Malaysia Roundup: Fuel subsidy debate, Borneo Bloc sentiments, national flag tensions

ASEAN foreign ministers meeting at Malaysia
Malaysian Prime Minister Anwar Ibrahim delivers his speech during the 58th Association of Southeast Asian Nations Foreign Ministers' Meeting at Kuala Lumpur, Malaysia, July 9, 2025. REUTERS/Hasnoor Hussain/File Photo
Source: REUTERS

Removal of blanket fuel subsidy a litmus test for Anwar

In June 2008, then–Prime Minister Tun Abdullah Ahmad Badawi removed fuel subsidies just months after losing Barisan Nasional’s two-thirds parliamentary majority. Inflation surged from 2.3% in January to 8.5% by July, and despite wage hikes and cash aid, public and party dissatisfaction mounted. Criticism, including from predecessor Tun Dr Mahathir Mohamad, contributed to Abdullah’s early exit, with Datuk Seri Najib Razak succeeding him. Najib avoided similar moves, instead adopting a managed float system (2014–2018) during a period of low global oil prices. Now, Prime Minister Datuk Seri Anwar Ibrahim is preparing to address the RON95 blanket fuel subsidy.

GRS to maintain ties with Pakatan, rules out talks with other parties

Gabungan Rakyat Sabah (GRS) will continue its exclusive partnership with Pakatan Harapan for the upcoming 17th state election, focusing now on seat distribution talks. Secretary-general Datuk Seri Masidi Manjun said no cooperation with other parties was discussed during the Aug 10 meeting, chaired by GRS leader Datuk Seri Hajiji Noor and attended by coalition partners. Masidi stressed that local parties should lead the alliance, which he credited with maintaining Sabah’s political stability and supporting development efforts.

Sabah must shed its “master-servant” mindset

At the PGRS Congress in Kota Kinabalu, Datuk Seri Hajiji Noor rallied supporters with the phrase “The Master is here. The Master is not there,” recalling a past federal leader’s dismissal of Sabah’s push for a “Borneo Bloc” with Sarawak to strengthen East Malaysia’s voice. That leader had warned Hajiji and his colleagues against pursuing the idea, implying Kuala Lumpur held ultimate authority. Hajiji’s later support for Prime Minister Anwar Ibrahim after the 2022 election was seen as a form of political payback. The episode highlights Sabah’s smaller political clout compared to Sarawak, which holds more parliamentary seats and stronger state control.

LFL urges Akmal to debate flag issue instead of bullying store owner

Lawyers for Liberty (LFL) slammed Umno Youth chief Dr Akmal Saleh’s plan to visit a Penang store to “teach” its owner how to display the Jalur Gemilang, calling it bullying, vigilantism, and racially divisive. LFL director Zaid Malek said the store owner had already apologised, yet Akmal ignored this, risking criminal offences such as intimidation and inciting public mischief. Urging government action, Zaid invited Akmal to debate the flag issue instead of harassing citizens. The plan, part of a “Maruah Tanah Airku” rally, follows a viral video showing the flag being carried upside down.

Malaysia must stop saying one thing and doing another

In his first year as UK foreign secretary, David Lammy made 47 overseas trips, including to Malaysia for the 58th ASEAN Foreign Ministers’ Meeting on 12 July. Prime Minister Anwar Ibrahim, opening the event, stressed ASEAN’s “centrality” in shaping the Asia-Pacific’s regional architecture. Lammy also met Anwar, with both hailing upgraded UK-Malaysia ties as a “strategic partnership” based on shared values. However, this rhetoric contrasts with Malaysia’s political reality, where Anwar’s government is pushing legislation—such as amendments to the Printing Presses and Publications Act—that critics say will further curb freedom of expression on sensitive issues of religion, race, and royalty.

This story is written and edited by the Global South World team, you can contact us here.

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