Will Malaysia’s PM heed Umno’s call for early polls on the back of better-than-expected economic growth?

Ismail Sabri Yaakob’s Umno party is seeking to capitalise on the economy, and its victories in two recent state elections, to reclaim federal power

Malaysia’s 8.9 per cent growth in the second quarter was driven by improved domestic demand despite rising inflation pressures, the central bank said

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Malaysian Prime Minister Ismail Sabri Yaakob’s Umno party is pushing for early elections. Photo: Reuters

Published: 6:38pm, 12 Aug 2022Updated: 6:40pm, 12 Aug 2022

Malaysia’s economy accelerated at a quicker pace than expected in the second quarter of this year, as the nation braces for possible early elections that are being pushed by Prime Minister Ismail Sabri Yaakob’s Umno party.

The prime minister has faced sustained pressure from Umno to call for a general election this year, as the former ruling party seeks to capitalise on the momentum from victories at two state polls over the past year and reclaim federal power that it lost in a historic 2018 election.

Ismail Sabri – the first Malaysian prime minister not to also be a party president – has given no indication as to whether he will acquiesce to his party’s demands, having said previously that his administration needs to focus on addressing growing inflationary concerns and recovering from the twin economic and health crises caused by the Covid-19 pandemic over the past two-and-a-half years.

The skyline of Kuala Lumpur. Malaysia’s economy grew 8.9 per cent year on year in the second quarter. Photo: AFP

Malaysia’s strong economic performance over the April-June period may leave him with less reason to go against his party’s wishes.

The economy grew 8.9 per cent year on year in the second quarter, driven by improved domestic demand despite rising inflationary pressure, continued recovery in employment and wages and sustained demand for exports, according to Bank Negara Malaysia (BNM).

The stronger-than-expected growth also reflected the normalising of economic activity “as the country moved towards endemicity and reopened international borders”, the central bank said.

BNM governor Nor Shamsiah Mohd Yunus said overall growth and demand for Malaysia’s exports for the rest of the year may be dragged down by the slowing global economy as well as ongoing geopolitical conflicts and supply chain disruptions, but she expects Malaysia’s economy to continue to be propped up by firm domestic demand.

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