Malaysia

Review: Malaysian heist hides deeper moral

21 September 2018

“Billion Dollar Whale” tells how a chubby twentysomething stole a fortune and partied his way around the planet, ultimately bringing down his country’s prime minister. Behind the exploits, however, lies a darker story of how global capitalism facilitates fraud and fuels excess.

Malaysia’s China reset imagines Byte and Road

20 August 2018

After months of fighting talk, Prime Minister Mahathir Mohamad is striking a softer tone. His PRC visit began in Alibaba's hometown of Hangzhou and included a new-energy deal with carmaker Geely. That suggests an effort to extract tech aid in exchange for infrastructure projects.

Silk Road speed bumps show limit of yuan diplomacy

13 July 2018

There is trouble along Beijing's trillion-dollar trade route. From the Maldives to Malaysia, politicians are calling to review deals, fretting over debt and dependence. Domestic politics are driving the backlash, making it tough to turn economic might into lasting influence.

Malaysia taps brakes along China’s Belt and Road

5 July 2018

Prime Minister Mahathir Mohamad has suspended work on a $20 bln rail link between his country’s east and west coasts. It’s a rare setback for Beijing's massive infrastructure initiative. The project's importance, though, means Kuala Lumpur can afford to fight for a better deal.

1MDB trial is just start of Malaysian war on graft

4 July 2018

Former Premier Najib Razak has been charged in connection with the $6 bln scandal. The swift action is commendable. Deeper change is needed to reassure investors, though. That means measures like forcing politicians to declare assets, and regulating party funding.

Guest view: Beware emerging market storm clouds

22 June 2018

A new period of mounting risks and uncertainties looms on the horizon for developing economies like Turkey, Malaysia, Brazil and Mexico, argues former Citibank executive William Rhodes. Rising price volatility and pressures on a range of currencies are merely the warning signs.

Malaysia’s 1MDB purges may hurt before they help

6 June 2018

The central bank is the latest institution caught in the backlash over the disgraced wealth fund, with the mooted departure of its governor. More heads will roll in the bureaucracy and beyond, creating extra uncertainty just as external pressures mount and fiscal plans shift.

1MDB scandal could yet bring some critical closure

4 June 2018

As Malaysia's new prime minister reexamines a case the top U.S. lawman called "kleptocracy at its worst", a Breakingviews e-book recounts the sovereign fund’s rise and fall. Lessons for banks, money managers and politicians will be even sharper if ringleaders are held to account.

E-book: 1MDB

4 June 2018

The Malaysian scandal once called “kleptocracy at its worst” is being freshly investigated following the country’s shock election outcome. Breakingviews chronicles the sovereign fund’s rise and fall, and the potential repercussions from Kuala Lumpur to Wall Street. Read online or download the book.  

EMI deal calls out to 1MDB bounty hunters

24 May 2018

Sony is taking control of EMI Music Publishing. The sale could mean a $420 mln payout to financier Jho Low. U.S. prosecutors allege he used funds stolen from Malaysian fund 1MDB to make the purchase. That’s a temptingly huge sum for authorities in both countries to pursue.

Viewsroom: 1MDB rears head in Malaysian election

16 May 2018

The $5 bln sovereign-wealth fund’s scandal played a role in voters replacing Prime Minister Najib Razak with nonagenarian Mahathir Mohamad. Its resurgence could mean bad news for Goldman Sachs and Najib himself. Plus: Walmart nabs Flipkart in a big bet on e-commerce in India.

It’s too soon to cash Malaysian election dividend

14 May 2018

Muted market reaction to Mahathir Mohamad's shock victory suggests optimism for reform outweighs fears over populist policies and squabbles in the new coalition. Higher oil prices will help. The prime minister's past record and his early decisions, however, give reason for pause.

Malaysia can push for a healthy China rebalance

11 May 2018

Mahathir Mohamad has accused his predecessor of selling out to Beijing, and vows to review deals. The country's strategic position and historic ties with the People's Republic gives him leverage to reset the relationship. But Malaysia needs China too, so the haggle will stay polite.

Malaysian political shock may hold sting for banks

10 May 2018

Wall Street fingerprints were all over the $4.5 bln 1MDB sovereign fund scandal. Malaysia’s new government, and others overseas, could reopen or step up enquiries – and come after lenders that raised and moved money. That poses renewed risk for Goldman and Deutsche Bank.

1MDB poses fresh threat to Najib – and Malaysia

10 May 2018

With a shock election defeat, the outgoing prime minister's top defence against the $4.5 bln fund scandal has gone. Old enquiries may reopen at home and overseas agencies have less reason to go easy on him. Najib could be tempted into the dangerous politics of mutual destruction.

Markets want soothing after Malaysia poll upset

10 May 2018

Mahathir Mohamad has won a bitterly contested election. The shock victory will rattle investors, who will fret about the country's economic growth momentum and future ties with China. For now, a quickly formed government and clear economic agenda can limit market turbulence.

Viewsroom: Fintech’s growing pains

19 April 2018

Upstarts like LendingClub and SoFi need to find ways to keep customers returning – just as traditional banks are fighting back and Goldman Sachs’ digital push into consumer lending takes off. Also: how Malaysia’s prime minister may be re-elected despite the 1MDB scandal.

Malaysia’s strongman can use his second chance

10 April 2018

Najib Razak's reputation took a slap with the 1MDB scandal. Still, the prime minister is likely to win a fresh mandate in upcoming polls. That can help him secure a legacy as a reformer, if he handles China's influence adroitly and meets old pledges to cut the role of the state.

Uber races towards IPO with Southeast Asian deal

26 March 2018

The U.S. ride-hailing giant is exiting another cut-throat market. It will hand its regional business to Grab, a $6 bln local rival, and take 27.5 pct of the enlarged group. This is a sensible step to prepare Uber for public life – provided Grab can hold onto its leading position.

Malaysia throws cash into middle-income trap

9 November 2017

Najib Razak’s new budget lavishes cash on farmers, fishermen and rubber traders. But it is a transparent attempt to divert attention from the prime minister’s corruption woes without boosting competitiveness, narrowing inequality or helping Malaysia escape stagnation.