‘Stop creating problems’ for Anwar, key ally urges Malaysia politicians as unity government instability concerns mount

Instability driven by domestic politicians is undermining Malaysia’s fifth prime minister since 2018, says Sarawak premier Abang Johari Tun Openg

The tumult has weighed on Malaysia’s currency, as credit rating agencies warn political risks and policy gridlock may hamper economic competitiveness

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Malaysia’s Prime Minister Anwar Ibrahim attends an Asean summit in Jakarta last year. Photo: Reuters

Published: 1:46pm, 29 Jan 2024Updated: 2:32pm, 29 Jan 2024

A key backer of Malaysian Prime Minister Anwar Ibrahim’s fragile ruling alliance urged the nation’s politicians to stop undermining the government, arguing the country needs political stability to focus on pressing economic challenges.

Abang Johari Tun Openg – who leads Malaysia’s largest state, Sarawak, on the island of Borneo – said he has told his political colleagues to “stop creating so many problems” for the 14-month-old government. That followed reports that opposition leaders met in Dubai last month to discuss undercutting Anwar, Malaysia’s fifth prime minister since 2018.

“There are many external problems that can affect us,” he said during an interview at his office in Kuching city. “We must be able to look at ourselves and how we can strengthen our own competitive advantage,” he said, adding that “leaders cannot concentrate” if domestic politicians keep creating instability.

Abang Johari Tun Openg threw the support of his state’s ruling coalition, Gabungan Parti Sarawak, behind Anwar when the 2022 elections produced a hung parliament. Photo: Bloomberg

The warning from Abang Jo, as the 73-year-old is popularly known, comes just over a year after he threw the support of his state’s ruling coalition, Gabungan Parti Sarawak, behind Anwar when the 2022 elections produced a hung parliament. GPS – which has 23 seats in Malaysia’s 222-member lower house – had been courted by both Anwar and his rival, Muhyiddin Yassin, after the vote.

“We want a stable federal government regardless of who is in power,” Abang Johari said. Ever since then-Prime Minister Najib Razak stepped down following the 2018 election, Malaysia’s prime ministers have lasted less than two years on the job on average.

Moody’s Investors Service echoed Abang Johari’s concerns about the economic impact of the political turmoil. In a January 16 report, Moody’s said, “Entrenched concerns around the stability of the unity government risks fomenting negative investor perceptions of Malaysia’s political risks and policy gridlock, hampering the country’s longer term economic competitiveness.”

The tumult has weighed on Malaysia’s currency, with the ringgit the worst performing currency since the start of 2023 among emerging markets in Asia. It hasn’t reversed that slide in 2024, falling 2.9 per cent against the dollar this month.

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