Najib cools snap election talk as Malaysia lacks ‘feel good factor’

Malaysian Prime Minister Najib Razak said yesterday that he will “not necessarily” call a snap election next year, amid talk that he would seek an early vote as splits in the opposition have hobbled efforts to oust him over a long-running financial scandal. The multi-ethnic Southeast Asian country is due to hold an election by August 2018, and a government official has told Reuters that Najib could call for a poll in the second half of 2017.

But in an interview published in The Star daily yesterday, Najib, who has led the country since 2009, suggested he was in no hurry to call for a vote, and remarked on the current lack of a “feel good factor” among Malaysians. “Not necessarily... it can be later,” Najib replied when asked whether an election could be called sometime next year. “With today’s economic situation, it’s going to be a challenge because you don’t see the world economy on a rising trend. It’s going to be much more the same next year, as the year before,” Najib said.

Najib has been battling calls to step down over a scandal involving state fund 1Malaysia Development Berhad (1MDB). The US Justice Department filed lawsuits in July alleging misappropriation of over $3.5 billion from the fund and that some of those flowed into the accounts of “Malaysian Official 1”, whom US and Malaysian officials have identified as Najib. Najib has denied wrongdoing and has consolidated power by sacking critics within his ruling party and cracking down on dissent. His fiercest critic is former premier Mahathir Mohamad, who is over 90 years old. Mahathir joined hands with Najib’s sacked former deputy Muhyiddin Yassin to form a new party. But the main Islamist party’s failure to join efforts by other opposition parties campaigning against Najib, has made it hard for them to whip up more support among ethnic Malays.

Anwar Ibrahim, the most charismatic opposition leader, is serving a five-year sentence on sodomy charges that supporters and many observers believe were politically motivated. Looking ahead, Najib said he expected some recovery in oil and gas revenues to help the national mood. “After that I think that the price of oil will likely be at a slightly higher level, not at the all time high, but something between $60 to $70 per barrel, will be a comfortable level for us,” he said.

The Malaysian economy has been hit hard by the slide in oil prices. A recent slump in the ringgit currency to a near 14month low has also raised concerns. In the interview with The Star, Najib also said a free trade deal for the Asia Pacific region was important to create jobs, investment and wealth.