Former deputy prime minister Muhyiddin Yassin said today there was more than just the smog from Indonesia hanging over the country as Malaysia was also enshrouded in 'political haze'.

Muhyiddin said this in reference to what he described as several political issues plaguing the country that are adversely affecting the economy.

"The issue is that there is distrust in Malaysia, particularly in politics concerning issues of transparency and integrity.

"This has affected confidence. Even in the business field, there is no confidence in our business (environment), for it is being shrouded by political haze on top of the bad haze we are facing right now," he said.

Muhyiddin said this when addressing a high tea event organised by the Malay Economic Action Council (MTEM) in Kuala Lumpur.

He said the notion that the country's political fundamentals would not affect the economy was wrong.

If the current political issues were not resolved, the current depressed economic situation would be prolonged.

"There are political implications and I am concerned that the economy will also take longer (to recover)," Muhyiddin said.

Accepted his fate

He did not specify what be meant by 'political issues' but it was apparent he was referring to Prime Minister Najib Abdul Razak's handling of 1MDB, which is struggling to repay its US$11 billion debt amid claims that funds had been siphoned off.

Muhyiddin was dropped as deputy prime minister in a cabinet reshuffle by Najib in July for his critical stance on Najib's handling of the troubled fund.

Addressing this, Muhyiddin said he accepted the fate that had befallen him, which he said was God's will.

"Never mind, I accept what has been decided. The decision or matter was fated and I accept it. As a Muslim, know qada' and qadar (fate and destiny)," he said.