'No matter which combination results, it is certain that if it lasts then the national economy will receive a big impact.'
A while ago, the Yang di-Pertuan Agong, Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah has agreed to extend the nomination process and the formation of the Malaysian government until 2pm tomorrow (November 22).
His Majesty made the order at noon after the results of the 15th General Election (GE15) which saw any party fail to win a majority of seats to form a government and Parliament was suspended for the first time.
The political uncertainty that occurred clearly affected the country's trade flow with the Malaysian Ringgit (RM) and the Kuala Lumpur Composite Index (KLCI) moving weakly throughout the day but recovering slightly after His Majesty's speech.
Looking at the index, the KLCI experienced a decrease of 1.5% at the beginning of the trading session at 1,427.75 before recovering slightly to reach 1,437.55 which is down 0.8% as of 2.30 pm.
The national currency also accompanied the declining performance when the value of the ringgit fell 0.8% to 4.5872 against the United States (US) dollar, the lowest plunge in 7 months.
Even so, the ringgit is seen to reverse some losses to trade at 4.5712 or down 0.4% as of 2.30 a.m. earlier.
In general, an important meeting took place this morning between the representatives of Pakatan Harapan (PH), namely Dato Seri Anwar Ibrahim and Dato Seri Zahid Hamidi from Barisan National (BN) at the Seri Pacific hotel in Kuala Lumpur.
While Perikatan Nasional (PN) is said to have submitted the statutory accounts (SD) of 112 Members of Parliament to the Istana Negara at around 3pm this afternoon.
As a result, Maybank Securities notes that investors are expected to refrain from buying risky assets for the time being until Malaysia's political uncertainty ends.
