Barisan Nasional's victory seen as a remedy for Johor's businesses

WHILE the recently-concluded Johor state election may not have the results that all voters wished or hoped for, it may be just what the business and investment communities need for the short to medium term, political watchers told The Business Times.

Lau Zhe Wei, an associate professor at the International Islamic University Malaysia's Department of Political Science, said the victory by the Barisan Nasional (BN) coalition was "no surprise", as the business communities were leaning towards a political coalition which is able to ensure political stability.

Prof Lau said: "People look forward to a stable political landscape that could regain investors' confidence, hence boosting the state's economic recovery." He said his department conducted a focus group last year, and the key finding was that most business owners prioritise a clear public policy and political stability over a new government. "A new government may offer an equal playing field for all, but in an economic situation like this, business communities prefer a more predictable political coalition which can push for economic growth," he noted.

On Saturday, BN achieved a landslide victory in Saturday's Johor state election, winning 40 seats of the 56 seats contested, or 71.4 per cent of the state constituency seats. But most of the votes did not go to the coalition, as BN received only 599,753 votes, or 43 per cent of the popular votes. There were close to 2.6 million registered voters in Johor, but only 1.43 million or close to 55 per cent of them cast their ballots on March 12.

Oh Ei Sun, a senior fellow at the Singapore Institute of International Affairs, and principal adviser at the Pacific Research Centre of Malaysia, said the win by BN, led by Umno, would indicate that the coalition would continue to hold on to power for the foreseeable future. It also indicates a reversion to those "old and chummy ways" of doing business, which many businessmen view as "good for business". However, he stressed that such oligarchic practices are unsustainable and in any case would enlarge the already sizeable wealth gap, which could bring about social instability in the long run.

He said the ongoing political uncertainties will continue, as Umno's huge win (it won 33 seats) will catalyse the power struggle within the party, with a faction led by Umno president and former deputy prime minister Ahmad Zahid Hamidi attempting to force current Prime Minister Ismail Sabri Yaakob to call for the next general election.

PM Ismail said that a decision to call for a general election will be discussed at the party level, and should not be influenced by a small group of people who requested for an immediate election.