Malaysian PM announces $4.6 billion boost to share market

The demonstration was organised by figures in the ruling United Malays National Organisation (UMNO) in response to massive street rallies last month calling for Prime Minister Najib Razak’s resignation over a financial scandal. But the rally is also being seen as a challenge to the country’s Chinese- and Indian-origin residents, who participated in large numbers in an anti-Najib rally on August . 29 and 30.

Malaysian authorities had been concerned that Wednesday’s rally would become racially charged, but allowed it to proceed anyway, warning protesters against carrying banners or posters with sensitive racial overtones.

“I am here to defend Malay dignity and dominance”, said Rahamah Abdul Majid, one of the protesters.

The vast majority of those marching in Kuala Lumpur on Wednesday were young ethnic Malay men wearing UMNO red, with some carrying banners and shouting slogans such as “Long live the Malays”.

Yet, regardless of what the “red shirts” say, some of the strongest calls for Najib’s ouster have come from fellow Malays, and there are clear signs of splits in UMNO.

“We have agreed to disagree as there were many views presented, with some raising their worries while others objected to the rally, saying that Sept 16 is not a suitable date to hold a gathering”. Riot police had to use water cannons to disperse the crowd.

Thousands of people are attending a rally in Malaysia’s capital, Kuala Lumpur, in support of the government.

On Tuesday, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi warned those taking part in the rally to stay away from racial sensitivities or face action.

Meanwhile, the government will also pump an additional 20 billion ringgit into ValueCap, a state-owned fund established in 2002 to “support undervalued shares and stabilize the equity market”.

Najib said that the government will also take measures to further promote tourism, including adding an allocation of 80 million Malaysian ringgit (about 18.5 million dollars) for intensified promotional activities in selected markets, such as the ASEAN countries, China and India.

Najib is fighting to shore up support for his leadership, after becoming the focus of allegations of graft and financial mismanagement at indebted state fund 1Malaysia Development Bhd (1MDB).

Notable businesses under Khazanah include CIMB Group, a leading lender that derives about 40% of its revenue outside Malaysia; Axiata Group, a telecommunications company with substantial market shares in the region; and Tenaga Nasional, the state power company, which is involved in electricity and water supply projects in Saudi Arabia. The country’s antigraft agency said the money in Mr. Najib’s account was a donor contribution that originated from the Middle East. The donor wasn’t specified. It won in 2013, but lost the popular vote for the first time to an opposition alliance.