The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms & Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Asia politics throw investors a curveball

The rapidly unfolding political situation in different parts of Asia threatens to further upend the region’s financial markets.


This week has offered a barrage of news to rattle global markets.

In Malaysia, prime minister Muhyiddin Yassin resigned along with his cabinet on Monday, just over 17 months after taking power, sparking fresh worries about leadership in the southeast Asian country.

Yassin had initially become prime minister after a power struggle with his predecessor, Mahathir Mohamad, but soon after taking office had to navigate the havoc caused by the Covid-19 pandemic. The resulting economic crisis has been so extreme that Fitch Solutions recently revised its 2021 GDP growth forecast for Malaysia to 0% from 4.9%.

Members of parliament in Malaysia were due to tell the country’s king their choice of a new prime minister by 4pm local time on Wednesday, meaning a new leader may very well be in place soon.

But the protracted political instability has taken a toll. Foreign investors hold about 40% of Malaysia’s sovereign debt, and outflows have risen in recent months as growth stalls in the country. The benchmark Kuala Lumpur Composite Index has fallen by about 6.4% year to date.

On the other end of Asia's market-moving problems is the unravelling of the crisis — both political and humanitarian — in Afghanistan.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree