S&P Ratings sees higher volatility in Malaysia's financial markets

On Monday, Tun Dr Mahathir Mohamad resigned as the prime minister but the King had appointed him as interim PM.

KUALA LUMPUR: Heightened political uncertainty due to the collapse of the Pakatan Harapan (PH) government is likely to give rise to higher volatility in Malaysia's financial markets and potentially spur some capital outflows, S&P Global Ratings said.

In its statement issued on Tuesday the rating agency said however, it did not yet believe there was a strong likelihood for major changes to medium-term factors such as fiscal and economic policies.