BUSINESS and investment in Thailand and Malaysia have been slow in the first half of 2023. To be fair, growth across the entire region has been less than hoped for, but in both countries, there were more than economic factors at play. After indecisive election results, questions about political stability clouded prospects.

The Malaysian elections last November produced no clear winner even if a “unity government” was cobbled together under Prime Minister Anwar Ibrahim. Many looked to elections in six states as something of an early referendum on whether the new combination might be durable. For Thailand, the May 2023 election results clearly favoured pro-democracy parties over those aligned with the military and establishment. Yet, efforts by the biggest vote winner – the Move Forward party – were stymied.

Now, state elections in Malaysia are over, and there is a government in Bangkok, endorsed by Parliament, Senate and the King. Are conditions right for these two neighbours to focus on growth? Or are the politics still unstable?