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Malaysia
This Week in AsiaPolitics

Explainer | Malaysian PM Anwar builds cabinet amid raft of challenges from economy to US, China ties

  • Anwar has his work cut out as he aims to keep the peace within his ‘Unity Government’ and steer Malaysia forward after years of political turmoil
  • All eyes will also be on how new ‘globalist’ leader handles ties with China, US and key trading partners

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Malaysia’s new leader Anwar Ibrahim during a press conference on his first day at the prime minister’s office in Putrajaya on Friday. Photo: Prime Minister’s Office of Malaysia via AP
SCMP’s Asia desk
Malaysia’s Anwar Ibrahim has finally become prime minister after some three decades of trying. Now, the reformist leader must overcome several immediate and medium-term challenges to keep his job.
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Local commentators have suggested keeping the peace within his “Unity Government” – comprising alliances that were spewing vitriol at each other just days ago – will be priority number one. In a country that has had four prime ministers over five years, it is vital for Anwar, 75, to do his best to see out his five-year term.

Beyond the politics, Anwar also needs to urgently display to global investors his ability to govern. The stocks and Malaysian ringgit have suffered amid the country’s political turmoil stretching back to 2018, and while the market has rallied since his appointment on Thursday, long-term resurgence will depend on policies.

On the foreign affairs front, all eyes will be on how Anwar, praised by commentators as a “globalist”, handles ties with China and the United States, as well as other key trading partners.

Here are the key challenges that lie ahead for Anwar.

Malaysia’s King Sultan Abdullah (right) with newly appointed PM Anwar Ibrahim (left) during the swearing-in ceremony on November 24, 2022. Photo: Pool via Reuters
Malaysia’s King Sultan Abdullah (right) with newly appointed PM Anwar Ibrahim (left) during the swearing-in ceremony on November 24, 2022. Photo: Pool via Reuters

Keeping the peace

Cliched as it may be, Anwar’s government is indeed made up of “strange bedfellows”. With his own Pakatan Harapan (PH) alliance having won just 82 seats, Anwar’s government is backed by Barisan Nasional (BN), the Sabah parties of GRS and Warisan, and the ruling coalition of Sarawak, GPS.

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