{"id":3976,"date":"2018-05-30T07:30:17","date_gmt":"2018-05-29T23:30:17","guid":{"rendered":"https:\/\/www.smallcapasia.com\/?p=3976"},"modified":"2018-05-30T02:03:09","modified_gmt":"2018-05-29T18:03:09","slug":"here-are-the-winner-and-loser-stocks-after-malaysia-election","status":"publish","type":"post","link":"https:\/\/www.smallcapasia.com\/zh-hans\/here-are-the-winner-and-loser-stocks-after-malaysia-election\/","title":{"rendered":"Here are the Winner and Loser Stocks after Malaysia Election"},"content":{"rendered":"

A historic win at Malaysia’s general election by the opposition alliance led by the country’s former leader, Mahathir Mohamad, has sent the Bursa Malaysia markets on a wild ride a few weeks ago. <\/span><\/p>\n

Indeed, a number of stocks listed on the Singapore bourse with Malaysian exposure took a hit on the next day after the unexpected win. \u00a0<\/span><\/p>\n

In this article, I will list out some sectors that are affected by the shocking political change in Malaysia. <\/span><\/p>\n

Construction Sector: Loser<\/strong><\/h2>\n

Construction and cement sectors are facing downward pressure, as the new government planned to review all infrastructure mega projects in Malaysia. <\/span><\/p>\n

These include the High-Speed Rail (HSR) project, which will connect Kuala Lumpur and Johor Bharu with Singapore. The project was proposed by the sixth Prime Minister of Malaysia, Najib Razak. \u00a0<\/span><\/p>\n

Mahathir Mohamad is opposing the HSR project, questioning the project\u2019s financial feasibility. He said that the HSR contract signed between Malaysia and Singapore may not be done deal if Pakatan Harapan, which is under the leadership of Mahathir, comes to power. <\/span><\/p>\n

Eight stations were initially planned for the KL-SG HSR namely, Sepang-Putrajaya, Seremban, Melaka, Muar, Batu Pahat and Iskandar Puteri stations in Malaysia and the Jurong East station in Singapore.<\/span><\/p>\n

Now that the mega project has been scarpped, it will affect the construction companies including Malaysian Resources Corp<\/a>, Gamuda Bhd<\/a>, Sunway Construction<\/a> and YTL Corporation Bhd<\/a>. <\/span><\/p>\n

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Export Counters: Winners<\/strong><\/h2>\n

On the other hand, the Malaysia Ringgit is facing selling pressure as the new government proposed the abolishment of the GST (goods and services tax). <\/span><\/p>\n

The removal of GST would increase Malaysia\u2019s reliance on oil-related revenues and narrow the government\u2019s revenue base. Furthermore, the new government has planned to reintroduce the fuel subsidies too, which would affect Malaysia’s fiscal position and balance of payments. <\/span><\/p>\n

Both policies may have a negative impact on Malaysia\u2019s sovereign rating, leading to depreciation of Ringgit. <\/span><\/p>\n

The good news is that the falling of Ringgit may benefits export counters in Malaysia. <\/span><\/p>\n

Some of the commodities exported from Malaysia are:<\/span><\/p>\n