PUTRAJAYA, Aug 18 — Political stability remains the critical foundation for ensuring Malaysia remains a trusted global investment destination, Prime Minister Datuk Seri Anwar Ibrahim declared today.
Anwar, who also serves as Finance Minister, highlighted that while international investors systematically evaluate a nation’s economic fundamentals and future prospects, political predictability is a vital prerequisite before committing capital.
“For me, political stability is very important for our country. People will not invest if the political situation is unstable,” Anwar stated during his closing address at the Budget 2027 engagement session today.
Elaborating on his governing philosophy, the Prime Minister explained that preserving stability is essential to sustaining national economic expansion. He admitted that balancing political dynamics with economic priorities often requires pragmatic compromises, which can place temporary constraints on policy implementation.
“That is why people criticise me when they see compromises. But I have a choice. Fight, and the economy declines. Compromise, and there will be constraints on the measures we can take. Those are the two choices,” Anwar remarked. “So I choose to maintain political stability and allow the economy to grow.”
Anwar noted that stronger economic growth will ultimately provide the government with expanded room to increase spending and direct allocations toward public welfare. While Malaysia’s solid economic fundamentals have positioned the government more comfortably to evaluate additional funding requests, he stressed that every request must be weighed within the broader macroeconomic landscape and fiscal constraints.
Turning to the Budget 2027 consultations, Anwar underscored the importance of gathering direct input from key stakeholders, including trade associations, business groups, chambers of commerce, and financial institutions, to reinforce economic capacity and market sentiment.
He added that while high-growth sectors such as artificial intelligence (AI) and digital technology are making swift progress, certain traditional industries and small and medium-sized enterprises (SMEs) continue to navigate operational challenges that demand continued government assistance.
–NMT
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