A Case of Brazil Blight? Scandal-Hit Malaysia Risks Lost Decade
- Emerging market giants face distraction of political scandals
- Malaysia handouts to poor expected to rise in coming budget
A vendor arranges merchandise at a clothing stall at Bandar Baru Sentul night market in Kuala Lumpur.
Photographer: Charles Pertwee/BloombergThis article is for subscribers only.
Meet Malaysia, the new Brazil.
Nearly felled by the Asian financial crisis in the late 1990s, the Southeast Asian nation recovered to become a global commodities juggernaut, known for its stable government and investor-friendly policies. Now, with its premier enveloped by a multi million dollar funding scandal, Malaysia risks being infected with the kind of economic malaise that has struck its emerging market counterpart in South America.