Malaysia’s Mahathir resigns amid turmoil in coalition

Bloomberg

Malaysian PM Mahathir Mohamad abruptly submitted his resignation to the king on Monday and his party exited the ruling coalition, kicking off a race to form the next government of the Southeast Asian nation.
The statement from Mahathir’s office contained no other details. It was unclear whether Mahathir would form a new coalition with other political parties, whether his rival Anwar Ibrahim would be able to retain enough lawmakers to lead the government, or whether a new election would take place.
Adding to the confusion, Mahathir submitted a letter of resignation to his party Bersatu, which pledged to continue supporting him.
A host of other political parties also said they would continue backing Mahathir, including the mostly ethnic-Chinese Democratic Action Party, one of the largest in parliament, which has long partnered with Anwar.
Mahathir was set to meet the king later on Monday. Anwar, who met with Mahathir earlier in the day, appeared confident when speaking with reporters. His wife, Wan Azizah Wan Ismail, is in position to potentially take over from Mahathir in her capacity as deputy PM.
“He made it very clear in no way would he work with those in the past regime,” Anwar told reporters, referring to Mahathir. He said the king would decide whether Wan Azizah takes over as the country’s leader.
The political intrigue could bring fresh tumult to Malaysia, and deter investors looking for stability at a time when the global coronavirus epidemic and trade wars are hurting growth.
Malaysia’s benchmark stock index was set to enter a bear market for the first time in 12 years, while the ringgit slumped to the lowest in almost six months.
The drama had been building for months as the 94-year-old Mahathir refused to set a firm date for handing over power to Anwar. The long-time rivals had joined hands ahead of elections in 2018 for a stunning victory that ousted the previous coalition, which had ruled Malaysia for six decades.
When it took power, the new administration sought to usher in a new era of transparency and good governance, marking a rare victory for democracy and openness in Asia. It prosecuted former PM Najib Razak for corruption, and promised policies that aimed at helping Malaysians of all races rather than just the Malay majority.

Race-Based Policies
The outcome of the power struggle could determine whether Malaysia continues moving towards policies that treat all races equally, or reverts towards a model aimed at giving preferential treatment to Malays and indigenous groups who make up nearly 70 percent of the population.
Those policies had prompted many educated ethnic-Chinese and Indians to look for work overseas, draining Southeast Asia’s fourth-biggest economy of some of its top talent.
During his first two years in office, Mahathir regularly denounced the Trump administration over its trade policies, its Middle East peace plan and its approach to China: He was outspoken in lauding the advantages of using Huawei Technologies’s equipment for 5G networks.
Anwar, meanwhile, had enjoyed US support during his time in prison.