Malaysiakini had a report on the Malaysian Bursa that took a tumbled in response to the results of the 12th Malaysian General Elections (12thGE). This should not be a surprise as most of the companies listed on the bursa are partly government owned or government-linked. These companies have the most to fear from the lost of the ruling BN in states such as Penang, Perak and Selangor, where most industries are located and also Kuala Lumpur where most companies have their headquarters.

What is in store for Malaysia in the coming years?

They may be a slowdown in terms of the performance of the bursa. The ruling BN made the mistake of tagging the health of the nation (economically) to the performance of the bursa. Performance of the bursa does not mean the nation is healthy economically. Instead it merely means that money is shifting hands on a level that is purely limited to a select few. Only a few players are earning from it and not the general public. The people may be poor but those playing the shares game are the ones getting rich.

The tumble is not because of the fear of instability rather because of the strong presence of the Opposition in parliament, the movement of government money to support the bursa would now be closely monitored. It merely means that more eyes would keep watch over the nations money rather than a select few. This is the fear of the GLC (Government Linked Companies). Previously if they performed badly, big-brother (government) was always around to bail them out. Now, it would not be that easy.

So would the bursa correct itself and start moving up again? I think it will but the movement would be slower than usual.

Hard economic times for Malaysia? I believe so and it has nothing to do with the resources of the nation but everything to do with the political struggle going on behind close doors.