# Malaysia’s new PM Anwar says first priority is cost of living
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-25
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Malaysia's New PM Anwar Ibrahim Vows to Tackle Cost of
Meta Description: Anwar Ibrahim takes office as Prime Minister with a focus on the economy and unity in a deeply divided Malaysia after a close election.
URL: https://financedigest.com/malaysias-new-pm-anwar-says-first-priority-is-cost-of-livinghtml

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By Mei Mei Chu

KUALA LUMPUR (Reuters) – Malaysia’s newly appointed Prime Minister Anwar Ibrahim said on Friday his primary focus would be on the cost of living as he takes office with a slowing economy and a country deeply split after a close election.

Anwar, 75, was sworn in as premier on Thursday, capping a three-decade political journey from a protege of veteran leader Mahathir Mohamad to protest leader, a prisoner convicted of sodomy and opposition figurehead.

Anwar, who was appointed by Malaysia’s king on Thursday following an inconclusive election, said his primary concern was the [economy and he would have a smaller](https://www.financedigest.com/uk-economy-set-for-smaller-hit-in-2023-than-previously-feared-imf.html "UK economy set for smaller hit in 2023 than previously feared – IMF") cabinet than those of previous administrations.

My priority now is addressing the [cost of living,”](https://www.financedigest.com/indefensible-uks-sunak-under-fire-over-response-to-cost-of-living-crisis.html "‘Indefensible’: UK’s Sunak under fire over response to cost of living crisis") he told a news conference after reporting for duty at the prime minister’s office.

Anwar has yet to [announce any cabinet appointments for his coalition government](https://www.financedigest.com/global-graphchain-project-fermat-announces-distributed-governance-model-featuring-contribution-contracts.html "Global Graphchain Project FERMAT Announces Distributed Governance Model Featuring Contribution Contracts"). He had earlier indicated there would be two deputy [prime ministers](https://www.financedigest.com/britains-queen-elizabeth-will-appoint-new-prime-minister-at-balmoral.html "Britain’s Queen Elizabeth will appoint new prime minister at Balmoral") in his cabinet – one from former ruling alliance Barisan and another from smaller political blocs in Malaysia Borneo.

His appointment [ended five days](https://www.financedigest.com/amazon-to-lay-off-staff-in-u-s-canada-and-costa-rica-by-end-of-day.html "Amazon to lay off staff in U.S., Canada and Costa Rica by end of day") of unprecedented post-election crisis.

His rival, former [prime minister](https://www.financedigest.com/economist-odor-picked-as-slovakias-caretaker-prime-minister.html "Economist Odor picked as Slovakia’s caretaker prime minister") Muhyiddin Yassin, had refused to concede, challenging Anwar to prove his majority in parliament. But on Friday, Muhyiddin said he accepted Anwar’s appointment and his bloc would [play the role](https://www.financedigest.com/why-the-bank-branch-still-has-a-role-to-play-for-consumers.html "Why the bank branch still has a role to play for consumers") of the opposition.

The campaign for Saturday’s election pitted Anwar’s progressive, multi-ethnic coalition against Muhyiddin’s mostly conservative ethnic-Malay, Muslim alliance.

But neither leader won a majority, which [raised the risk](https://www.financedigest.com/boe-flags-risk-of-recession-and-10-inflation-as-it-raises-rates-again.html "BoE flags risk of recession and 10% inflation as it raises rates again") of a standoff exacerbating instability in ethnically diverse Malaysia, which has had three prime ministers in as many years.

The wrangling also risked [delaying policy decisions](https://www.financedigest.com/uks-ofcom-delays-bt-fibre-pricing-decision-after-ceo-remarks.html "UK’s Ofcom delays BT fibre pricing decision after CEO remarks") needed to foster economic recovery.

The constitutional monarch, King Al-Sultan Abdullah, defused the crisis by [appointing Anwar after consultations](https://www.financedigest.com/seneca-investment-managers-appoints-new-business-development-consultant.html "Seneca Investment Managers Appoints New Business Development Consultant") with various politicians.

Anwar had over the course of his career been denied the premiership despite getting within striking distance several times. He also spent nearly a decade in jail for sodomy and corruption after what he [says](https://www.financedigest.com/how-one-boss-kept-his-staff-motivated-for-over-a-decade.html "How one boss kept his staff motivated for over a decade.") were politically motivated convictions.

