(Sept 4): Relations between Malaysian Prime Minister Datuk Seri Anwar Ibrahim and his ruling alliance partner Datuk Seri Dr Ahmad Zahid Hamidi have deteriorated in recent weeks, according to people familiar with the matter, with the two men barely seen talking to each other.

Deputy Prime Minister Zahid’s decision to compete with Anwar’s bloc in recent state elections angered Anwar, the people said, noting the relationship is now so bad that the last few cabinet meetings have been shorter than usual.

Both Anwar and Zahid are maneuvering ahead of national elections that must be held by early 2028, and while the people expect the coalition to remain intact at least for now, the rift threatens Anwar’s bid to push through policies that could revive his flagging popularity.

Zahid this week called for a general election to be held as soon as possible, saying a fresh mandate was needed in a shift from earlier statements that his coalition was happy to see out the current term. Calls for early polls will be considered, Bernama cited Anwar as saying Friday. Bloomberg News last month reported that the premier wants to delay elections to the second half of next year, to allow time for measures to regain public support.

The past few days have seen the two men engage in a fight through proxies, with ministries overseen by the two leaders becoming embroiled in an angry dispute over funding.

“The relationship may deteriorate further so he may need to do a headcount to see if he has parliamentary support for reform and, more importantly, the 2027 budget,” said Adib Zalkapli, founder of Viewfinder Global Affairs, a geopolitical risk consultancy.

Anwar is due to table the next national budget on Oct 9, and is under pressure from his coalition’s Democratic Action Party to pass legislative reforms by the end of the year. While the coalition has enough votes to survive and pass a budget without Zahid, his support would be needed to deliver the supermajority required for legislative reforms like a term limit for the prime minister.

The offices of Anwar and Zahid didn’t immediately respond to a request for comment. 

The two men had a respectful relationship for decades, with Zahid, president of the United Malays National Organisation, overcoming opposition within his own party to help Anwar become prime minister in 2022.

In 1998, Zahid — then a staunch Anwar supporter — was briefly detained during the premiership of Tun Dr Mahathir Mohamad, who had just ousted Anwar as deputy prime minister. After Anwar became premier, Zahid was discharged from dozens of corruption charges, although Anwar has denied any interference.

But the pair’s ties have deteriorated because of the rivalry of their respective political bases.

Zahid’s Umno dominates the Barisan Nasional coalition, which held power for decades but is now in an uneasy ruling alliance with Anwar’s Pakatan Harapan coalition, led by his People’s Justice Party.

Anwar was angered by Zahid’s decision to compete against Pakatan Harapan in state elections in Johor and Negeri Sembilan earlier this year, according to the people. Umno and Barisan Nasional performed strongly in both contests, weakening the political partnership that helped Anwar form a government after the inconclusive 2022 general election.

In Negeri Sembilan, Barisan cooperated with the Perikatan Nasional coalition controlled by the opposition Parti Islam Se-Malaysia, which on Friday indicated it would be open to a broader alliance.

Prospects for the Anwar and Zahid blocs resuming work together in upcoming state polls in Malacca look dim.

Reports of fissures in their relationship started circulating in July following the Johor state polls, with Anwar and Zahid making public gestures in response apparently to affirm their relationship. But senior Umno leader Khairy Jamaluddin reportedly said last month that trust between the men was at an “all-time low.”

A new source of tensions emerged with the ramping up of an anti-corruption drive, with two senior Barisan leaders, including a former prime minister, being charged by the Malaysian Anti-Corruption Commission. They deny wrongdoing. The agency is also investigating the alleged mismanagement of Malaysia’s Muslim pilgrim fund Tabung Haji during a previous Barisan administration.

Anwar has repeatedly said the graft watchdog is independent.

Things heated up this week as Zahid publicly called for the government to address alleged payment delays faced by contractors appointed by his Ministry of Rural and Regional Development, which is largely responsible for rural infrastructure projects.

The Ministry of Finance, headed by Anwar, is in charge of disbursing allocations to ministries. Treasury secretary general Tan Sri Johan Mahmood Merican responded by claiming Zahid’s ministry had spent beyond its allocated budget in recent years, an assertion which was promptly denied by one of Zahid’s officials.

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