Escaping Najib's Malaysia, Investors Also Flee Currency and Stock Market

While Malaysian Prime Minister Najib Razak’s cabinet overhaul may have achieved the “unified team” he was seeking in the face of probes into his bank accounts, global funds have been voting with their feet.

The ringgit has slumped 6 percent, the benchmark stock index lost 8 percent and sovereign bond risk jumped to a four-year high since the Malaysian Anti-Corruption Commission on Aug. 3 said Najib had received 2.6 billion ringgit ($634 million) from donors and not state investment company 1Malaysia Development Bhd. The conclusion failed to help 1MDB’s bonds, which are trading at 82 cents on the dollar.