“Anwar’s tasks have just started, to unite a very polarised and divided nation, based on race and religion,” said former lawmaker and coalition ally Lim Kit Siang.

[Markets surged on Thursday on the end of political](https://www.financedigest.com/the-political-wildcard-what-is-trumps-us-presidential-nomination-doing-to-financial-markets.html "The political wildcard: What is Trump’s US presidential nomination doing to financial markets?") deadlock, but investors will be monitoring how Anwar manages the aftermath of the election.

Malaysian stocks on Friday morning were flat, after 4% gains the previous day, while the ringgit [extended gains](https://www.financedigest.com/oil-prices-extend-gains-with-falling-supplies-in-focus.html "Oil prices extend gains with falling supplies in focus"), up nearly 1%.

TWO-THIRDS MAJORITY

Anwar’s [supporters expressed hope that his government](https://www.financedigest.com/local-government-business-support-getting-worse-report-shows-as-70-of-uk-firms-say-its-not-good-enough.html "Local government business support getting worse, report shows, as 70% of UK firms say it’s not good enough") would avert a return to historic tensions between the ethnic Malay, Muslim majority and ethnic Chinese and Indian minorities.

Anwar’s coalition, known as Pakatan Harapan, won the most seats in Saturday’s vote with 82, while Muhyiddin’s Perikatan Nasional bloc won 73. They needed 112 – a simple majority – to form a government.

The long-ruling Barisan bloc won only 30 seats – the [worst electoral performance for a coalition that had dominated politics since](https://www.financedigest.com/uk-factories-suffer-worst-month-since-may-2020-as-economy-stumbles-pmi.html "UK factories suffer worst month since May 2020 as economy stumbles – PMI") independence in 1957.

Anwar said on Thursday the Barisan and an alliance of parties from Malaysian Borneo had pledged to [support his government](https://www.financedigest.com/employers-and-the-government-should-support-employees-dependency-on-high-cost-credit-says-neyber.html "Employers and the Government should support employees’ dependency on high-cost credit, says Neyber").

On Friday, he said another Borneo bloc had also joined, giving him the [backing of more than two-thirds](https://www.financedigest.com/two-thirds-of-iaea-board-backs-western-statement-pressuring-iran.html "Two-thirds of IAEA board backs Western statement pressuring Iran") of members of the 222-seat parliament.

A [two-thirds majority will allow Anwar’s government](https://www.financedigest.com/nearly-two-thirds-64-of-cisos-see-security-governance-and-compliance-management-as-their-biggest-investment-priority-data-from-network-group-events-shows.html "Nearly two-thirds (64%) of CISOs see security governance and compliance management as their biggest investment priority, data from Network Group Events shows") to amend the constitution. No Malaysian government has held such a majority in the lower [house since](https://www.financedigest.com/birmingham-led-uk-house-price-growth-since-brexit-vote.html "Why has Birmingham led UK house price growth since the Brexit vote?") 2008.

Muhyiddin’s bloc includes the Islamist party PAS, whose electoral gains [raised concern](https://www.financedigest.com/u-s-bank-executives-raise-concerns-over-inflation.html "U.S. bank executives raise concerns over inflation") within the ethnic Chinese and Indian communities, most of whose members follow other faiths.

Authorities have warned of a rise in ethnic tension since the vote on [social media](https://www.financedigest.com/saudi-snitching-app-turns-citizens-into-social-media-police.html "Saudi snitching app turns citizens into social media police") and short video platform TikTok said this week was on high alert for content that violated its guidelines.

Another looming issue for Anwar to deal with is the budget for [next year](https://www.financedigest.com/eu-could-face-gas-shortage-next-year-iea-warns.html "EU could face gas shortage next year, IEA warns"), which was proposed before the election was called but has yet to be passed.

Anwar said he would convene parliament on Dec. 19 for a vote of confidence to [prove his majority in the lower house](https://www.financedigest.com/will-pdr-prove-the-saviour-for-the-uks-housing-shortage.html "Will PDR prove the saviour for the UK’s housing shortage?").

(Reporting by A. Ananthalakshmi, Mei Mei Chu and Rozanna Latiff; Writing by Ed Davies; Editing by Robert Birsel)


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