No disguising the fundamentals.

ANWAR Ibrahim, 1947-; ABDULLAH bin Haji Ahmad Badawi, Datuk, 1939-

The article discusses the release from prison of Anwar Ibrahim, former deputy prime minister of Malaysia, and its economic and political impact in Malaysia as of September 2004. It can best be described as a one-day wonder. Malaysia's markets initially surged on the news that the imprisoned former deputy prime minister Anwar Ibrahim had been unexpectedly released. The Kuala Lumpur Stock Exchange rose from 828 to 844 points in the day following the announcement. Average Malaysian bond spreads stayed flat. But the buzz didn't last. The following day the KLSE had dropped back to 838 points once more. While in theory Anwar's release is good news for the markets and for the country--most analysts agree that the country's fundamentals, both political and economic, remain the same. The unexpectedness of Anwar's release, after several previous failed appeals, does signal to international investors that the deep-seated corruption perceived to be present in some layers of Malaysia's government may be softening. But it will take more than a symbolic gesture by the country's new leader, Abdullah Ahmad Badawi, for real change to be felt. And since Anwar was released because Malaysia's federal court had decided that the key witness in his sodomy trial was probably lying--it dealt an even bigger blow to the credibility of the legal system under previous ruler Mahathir Mohamad.