Moody’s Investors Service echoed Abang Johari’s concerns concerning the economic impact of political turmoil. In a Jan. 16 report, Moody’s said: “Long-standing concerns concerning the stability of the unity government may create negative investor perceptions of political risks and political gridlock in Malaysia, hampering the country’s long-term economic competitiveness.”
‘Nothing has been done’: Has Malaysian Anwar lost momentum for reforms?
‘Nothing has been done’: Has Malaysian Anwar lost momentum for reforms?
The turmoil has taken a toll on Malaysia’s currency, with the ringgit being the worst-performing currency amongst emerging markets in Asia since early 2023. It did not reverse the decline in 2024, falling 2.9% against the dollar this month.
Anwar’s support also dropped to 50 percent at the top of last 12 months. with 68 percent in December 2022. About 43 percent respondents said they were dissatisfied with the economy, compared with 19 percent soon after taking power.
But with Anwar keeping his political opponents at bay for now, the partnership Abang Johari has forged with the federal government has proven to be a boon for Sarawak and its population of about 2.8 million. The state premier said he was pushing ahead with plans for Sarawak to have its own bank, port and airline, while providing free higher education to residents.
Sarawak is the one state in Malaysia where nearly all of the population is non-Muslim.
In an interview, Abang Johari said he was pleased with Anwar’s handling of Sarawak, facilitating the handover of Bintulu port, northeast of Kuching, to the state and supporting Sarawak’s takeover of Malaysia Airlines subsidiary MASWings – which is able to make Sarawak the primary state Malaysia with its own airline.
Abang Johari said the airline was a strategic asset for the country, which desires to stabilize airfares to spice up travel to Borneo, an island divided between Malaysia, Indonesia and Brunei.
“We are an island, we have to fly,” he said. “If we do not stabilize the worth, we will likely be in a difficult situation.”
Sarawak looks set to finalize the deal to establish its own bank in the approaching days. Abang Johari said there was a “bank available in the market” and that efforts were underway to acquire regulatory approvals for the acquisition.
The federal government is kind of weak… They [the authorities in Sarawak] they exploit weakness to achieve more power
Affin Bank, previously reported as a lender of interest to Sarawak, announced a special briefing with Abang Johari in Kuala Lumpur on Tuesday. The bank is usually controlled by the Armed Forces Pension Fund.
“Sarawak used to have banks,” he said. “Then they were all absorbed into larger, centralized banking groups. We do not have a banking facility that can support our small and medium-sized enterprises.”
Abang Johari is adept at flexing his influence, said Awang Azman of the University of Malaya.
“Federal authority is quite weak,” he said. “They take advantage of weakness to gain more power.”
Despite the emphasis on Sarawak’s autonomy, Abang Johari said his country stays committed to Malaysia.
After Sarawak was recognized as a high-income state by the World Bank last 12 months, Abang Johari said his next challenge is to extend incomes in rural areas where poverty levels remain high. As a part of this effort, he said that from 2026, Sarawak will provide free higher education to locals studying at Sarawak-owned universities – a primary for the Malaysian state.
The son of Sarawak’s first governor, Abang Johari, has played a job in every administration since 1982. But beyond being an influential voice in national politics, he has never sought a proper role within the federal government.
He quickly modified his mind in 2018, when the ruling Barisan Nasional coalition lost federal power for the primary time since independence. He took his Sarawak-based alliance out of Barisan and rebranded it as a regional power, emphasizing the slogan “Sarawak First”. His GPS coalition currently controls 80 of the 82 state assembly seats – a feat that Sarawak’s longest-serving premier, Abdul Taib Mahmud, has failed to realize in his 33 years in power.
Malaysian coffee growers hope to draw tourists to the Borneo region
Malaysian coffee growers hope to draw tourists to the Borneo region
And while Sarawak’s economy under Taib was oriented towards heavy industry, logging and fossil fuels, Abang Johari – whose government modified the title of his role from prime minister to prime minister – says he’s attempting to steer the state towards latest energy sources, attracting talent and putting less emphasis on forestry.
“His times are different, my times are different,” Abang Johari said of Taib, who retired this month on the age of 87.
