KUALA LUMPUR (June 17): Malaysia has to push ahead with unpopular structural reforms to fix government finances and unlock long-term growth, said Prime Minister Datuk Seri Anwar Ibrahim.
The government could no longer afford to delay the necessary reforms even as the country faces rising external risks, Anwar stressed on Tuesday, as the government commits to the sales and services tax expansion and upcoming RON95 subsidy rationalisation.
“Reform is not a luxury. It is a national necessity — and it is damn unpopular,” Anwar said. “But we have no other option — structural reform is a necessity to save the economy of the nation.”
Anwar was delivering in his keynote address at the Sasana Symposium 2025 hosted by Bank Negara Malaysia (BNM).
The announced and planned reforms come at a time of benign inflation and slowing economic growth in Malaysia under pressure from international trade tensions and escalating geopolitical conflicts. Consumers meanwhile have long complained of rising cost of living amid stagnating wages.
Anwar’s approval rating has risen to 54% in his second year of administration though economic concerns remained the top worries, according to Merdeka Center.
Structural reforms are needed even as the country faces heightened geopolitical tensions, unilateral tariffs, and persistent policy uncertainty that threaten the resilience of small and open economies like Malaysia, Anwar said.
“These are not headline-grabbing measures. They are about unlocking our growth potential, promoting broad-based prosperity and steadily building buffers so that we can weather future storms,” he said.
Central to these reforms is the transition away from blanket subsidies, which Anwar said was “subsidies for the rich and foreigners”.
He acknowledged the political risk in implementing such policies but stressed that “even the unpopular measures have to be done”, adding that transparent communication and public engagement would be crucial to build understanding and support.
Earlier, BNM governor Datuk Seri Abdul Rasheed Ghaffour said in his welcoming address speech that structural reforms are “not something one institution or individual can tackle alone" as they require a whole-of-nation approach.
"Reforms and policies are not mere ideas on paper — they can make a real difference in the everyday lives of Malaysians," he said.