Winds Of Change But It's Time For Execution!

Wow, what a day! KLCI dropped by almost 10% and even hit the circuit breaker and trading was halted for an hour! As if this was not bad enough, there was also a technical glitch with Bursa trading systems as many selling orders were not executed successfully! Expect more selling on Tuesday!

As the country of Malaysia is blowing winds of change, there are much uncertainties at both the political and economic perspective! Many questions are left to be answered, such as will there be a change of leadership at the top of the pinnacle and the rest of the coalition political parties? Will there be a change of business policies and review of major business contracts and development plans given that certain states are now ruled by the Opposition? Timely implementation of major projects may also be delayed due to further complications surrounding both camps. What about the opposition themselves? With their perceived lack of expertise in governing, will they be able to effectively govern the states, tackle corruption and work seamlessly with the Federal Government on policies and engagements? These uncertainties are certainly not helping the foreign and local investors, as the perceived uncertainties have led to a major liquidation of their portfolios in Malaysia, exacerbated by Monday's 10% drop.

Is it really all so bad or can we see light at the end of tunnel? For the short to medium term at least, things certainly look gloomy as all parties work all round to overcome the challenges and quash any major uncertainties. Whilst a stronger opposition does make it harder to a certain extent for the Government to get things done and approved in a timely manner, it is certainly good to inject a sense of check and balance, transparency and better governance. With that perhaps the Government may get their act together and improve their whatever deficiencies and ultimately serve both the people and business community better. Unlike before, whatever policies or proposals the Government intend to pass in resolution will meet stiffer scrutiny and reviews. Gone will be the days where matters can be easily abused, leading to corruption and inefficiencies. Also, this may also prompt the Government to reinvent or fine tune the model fo wealth distribution for all communities.

In the scenario where above improvements were met, it will certainly propel the country to the next level where justice, fairness, transparency and efficiencies rule. Needless to say, global investors' perception of Malaysia will also be upgraded, bringing more business opportunity and investments to the country.

While this wind of change may just be the beginning, it certainly offers better hope for the people of Malaysia and the country as a whole. The struggle may persist for now but could well be a preclude to a better future!

So don't be disheartened by short term market downturn, it's the future that matters!