Retention and Limitations in 2023

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In 2023, Malaysia’s Prime Minister Anwar Ibrahim’s Unity Government faced an uncertain mandate, polarized political climate, and state government elections. Despite a more secure position, Anwar will face an increasingly impatient electorate in 2024. The November 2022 general election did not yield a clear-cut majority to any grouping or coalition, leading to Anwar’s appointment and the disparate nature of the ruling grouping.

Despite initial measures to bolster his mandate, there was little tangible policy outcomes. Anwar did not leverage his time in opposition to develop a concrete plan of action, and many experienced cabinet members from the first Pakatan Harapan (PH) administration were not reappointed.

In the latter half of 2023, policy frameworks like the Madani Economy framework, New Industrial Master Plan 2030, and 12th Malaysia Plan Mid-Term Review were implemented. However, much of the substance of these plans was generated by civil servants with input from line agencies and did not directly align with Malaysia Madani’s lofty commitments to concepts such as respect, care, and compassion.

Although the unity government secured a two-thirds majority in parliament, Anwar has been aware of its limited traction among Malay voters. He has made several moves that have disturbed PH’s largely urban voter base, such as increasing the budget for the Department of Islamic Development, proposing the expansion of Sharia courts, and meeting hard-line clerics.

The Malaysian government has made some progress in governance reforms, including establishing question time for the prime minister, passing a Fiscal Responsibility Act, and strengthening the role of parliamentary committees. However, the government has failed to separate the portfolios of the prime minister and finance minister, and provide equal amounts of constituency development funds to Opposition MPs. Critics have also criticized the use of measures like the Internal Security Act and the Communications and Multimedia Act to suppress dissent.

Anwar’s anti-corruption stance was questioned when Deputy Prime Minister and UMNO President Ahmad Zahid Hamidi received a ‘discharge not amounting to acquittal’ on corruption and criminal breach of trust charges. The government also prepared for six simultaneous state government elections in August, framed as a referendum on the unity government.

Malaysian President Anwar Abdülkar has survived an electoral test, with no major polls on the horizon and five PN MPs supporting his administration. The outgoing monarch has stated he will not entertain moves to topple the incumbent administration, and the incoming one has taken a firm stance against political instability. Economic concerns are a major concern for Malaysians, with nearly four out of five voters citing them as their top priority.

The unity government has limited fiscal room, and Malaysia’s oil reserves have decreased in proportion to state revenue. Anwar’s popularity has declined throughout 2023, hovering just above 50%. His three immediate predecessors also lost popularity during their first year in power, as their administrations were toppled soon after. Anwar needs to address cost of living issues, articulate a clear vision for the country, and leverage his numbers in parliament to pass measures to improve the country’s institutions to cement his legacy.