Prime Minister Datuk Seri Anwar Ibrahim (centre) and Asean leaders posing for a group photo during the 47th Asean Summit and Related Summits at the Kuala Lumpur Convention Centre. — Bernama
IT was an eventful year for Malaysia, marked by diplomatic milestones, economic relief measures and political shifts.
Other headline news that held public attention this year were high-profile corruption probes and the tariffs US imposed worldwide including Malaysia.
Here’s a recap of 2025:
Asean Summit
Malaysia commanded global attention when it hosted the 47th Asean Summit from Oct 26 to 28, reinforcing its role as a key diplomatic bridge in South-East Asia.
These engagements underscored Malaysia’s strategic importance and paved the way for new economic partnerships, investment commitments and cooperation in technology, energy and infrastructure development.
The Air Force One plane of United States president Donald Trump departing Malaysia after his two-day visit during the 47th Asean Summit in Kuala Lumpur. — Bernama
Aid Rollout
Domestically, the Government rolled out several measures aimed at easing cost-of-living pressures.
On July 23, a one-off RM100 Sumbangan Asas Rahmah (Sara) cash aid was announced under the MyKasih system for all eligible Malaysian adults.
This was followed by the launch of the Budi95 petrol subsidy programme on Oct 1 that allowed eligible Malaysians to purchase RON95 petrol at RM1.99 per litre, subject to a monthly quota tracked via MyKad and the driving licence.
Political Changes
The political landscape underwent significant changes.
Earlier in the year, Datuk Seri Rafizi Ramli and Nik Nazmi Nik Ahmad stepped down as Economy Minister and Natural Resources and Environmental Sustainability Minister respectively after losing in the PKR party elections, which they said amounted to a loss of mandate.
In November, Datuk Ewon Benedick resigned as Entrepreneur and Cooperatives Development Minister over disagreements concerning Sabah’s 40% revenue entitlement under the Malaysia Agreement 1963, before being appointed Sabah Deputy Chief Minister III following the state elections.
Tengku Datuk Seri Zafrul Abdul Aziz concluded his tenure as Investment, Trade and Industry Minister on Dec 2 when his senatorship expired, and was later appointed chairman of the Malaysian Investment Development Authority.
Fatin Nabila Widiyadi purchasing fuel under the Budi95 initiative at a petrol station. The programme is designed to make fuel subsidy access easier through seamless and cashless transactions. — ZULAZHAR SHEBLEE/The Star
Cabinet Reshuffle
A Cabinet reshuffle on Dec 16 saw Prime Minister Datuk Seri Anwar Ibrahim announcing 10 ministerial changes.
Notable appointments included Datuk Seri Johari Abdul Ghani as Investment, Trade and Industry Minister, Johor Baru MP Akmal Nasrullah Mohd Nasir as Economy Minister and Hannah Yeoh as Minister in the Prime Minister’s Department (Federal Territories).
1MDB Case
In a major legal development linked to the 1MDB scandal, former prime minister Datuk Seri Najib Razak failed in his bid to serve the remainder of his sentence under house arrest.
On Dec 26, Najib was found guilty of four power abuse charges and 21 money laundering charges involving RM2.28bil linked to 1MDB funds.
He was sentenced to 15 years in jail and fined a total of RM11.4bil, with a default sentence of 40 years’ jail for the power abuse charges.
Football Scandal
Malaysia’s sporting reputation took a hit after the International Federation of Association Football (FIFA) sanctioned the Football Association of Malaysia (FAM) and seven players over a naturalisation scandal involving forged ancestry documents.
The players were declared ineligible and banned, while FAM was heavily fined.
In response, the Government froze additional funding to FAM and ordered investigations into the naturalisation process to ensure greater transparency and accountability.
Trump showing the list of countries and the tariffs they face from US. — AFP
Major Disasters
The nation was shaken by a few disasters.
On April 1, a gas pipeline explosion and fire in Putra Heights, Subang Jaya, injured more than 100 people and damaged or destroyed over 400 properties.
The incident triggered scrutiny over infrastructure safety and regulatory oversight, with affected residents filing a class action suit against the gas company, seeking compensation.
As expected, monsoon-driven floods swept across at least seven states in the past month, forcing more than 14,000 people from nearly 5,000 families to evacuate.
Kelantan was the worst affected, while Kedah, Terengganu and Perlis also suffered extensive damage.
The First Cabinet meeting after the reshuffle in December.
US Tariffs
The United States introduced fresh tariffs early this year affecting more than 100 countries, raising import duties on a wide range of goods including steel, electronics and textiles.
When announcing the new tariffs, American president Donald Trump said the move was aimed at protecting domestic manufacturing and addressing trade imbalances, particularly with China.
Globally, the tariffs have increased costs for exporters, disrupted supply chains, and added pressure to inflation.
For Malaysia, higher US tariffs have mixed effects.
Bank Negara Malaysia and local analysts had noted that tariff uncertainty clouded economic prospects, even as growth remained close to expectations.
Ratings agencies had warned that Malaysia’s electronics and electrical sector was the most exposed to US tariff risks.
A bilateral agreement on Reciprocal Trade between Malaysia and the US, signed in October, has helped to reduce tariff burdens on some exports such as palm oil, rubber products and aircraft parts, improving Malaysia’s competitiveness.
