Voters still concerned with economic challenges, but foreign investments boost confidence.

Approval ratings for Malaysian Prime Minister Anwar Ibrahim have increased by 4 percentage points to 54% over the past year, driven largely by his efforts to attract foreign investments, enhance the nation’s global image, and improve the civil service. However, while his performance is viewed positively in these areas, assessments of his economic management remain mixed, according to the latest survey by independent think-tank Merdeka Center, released on December 23.

The economy continues to dominate voter concerns, with 65% of respondents identifying it as the country’s biggest issue, though this figure represents a slight decline from 74% in November 2023. The survey, conducted between November 27 and December 10, involved 1,207 registered voters from various ethnic groups across Malaysia.

Key economic concerns for Malaysians include the high cost of living, low wages, unfavourable economic conditions, unemployment, and the weakening of the ringgit. Voter dissatisfaction over these issues has been exacerbated by subsidy cuts and rising utility rates under Anwar’s administration, contributing to the loss of a by-election in Penang earlier this year.

Despite these economic challenges, the federal government’s approval rating rose to 51% in December from 46% the previous month, with dissatisfaction standing at 47%. A significant portion of the population (53%) still believes the country is headed in the wrong direction, primarily due to economic and political instability. However, the percentage of voters who feel the country is on the right track rose slightly to 39%.

Political analysts have credited Anwar’s rise in approval ratings to his efforts in boosting investment and pursuing institutional reforms, but they suggest more needs to be done to address wage growth and the rising cost of living. According to analyst Halmie Azrie Abdul Halim, Anwar’s initiatives, such as increasing civil servants’ salaries and securing foreign investments, have positively impacted his approval, though he added that a 54% approval rating is not yet outstanding.

Experts like Awang Azman Awang Pawi from Universiti Malaya argue that Anwar’s government must focus on driving economic improvements to further enhance public approval and solidify political stability.