Malaysia Prime Minister Najib Razak stocked his Cabinet with party stalwarts ahead of a leadership test after a poor showing by his coalition’s ethnic Chinese partners led to its narrowest election win since independence.
Malaysia’s biggest pension fund sold about 331 million ringgit ($110 million) of shares in the country’s benchmark index as Prime Minister Najib Razak’s election victory sparked the largest rally since 2008.
Malaysia’s bonds and the ringgit rallied this week, with the 10-year yield dropping to its lowest level in more than four years, after Prime Minister Najib Razak was re-elected, clearing the way to pursue his economic reforms.
Goldman Sachs Group Inc. made about $500 million arranging three bond sales in the past year for 1Malaysia Development Bhd., the state investment fund led by Prime Minister Najib Razak, said a person familiar with the matter.
Malaysian Prime Minister Najib Razak’s election win without the bulk of ethnic Chinese voters is set to pose the biggest test yet for the pro-Malay affirmative action policies instituted by his father more than three decades ago.
Malaysia’s Anwar Ibrahim struggled to swing voters in government strongholds where his own ethnic group is dominant, thwarting his ambition to take power from a ruling coalition he helped lead before his ouster in 1998.
The ringgit strengthened to its highest since August 2011 and government bonds rose after Malaysian Prime Minister Najib Razak’s coalition retained power in the weekend poll, bolstering the outlook for economic reforms.
Judging by their giddy rally today, markets in Malaysia are beyond relieved that the country’s general elections are over. A win for the incumbent Barisan Nasional coalition, whose main party has led Malaysia since independence, appeared to promise continuity and stability. Prime Minister Najib Razak adopted a humble tone after the bitterly fought campaign, calling for “national reconciliation.”