After an emergency proclamation and a suspended parliament in 2021, Malaysia held its 15th general election in 2022. However, these elections resulted in an unprecedented result in which no coalition won enough seats in the parliament to form a government. As concerns grew about the potential for unrest and ongoing instability, Malaysia’s king urged parties to establish a unity government.
A robust economic rebound began in the final quarter of 2021 and continued to late 2022 when rising inflation and global headwinds slowed growth. Malaysia’s economic fundamentals remained solid throughout the review period, with inflation remaining at more modest levels. However, Malaysia’s economy remains caught in a middle-income trap.
The government ratified the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership, which furthers its integration into the global economy and will require some domestic reforms. Additionally, the implementation of the 12th Malaysia Plan, initially scheduled for 2020, now began.
