A health worker wearing personal protective equipment walks past an alley with a mural depicting medical front liners in front of the Ajwa Clinic in Shah Alam, Malaysia.
Annice Lyn | SOPA pictures | LightRocket via Getty Images
SINGAPORE – Malaysia’s stocks and currencies fell Tuesday after the king declared a state of emergency that will last until August 1 as the country steps up measures to curb the spread of Covid-19.
Following the announcement, the US dollar-Malaysian ringgit pair hit a high of 4.072 – or around 0.54% higher than its previous closing price. The pair has since traded 4.061, or 0.27% higher than Monday.
The benchmark index FTSE Bursa Malaysia KLCI fell around 1.45% on the previous day.
A Malay-language statement from the palace, translated by CNBC, said Prime Minister Muhyiddin Yassin has called for the “proactive move” because of the increasing Covid infections in the country.
The state of emergency could end before August 1, when the number of daily cases comes under control and is effectively reduced, the statement said.
In a televised address following the release of the statement, Muhyiddin said there would be no curfew and that civil government and the judicial system would continue to function. However, Parliament will be suspended and no elections can be held during the entire period, he added.
The prime minister also said Malaysia remains “open to business” and the emergency period will give the country “much-needed calm and stability”.
Muhyiddin has a wafer-thin majority in parliament and has been pressured by his ruling coalition to resign and demand an early election.
He had also sought a state of emergency in October – a move many analysts saw as an attempt to maintain his political standing. The king rejected the request at that time.
Increase in Covid cases
The state of emergency occurs after Malaysia’s Covid-19 cases have risen sharply in recent months. Last week, the number of reported daily cases rose to over 3,000 for the first time since the outbreak, according to Johns Hopkins University.
Malaysia has reported more than 138,200 cumulative cases of Covid-19 and 555 deaths to date, according to Hopkins.
The move also followed Muhyiddin’s announcement the day before of a statewide ban on interstate travel and a two-week lockdown in multiple states and territories, which will begin on Wednesday.
“The situation today is indeed very alarming. Our health system is under enormous pressure today than it has ever been since the beginning of the pandemic,” said the Prime Minister in a televised address on Monday.
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