The RM2.5bil giveaway that Malaysia cannot afford

When Prime Minister Datuk  Seri Anwar Ibrahim delivered his “Penghargaan Untuk Rakyat” speech on 23 July 2025, he painted a confident picture of Malaysia’s economic trajectory. Growth stood at 4.4% for the first quarter of 2025 with expectations of 4.5% in the second. The ringgit had strengthened against the US dollar, climbing to RM4.23/USD. Malaysia rose by 11 spots to 23rd place in the World Competitiveness Index and total approved investments reached a record RM384bil last year.

However, beyond the headline figures lies a more complex and fragile reality. Analysts have pointed out that Q1 growth underperformed market expectations. Exports remain uneven. Domestic consumption is cooling and Bank Negara’s recent rate cut reflects the underlying weakness that persists despite upbeat official messaging.