An analyst has predicted a bleak future for Malaysia’s socioeconomic development under the command of Anwar Ibrahim, claiming that the prime minister has made “very minimal improvement” in his promises of reforms due to his need for social survival through his alliance with the scandal-ridden Umno.
Gareth Leather, a senior analyst with the London-based economic and financial consulting firm Capital Economics, also predicted that Malaysia’s growth would slow down and that there would be “slim” chances of reform under Anwar.
The growth rate of the region’s working time people is set to decrease sharply over the coming century, and along with a deteriorating socioeconomic outlook, the lack of reform progress will hold back the long-term prospects for the nation, he said in an update on Malaysia that was released on the eve of Anwar taking his first anniversary in the top office. “We believe that trend economic growth in Malaysia will decrease from about 4.5% at the moment to 3.5% by 2030,” according to the author.
According to a new view poll released yesterday, the projection also coincided with the government’s approval ratings declining.
Only 50% of respondents, according to Pollster Merdeka Center, were in favor of Anwar’s leadership, down from 68% when he was chosen to lead the coalition government established in response to the hanging parliament following the general election last year.
With 48% of people overall dissatisfied with the federal government and 60% saying the nation was “heading in the wrong way,” the country’s administration was largely blamed for how it handled the economy.
When Anwar first took office last year, there were very small expectations for him, according to Leather’s report, which also stated that the fact that his administration was still in place “exceeded the expectations of some analysts.”
Given his precarious position in the legislature, he stated, “We don’t anticipate this changing any time soon, and we remain pessimistic about the nation’s medium-term prospects.”
He claimed that Pakatan Harapan’s (PH) cooperation with Umno, which lost control over corruption scandals like the 1MDB affair over time, had prevented Anwar from carrying out the reforms he had promised.
These include the need to handle criticism of the nation’s Bumiputera laws, which Leather claimed had harmed other areas in areas like government, financing, and education.
“Anwar and his PH coalition have made program reform a key component of their mission and receive help from Malaysia’s sizable Indian and Chinese minorities.” There is little chance of reformation during this parliament.
Leather also mentioned efforts to strengthen Malaysia’s fiscal status, including plans to eliminate food and energy subsidies and the passage of the Public Finance and Governmental Responsibility Law, which aimed to reduce the expenditure gap. Government debts were among the highest in the region at 70% of GDP.
However, relying on Umno’s aid has made it challenging for Anwar to move forward with the other significant changes he promised upon taking office.
Since taking office, Anwar has accused opposition figures of fraud, and the Malaysian Anti-Corruption Commission has detained and charged many of them, along with their partners.
However, Leather claimed that there had also been “little development” on this front, citing the government’s decision to drop claims against Ahmad Zahid Hamidi, an Anwar assistant.
He continued, “The subsequent decision not to appeal the exoneration of former prime minister Najib Razak in a case of audit tampering related to 1MDB generated more backlash.”
In order to win its help for PH in the wake of the general election, where none of the big alliances were able to secure a simple majority, Anwar had ignored decades of hostility with Umno.
Later, he branded his management as a “unity authority,” using the state media to promote the” Malaysia Madani” phrase.
The assistance with Umno has been defended by government supporters as a necessary concession for maintaining social security.
However, a number of about-turns in political and economic reforms, as well as the contentious choice to end Zahid’s fraud trial, have raised concerns about the alliance state.
This is in addition to the dinars, which is currently the region’s worst-performing money and has reached its lowest level since the Eastern currency problems of the 1990s, and the loss of RM 4.2 billion from the equity market in the first half of 2018.