The arrest of opposition leader Anwar Ibrahim on Wednesday likely to spark more tremors in financial markets, which have groaned under the weight of a protracted political drama that includes allegations of sex and murder against a senior government politician.
‘Investors will probably shy away for a while until these things settle,’ said Mr Wee Kim Hong, head of research at M&A Securities. ‘I don’t think anybody will want to commit to a long position for now.’
Malaysia’s ringgit fell to 3.2250 to the dollar from 3.2160 on Tuesday. Shares ended down 0.7 per cent.
Mr Anwar was sacked as deputy prime minister in 1998 and later jailed for corruption and sodomy after leading street protests against then premier Mahathir Mohamad’s government during the Asian financial crisis.
The supreme court overturned the sodomy conviction six years later. Other opposition leaders rallied behind Mr Anwar.
‘We will still work together very well,’ said Nasharudin Mat Isa, a leader of Parti Islam se-Malaysia (PAS). ‘This is going to even strengthen the coalition. This issue is going to create a new kind of movement among the public.’
Anwar had earlier on Wednesday appealed for his supporters to remain calm if he was arrested. — REUTERS
