umno must heed the wishes of the people or be held culpable for helping Najib destroy Malaysia's economy."
The Opposition MPs, led by PKR president Wan Azizah and DAP adviser Lim Kit Siang, had gathered at Parliament house this morning in a meeting that Najib's office had tried to foil by cancelling their booking for a meeting room.
Minister in the PM's office Shahidan Kassim also denied entry to to the NGOs invited to the meeting. The group was forced to hold their meeting outside the Parliament building.
Even so, the effort appeared to have gone well, with the MPs agreeing to back the demands put forth by the NGOs. The demands are that:
1. Najib must go on leave pending completion of a government investigation
2. an independent Inquiry must be held
3. a caretaker government to be formed which must include all parties including the Opposition
4. new elections to be held in one year
Bloodbath until confidence returns
Meanwhile, the loss in public and investor confidence has led to another round of hammering for Malaysian shares and the ringgit since the corruption allegations were published by the Wall Street Journal late last week.
The FTSE Bursa Malaysia KL Composite Index (FBM KLCI) closed 17.19 points lower at 1,717.05 points while the ringgit was sold down further, hitting a 16-year low of RM3.81 to the US dollar.
Related Story: NAJIB NOT EXPECTED TO LAST THE MONTH AS PM: Ringgit, markets bloodbath feared as full-blown political crisis sets in
According to market analysts, this follows damaging allegations made by the Wall Street Journal (WSJ) against Prime Minister Datuk Seri Najib Tun Razak.
“Malaysia is first and foremost a political market, so not surprisingly, politics are always the biggest risk for Malaysia. Markets do not like uncertainties. This is why the market is reacting this way. However, once the issue is resolved, the market will go up again,” the Star reported one fund manager as saying.
He said investors simply had to be prepared for more volatility ahead.
It appears that last week's upgrade in Fitch’s rating outlook has only managed to prop the market up for a day. Foreign selling persisted on Bursa Malaysia and foreign investors have been net sellers for 10 consecutive weeks now.
“Last week, investors classified as 'foreign' sold equity on Bursa amounting to RM314.9mil on a net basis. However, that was a significant drop from the RM824.7mil sold the week before,” said MIDF Research.
Impartial probe, restoring democratic processes crucial factors to make Malaysia credible again
S. Ambiga
“There must be a promise of fresh elections in one year. In my view, from the evidence, it really questions our credibility,” the Malay Mail reported Ambiga as telling a press conference.
The meeting between citizens groups and federal opposition MPs was to discuss the explosive claims by Wall Street Journal that US$700 million (RM2.6 billion) in 1MDB funds ended up in Najib’s personal accounts. - Malaysia Chronicle
Related Story: NAJIB NOT EXPECTED TO LAST THE MONTH AS PM: Ringgit, markets bloodbath feared as full-blown political crisis sets in
"Najib has become a tremendous liability to Malaysia, yet his Umno party refuses to chastise him or take action to restore confidence such as demanding he go on leave to allow for a neutral probe," MP for Batu Tian Chua told Malaysia Chronicle.
"This sort of attitude and corruption are no longer tolerated by the people or investors and Umno must heed the wishes of the people or be held culpable for helping Najib destroy Malaysia's economy."
The Opposition MPs, led by PKR president Wan Azizah and DAP adviser Lim Kit Siang, had gathered at Parliament house this morning in a meeting that Najib's office had tried to foil by cancelling their booking for a meeting room.
Minister in the PM's office Shahidan Kassim also denied entry to to the NGOs invited to the meeting. The group was forced to hold their meeting outside the Parliament building.
Even so, the effort appeared to have gone well, with the MPs agreeing to back the demands put forth by the NGOs. The demands are that:
1. Najib must go on leave pending completion of a government investigation
2. an independent Inquiry must be held
3. a caretaker government to be formed which must include all parties including the Opposition
4. new elections to be held in one year
Bloodbath until confidence returns
Meanwhile, the loss in public and investor confidence has led to another round of hammering for Malaysian shares and the ringgit since the corruption allegations were published by the Wall Street Journal late last week.
The FTSE Bursa Malaysia KL Composite Index (FBM KLCI) closed 17.19 points lower at 1,717.05 points while the ringgit was sold down further, hitting a 16-year low of RM3.81 to the US dollar.
Related Story: NAJIB NOT EXPECTED TO LAST THE MONTH AS PM: Ringgit, markets bloodbath feared as full-blown political crisis sets in
According to market analysts, this follows damaging allegations made by the Wall Street Journal (WSJ) against Prime Minister Datuk Seri Najib Tun Razak.
“Malaysia is first and foremost a political market, so not surprisingly, politics are always the biggest risk for Malaysia. Markets do not like uncertainties. This is why the market is reacting this way. However, once the issue is resolved, the market will go up again,” the Star reported one fund manager as saying.
He said investors simply had to be prepared for more volatility ahead.
It appears that last week's upgrade in Fitch’s rating outlook has only managed to prop the market up for a day. Foreign selling persisted on Bursa Malaysia and foreign investors have been net sellers for 10 consecutive weeks now.
“Last week, investors classified as 'foreign' sold equity on Bursa amounting to RM314.9mil on a net basis. However, that was a significant drop from the RM824.7mil sold the week before,” said MIDF Research.
Impartial probe, restoring democratic processes crucial factors to make Malaysia credible again
S. Ambiga
According to former Bar Council president and social activist Ambiga Sreenevasan, who was at the meeting, this was necessary as the alleged corruption may involve other leaders in the Najib administration.
Ambiga added that an interim government will ensure a proper investigation into the claim linking 1MDB funds to Najib.
“There
are ongoing investigations and you will never get an impartial
investigation if he is still in office. He will have his chance to clear
his name, but all these carrying investigation must be left alone. They
must be allowed to carry on jobs without fear.
“So maybe it is time to look at a caretaker government because who
else knew about money? They (other BN leaders) are just as culpable.“There must be a promise of fresh elections in one year. In my view, from the evidence, it really questions our credibility,” the Malay Mail reported Ambiga as telling a press conference.
The meeting between citizens groups and federal opposition MPs was to discuss the explosive claims by Wall Street Journal that US$700 million (RM2.6 billion) in 1MDB funds ended up in Najib’s personal accounts. - Malaysia Chronicle
Related Story: NAJIB NOT EXPECTED TO LAST THE MONTH AS PM: Ringgit, markets bloodbath feared as full-blown political crisis sets in
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