Malaysia's political crossroads: Navigating challenges post-GE15

TWO years ago, Malaysia found itself at a crossroads following the 15th General Election (GE15). The election resulted in a historic hung parliament, with no coalition achieving the necessary plurality of seats to form a government. This stalemate brought the nation to a critical juncture, prompting the Yang di-Pertuan Agong to call for political compromise. His Majesty urged all parties to unite in the interest of national unity and stability.

However, Perikatan Nasional rejected the King’s plea for collaboration, paving the way for the formation of a Unity Government. This coalition included Pakatan Harapan, Barisan Nasional, Gabungan Parti Sarawak, Gabungan Rakyat Sabah, and several smaller parties. This alliance marked the beginning of a new chapter for Malaysia—a period defined by cautious optimism and a collective yearning for political stability after experiencing four prime ministers in just five years.

Unity Government's promising start

The Unity Government's ability to secure a two-thirds majority in Parliament, bolstered by defections from Perikatan, was a pivotal moment. It not only provided the government with legislative strength but also generated hopes for transformational leadership. After years of political infighting, Malaysians envisioned a government capable of delivering meaningful reforms and fostering stability.

Nevertheless, the leadership of Prime Minister Datuk Seri Anwar Ibrahim and his coalition partners has understandably adopted an incremental approach. The scars of Pakatan Harapan’s first stint in power, which collapsed after just 22 months, remain fresh. An overzealous reform agenda, many feared, could once again destabilise the government. With the mantra “It’s the economy, stupid” serving as a guiding principle, the Unity Government focused on addressing pressing economic concerns.

Economic achievements: Signs of progress

In the past two years, Malaysia has seen encouraging signs of economic improvement. Gross Domestic Product (GDP) growth in 2023 exceeded expectations, buoyed by a strong recovery in tourism and robust export performance. The government has also successfully maintained inflation at manageable levels, despite global economic uncertainties. Unemployment dropped to its lowest point since the pandemic, reflecting a resilient labour market.

However, significant challenges remain. Structural reforms to improve Malaysia’s economic competitiveness have been slow. Subsidy rationalisation, a long-discussed but politically sensitive issue, remains unresolved. Moreover, the reintroduction of the Goods and Services Tax (GST), a move widely seen as necessary to replenish government coffers, has been delayed due to fears of public backlash. These are critical issues that require urgent attention if Malaysia is to achieve long-term fiscal sustainability.

A global perspective: Lessons from 2024's political landscape

As Malaysia reflects on the Unity Government's performance, it is instructive to examine global political trends in 2024. Celebrated global affairs commentator Fareed Zakaria has noted that this year marks the first time in modern history—excluding Narendra Modi’s NDA Government in India, which returned with a reduced majority—that no incumbent government or governing party has been re-elected. This phenomenon underscores a growing impatience among electorates worldwide, who now demand more than just rhetoric from their leaders.

In the United Kingdom, Keir Starmer’s Labour Party, once seen as a beacon of hope for progressive politics, has suffered a dramatic plunge in popularity, raising questions about its ability to meet the expectations it once inspired. Similarly, Germany’s “traffic light coalition” of Social Democrats, Greens, and Free Democrats has seen its support collapse amid rising dissatisfaction over economic stagnation and internal bickering.

Meanwhile, populist leaders have been making inroads across Latin America, Africa, Asia, and Europe. The resurgence of far-right movements in countries like Spain and Italy, alongside the unexpected electoral success of anti-establishment leaders in Argentina and Kenya, signals a growing disillusionment with traditional political elites. These developments serve as a warning to established governments: voters are increasingly willing to embrace unconventional alternatives when their needs are unmet.

Complacency is not an option for Anwar's government

For Malaysia's Unity Government, these global trends serve as a cautionary tale. The meteoric rise—and subsequent fall—of political movements worldwide demonstrates that no government is immune to the winds of change. In the United States, Donald Trump’s recent political resurgence exemplifies the topsy-turvy nature of modern politics. Written off as a political pariah in 2021, Trump has staged a remarkable comeback, positioning himself as the defender of the working class and remade the Republican Party in the process.

Closer to home, Perikatan could mount a similar Trump-esque challenge. The coalition’s performance in Malay-majority areas serves as a reminder that it remains a potent force capable of exploiting any weaknesses in the Unity Government’s governance.

Looking ahead: The road to 2025

As the Unity Government embarks on its third year, the challenges ahead are significant, and the stakes could not be higher. To maintain legitimacy and public support, the administration must move beyond cautious incrementalism and embrace more ambitious reforms. A decisive approach is required to address Malaysia’s pressing issues and fulfil the expectations of its citizens.

One of the government’s primary focuses must be on structural reforms. Long-standing issues such as subsidy rationalisation and tax reform need to be tackled head-on, even if these measures risk short-term political unpopularity. A restructured subsidy system and the potential reintroduction of the Goods and Services Tax (GST) could provide the fiscal stability necessary for sustained growth. Bold steps in this direction will demonstrate the government’s commitment to ensuring the nation’s economic health.

Equally important is the implementation of inclusive policies that equitably distribute the benefits of economic growth. Addressing inequality and ensuring that every segment of society feels the impact of progress is crucial to maintaining social cohesion.

Transparency and accountability must also remain high on the government’s agenda. Efforts to combat corruption and promote good governance will bolster public trust, which is essential for sustaining political stability. By demonstrating integrity at all levels of leadership, the Unity Government can distinguish itself from its predecessors and reinforce confidence in its ability to govern effectively.

Lastly, maintaining political stability within the coalition is paramount. Strengthening intra-coalition unity and addressing grievances among partners will be critical to avoiding the missteps that led to the collapse of the Pakatan Harapan 1.0 government. Open communication, compromise, and a clear vision for the future will help the coalition weather challenges and govern cohesively.

These priorities, pursued with determination and clarity, can ensure that the Unity Government not only survives but thrives, setting Malaysia on a path toward lasting stability and progress.

The views expressed here are solely the writer's own.