Mahathir Mohamad, who pulled off a stunning general election win, is poised to take over as the new Prime Minister of Malaysia on Thursday. Mr. Mohamad brushed aside doubts that he would become the country's next Prime Minister following his shock election victory over the coalition that has ruled the Southeast Asian nation for six decades since independence from Britain.
“There is an urgency here, we need to form the government now, today,” Mr. Mohamad told a news conference, where he insisted that he would be sworn in as Prime Minister later on Thursday. (Earlier, there was a confusion as to whether he would be the next PM of the country)
Malaysia's constitutional monarch has granted Mr. Mohamad an audience at 5:00 p.m. (0900 GMT), a leader of his Pakatan Harapan (Alliance of Hope) told Reuters.
The win is a game-changer
Mr. Mohamad’s opposition alliance won the simple majority it required to form a new government in Wednesday’s polls, a stunning result that will end six decades of rule by a coalition he once led.
Malaysians celebrated Mr. Mohamad’s unexpected victory over Prime Minister Najib Razak, whose popularity had plunged over rising living costs and in the wake of a multi-billion-dollar graft scandal at 1Malaysia Development Berhad (1MDB).
Mr. Mohamad led the Southeast Asian nation for 22 years and his unexpected return to the prime ministership ends the previously unbroken rule of Barisan Nasional (BN), the coalition that had governed Malaysia since independence from Britain in 1957.
'No revenge, only restoring law'
“We are not seeking revenge ... what we want is to restore the rule of law,” Mr. Mohamad said of Mr. Razak’s scandal-plagued rule.
He appeared jubilant and sprightly at a news conference claiming victory overnight.
Mr. Razak began an address to media in the late morning. A member of his cabinet said they would accept the will of the people.
The stunning election outcome was expected to ruffle financial markets that were expecting a comfortable win for Mr. Najib and the BN.
Malaysia’s currency weakened in offshore trading on Thursday, with the ringgit one-month non-deliverable forward falling 1.7 pct. The U.S.-traded iShares MSCI Malaysia ETF fell 6 percent.
Stock market closed on Thursday, Friday
The national stock market was closed on Thursday and Friday after Mr. Mohamad declared a public holiday, but the ringgit currency weakened in offshore trading.
Mr. Mohamad’s alliance, which counts on urban votes and support from the minority ethnic Chinese and Indian communities, had hoped the veteran Malay leader would win over voters usually loyal to BN. That strategy appeared to have paid off.
Official results showed that Mr. Mohamad’s Pakatan Harapan (Alliance of Hope) won 113 of parliament’s 222 seats, clinching the simple majority required to rule. Mr. Razak’s BN coalition only managed 79 seats.
A 'good' GST?
Mr. Mohamad has promised to reverse a goods and services tax (GST) introduced by Mr. Razak during his first 100 days in power and review foreign investments.
Global ratings agency Moody’s said some of his campaign promises, including the GST and a reintroduction of fuel subsidies, could be credit negative for Malaysia’s sovereign debt rating.
Mr. Mohamad was once Mr. Razak’s mentor but they clashed after differences over the 1MDB graft scandal, in which billions of dollars were allegedly siphoned off to foreign countries.
The scandal is being investigated by at least six countries, although Malaysia’s attorney general cleared Mr. Razak of any wrongdoing.
Will investigate scandal?
Mr. Mohamad vowed to investigate the scandal if elected and to bring the funds back to Malaysia.
Asked on Thursday if Mr. Razak would be prosecuted, Mr. Mohamad said: “If anybody breaks the law, and that includes a journalist, they will be brought before the court.”
“I have to manage presidents of four different parties. It’s going to be a headache,” Mr. Mohamad told reporters.
