Malays make up roughly 65% of the population of Malaysia. Government perks favor Malays and other indigenous races to the determent of minorities, who provide an out-sized level of economic activity. Favoritism hurts the Malay's willingness to complete.

These factors have a long-term impact on the economy, by alienating minorities who contribute to economic growth. Those minorities are more likely to move to more favorable countries that value their expertise and economic contributions. … "Favoritism for Malays" has a significant impact, so an analyst should put more weight into it. "Favoritism for Malays" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "Favoritism for Malays" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.