Analyst suggests Malaysia state elections present a setback for Anwar’s government

Malaysia’s closely watched state elections were seen as a setback for the ruling coalition government, according to a political analyst from a risk consultancy.

The polls, held in six states on Saturday, resulted in a split between the ruling and opposition coalitions, with each retaining control of three states. However, the conservative opposition coalition made significant gains in popularity among voters.

The elections served as a first test for Prime Minister Anwar Ibrahim’s coalition and unity government that came to power in November. It is important to note that the results will not directly impact the Malaysia leader’s parliamentary majority.

“The setback lies in their failure to win back key Malay support in some of the states by introducing good governance, as they have been claiming,” said Adib Zalkapli, a director with political consultancy Bower Group Asia, during an interview with CNBC’s “Squawk Box Asia”.

“The same scenario occurred last November, where the coalition failed to secure crucial Malay votes. It has happened again.”

Anwar’s progressive Pakatan Harapan coalition and its ally Barisan Nasional retained Selangor, Negeri Sembilan, and Penang, as confirmed by the official results from the Election Commission.

The opposition Perikatan Nasional coalition, led by former Prime Minister Muhyiddin Yassin and supported by a conservative Islamic party, retained Kelantan, Kedah, and Terengganu. The opposition was able to build on the progress it had made among the country’s majority ethnic-Malay Muslims.

The rise of a strong opposition in Malaysia reflects the maturing process of the country’s democracy, according to Zalkapli.

“Perikatan Nasional, consisting of experienced former leaders and prime ministers, has formed a formidable coalition to challenge the federal government,” he said.

The opposition’s positioning as a fresh political party appealed to many young voters. Additionally, their Islamic appeal, especially among young Muslim voters who are becoming more religious, should not be underestimated.

Anwar stated at a press conference after the polls that the government remains strong and urged all parties to accept the people’s decision.

“This is the time for everyone, for all the parties, whether they win or lose, to work together to protect national peace, raise the dignity of the country, and concentrate on developing Malaysia,” he said.

Since coming to power, Anwar has prioritized economic reforms. The recent polls offered a silver lining for his coalition government, as they maintained the political status quo.

“With the state elections concluded, Anwar is now free to potentially push his reform agenda,” said Zalkapli. “He has four years until the next election and no imminent political tests.”