A health worker wearing personal protective equipment walks past an alley with a mural depicting medical frontlines outside the Ajwa Clinic in Shah Alam, Malaysia.
Annice Lyn | Images SOUP | LightRocket via Getty Images
SINGAPORE – Shares and currency in Malaysia fell on Tuesday after the king declared a state of emergency that would last until August 1, as the country stepped up measures to reduce the spread of Covid-19.
Following the announcement, the US-Malaysian dollar ringgit pair reached a high of 4,072 – or about 0.54% higher than the previous close. The currency pair has since traded at about 4,061, or 0.27% higher than at the close on Monday.
Meanwhile, the FTSE Bursa Malaysia KLCI benchmark index was down about 1.45% from the previous day.
A statement in the Malaysian language issued by the palace, translated by CNBC, says that the “proactive step” was requested by Prime Minister Muhyiddin Yassin due to infections with Covid growing in the country.
The state of emergency could end earlier than August 1 if the number of daily cases becomes under control and is effectively reduced, the statement said.
In a televised address after the statement was released, Muhyiddin said there would be no cover-up and the civilian government and judiciary would continue to function. However, the parliament will be suspended and the elections will not be able to take place during the whole period, he added.
The prime minister also said that Malaysia remains “open for business”, and the emergency period will provide the country with the “necessary calm and stability”.
Muhyiddin has a small majority in parliament and has faced pressure from within his ruling coalition to resign and call for speedy elections.
He also sought a state of emergency in October – a move that many analysts saw as an attempt to maintain his political stance. The king then rejected the request.
Covid arises in cases
The state of emergency comes after cases of Covid-19 in Malaysia have appeared in recent months. Last week, the number of cases reported daily rose more than 3,000 for the first time since the outbreak, according to data compiled by Johns Hopkins University.
Malaysia has so far reported more than 138,200 cumulative cases of Covid-19 and 555 deaths, according to Hopkins.
The move also followed Muhyiddin’s announcement a day earlier of a national ban on inter-state travel, as well as a two-week blockade in several states and territories that will begin on Wednesday.
“Today’s situation is really very alarming. Our health care system is under tremendous pressure now than at any other time since the beginning of the pandemic,” the prime minister said in a televised address on Monday.