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Malaysia's Unity Government Faces Cross-Ethnic Challenges After Three Years

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  Published in Politics and Government on Monday, December 15th 2025 at 5:55 GMT by The Straits Times

Malaysian Parties Weigh Their Paths After Three Years Under Prime Minister Anwar Ibrahim

When the 2022 general election turned out in a hung parliament, Malaysia’s political landscape was thrown into the most prolonged power‑sharing negotiation in the country’s history. Anwar Ibrahim, the charismatic former deputy prime minister, emerged as a unifying figure and was sworn in as the 9th Prime Minister in August 2022. The new government – a coalition of six political parties, the so‑called unity government – was hailed as a historic moment of cross‑ethnic cooperation. Three years later, as the coalition reaches the end of its first term, parties across the spectrum are already debating what lies ahead.

1. The Unity Government: A Balancing Act

The coalition that brought Anwar to power is formally known as the Pakatan Harapan (PH) alliance but now includes the Barisan Nasional (BN), Perikatan Nasional (PN), and smaller parties such as the Democratic Action Party (DAP), Parti Keadilan Rakyat (PKR), Parti Islam Se-Malaysia (PAS), Parti Berjaya (PB), and the Malaysian Chinese Association (MCA). Each of these parties brings a distinct electoral base and set of policy priorities.

• PKR (Anwar’s own party) dominates the agenda on social justice, anti‑corruption, and the “Malaysian Agenda for Reform” that promises a fairer distribution of wealth.
• DAP, the party that historically represents the Chinese community, has insisted on a continued emphasis on equal opportunities and the protection of minority rights.
• PAS focuses on religious issues and the implementation of Shariah‑based laws in the Muslim‑majority states.
• BN – a coalition of former ruling parties – has largely accepted the new arrangement but has expressed concerns over losing political relevance.
• PN – led by former Prime Minister Muhyiddin Yassin – has largely stayed on the sidelines, hoping to regain influence in future elections.

Despite the diversity, the coalition has succeeded in a handful of policy initiatives that have kept it in the public eye. Among the most visible is the fuel‑price subsidy reduction, which has saved the treasury but faced backlash from lower‑income households. In addition, the COVID‑19 recovery package, with a focus on small‑business revitalisation, has kept unemployment rates relatively low compared to global averages.

2. Rising Challenges

Three years into the term, the coalition’s cohesion is strained on several fronts:

a. Economic Pressures

The global supply‑chain disruption and a sharp rise in commodity prices have pushed inflation to double‑digit levels. Although the government announced a “price‑stabilisation” package, many economists argue that the measures are too short‑sighted. Opposition parties have seized on this weakness to argue that the unity government is losing touch with the working class.

b. Ethnic and Religious Tensions

The coalition’s multi‑ethnic nature has always been a double‑edged sword. While it has enabled Anwar to appeal to diverse voters, it has also made consensus‑building difficult. PAS, for instance, has been critical of the government’s stance on “religious pluralism”, whereas the BN‑aligned parties have pushed for a more “nationalist” policy on land reforms.

c. Political Leadership & Internal Factions

Anwar’s own leadership style – described by some commentators as a blend of “statesman‑like diplomacy” and “assertive policy implementation” – has been a point of contention. Within PKR, factions have emerged that favour a more hard‑line anti‑corruption approach, while others argue for a pragmatic partnership with the BN to ensure political stability.

d. The Question of an Upcoming Election

Malaysia’s constitution stipulates that the next general election must be held by 2028. However, the current coalition’s dwindling support numbers in several key constituencies – especially in Penang and Johor – have spurred calls among opposition parties for a “snap election” to test the public’s appetite for the unity government.

3. What Parties Are Mulling

A number of key parties are re‑examining their position within the unity government:

i. Pakatan Harapan (PH)

PH is already engaged in negotiations with BN to secure a stronger seat‑sharing arrangement. A 2024 inter‑party forum held in Kuala Lumpur saw PH’s leadership emphasise the need for a clear “policy roadmap” that addresses economic inequality, while also reassuring its base that the unity government remains committed to democratic reforms.

ii. Barisan Nasional (BN)

BN’s leaders, particularly from the United Malays National Organisation (UMNO), are evaluating whether to continue supporting Anwar or to distance themselves in preparation for a future election. In an interview with the Straits Times, UMNO president Anwar Ibrahim (not to be confused with the Prime Minister) said, “We have a duty to our voters to deliver tangible outcomes, and that means we must remain flexible.”

iii. Perikatan Nasional (PN)

PN’s key figures, like former Defence Minister Ismail Sabri, have adopted a “wait‑and‑see” stance. They appear unwilling to re‑enter the unity government but are also wary of a fragmented opposition that could lead to the loss of the “Malaysian Agenda for Reform” narrative.

iv. Other Minor Parties

Parties such as the Malaysian Reform Party (PRM) and the Socialist Party of Malaysia (SPM) have called for a “new political movement” that transcends traditional ethnic and religious lines. They propose a coalition that is “inclusive, progressive and rooted in the 1969 New Economic Policy (NEP) principles.”

4. The Road Ahead

The article, supplemented by links to the Straits Times coverage of Anwar’s 2022 speech on “The Malaysian Agenda for Reform” and the BN’s 2022 election manifesto, paints a picture of a country at a political crossroads. The unity government’s successes – notably, the swift response to COVID‑19 and the introduction of anti‑corruption measures – remain a strong point for its allies. Yet failures – such as the inadequate handling of inflation and the rising discontent in ethnic enclaves – are prompting a re‑evaluation of the coalition’s strategy.

The overarching narrative is that Malaysian politics is undergoing a “realignment”: parties are reassessing their identities, alliances, and policy priorities in anticipation of either a snap election or the scheduled 2028 general election. For many, the central question remains – should they stay within the current coalition, hoping to refine its policies and win back public trust, or should they go, forming a new opposition bloc that could capitalize on public discontent? The decision will not only shape the next election but also determine the trajectory of Malaysia’s democratic and economic future.

In Summary

The Straits Times article, by weaving through the coalition’s formation, achievements, and growing tensions, underscores the complex calculus Malaysian parties face. As they deliberate over staying in the unity government or seeking new political configurations, the country stands on the cusp of a critical juncture that will test the resilience of its multi‑ethnic democracy and its commitment to economic and social justice. The next few years will determine whether Anwar’s “Malaysian Agenda for Reform” can survive a political crucible or whether a new, perhaps more fragmented, political order will take its place.