Political stability has always been a major plus for Malaysia. Despite being hit by the Asian financial crisis in 1997, the fact that Malaysia’s political stability remains intact was one of the reasons why foreign investors keep faith with Malaysia. Political stability has always been one of the main factors that foreign investors consider. That is why Singapore, despite higher cost of labour and no natural resources, have still managed to attract foreign investors to their country.

 

Recently, the political turmoil in Malaysia has begun to get the attention of our investors and also prospect investors. During a conference that I attend in July, it was mentioned that the political instability in Malaysia is one of the reason why investors hesitate to invest in Malaysia. Some investors also mentioned to me that until the political turmoil in Malaysia is resolved, investors will reluctant to enter Malaysia and even some current investors might look elsewhere.

 

Certain BN leaders (Malaysia’s ruling coalition) have blamed the opposition of causing the political instability. The opposition has been around since the inception of Malaya and now Malaysia. But why now it is such a big deal? Even after elections in the year 2000, the oppositions were already strong then, political stability remains. So, what is the reason for Malaysia’s political instability in 2008?

 

BN have ruled Malaysia ever since its independence from British. Throughout the history of BN, they have produced exceptional statesmen such as, Tunku Abdul Rahman, Tun Abdul Razak, Tun Hussein Onn, Tun Dr. Ismail, Tun Mahathir, Tun Tan Siew Sin, Tun Tan Cheng Lock and Tun V.T. Sambanthan.

 

After Tun Mahathir retired in 2003, BN basically have lost all their exceptional leaders. After 21 years under the leadership of Tun Mahathir, BN have suddenly lost all their leaders. No current senior leaders in BN are qualified or have the charisma to lead Malaysia. Almost all of BN politician have skeletons in their closet. In terms of leadership, they have been seen as corrupt leaders. TDM successor, Abdullah Ahmad Badawi is thought to be the safest of all the leaders BN currently have. However, after 5 years, Abdullah weakness has begun to emerge and the oppositions have been quick to capitalize it.

 

The internal squabbling of the BN component parties have also resulted in the political instability we are in. With UMNO, MCA and Gerakan facing their elections year at the end of 2008, politician from those parties had began jockeying for position. The contenders began attacking each other even before the general elections and even during elections. Sometimes, the attacks were fiercer between members of the same party instead of against the oppositions. The most notable incident is the Chua Soi Lek sex scandal.

 

These two factors was the cause of the current political instability. Without strong leaders, BN came out of the election very weak. Despite being able to form a government, the inability of BN leaders to consolidate their own members plus the constant attacks by the oppositions has caused the government weak. Many Malaysian believes that Anwar Ibrahim, the opposition leader and the predecessor that Tun Mahathir groomed before he was sent to jail, is capable to lead the country.

 

The BN government is now clinging to their positioned after failing to form a strong government. Perlis and Terengganu had defied the central government by appointing different Chief Minister than the one recommended. Sabah and Sarawak are beginning to request more power to be transferred to them. Five states in the peninsular are controlled by the oppositions.

 

Without a strong leader with strong character, BN will find itself in a very precarious situation. Many people within and from outside BN have called for BN components to reform. BN have manage to create warlords in its camp, but none are qualified enough to be a king. Maybe they need to find a King from outside the party.