PM Anwar reshuffles Cabinet in possible last rejig before GE16, after rout in Sabah state polls

KUALA LUMPUR – Malaysian Prime Minister Anwar Ibrahim announced a major Cabinet reshuffle on Dec 16, as he looks to shore up the unity government and consolidate his position ahead of the next general election after the ruling Pakatan Harapan (PH) coalition had a disastrous outing at the recent Sabah state election.

Key appointments among the more than 25 changes announced were Datuk Seri Johari Abdul Ghani – a seasoned UMNO leader and former second finance minister – as the new investment, trade and industry minister; and Parti Keadilan Rakyat’s (PKR) Akmal Nasir as economy minister.

In addition, Democratic Action Party’s (DAP) Steven Sim was named minister for entrepreneur development and cooperatives, and Ms Hannah Yeoh as federal territories minister. 

Among other appointments were Datuk Arthur Joseph Kurup of the United Sabah People’s Party (PBRS) – a component party of the Barisan Nasional (BN) coalition – as natural resources and environmental sustainability minister; and PKR vice-president R. Ramanan as human resources minister.

BN, led by UMNO, is a key partner in Datuk Seri Anwar’s multi-coalition government.

Two incumbent ministers were dropped: federal territories minister Zaliha Mustafa and Datuk Mohd Na’im Mokhtar, Minister in the Prime Minister’s Department for Islamic religious affairs.

Of note was Education Minister Fadhlina Sidek retaining her post despite facing significant public criticism for her perceived slow response to serious school issues like student deaths and bullying.

There are 35 Cabinet-level ministerial posts in total, as well as 30 deputy minister positions.

This rejig may well be the last Cabinet reshuffle by Mr Anwar to strengthen his coalition’s line-up before the next general election (GE16), which must happen by early 2028, after PH took a beating at the Sabah polls, analysts say.

They say the latest line-up has good picks that address voters’ desire for fresh faces, with choices that will please the PH – and by extension, the DAP’s urban Chinese voter base – and Sabahans.

Professor Wong Chin Huat, a political analyst at Sunway University, told The Straits Times: “Generally, it’s a good line-up... promoting younger PKR leaders like Mr Akmal, 39, and responding (positively) to Sabah.”

Political analyst Kamles Kumar viewed the appointments of two new Sabah ministers – PBRS’ Mr Kurup, 43, a BN ally, and Sabah PKR chief Mustapha Sakmud, 56, to be in charge of Sabah and Sarawak affairs – as part of damage control efforts following PH’s poor performance in the 17th Sabah state election.

A main cause of unhappiness in Sabah stems from the long-held claim that the federal government must return 40 per cent of revenue derived from Malaysia’s easternmost state to Kota Kinabalu.

These Cabinet appointments soon after the Sabah polls “signal that East Malaysia remains structurally important within the federal government”, Mr Kamles, an associate director at Asia Group Advisors, told ST. 

At the Sabah state election on Nov 29, the PH coalition won only one seat out of 73, while its ally Gabungan Rakyat Sabah (GRS) swept 29 seats and retained the chief ministership, with Datuk Seri Hajiji Noor sworn in for a second term. 

The DAP, the largest component party in PH, whose candidates are usually a shoo-in for the Chinese-majority seats they normally stand in, was wiped out instead in the recent election in Malaysia’s easternmost state, losing all eight seats that it had contested in, as urban Chinese support nosedived. Thus, PH has now gone from being a key ally propping up the Hajiji administration to a junior player.

Still, the ethnic Chinese community forms the core voter base of PH and will play a crucial role in helping the coalition retain power at the federal level. The DAP has 40 MPs in the federal Parliament, representing the biggest number of lawmakers in the current unity government.

The latest appointments should also improve DAP’s profile, analysts say.

Prof Wong noted that DAP’s Mr Sim and Ms Yeoh were the first Chinese Malaysians to be given the ministerial posts for entrepreneur development and cooperatives, and federal territories, respectively. “Small and medium-sized enterprise owners can now turn to Mr Sim for assistance. And the federal territories portfolio going to a Kuala Lumpur parliamentarian, Ms Yeoh, gives DAP the opportunity to reform KL City Hall,” he told ST.

Before the latest reshuffle, Mr Anwar had four Cabinet posts to fill after a string of resignations.

Datuk Seri Rafizi Ramli and Mr Nik Nazmi Nik Ahmad had resigned as economy minister and natural resources and environmental sustainability minister, respectively, in May after failing to defend their top leadership positions in PKR, which is chaired by Mr Anwar.

In November, then Entrepreneur Development and Cooperatives Minister Ewon Benedick, who is president of the United Progressive Kinabalu Organisation, quit the Cabinet a day before his party exited the PH coalition to contest under its own banner, ahead of nomination day for the Sabah state election. Datuk Ewon’s discontent stemmed from disagreement with the federal government over Sabah’s rights to 40 per cent of federal net revenue derived from the state.

And the post of investment, trade and industry minister had been vacant since early December after Tengku Zafrul Aziz’s second term as senator ended on Dec 2 and he was not eligible for reappointment to the Senate. He is now chairman of the Malaysia Investment Development Authority.

Mr Anwar last made major changes to his Cabinet in December 2023 following a ​dip in opinion polls at the time, amid concerns over the the state of the economy, ​inflation and the slow pace of promised reforms. 

The South-east ‍Asian nation has chalked up steady economic growth and increased foreign investment since Mr Anwar ​took office ​in November 2022, amid a challenging global environment, but his administration has been beset by internal party power plays and mounting public unhappiness over the rising cost of living.