9-8-2023 (KUALA LUMPUR) As Malaysia’s state polls approach, analysts weigh in on the impact of Anwar Ibrahim’s economic policies amidst criticism. While the opposition views the elections as a referendum on the unity government, experts believe that regardless of the results, the government’s economic agenda will remain intact.
Ahmad Farizul, a 38-year-old voter from Kuang, Selangor, closely follows the political landscape and attends numerous political rallies during the campaign period. As a self-proclaimed fence-sitter, he remains open to voting for any coalition or independent candidate.
Attending rallies, Farizul noticed a recurring theme among politicians from both sides of the political spectrum – the rising cost of living. Each party pledges to address this issue by creating new jobs, reducing inflation, and increasing incomes. However, he highlights that the rhetoric seems strikingly similar, with each side claiming to be better and cleaner than the other.
Economic concerns have taken center stage in the campaigns of both the unity government and opposition coalitions. Inflation and the cost of living have prompted the focus on economic issues. However, political observers and economists argue that the unity government can continue implementing its economic policies regardless of the election outcome.
Six states, including Selangor, Kelantan, Terengganu, Negeri Sembilan, Kedah, and Penang, will hold state assembly elections on August 12. Kelantan, Terengganu, and Kedah are under the rule of the opposition coalition, which comprises Parti Islam Se-Malaysia (PAS), Parti Pribumi Bersatu Malaysia (Bersatu), and Parti Gerakan Malaysia (Gerakan). Selangor, Negeri Sembilan, and Penang are governed by the Pakatan Harapan (PH) coalition, which leads the current unity government. Notably, PH is collaborating with former rivals Barisan Nasional (BN) in these polls, following a hung parliament in the federal elections eight months ago.
The chairman of the opposition coalition, Muhyiddin Yassin, has repeatedly criticized the unity government during his campaign. He claims that the government has failed to take sufficient action in stimulating the economy and assisting people in coping with the rising cost of living. Muhyiddin attributes business closures, the depreciating ringgit, and the raising of the overnight policy rate (OPR) as burdens imposed by an incompetent government. He goes as far as labeling the government a “kakistocracy” – a Greek term meaning a government run by the least suitable individuals.
In response, the Perikatan Nasional (PN) coalition, led by Muhyiddin, released its Selangor manifesto, promising various measures to tackle economic challenges. PN aims to create 100,000 jobs and attract more investments, particularly in Selangor, which contributed 25.5% of the national GDP last year.
On the other hand, Anwar Ibrahim, the leader of PH, introduced the Madani economy framework in July, envisioning Malaysia as an economic leader in Asia. The framework aims to address the country’s economic issues, including high costs, low wages, and low profits, while enhancing competitiveness and ease of doing business. However, former Selangor chief minister Azmin Ali expresses concerns about the weak ringgit hindering economic growth. He believes that expensive imports, particularly intermediate goods and machinery, are affecting the economy negatively.
As the state polls draw near, the battle continues between the unity government and the opposition coalition. While economic policies remain a hotly debated topic, experts argue that the election results are unlikely to significantly impact Anwar’s agenda.
