After an indecisive election verdict in which both the coalitions failed to muster up the required numbers, Anwar Ibrahim, leader of the Pakatan Harapan (PH) -- and a Former Deputy Prime Minister from 1993-1998 -- was sworn in as Prime Minister of Malaysia on November 24, 2022.
While the Anwar Ibrahim-led PH won 82 seats, the Perikatan Nasional, led by Muhyiddin Yasin (who served as Malaysia’s PM from March 2020 to August 2021), won 73 seats. After days of uncertainty, Malaysia’s constitutional monarch, King Al-Sultan Abdullah, released a statement regarding Anwar Ibrahim’s appointment as PM on November 24, 2022.
“After taking into consideration the views of Their Royal Highnesses the Malay Rulers, His Majesty has given consent to appoint Anwar Ibrahim as the 10th Prime Minister of Malaysia,” the statement said.
King Al Sultan Abdullah had earlier asked all political outfits to join hands and form a national government, but the PN turned down this proposal. Anwar Ibrahim will, however, have to prove his majority in parliament on December 19, 2022, and needs to muster up support of smaller political outfits in order to form government.
Malaysian Economy
The ASEAN nation needs stability to put the economy back on track – this is likely to be an uphill task. While outlining his priorities, the 75-year-old Anwar Ibrahim said that “My priority now is addressing the cost of living”.
While the GDP for the July-September 2022 period rose over 14% from last year, because of growing domestic demand as well as policy interventions, Malaysia needs sound economic policies.
The new Malaysian PM has proven to be a political survivor and has gone through his share of struggles over the past two decades. There is no doubting the fact, however, that Anwar Ibrahim has an impressive track record in terms of handling of the ASEAN nations economy.
He served as Finance Minister during the Asian crisis of 1997 and played a pivotal role in steering the ASEAN nation out of the crisis and is perceived to be a reformer. Anwar Ibrahim fell out with then PM Mahathir Mohammad in 1998 – who in the recent election lost his parliamentary seat – Langkawi – for the first time since 1969. One of the reasons cited for the strains between Mahathir Mohammad and Anwar Ibrahim was the latter’s economic vision – which had a clear pro-globalisation slant.
The challenges ahead for Anwar Ibrahim as PM
Apart from ensuring domestic political stability, the new Malaysian PM also needs to ensure a pragmatic and balanced foreign policy. In the past, he has been critical of China’s human rights record in Xinjiang and often been labelled pro-west and US due to his economic policies.
In recent years, like other ASEAN countries Malaysia has been trying to strike a balance between China and the West. While commenting on the need for Malaysia to have a balanced foreign policy, the Malaysian PM said, “China is an important neighbor. It is a priority to enhance bilateral relations with China, trade, investments. I will not just leave it as this, I think it needs to be enhanced. Similarly, we need to relate to the United States, with Europe … with ASEAN.”
It is not just Malaysia even other ASEAN nations have been reiterating the need to strike a balance between China and the US. A strong reiteration of this was the tone of the 40th and 41st ASEAN Summit held at Phnom Penh (Cambodia) last month.
While ASEAN countries have differences with China over the South China Sea, they have strong economic relations with Beijing. One of the major complaints against the US has been its inward-looking economic policies – such as withdrawal from the Trans Pacific Partnership – and its inability to strengthen trade ties with ASEAN.
In conclusion, there is no doubt that Anwar Ibrahim’s experience could stand him in good stead in steering Malaysia at a crucial time. Yet, his task is cut out in addressing not just domestic challenges – political and economic – but also dealing with the global geopolitical challenges.
About the author: Tridivesh Singh Maini is a New Delhi-based policy analyst associated with the OP Jindal Global University, Sonipat.
(Disclaimer: The views expressed above are the author's own and do not reflect those of DNA.)
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