Anwar Ibrahim

In a complex political drama unfolding in Malaysia, Prime Minister Anwar Ibrahim, once a global symbol of democratic reform, now faces accusations of using anti-corruption investigations to settle old scores.

Nearly two years into his premiership, which began in November 2022, Anwar’s government is under scrutiny for allegedly weaponizing the Malaysian Anti-Corruption Commission (MACC) against political opponents, raising questions about the country’s commitment to democratic principles and the rule of law, reports Bloomberg.

The path to power

Anwar Ibrahim’s journey to the prime minister’s office was long and tumultuous. In 1998, he was sacked from his positions as finance minister and deputy prime minister by then-Premier Mahathir Mohamad, arrested, beaten, and imprisoned for years. He spent so long in solitary confinement that he read the complete works of Shakespeare four times.

Upon finally achieving the premiership in 2022, at the age of 75, Anwar faced a critical choice: pursue retribution against those who had oppressed him or fulfil his long-standing promises of democratic reform. Recent events suggest that revenge may have won out, with the MACC at the centre of what critics describe as a campaign of political retribution.

MACC probes

The MACC, led by Chief Commissioner Azam Baki, has launched investigations into at least three of Anwar’s adversaries and their families:

  1. Mahathir Mohamad: The 99-year-old former prime minister and his two eldest sons, Mirzan and Mokhzani, are under investigation for asset declaration issues dating back to 1981, when Mahathir first became prime minister.
  2. Daim Zainuddin: A former finance minister and long-time Mahathir confidante, Daim and his wife have been charged with failing to declare assets. The MACC seized a 58-story Kuala Lumpur skyscraper owned by Daim’s family in December 2023.
  3. Muhyiddin Yassin: Another former prime minister, Muhyiddin faces four counts of abuse of power and three counts of money laundering. He denies wrongdoing and claims the charges are politically motivated.

 Allegations of collusion

Anwar and Azam Baki are alleged to have reached an understanding that Azam’s term as MACC chief commissioner would be extended in exchange for action against Anwar’s opponents.

Sources claim that Azam told MACC officials that Anwar himself instructed the agency to investigate Mahathir, his sons, and Daim Zainuddin. Azam also allegedly told agency officials not to investigate share purchases by Anwar’s former political secretary, Farhash Wafa Salvador, citing instructions from the prime minister.

The Farhash controversy

The case of Farhash Wafa Salvador has become a focal point of criticism. Within six weeks of Anwar taking power, the 42-year-old former aide was appointed to positions at listed firms. In March, Farhash disclosed a roughly 16% stake in HeiTech Padu Bhd., a software company reportedly shortlisted for a lucrative immigration systems contract. The timing and nature of these developments have raised questions about potential conflicts of interest and preferential treatment.

Anwar’s response and government stance

Anwar’s office has strongly denied any interference in MACC investigations.

The MACC, for its part, maintains its independence, stating that it “operates independently and has the authority to investigate allegations of corruption without seeking permission from anyone, not even from the Prime Minister”.

Foreign investment up but international reputation hit

Despite the political turmoil, Malaysia has seen a recent influx of foreign investment, particularly in the chip industry and AI data centres. The ringgit has emerged as the biggest gainer across emerging markets, and Malaysia’s benchmark equity index leads in Southeast Asia with an advance of about 15% so far this year.

However, the country’s international reputation has taken a hit. Malaysia fell 34 places to 107th in the 2024 press freedom ranking by Reporters Without Borders. Amnesty International, which once declared Anwar a “prisoner of conscience”, has criticized his government for using the colonial-era Sedition Act to silence activists and critics.

Anwar Ibrahim’s actions as prime minister have increasingly diverged from his pre-office promises. He has stopped short of repealing the Sedition Act, despite earlier vows to do so. Investigations under this act have more than doubled since he took office. His government has also backtracked on proposals to make the MACC accountable to parliament.

These developments have led to growing disappointment among supporters and observers. Bridget Welsh, a prominent researcher of Malaysian politics, notes, “He has a growing credibility problem. The disappointment is even greater because the expectations were higher.”