Malaysia gearing up for 2026 polls, say sources; pundits cite opposition infighting and powerful economic system as causes | USAEMALL.com

THE ECONOMIC FACTOR 

The Malaysian economy could also affect the timing of polls, analysts say.

Malaysia has seen resilient growth under Anwar and, for 2026, is expected to exceed the government’s forecast of between 4 and 4.5 per cent growth, making it among the strongest performers in Southeast Asia. 

The ringgit has appreciated against the US dollar over the past year, while Malaysia has seen record foreign investments. The unemployment rate has fallen to around 3 to 3.5 per cent, which is close to pre-COVID-19 pandemic levels.  

There is concern, however, that this has not translated to benefits to the masses, analysts noted.

According to a survey by think tank Institute Masa published in late 2025, 42 per cent of Malaysians said that rising costs remain a key worry and just 41 per cent were satisfied with their income.

Meanwhile, a regional survey done by market researcher Milieu Inshight revealed that 70 per cent of Malaysian respondents expressed concern about rising cost-of-living pressures, and these figures are higher than most regional peers Singapore and Thailand. 

“I think the government will definitely ride on the economy if they decide to go for election,” said Syaza. “But people still say they don’t feel this net positive so I’m not so sure if they should be too confident.” 

Political analyst Sivamurugan Pandian argued Anwar should only hold the general election from 2027.

“A stable growth trajectory and improving income levels do provide political confidence. However, the stronger argument may be to allow these gains to mature further, ensuring that reforms translate to tangible long-term benefits before seeking a renewed mandate,” added the Universiti Sains Malaysia lecturer. 

This will also give Anwar time to implement policies relating to his reform agenda, he said.

Anwar has been criticised by some quarters for not fulfilling some broad reform promises related to the judiciary, parliamentary empowerment as well as anti-corruption. 

Sivamurugan said: “Delaying polls would allow further institutional reforms, subsidy rationalisation, and governance improvements under the Madani agenda to take root. A stronger reform track record would likely provide a more solid foundation for electoral endorsement.”