THE YEAR 2009 WILL GO DOWN as one of the most challenging for the Malaysian economy in recent times, no thanks to the global financial crisis. While the event broke out in the last quarter of 2008, its full impact was felt mostly last year. Even the stalwarts of the local stock exchange were not spared. Sime Darby Bhd, the bourse’s largest-capitalised stock, recorded a drop in earnings by nearly half for its financial year ended 2009. But to be fair, there were also many companies that showed resilience and survival skills in these trying times to buck the bearish trend.

On the political front, one of the most significant developments was the change in the country’s leadership as Datuk Seri Mohd Najib Razak assumed the post of Prime Minister on April 1. He wasted no time in announcing bold reforms for the financial markets that included scrapping the need for overseas companies and publicly traded businesses to set aside 30% of their equity to Bumiputera investors. It was a move most welcomed by market players, as Bursa Malaysia’s listing guidelines were often seen as a hindrance rather than a catalyst for the market’s free functioning. Come February this year, the Premier is set to unveil the keenly awaited New Economic Model that would emphasise innovation, creativity and productivity.

Since April, there has also been much speculation over which groups will emerge as the new powerful economic players, as several well-known ones had gained greater prominence. This is no surprise given the nexus between business and politics in Malaysia. One major corporate exercise last year was the relisting of Maxis Bhd by its founder Ananda Krishnan. However hard the tycoon tries to keep a low profile, he remains very much in the news – and such was the case for the most part of last year. His companies Astro All Asia Networks plc and Measat Global Bhd were at the centre of speculation as being possible vehicles for Maxis’ relisting. It is expected that Ananda will continue to make headlines this year. Investment banker Datuk Seri Nazir Razak of CIMB Group Holdings Bhd, who is also the younger brother of the Prime Minister, is another personality who will be closely watched. Sometime early this year, a dual listing will take place on the Thailand stock exchange, driven largely by CIMB’s plan to have a bigger slice of the market there.