"Anxiety is spreading into other Southeast Asian financial markets. The Najib government and investigators have a responsibility to quickly clear up the situation," it wrote.
"If Malaysian politics become mired in instability, it will not be a domestic problem alone. Confidence in Southeast Asia as a whole will also take a hit," it said.
Malaysia is the third-largest economy in the 10-member Association of Southeast Asian Nations, after Indonesia and Thailand. Its gross domestic product grew six percent last year, to US$326.9 billion (RM1,245 billion).
Its per capita GDP exceeds US$10,000 (RM38,089), and it has a broad middle class capable of driving consumption and supporting growth.
"Many consider Malaysia a model for emerging countries," said the journal but added the region could hardly afford additional stress.
"Asian countries' stocks and bonds are under pressure due to multiple factors - from China's slowing economy and sharp stock downturn, to the US Federal Reserve's plan to raise interest rates in the near future," it said.
It also further noted, the weak-performance of Malaysia's currency, the ringgit, remains weak after July 7, where it hit a 16-year low against the dollar.
"The central bank has reportedly intervened in the market to avert a further fall. If such interventions fail, Malaysia could be stuck with not only a depreciating currency but also declining stocks and bonds," it said.
The journal said it’s unlikely there will be a repeat of the 1997 Asian currency crisis. However it added as long as Malaysia is engulfed by political uncertainty, Southeast Asia cannot expect to maintain stable economic growth.