Malaysian PM Anwar reshuffles Cabinet, taps technocrat to steer trade amid tariffs, Johor-Singapore SEZ push

[KUALA LUMPUR] Prime Minister Anwar Ibrahim unveiled a refreshed Cabinet on Tuesday (Dec 16), reshuffling key portfolios and reinstating familiar faces in the wake of the Sabah state election and to fill vacancies.

In all, Anwar announced 27 changes.

Among the most significant, Johari Abdul Ghani was named the country’s new minister of investment, trade and industry – a pivotal portfolio at a time when Malaysia is navigating global tariff pressures, managing trade ties with the United States, and looking to capture investments linked to the Johor-Singapore Special Economic Zone.

Johari – a seasoned United Malays National Organisation (Umno) leader and former second finance minister – is widely regarded as a safe, investor-friendly choice to steady Malaysia’s trade and investment policy at a pivotal moment.

He replaces Tengku Zafrul Aziz, whose senatorship ended on Dec 2. Zafrul has since been appointed chairman of the Malaysian Investment Development Authority (Mida).

Johor Bahru MP Akmal Nasrullah Mohd Nasir was appointed as economy minister. He succeeds Rafizi Ramli, who resigned from the Cabinet in May, after he was defeated at the ruling party’s elections.

Besides Johari and Akmal’s appointment, Anwar also filled two other ministerial positions that were previously vacant.

Arthur Joseph Kurup was appointed minister of natural resources and environmental sustainability. Kurup succeeds Nik Nazmi Nik Ahmad, who resigned as minister in July after he failed to retain the vice-president post during the ruling party’s elections.

Steven Sim, who was human resources minister, will be minister of entrepreneur development and cooperatives.

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The Finance Ministry saw a personnel swap: Lim Hui Ying, the former deputy finance minister, was appointed as the deputy minister of women, family and community development. Her position will be filled by Liew Chin Tong, who was previously deputy minister of the Ministry of Investment, Trade and Industry (Miti).

Hannah Yeoh, who was the youth and sports minister, was appointed minister in the prime minister’s department (federal territories).

Strategic moves for general election

Political commentator Koh Kok Wee views the new Cabinet as a strategic move to prepare for the upcoming general election and bolster future policy reforms.

The biggest surprise was the redesignation of the business-savvy Johari as Miti minister. Koh believes this appointment will boost public confidence, given Johari’s strong ability to navigate economic uncertainties.

“Johari’s experience and influence, synergising with Zafrul’s leadership at Mida, will be instrumental in driving Malaysia’s aspiration to become the preferred investment destination, and effectively tackling external trade challenges,” he told The Business Times.

Koh noted that the increased appointment of East Malaysian statesmen, including Kurup (minister of natural resources), Lo Su Fui (deputy minister, federal territories) and Chiew Choon Man (deputy minister of tourism), may indicate that Anwar is paving the way for the next general election.

This focus is further emphasised by the appointment of the Sabah PKR state chairman as minister for Sabah and Sarawak affairs, indicating the leader’s goal for greater control in East Malaysia.

Oh Ei Sun, senior fellow at the Singapore Institute of International Affairs, was mixed on the recent Cabinet reshuffle.

He pointed out the ironic promotion of certain Sabah political figures. Furthermore, he was surprised that Deputy Health Minister Hanifah Hajar Taib, whose father was the late, longest-serving chief minister of Sarawak, was not elevated to a senior role or a portfolio aligning better with her experience.

Lau Zhe Wei, associate professor at the International Islamic University Malaysia’s Department of Political Science, deemed the new Cabinet line-up reasonable.

He noted that Johari’s appointment was unsurprising, given his vast experience, and correctly returns the Miti minister position to Umno.

The professor also approved of the economy minister retaining the portfolio within the party. Prof Lau added that the promotion of Akmal, who is aligned with Rafizi’s camp, was a “reasonable political arrangement” – positioning Akmal to potentially succeed his mentor.

The latest reshuffle marks the second time Anwar has significantly reorganised his Cabinet, primarily to address vacancies created by recent resignations and expired terms. The first major reshuffle took place on Dec 12, 2023, about a year after he first assumed office.

The previous shake-up came amid declining approval ratings and concerns over economic performance, inflation and the pace of reform. The newly appointed ministers are scheduled to be sworn in at the palace on Thursday.