It is unfortunate that Malaysia shoots into fame through these unhappy events. While the manner Malaysia handled the MH370 incident in the initial stage was a complete public relations disaster, so far there has not been much media backlash from the Kim incident. However, the Kim incident did expose major weaknesses in Malaysia’s public and national security. Since the Kim incident was first made public by South Korea, it not only shows that North Korean agents are operating in Malaysia, there are also South Korean agents and agents from who knows how many countries who are capable of carrying out activities that may harm Malaysia’s national interests, operating in Malaysia. Given that guns are now surprisingly easily accessible, the concerns over security could adversely affect investor confidence and hence investment in Malaysia.
Perception plays an important role in determining investor behaviour. In a world where news travel far and wide and at great speed, Malaysia needs to manage her public safety and security carefully and effectively.