We have discussed the impact of economic crisis towards economy and social. But there are other consequences due to this subject. One of them is political. Malaysia is practicing the democratic system which all eligible citizens have an equal say in the decisions that affect their lives. Democracy allows people to participate equally either directly or through elected representatives in the proposal, development, and creation of laws (Roberts, H. Cox. 2012) However, the economic crisis could lead to the destructible of the stable political status in the country. Malaysia now days have lists of political parties that have the same aim which is to rule Malaysia. On the other hand, economic crisis is one of the crimp to these political parties to rule the country or even to the dominant political party such as UMNO.
When the Asian financial crisis 1997 hit Malaysia, the impact was traumatic. There was economic and political turmoil. The stock market, the currency and the property market nearly collapsed. That in turn affected the overall economy. UMNO, the dominant political party in the ruling alliance, experienced political turbulence when its charismatic deputy president, Anwar Ibrahim, was expelled from the party when he disagreed with the then president, Mahathir Mohamad, over, among other things, Mahathir’s rejection of loans from the International Monetary Fund (IMF). Yet, Malaysia was not that badly affected as compared to some of its neighbors. It did not experience the extent of the socio-political distress as occurred in Indonesia where the rioting that broke out ultimately led to the overthrow of Suharto. Nor was its economic sovereignty that deeply compromised as happened in Indonesia and Thailand when both countries were forced to accept the conditions imposed by the IMF for the acceptance of their loans. Besides, there is a major consideration of questions is the view purported by some quarters that Dr. Mahathir has “overstayed” his tenure and...
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