Malaysia’s political landscape in 2025

Malaysian Prime Minister Anwar Ibrahim underlined his country’s plans to build trade relationships with China, Russia, and Brazil, at a parliamentary session on February 4.

Anwar’s emphasis on diversifying trade partnerships reflects a strategic move to shield Malaysia’s economy from potential external shocks due to shifting US trade policies. By strengthening ties with alternative markets, Malaysia aims to sustain economic growth and reduce dependency on any single economic bloc.

The strategy could mitigate the impact of possible US trade tariffs under returning US President Donald Trump’s administration. Anwar said waiting for US tariffs “would hurt Malaysia”, highlighting the need for proactive measures in expanding Malaysia’s trade network. 

As of February 2025, Ibrahim’s administration is navigating complex political dynamics, marked by efforts to strengthen international trade relations amid global economic uncertainties, and internal political challenges.

Domestically, Anwar’s government has faced challenges, managing internal coalition dynamics and addressing public concerns over economic policies. The administration said it is committed to anti-corruption initiatives and economic reforms.

Malaysia’s opposition parties are reportedly experiencing internal tensions that could impact national political stability and may lead to restructuring within opposition ranks, according to analysts. 

Two years into Ibrahim’s government, opposition party Perikatan Nasional (PN) is struggling to expand its base, with Bersatu, while the Malay nationalist party led by former PM Muhyiddin Yassin is losing momentum. Internal divisions, corruption charges, and ineffective opposition strategy have weakened PN, and the party has lost ground to the right-wing United Malays National Organisation in recent elections.

PAS, the coalition’s strongest party, is reassessing its ties with Bersatu amid leadership disputes and dissatisfaction with his dominance. PN’s failure to present a coherent alternative has hindered its national appeal, leaving Malaysia with a weaker opposition and deepening political polarisation.