Business Monitoring International Research (BMI) believes that former Selangor menteri Besar Muhammad Muhammad Taib's return to Umno will be a boon for BN.

Based in Singapore and part of the Fitch Group, BMI said Muhammad is still an influential figure and would help BN strengthen its position in Selangor during the next general election.

"Furthermore, Umno's cordial welcome of Muhammad could also pave the way for other politicians to return to the party.

"The return of Muhammad could also suggest a degree of discontent within the opposition, which could work to BN's benefit.

"We thus believe that political risks are likely to remain low, and that the government will continue to seek to consolidate its position, boding well for the business environment," BMI said in a report today.

Muhammad, popularly known as Mat Taib, was received back into Umno's fold with much fanfare on Sept 17. However, critics believe that he is a spent force and pointed out that he has a tainted background.

The report said Muhammad's comeback from relative obscurity was also seen as indicative of "discontent" and "weakness" in the opposition coalition Pakatan Harapan, BMI said.

This "weakness," the firm added, is exemplified by the "persistent bickering" among factions in Harapan's component parties, chiefly PKR, over cooperation with PAS.

BMI also predicted that the opposition's disarray would result in BN making inroads into PAS stronghold Kelantan, as it claims that voters in the state are more concerned about their economic welfare than religious issues.

"In addition, Parti Pribumi Bersatu Malaysia (Bersatu) or Amanah could split the opposition vote, to the benefit of Umno," BMI said.

This disarray, the research firm added, contrasted with Prime Minister Najib Abdul Razak consolidating his position by shoring up Umno's support among key demographics, especially the civil service and Felda settlers.

Based on its overall analysis of the political situation, BMI noted that political risks in the country were likely to remain low.

The firm said it was maintaining the score of 75.6 (out of 100) in terms of Malaysia's short-term political risk.

The score was downgraded earlier this year, from 76.9 in 2016, which BMI said was due to "uncertainty surrounding the timing of the elections."