The unity government under Prime Minister Anwar Ibrahim maintained political stability through coalition compromise, but progress on systemic reforms remained limited. While institutional strengthening advanced through an expanded audit mandate and new parliamentary initiatives, restrictions on freedom of expression persisted, and amendments to the Communications and Multimedia Act raised concerns about increased state control.
Economic performance was positive, with growth in 2023 and 2024, a recovering ringgit and efforts to contain federal debt. Subsidy reforms signaled fiscal discipline, and investment in green technologies and research increased. Nonetheless, structural challenges persisted, including reliance on government-linked companies, regional disparities and declining PISA scores.
Governance outcomes were mixed. Some issues with the East Malaysian states Sabah and Sarawak advanced, while resource disputes intensified. In foreign policy, Malaysia deepened partnerships across Asia and moved closer to China and Russia, including through its planned BRICS membership. The ASEAN chairmanship in 2025 further underscores Malaysia’s foreign policy priorities.
