A health worker with personal protective equipment walks down an alley with a mural illustrating medical front-liners outside Clinic Ajwa in Shah Alam, Malaysia.
Annice Lyn | SOPA images | LightRocket via Getty Images
SINGAPORE – Malaysia’s stocks and currency fell on Tuesday after the king declared a state of emergency that will last until August 1, as the country takes steps to curb the spread of Covid-19.
Following the announcement, the US dollar-Malaysian ringgit pair hit a high of 4,072 – or about 0.54% higher than the previous closing price. The currency pair has since been trading around 4,061, or 0.27% higher than Monday’s close.
Meanwhile, the benchmark FTSE Bursa Malaysia KLCI Index was down about 1.45% from the previous day.
A Malaysian statement from the palace, translated by CNBC, said the “proactive move” had been requested by Prime Minister Muhyiddin Yassin due to rising Covid infections in the country.
The state of emergency could end earlier than Aug. 1 if the number of daily cases is brought under control and effectively reduced, the statement said.
In a televised address following the release of the statement, Muhyiddin said there will be no curfew and that the civilian government and the judiciary will continue to function. But parliament will be suspended and elections cannot be held for the entire period, he added.
The prime minister also said Malaysia will “remain open to business” and that the emergency period will give the country “much-needed peace and stability”.
Muhyiddin has a razor-thin majority in parliament and is under pressure from his ruling coalition to step down and call for quick elections.
He had also filed for a state of emergency in October – a move many analysts viewed as an attempt to maintain his political status. The king then declined the request.
Surge in Covid cases
The state of emergency comes after the cases of Covid-19 in Malaysia have spiked in recent months. Last week, the number of reported daily cases rose above 3,000 for the first time since the outbreak, according to data collected by Johns Hopkins University.
According to Hopkins, Malaysia has reported more than 138,200 cases of Covid-19 and 555 deaths so far.
The move also followed Muhyiddin’s announcement a day earlier of a nationwide ban on interstate travel, as well as a two-week lockdown in several states and territories starting Wednesday.
“The situation today is indeed very worrying. Our healthcare system is now under tremendous pressure than ever since the outbreak of the pandemic,” the prime minister said in a televised address Monday.