Analysts expect no major changes in state government policies
KUCHING: Analysts do not expect any major changes in Sarawak’s state government policies following the passing of Chief Minister (CM) Datuk Patinggi Tan Sri Adenan Satem.
The research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research) explained that Adenan’s continued emphasis on achieving autonomy for the state government through the devolution of power away from the federal government during his tenure has been highly popular and successful with many efforts bearing fruit.
“We opine that devolution of power will continue since the federal government is committed to meet the aspirations of Sarawak,” the research arm said in a note yesterday.
Since assuming office back in 2014, Adenan has achieved a great deal under his ’45 Principles and Actions’.
Adenan’s main principles were, among others, centered around reduction on electricity tariffs, rural transformation, Petronas commitments, forest management and the Pan Borneo Highway.
“We expect a by- election to be held soon to fill the State seat previously held by Adenan. Furthermore, we would also see the selection of a new Yang Dipertua of Parti Pesaka Bumiputera Bersatu ( PBB) in Sarawak.
“There is a high chance for the BN to retain the seat given that Tanjung Datu state constituency has a high Malay and Melanau voter base which are traditionally strong PBB supporters.
“This is reflected in the economic manifesto of PBB that appeals to the said voter base.”
However, in the event of the alternative occurring, Ken Wong, an audit and taxation manager with Moores Rowland Chartered Accountants reckoned that “the market may react adversely to what they would view as diversion from Adenan’s aspirations and changes to his implemented policies.”
“The reaction from the public demonstrates just how Sarawakians views him.
“He was a rare government official that we actually cared for as he his political decisions made us feel connected,” he told The Borneo Post.
“Hence, any unravelling of his efforts may see adverse reactions in the markets.”
As such, the role of the CM succession will be vastly important to the direction of how Sarawakbased stocks will fare in the near future.
“We believe that the market is still in the midst of factoring in the potential outcome from this news and therefore, we anticipate the price performance of Sarawak-based stocks to remain wary until the CM succession is made known,” shared MIDF Research.
To recap, stocks which have experienced the most fluctuation has been Cahya Mata Sarawak Bhd (CMS) and Sarawak Cable Bhd (SCable) both of which are involved in the Pan Borneo Highway Project.
At closing on Wednesday, both CMS and SCable saw a decrease of 8 sen and 2 sen respectively.
However, both stocks rebounded back to their original prices of RM3.97 and RM1.06 respectively at yesterday’s close.