Malaysian Prime Minister Anwar Ibrahim has unveiled the largest budget in his nation’s history replete with measures aimed at lowering the cost of living through subsidies and direct cash payments, even as his three-month-old administration claims to be trying to narrow the fiscal deficit.
The record 388.1 billion ringgit (US$87.5 billion) spending plan for 2023 was tabled in parliament by Anwar, who is also finance minister, on February 24 with a self-claimed emphasis on good governance and fiscal prudence. But with state polls due in July, the first electoral bellwether for the premier’s “unity government”, analysts and observers also see political dimensions to the budget.
With a projected slowdown in Malaysia’s export-driven economy, the supply bill’s ostensible focus is on shoring up economic resilience in the face of intensifying global headwinds. Economic growth is expected to moderate to 4.5% this year, down sharply from a stronger-than-expected 8.7% in 2022, the highest rate in two decades.
Whether or not Anwar, who came to power with support from former arch-rival the United Malaysia National Organization (UMNO) and others after November polls, can successfully navigate Malaysia’s economy through geopolitically precarious times will be key to his political staying power, say analysts, with the nation having gone through four premiers in as many years.
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Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.
