Better approval ratings for Anwar and his government at mid-term mark, but can they keep it up?

CNA

25-06-2025

KUALA LUMPUR: Following a positive review from Malaysians at the halfway mark of Prime Minister Anwar Ibrahim's current term, analysts say the government should continue to communicate sensitive policies well and push for wage increases as the next general election draws closer.
Public sentiment towards Anwar and his government improved in independent pollster Merdeka Center's latest survey released on Monday (Jun 23) on his government's performance.
Anwar's approval rating was 55 per cent, a substantial increase from his lowest recorded rating of 43 per cent in June last year and a slight increase from the 54 per cent in December 2024.
The federal government's approval rating of 50 per cent marks an improvement from the 40 per cent in June 2024, but a slight dip from the 52 per cent last December.
Survey participants who think the country is heading in the right direction rose to 43 per cent, compared to 29 per cent in June 2024, and 42 per cent last December.
Half of the 1,208 voters surveyed believed the country was headed in the wrong direction, lower than the 61 per cent a year ago and 51 per cent last December.
Merdeka Center conducted its latest survey between May 12 and 23.
'Several factors may contribute towards this positive outlook – Malaysians are beginning to feel that the country is finally on steadier ground, political turbulence has eased and Anwar now leads a government with a two-thirds parliamentary majority,' Merdeka Center said in its press release on the survey results.
Anwar has now served longer as prime minister than his three immediate predecessors – Mahathir Mohamad (in his second stint), Muhyiddin Yassin, and Ismail Sabri Yaakob.
'Despite what detractors say, Anwar is doing more things right than otherwise, but the public mood remains tied to how they feel their finances are coping with meeting their everyday needs,' Ibrahim Suffian, co-founder of Merdeka Center, told CNA.
'I think people are giving Anwar a positive review on his efforts in terms of political stability, investments and international profile even if the lived experiences of people are taking more time to change.'
Analysts agree that sustaining this support in the second half of the unity government's term will heavily depend on its ability to manage economic issues, particularly subsidy rationalisation, and effectively communicate its policies on cost of living and wage growth.
INFLATION IS MOST IMPORTANT ISSUE TO VOTERS
In Merdeka Center's 'National Survey Highlights May 2025' report, 73 per cent of Malaysian voters identified economic issues as the biggest problem facing the country.
A-third of participants cited inflation as one of two current issues that are most important to them, followed by 13 per cent who cited enhancing economic growth.
The three issues of corruption, job opportunities and preservation of Malay rights/fair treatment of all races were each cited by 7 per cent of respondents, rounding up the top five issues that concern voters.
Political scientist Syaza Syukri of the International Islamic University Malaysia (IIUM) told CNA the approval ratings and public sentiments towards the government were slightly unexpected, but could serve as the motivation that the government needed.
'Anwar, specifically, has been on the defensive in the past few months. To know that the people's approval saw an uptick should give him the encouragement to continue with his agenda for the next two years,' she said.
In the past week, youths burned a caricature of Anwar during an anti-corruption rally in Kota Kinabalu, Sabah. In response, Anwar said dissent is crucial in a democratic country and told the higher education ministry and Universiti Malaysia Sabah not to take action against the students for protesting.
Merdeka Center's poll numbers also came as a surprise to Ahmad Fauzi Abdul Hamid, a political science professor at Universiti Sains Malaysia (USM).
The numbers were good and meant there was a rise in the support for Anwar, especially among the Malay Muslim electorate who are seen as the most discontented with his leadership, he said.
Merdeka Center's poll from November 2023 found only 23 per cent of Malays believing the country was heading in the right direction. The figure is 37 per cent in the latest survey.
However, this might also be tied to how the opposition is seen by some as 'incompetent' and divided, he told CNA, referring to the Perikatan Nasional coalition made up of Parti Pribumi Bersatu Malaysia, Parti Islam Se-Malaysia (PAS), and Parti Gerakan Rakyat Malaysia (Gerakan).
That said, Ahmad Fauzi noted the survey's timing may not have adequately captured public sentiment towards the recent divisive Parti Keadilan Rakyat (PKR) elections, in which Anwar's daughter, Nurul Izzah, unseated Rafizi Ramli from the deputy presidency. Results of the PKR leadership elections were announced late on May 23.
'People assumed Anwar was directly involved in Nurul Izzah's elevation in the party. If that was taken into account, there might be a slight dip in the numbers,' Ahmad Fauzi said.
