Did Malaysia outperform regional markets after the GE14 election?

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Malaysia's Stock Market Performance Post-GE14 Compared to Regional Peers

Following the 14th General Election (GE14) on May 9, 2018, the FTSE Bursa Malaysia KLCI (KLCI) experienced a decline of 7.35 per cent. This performance was comparable to the average loss observed across regional stock markets, which stood at 7.14 per cent. Notably, Malaysia's stock market demonstrated resilience by outperforming several other Asia-Pacific markets, including Singapore, China/Hong Kong, South Korea, and Taiwan. These markets recorded declines ranging from 8.17 per cent to 14.01 per cent during the same period.
Outperformance Against Broader Indices

The KLCI's performance also surpassed that of the MSCI Asia-Pacific Index, a widely recognised benchmark for regional equity markets, which saw a decline of 11.93 per cent. This indicates that while global economic factors exerted pressure on markets across the region, Malaysia's specific market dynamics allowed it to fare better than the broader Asia-Pacific trend. Countries like Singapore, China/Hong Kong, and South Korea, which experienced more significant downturns, did not undergo elections or changes in government, suggesting that global issues were the primary drivers of their market performance.
Factors Influencing Market Stability

The Pakatan Harapan government's approach to governance, characterised by transparency and consistent communication with stakeholders such as equity investors and rating agencies, played a role in stabilising the stock market. This communication strategy contributed to a rebound in the KLCI from its low point of 1663.86 points to 1710.71 points. Such efforts aimed to foster investor confidence amidst prevailing global uncertainties.
Commitment to Economic Management

Furthermore, the government's stated commitment to balancing economic growth with fiscal deficit reduction has been acknowledged by rating agencies. This commitment has helped maintain the country's existing ratings and outlook, signalling a stable macroeconomic environment. The focus on good governance, growth policies, deficit reduction, attracting foreign investment, and increasing household incomes is posited as a long-term strategy for wealth creation and potential future growth of the KLCI.

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Did Malaysia outperform regional markets after the GE14 election?

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