• With the 14th General Election looming in Malaysia's near future, an assessment of the political landscape indicates that Prime Minister Najib remains in command of the domestic political situation.
• There are a number destabilizing factors, such as amendments to the Shariah law, rising Chinese investments and the ongoing investigation of state fund 1MDB which could diminish the ruling party's advantage.
• Should political pressures mount, there is a real risk that mischievous elements could feel it necessary to distract Malaysians from the building pressures on Najib. If such distractions involve creating issues of a racial or religious nature, political risks will rise sharply.

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