Fears for Malaysian economy as Muhyiddin’s political patronage raises a Najib-era ghost
- Economists warn politicising appointments to government-linked companies could have disastrous consequences for an economy already hit by Covid-19
- The return of political patronage brings uncomfortable memories of the Barisan Nasional years, a period marked by corruption
That’s the view of critics who say the Malay nationalist Perikatan Nasional coalition is trying to buy the loyalty of its constituent parties by offering their members plum jobs with the companies, known as GLCs.
The development, they say, is a sign that the coalition – made up of the Malaysian United Indigenous Party (Bersatu), the Malaysian Islamic Party (PAS), the United Malays National Organisation (Umno), and several smaller race-based parties – has become increasingly fragile.
Since coming to power two months ago, the coalition has terminated a slew of appointments made by its predecessor the Pakatan Harapan, which held power for just 21 months.
It has removed the leadership of the education and development statutory body Majlis Amanah Rakyat (Mara) and installed Prime Minister Muhyiddin Yassin onto the board of sovereign wealth fund Khazanah. At the same time, there has been a spate of resignations at banks and loan agencies catering to small and medium sized business.
