Mahathir’s removal brings back old regime in Malaysia

Bloomberg

Mahathir Mohamad failed in his bid to return to power in Malaysia, as the king approved a government dominated by Malay-majority parties in a monumental shift from the multiracial coalition that took power after a shocking election win two years ago.
Muhyiddin Yassin, 72, was named prime minister on Saturday by the country’s monarch to end a six-day tussle for power after Mahathir suddenly resigned due to bickering in his former coalition. The new ruling alliance consists of defectors like Muhyiddin who aligned with the Barisan Nasional coalition that lost power in 2018 after running the country for six decades.
“I only hope that all Malaysians welcome the decision that has been announced by the palace today,” Muhyiddin, who was home minister in the previous government, told reporters outside his home. “Thank you. Let us pray that we will succeed to bring a future Malaysia that is brighter, more glorious in the future.”
The move appeared to cap a week of extreme political turmoil in Malaysia, which saw the implosion of a reformist government whose victory in 2018 was hailed as new milestone for transparency, free speech and tolerance among various racial groups, which include Chinese and Indians.
The parties in the new government support a more conservative agenda, including measures to promote the interests of the Malay majority and a stricter version of Islam.
“The biggest challenge for the new government is to make sure that although it is a Malay-Islam centric government, it will not affect the previous agenda to bring the country together,” said Sivamurugan Pandian, a professor of political sociology at Universiti Sains Malaysia. He added that the political turmoil may not end, and the Mahathir-led opposition may quickly seek a confidence vote in parliament.
Mahathir had no immediate reaction to the king’s announcement. Earlier in the day, Mahathir had said he had the numbers to form a government with the support of Anwar Ibrahim, his long-time rival and coalition partner.
Muhyiddin’s immediate task will be shoring up an economy growing at the slowest pace in a decade: Even amidst the political jockeying, Mahathir announced a $4.7 billion stimulus package to counter the impact of the global coronavirus outbreak. The key stock index is one of the world’s 12 worst-performers since the 2018 election.
While it’s positive to have clarity on the political situation, the jockeying for power is unlikely to end, according to Stephen Innes, chief market strategist at AxiCorp Financial Services Pty.
“This is a double-edged sword,” he said. “I think this brings closer the potential for a snap election.”
Born in Johor in the southern Malay peninsula, Muhyiddin is a graduate of the University of Malaya.