Tensions have also been mounting on the political front in Malaysia. Owing to the government’s poor handling of1Malaysia Development Berhad, the heavily indebted national development fund, speculation is now rife that a leadership change may be on the cards. “Prime Minister Najib Razak’s popularity with the public is already at a low and there is a chance of a challenge to his leadership. This is causing uncertainty over 1MDB, of which Najib is also advisory board chairman, and is a contributing factor to the fall of the ringgit as investors take flight,” says Chua.
source: The Edge