Takeaways from Anwar’s December Cabinet Reshuffle

The Unity Government closed out 2023 on a high note. Albeit a bit battered, the administration — comprising a colourful cabal of coalitions and cliques — survived the August 2023 state elections. Following these polls, Prime Minister Anwar Ibrahim’s position was solidified when five Perikatan Nasional MPs pledged their support to him, bringing the total of pro-administration Members of Parliament (MPs) to 152 – above a two-thirds majority in parliament.

In mid-December, almost exactly one year after the initial cohort of ministers was appointed, Anwar reshuffled his Cabinet.  Opinions of the result are mixed, with some labelling it as a “major shake-up” and others as a “missed opportunity”. Evaluating the aggregate results is useful, but specific decisions can shed light on Anwar and his state of mind. Comparing the two cabinets can also show how the balance of power within the Unity Government has evolved.

The December 2022 Cabinet was assembled rapidly to bind the coalition members together. The picks were weighed in favour of Anwar’s Parti Keadilan Rakyat (PKR) and, to a lesser extent, the United Malays National Organisation (UMNO), and the Gabungan Parti Sarawak (GPS). Of the 28 cabinet positions, PKR obtained eight, UMNO six, and GPS three, and the three parties secured the ten biggest ministries by budget. UMNO and GPS members were also named as deputy prime ministers. Conversely, despite having the most MPs within the Unity Government, the Democratic Action Party (DAP) only obtained four ministries. Learning from the downfall of the first Pakatan Harapan administration, Anwar did not want to provide the opposition with the ammunition to allege that the Unity Government was dominated by the predominantly Chinese party.  

The 2022 Cabinet picks placed a high premium on loyalty and control, rather than policy-making experience. There was almost no capitalising on the experience earned in the first Pakatan Harapan (PH) administration, with only one MP returning to the same ministry (Anthony Loke in transport). In contrast, first-time MPs were appointed to strategic positions such as health and education. Ignoring a long-standing commitment to separate the prime ministerial and finance portfolios, Anwar took both, ensuring direct oversight of the budget and a bevvy of government-linked corporations.

… the cabinet reshuffle indicates that the long-standing relationship between Anwar and the controversial deputy prime minister and UMNO president Zahid Hamidi is as close as ever.

The December 2023 Cabinet retained its relatively slim size of 60 ministers and deputy ministers, with an increase of three ministers. The team was bolstered by the inclusion of three experienced policymakers, namely Dzulkefly Ahmad (Parti Amanah Negara) to the health portfolio, Gobind Singh Deo (DAP) to digital, and Abdul Johari Ghani (UMNO) to plantation and commodities. Beyond neutralising some of the criticism against the first cabinet cohort, it entails more senior figures sharing the limelight with the media-relishing PM.

In addition, PKR yielded several ministries to its coalition partners directly or via restructuring. The big-budget health ministry was transferred to Amanah, and the digital ministry was created by splitting it from the ministry of communications and digital — a portfolio held by a PKR MP, Fahmi Fadzil. The outgoing minister of health and PKR MP Zaliha Mustafa was moved to the federal territories ministry, which had been occupied by Anwar himself under the prime minister’s department.

There are technical reasons for some of these appointments, such as allowing Fahmi to concentrate more on communication and messaging. However, the increase in the relative power of other coalition partners and greater delegation indicates that Anwar is feeling more confident in the solidity of the Unity Government.

GPS and Sarawak’s interests are also being taken seriously. The deputy prime minister and GPS senior vice president Fadillah Yusof was moved from the plantation and commodities portfolio to energy transition and public utilities. While Sarawak’s oil palm sector is huge, the GPS-led state government is focussing on its energy sector, particularly hydrogen, hydro-electric, and solar power for export. Part of this ministry was also yielded by the former ministry of natural resources, energy, and climate change — which was helmed by another PKR MP Nik Nazmi.

Most importantly, the cabinet reshuffle indicates that the long-standing relationship between Anwar and the controversial deputy prime minister and UMNO president Zahid Hamidi is as close as ever. Zahid retained his rural and regional development portfolio, but three other senior UMNO figures rotated positions. UMNO deputy president Mohamad Hasan was moved from the key defence ministry to foreign affairs. The latter ministry has one of the smallest budgets and duties entail substantial overseas travel — effectively limiting the power base and visibility of one of the few remaining potential successors to Zahid in the party. Khaled Nordin has been moved from higher education to defence, and Zambry Abdul Kadir from foreign affairs to higher education. These two senior UMNO figures are well-known Zahid loyalists and do not possess substantial grassroots support, thus limiting their ability to organise or lead an internal coup. These moves clearly indicate that Zahid is not planning to step away from politics any time soon.

One last move bears scrutiny. To defuse criticism about his continued control of the finance ministry, Anwar appointed a second finance minister. Bypassing a coterie of politically-connected candidates, he opted for the former CEO of the Employees’ Provident Fund, Amir Hamzah Azizan. Amir brings solid leadership and corporate experience and, as a non-politician, can be trusted to oversee the books without getting untoward ideas about higher office.

Having experienced many ups and downs over his storied political career, Anwar may be feeling more settled, but is not letting his guard down entirely.

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