A health worker wearing personal protective equipment passes through an alley with a mural illustrating medical leaders outside Ajwa Clinic in Shah Alam, Malaysia.
Annice Lyn | SOPA images | LightRocket via Getty Images
SINGAPORE – Malaysia’s shares and currency fell on Tuesday after the king declared a state of emergency that will last until August 1, while the country takes steps to contain the spread of Covid-19.
Following the announcement, the US dollar-Malaysian ringgit pair reached a high of 4.072 – or about 0.54% above the previous close. Since then, the par has traded around 4.061, or 0.27% above Monday’s close.
Meanwhile, the FTSE Bursa Malaysia KLCI benchmark index fell about 1.45% from the previous day.
A Malaysian statement issued by the palace, translated by CNBC, said that the “proactive measure” was requested by Prime Minister Muhyiddin Yassin due to the increase in Covid infections in the country.
The state of emergency could end before August 1 if the number of daily cases comes under control and is effectively reduced, the statement said.
In a televised speech following the release of the statement, Muhyiddin said there would be no curfew and that the civilian government and the justice system would continue to function. But parliament will be suspended and elections cannot be held during the period, he added.
The prime minister also said that Malaysia remains “open for business” and that the emergency period will give the country “the much needed calm and stability”.
Muhyiddin has a minimal majority in parliament and has faced pressure from his governing coalition to resign and call for an early election.
In October, he had also sought a state of emergency – an attitude that many analysts considered an attempt to preserve his political position. The king rejected the request at that time.
Outbreak in Covid cases
The state of emergency comes after the Covid-19 cases in Malaysia have increased in recent months. Last week, the number of daily reported cases jumped to more than 3,000 for the first time since the outbreak, according to data compiled by Johns Hopkins University.
Malaysia has reported more than 138,200 cumulative cases of Covid-19 and 555 deaths so far, according to Hopkins.
The move also followed Muhyiddin’s announcement the day before a national ban on interstate travel, as well as a two-week blockade in several states and territories that will begin Wednesday.
“The situation today is really very alarming. Our health care system is under tremendous pressure now than at any other time since the start of the pandemic,” the prime minister said in a televised speech on Monday.