Malaysian Prime Minister Anwar Ibrahim holds a press conference during a visit to Tawau, Sabah, on 12 May 2025. (Photo from Anwar Ibrahim / Facebook)

Hajiji’s Dilemma and Anwar’s Gamble: The Political Fallout from Sabah’s Mining Scandal

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The Sabah mining scandal involving one of the parties in Malaysia’s ruling coalition undermines PM Anwar’s anti-corruption stance but the party’s current weakness could give Anwar the leverage to reshape Sabah politics.

Although Sabah Chief Minister Hajiji Noor has been cleared of any wrongdoing in the controversial mining scandal, suspicions linger around other leaders of Gabungan Rakyat Sabah (GRS), the coalition he leads, which could affect its chances in the highly anticipated state election later this year. Given that GRS is a key player in Malaysia’s ruling coalition, the scandal undermines Prime Minister Anwar’s anti-corruption platform. Yet, GRS’s vulnerability could prove to be a strategic opening for Anwar to strengthen his grip on Sabah.

The mining scandal emerged in December 2024, when a businessman released a series of video exposés showing alleged discussions with Sabah lawmakers — mainly GRS leaders — claiming that money was given to them as “bribes” in exchange for support for his mining licence application. The Malaysian Anti-Corruption Commission (MACC) initially dismissed the videos, arguing they were too heavily edited to be considered credible — only to later confirm that the investigation had been completed and that the investigation papers had been submitted to the Deputy Public Prosecutor for further action. The revelation from the former MACC chief Latheefa Koya, who served under the Mahathir 2.0 administration, that she possessed the full, unedited version of the video exposés indicates that the scandal is far from over.

Despite MACC chief Azam Baki stating that Hajiji had been called twice to give his statement and was cleared of involvement, critical questions remain unanswered — such as whether the GRS leaders accepted money, and if so, whether it was a political donation to GRS. These are questions that Hajiji himself must address and which the MACC, the police, and the Attorney General’s Chambers must answer if they hope to restore the public trust that has been severely eroded by allegations of selective prosecution driven by political motives.

The unfolding of the mining scandal will have significant implications for the upcoming state election. It has raised concerns not only within GRS but also among its coalition partners, Pakatan Harapan (PH), which leads Anwar’s Unity Government at the federal level, that those implicated could become liabilities in the state election. GRS currently holds 41 out of the 73 seats in the Sabah State Legislative Assembly and contributes 6 seats to the national parliament.

More significantly, the scandal will have significant implications for Hajiji’s relationship with Anwar. Being part of Anwar’s Unity Government, GRS’s involvement in the scandal strikes at the heart of Anwar’s reformist platform: the fight against corruption. The scandal reignites concerns about the risks of granting too much autonomy to local elites, reinforcing fears that, without adequate checks and balances, such power may be abused to enrich a privileged few – an allegation seemingly substantiated by the video exposés.

What will Hajiji do next? Given his dependence on Anwar’s support, Hajiji is expected to stick to running on the GRS-PH Plus ticket for the upcoming election. There is also a possibility that Barisan Nasional (BN) will rejoin the coalition — mirroring the cooperation seen at the federal level – particularly after Sabah BN chief Bung Moktar expressed willingness to work with PH. Hajiji is expected to keep communication channels open – particularly with Anwar – to negotiate seat allocations for the state election. There are indications that Hajiji is open to allowing Anwar’s PKR (Parti Keadilan Rakyat) to contest more seats in Sabah, but the key question is: how many seats will PKR demand, and how will members of GRS — especially the pro-Sabah parties PBS (Parti Bersatu Sabah) and STAR (Parti Solidariti Tanahairku) – respond to the growing presence of a party originating from outside Sabah?

In light of the mining scandal, the most prudent course of action for Hajiji would be to remove some of those implicated — especially those perceived as politically weak in their constituencies. Removing them would help protect GRS from reputational damage while their weak performance would provide Hajiji with a morally and strategically sound justification for easing them out. The real challenge lies in finding credible and “winnable” replacements.

For Anwar, who visited Sabah over the weekend in connection with his state-level Madani Rakyat Programme, the current situation presents a strategic opportunity to achieve several objectives simultaneously: consolidating PKR’s presence in Sabah by expanding the number of seats contested by the party and putting forward a potential chief minister candidate from PKR. Ideally, that candidate would be Mustapha Sakmud, State Chairman of Sabah PKR and a deputy minister in Anwar’s government. His ethnic background as well as access to federal resources may work to his advantage if he contests a state seat in a Bajau-dominated constituency. However, whether Sakmud has the charisma to garner broader support in a state where personality politics often takes precedence is not clear. Still, if Anwar plays his cards right, he could achieve his goals. As a prime minister — and given the fragmented nature of Sabah’s politics — Anwar holds greater political leverage than Hajiji or any state leader attempting to challenge federal influence.

MACC’s clearing of Hajiji is no guarantee of his political survival. Nor does it assure a smooth path for GRS in the upcoming election. It merely highlights how precarious the situation remains — showing both the vulnerability of Hajiji’s leadership and the potential for Anwar and PKR to solidify their grip on Sabah politics. In this light, the mining scandal is both a bane and a boon for Anwar: it exposes weaknesses within his coalition and challenges his anti-corruption narrative, but, if managed well, it could give him the momentum to reshape the politics of Sabah.

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Arnold Puyok is an Associate Senior Fellow at ISEAS - Yusof Ishak Institute. He is a Senior Lecturer in Politics and Government Studies at the Faculty of Social Sciences and Humanities, Universiti Malaysia Sarawak (UNIMAS).