UMNO rural vote likely to survive in Malaysia

Subject

Rural constituencies and Malaysia's forthcoming general election.

Significance

The inquiries into Malaysia’s Felda Global Ventures Holdings (FGV), the third-largest palm oil plantation conglomerate globally, continue. On June 19, the office of Prime Minister Najib Razak in a statement encouraged FGV’s investigation of allegations of mismanagement and encouraged the firm to improve its corporate governance, while cautioning that those accused were innocent unless formally proven guilty. Federal Land Development Authority (FELDA) settlers are a key constituency for Najib, and alleged mismanagement at FGV could threaten support for his United Malays National Organisation (UMNO) in the next general election.

Impacts

• Popular and political pressure for effective corporate governance may grow in Malaysia.
• New electoral boundaries are likely to be voted through by parliament by August.
• Further court cases against the Election Commission’s constituency boundary re-delineation are likely.