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Economy

Anwar pledges reforms, reaffirms needs-based policies at party congress after electoral setbacks

Parti Keadilan Rakyat president Anwar Ibrahim hit back at accusations of unfairness in allocating funding to opposition-held areas. He also said cooperation with Barisan Nasional at the federal level must be guided by the interests of Malaysians and the country. AYER KEROH, Melaka: Malaysia Prime Minister Anwar Ibrahim has pledged an additional RM1 million (US$245,000) to each of the country’s 222

Source: Channel NewsAsia · August 16, 2026 at 6:57 PM · AI-assisted report

Anwar pledges reforms, reaffirms needs-based policies at party congress after electoral setbacks
Image: channelnewsasia.com

PUTRAJAYA, 17 AUGUST 2026 —

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Anwar Pledges RM1 Million Boost for All Constituencies Amid Electoral Challenges

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AYER KEROH, Melaka — Malaysia’s Prime Minister and Parti Keadilan Rakyat (PKR) president Anwar Ibrahim has announced an additional RM1 million allocation for each of the country’s 222 parliamentary constituencies, including opposition-held areas, as part of efforts to reinforce needs-based policies amid recent electoral setbacks. Speaking at PKR’s party congress on Sunday (Aug 16), Anwar framed the move as a commitment to equitable resource distribution, countering criticism that his administration has unfairly withheld funds from states controlled by opposition coalitions.

The announcement comes as Anwar’s Pakatan Harapan (PH) coalition faces growing pressure following losses in recent state elections, where rival alliances—particularly Barisan Nasional (BN) and Perikatan Nasional (PN)—have consolidated support among Malay voters. “Today, I would like to announce that for each parliamentary constituency, I will top up an additional RM1 million,” Anwar said, though he did not specify whether the funds would be channeled through MPs, government agencies, or other channels. The prime minister acknowledged accusations of bias, particularly from PN-led states like Kelantan, Kedah, and Terengganu, where leaders have alleged that federal funding has been withheld. “They go to Parliament and continue hurling insults. ‘This is a cruel prime minister. He seized all the revenue from Kelantan and gave nothing,’” Anwar recounted. “The reality is that billions of ringgit in additional funding have been provided to address the people’s problems. This has never been done on such a scale.”

Anwar reaffirmed his government’s focus on needs-based policies over race-based affirmative action, a stance that has drawn resistance from some Malay-Muslim groups. While Malaysia’s bumiputera policies, rooted in the 1971 New Economic Policy (NEP), prioritize Malays and indigenous groups in areas like education and equity, Anwar argued for a broader approach to poverty alleviation. “We must have the courage to move forward and do what benefits the poor, the majority of whom are Malay,” he said. “But why should we separate the issue of wealth distribution and poverty from that of poor Chinese, Indians, Dayaks, Dusun Kadazans and others? That is why we put forward that idea. Today, we continue the struggle for everyone.”

The issue of fairness was echoed by PKR vice-president Amirudin Shari, who serves as Selangor’s chief minister. “We are fair to all Malays, Chinese, Indians, Christians, Buddhists and Hindus,” he stated, emphasizing the party’s reformasi struggle as rooted in equitable economic distribution and governance integrity. Anwar also outlined plans to reform state agencies and enterprises, including a forthcoming Cabinet discussion on a new bill to enforce stricter corporate governance standards. He addressed concerns from student activists about the potential repeal of the Universities and University Colleges Act 1971 (AUKU), which critics argue suppresses academic freedom. Anwar assured that no new restrictive laws would replace AUKU, asserting that existing general laws already govern student conduct.

The congress took place against a backdrop of shifting political alliances. While BN remains part of Anwar’s unity government alongside PH, Gabungan Rakyat Sabah (GRS), and Gabungan Parti Sarawak (GPS), tensions have flared in recent state elections. BN and PN collaborated under a so-called Malay unity pact, securing victories in Negeri Sembilan and Johor, where PH suffered heavy losses. PKR contested 49 seats across the three most recent state elections— Sabah, Johor, and Negeri Sembilan—but won only four. Selangor PKR delegate Danish Hairudin criticized BN’s perceived duplicity, stating, “We accepted them as partners because the country needed stability, but political friendship must have limits and dignity. We cannot shake hands in Putrajaya while, on the political battlefield, the same hand stabs us in the back.”

Anwar defended continued cooperation with BN, stressing that pragmatism must guide federal relations despite electoral rivalries. “Even if some of them do not think that way, we must,” he said. “We have to be more rational. There must be wisdom and good judgment.” He maintained a positive working relationship with BN chief and Deputy Prime Minister Ahmad Zahid Hamidi, framing cooperation as essential for national stability and economic growth. “If you ask me, Anwar, what is your choice? I choose stability. I choose prosperity for the people through economic growth. And I choose to continue cooperating with BN and UMNO at the federal level so that these principles can be upheld.”

The congress also marked a leadership transition, with Anwar’s daughter, PKR deputy president Nurul Izzah, taking a leave of absence to pursue further studies. PKR vice-president Saifuddin Nasution Ismail will assume her duties during her absence, while Amirudin will retain his role as PH’s election director. Anwar also announced that Tengku Zafrul Abdul Aziz, a former UMNO member who joined PKR in May 2025, would be granted a “full mandate” to coordinate with the party’s secretariat. Nurul Izzah’s temporary exit raises questions about PKR’s leadership depth as the party seeks to rebuild voter confidence ahead of the next general election.

In her closing address, Nurul Izzah urged PKR to persist in its reform agenda, both within the party and the government. She reiterated calls for AUKU’s repeal and emphasized the need to translate economic growth into tangible opportunities for employment, small and medium enterprises, and marginalized groups, including women and children. Delegates, including PKR vice-president Roland Engan, echoed support for Anwar’s vision, though the party faces the dual challenge of reconciling internal divisions with the demands of a fragmented political landscape.

As Malaysia navigates economic uncertainties and evolving electoral dynamics, Anwar’s latest pledge underscores a bid to reassert PH’s commitment to inclusive governance. Yet the path forward remains fraught with competing interests, as alliances shift and voter expectations evolve. The coming months will test whether the additional funding and reform pledges can translate into renewed public trust—or whether the pressures of coalition politics will further erode PH’s standing.

Related: Prime Minister · Putrajaya

Reporting based on Channel NewsAsia. Figures and claims are subject to revision as the story develops. DomainFork publishes editorial context, not investment advice — see our editorial standards.