'Many fence sitters might choose not to vote for PKR and (the Pakatan Harapan coalition) in the next elections. It doesn't mean they will vote for Perikatan Nasional but may choose not to vote at all,' he added.
Ahmad Fauzi also credited Anwar's strong international presence, saying Malaysia's global standing has been raised to a level not seen since Mahathir's early days as prime minister in the 1980s.
In its press release, Merdeka Center said Anwar has enhanced Malaysia's global profile. He hosted China's President Xi Jinping visit to Malaysia recently and is chairing the Association of Southeast Asian Nations (ASEAN) in 2025.
These efforts, along with securing new investment deals, fostering trade cooperation, and leading Global South initiatives, have significantly bolstered his image at home, said Merdeka Center, seen as one of the country's reliable pollsters.
Anwar has generally maintained a positive approval rating since he came to power in November 2022.
He started with an approval rating of 68 per cent but this dropped to 50 per cent at his one-year mark, largely driven by concerns over the economy and how it affected livelihoods, Merdeka Center said at the time.
After the dip to 43 per cent in June 2024, his ratings have climbed.
MORE TAXES, SUBSIDY ROLLBACKS TO KICK IN
Going forward, observers said economic performance and how Anwar's government handles policies on bread-and-butter issues will affect its ratings.
Effective communication is crucial for the government to manage public expectations on reforms and address areas affecting public interest, such as subsidy reductions, said Ibrahim.
He cited the expansion of the sales and service tax (SST) and upcoming fuel subsidy cuts, noting that public sentiment will hinge on how these policies are explained to the public and how successfully the government counters detractors' narratives.
On Jun 16, Anwar said subsidy rollbacks for the country's most widely-used RON95 fuel will proceed as planned, but 85 to 90 per cent of the population would not be affected.
Second Finance Minister Amir Hamzah Azizan has said that the rollbacks would be implemented in the second half of 2025.
'From the government's statement it is clear that their intent is to cut subsidies from segments that can afford to go without it. The issue is how it is communicated,' said Ibrahim.
'As was the case with the diesel subsidy cuts in June 2024, it was noisy in the beginning but eventually it was generally accepted,' he said, adding that most of those who express disapproval of the government have partisan political beliefs.
As for the SST, a tax rate of 5 per cent or 10 per cent will be imposed on non-essential and luxury goods such as king crab, salmon, imported fruits, racing bicycles and antique artworks from next month. The sales tax rate will remain unchanged for essential goods.
A service tax of 6 per cent or 8 per cent will be expanded to include property rentals or leasing, construction, financial services, private healthcare, education and beauty services.
Economists have told CNA that although the sales tax increases are targeted at non-essential and luxury goods, they may still impact the lower income.
How the government minimises price shocks and whether it rapidly translates investment pledges into real jobs and action on the ground will be key, said Ibrahim.
The government should focus on further improving Malaysians' income, employment and food security, said Syaza.
The best way to counter price increases from the SST and RON 95 subsidy rationalisation is to continue pushing for wage increases across the board, she said.
While the cost-of-living situation is not necessarily bad at the moment, there is an expectation it should be better, she added.
'This is where sentiment plays a huge role because I still see comments going around social media on how things are so expensive today without evidence … But the fact that it's going around shows that there are people who buy that narrative,' she said.
Activists will also point out that several reforms promised during election campaigning, including being tough on corruption, have yet to be fulfilled, noted Ahmad Fauzi.
'Some from his own party have also said it. It is part of the pressure Anwar is under,' he said.
Subang MP Wong Chen, who is from PKR, said this month that he could not shake a sense of dread that Anwar's government would have little to show in terms of institutional reforms at the end of its parliamentary term.
However, it is economic reforms that still matter most to people, Ahmad Fauzi said.
While the federal government's approval rating is 'still quite good', he said it falls short of the mandate needed to confidently call snap elections.
Malaysia's next general election has to be called by February 2028.
The government will have to work harder and, at the same time, convince people that price rises are happening all over the world and are 'inevitable', he said.
'Politics is tricky and the scenario can change in a short span of time,' he added.