QUESTION THREE [25] It has been a challenging time for Malaysian investors. The coronavirus crisis has taken a swipe at economic growth, sovereign debt is rising, and the political landscape is in flux. This follows then-prime minsiter Mahathir Mohamed's snap resignation in February and a factional tug of war that has seen current PM Muhyiddin Yassin, a Malay nationalist, gain the upper hand to become prime minister after pulling out of the Pakatan Harapan coalition to form a new alliance. (Malaysia is a parliamentary democracy with a federal constitutional monarch, the Yang di-Pertuan Agong, as head of state. This monarch is chosen for a five- year term from among their own number by the nine hereditary rulers of Peninsular Malaysia.) At the same time the country is struggling with the impact of the virus causing global recession, exacerbated by delayed government policymaking, including the postponed decision on a proposed Kuala Lumpur-Singapore high-speed rail project now that the costs are an even bigger stumbling block. The majority of political risk indicators have been lowered too, including information access/transparency, institutional risk and government stability. Utilising the Malaysian example, analyse the Malaysian political system as well as the concept of political risk, delineating the various options available to investors in Malaysia in the above situation. END OF QUESTION PAPER