Economy Minister and ally resign from Cabinet, leaving Malaysia’s economic reforms in the air

KUALA LUMPUR – Malaysia’s Economy Minister Rafizi Ramli resigned from the Cabinet on May 28, as promised, after suffering defeat at the hands of Prime Minister Anwar Ibrahim’s daughter at the ruling party’s polls on May 23.

His departure

, to take effect on June 17, will leave a gap at a time when Malaysia’s economic reforms are stalling due to global headwinds.

Datuk Seri Rafizi’s ally, Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad, also announced his exit from the Cabinet effective from July 4,

confirming a report by The Straits Times

.

He cited his failure to defend his position as one of four vice-presidents as the reason for stepping down. Mr Rafizi and Mr Nik Nazmi will be on leave immediately.

In the campaign leading up to Parti Keadilan Rakyat’s (PKR) internal elections, Mr Rafizi had said he would leave the Cabinet should he fail to defend the deputy presidency. Ms Nurul Izzah Anwar took

close to three-quarters

of the vote.

Most of those in Mr Rafizi’s slate were also defeated in the polls, which were marred by accusations of nepotism, money politics and fraud.

“I joined politics to inculcate a new political culture based on accountability and the people’s mandate. My loss at the recent PKR elections means I no longer have the mandate from my party to translate the people’s agenda,” he said in a statement on May 28.

Mr Rafizi noted that the practice in any nation that places importance on democratic principles is for leaders who lose in party polls to make way for the winners to take up positions in government.

Ms Nurul, in addressing allegations of nepotism when announcing her candidacy for the PKR’s No. 2 spot on May 9, had said: “I am not interested in a Cabinet position.”

The 44-year-old former parliamentarian said in response to Mr Rafizi’s resignation: “His ideas will not be forgotten but will be continued, refined and implemented, not because they came from him or myself, but because they are what is best for Malaysia.”

Mr Rafizi’s resignation leaves his former ministry, which is charged with economic planning, in the lurch ahead of the parliamentary tabling of the 13th Malaysia Plan, a five-year development blueprint, which must now be helmed by his replacement less than two months before the federal legislature reconvenes.

“My final duty as economy minister has been completed, with the 13th Malaysia Plan finalised and now set to be tabled at the next Parliament sitting. I hope the Cabinet retains several bold reforms that involve the Education Ministry,” Mr Rafizi said.

Among major projects spearheaded by him were subsidy rationalisation across a broad spectrum of products, especially energy, progressive wages and the

Johor-Singapore Special Economic Zone (JS-SEZ)

. After the planning phase, these initiatives are usually handed over to the relevant ministries.

Investors are still waiting for final blueprints for the JS-SEZ’s nine flagship zones to boost growth, while a closely watched revamp of the entry-level RON95 petrol price is still being fine-tuned.

Mr Nik Nazmi was also a key figure in the retargeting of electricity subsidies before the energy portfolio was handed over to Deputy Prime Minister Fadillah Yusof.

In a press statement late on May 28, the Prime Minister’s Office said Datuk Seri Anwar had received the resignation and leave request letters from the two ministers but had approved only the leave. “Any further decision regarding this matter will be made known by the Prime Minister later,” the statement added.

The PKR president could avoid an immediate reshuffle by appointing acting ministers from existing Cabinet members. By the end of 2025, he will also have to select a new investment, trade and industry minister as Datuk Seri Tengku Zafrul Aziz’s final term as senator ends.

Aside from picking the best people for the respective portfolios, selecting a Cabinet that is representative of the ruling alliance is a difficult juggling act due to the disparate nature of his multi-coalition government of former bitter foes.