Australia/Israel Review

Asia Watch: Dashed hopes

May 28, 2025 | Michael Shannon

Malaysian PM Anwar Ibrahim: Reform agenda sidelined (Image: Shutterstock)
Malaysian PM Anwar Ibrahim: Reform agenda sidelined (Image: Shutterstock)

It’s been nearly two-and-a-half years since Malaysian Prime Minister Anwar Ibrahim’s Pakatan Harapan (Alliance of Hope) coalition formed government, following several years of political chaos. Hopes for the Government took a heavy hit with the inclusion of the corruption-riddled United Malays National Organisation (UMNO) into the ruling coalition, along with the ongoing curtailment of individual and press freedoms and expanding Islamification. 

Yet with the economy rebounding strongly and no obvious challenger, the 77-year-old Anwar is well positioned to contest the next election, due November 2027. With the pluralist Reformasi philosophy synonymous with Anwar’s name largely discarded, the Pakatan Harapan – like the discredited UMNO that governed the country for 75 years – relies upon support from the old elites. Much is as it was.

The continuity is notable in two key areas: the primacy of Islamic sensitivities in social and legal affairs, and the strident advocacy of the Palestinian cause and demonisation of Israel.

Perhaps the most sensational controversy erupted in March 2024, when KK Super Mart came under fire for selling socks emblazoned with the word “Allah” at an outlet in Sunway City, Petaling Jaya. This sparked widespread outrage among conservative Muslim groups who argued that placing the divine name on footwear – objects associated with impurity – was deeply disrespectful. KK Super Mart swiftly apologised and withdrew the product, and its founder later sought pardon from the King. However, the episode escalated further when three of its stores were targeted with petrol-bomb attacks the following month. 

Shortly thereafter, a local shoe manufacturer, Vern’s Holdings, faced a similar uproar after Muslim consumers noted that the logo on the soles of certain high-heeled shoes resembled the Arabic script for “God”. Public pressure mounted rapidly on social media, leading Vern’s to halt sales of the offending designs, offer refunds, and destroy over 1,100 pairs seized by authorities, while the company’s founder was summoned by JAKIM (Department of Islamic Development Malaysia) for questioning. 

In early February 2025, the Government faced a backlash over proposed JAKIM guidelines for Muslims attending non-Muslim events and celebrations. Under the draft rules, Muslims would allegedly need to avoid “religious propaganda” and seek approval from Islamic authorities before participating in weddings, funerals, or cultural festivals held at non-Muslim venues. Within days, fierce criticism from political leaders and civil society prompted PM Anwar to scrap the guidelines altogether. While some lauded the quick U-turn as a victory for inclusivity, others cautioned that the proposal’s mere existence revealed underlying strains in interfaith relations.

Meanwhile, Malaysia’s response to the war sparked by Hamas’ massacre of Israeli civilians could have been predicted in advance. 

Since October 2023, PM Anwar has consistently resisted Western pressure to designate or condemn Hamas, emphasising engagement with its political wing. That same month, he publicly rejected Western demands to denounce the group, stating Malaysia would “continue to maintain relations with Hamas” and that “pressuring attitudes” would not alter Kuala Lumpur’s position. Amid ongoing pressure, Anwar has maintained his “no apologies” stance on engaging Hamas’ political leaders.

At the same time, Anwar has been vociferous in condemning Israel’s military campaign in Gaza. Speaking at a pro-Palestinian rally in Kuala Lumpur on October 24, 2023, he denounced Israel’s bombardment as reaching a “level of insanity” and “the height of barbarism.” 

In December 2023, Malaysia imposed a maritime ban on all vessels owned by Israeli shipping company ZIM, along with any ship bearing the Israeli flag, barring them from docking at its ports or loading cargo, for what Anwar called “cruelty against the Palestinian people.”

Domestically, his Government also initiated a nationwide Palestine Solidarity Week, a move that drew scrutiny after students and teachers were photographed brandishing toy firearms and wearing keffiyeh scarves while waving Palestinian flags, including a pro-Hamas banner.

By February 2025, Malaysia had escalated its rhetoric, condemning any US proposal to forcibly relocate Gazans as “ethnic cleansing” and a blatant violation of international law. Concurrently, Anwar announced Malaysia’s commitment to fund the construction of a school, hospital and mosque in Gaza to support post-conflict recovery.

Meanwhile, the Malaysian Parliamentary Caucus on Palestine has urged countries considering normalising ties with Israel to halt such moves, while calling for “aggressive diplomacy” in condemning Israel’s actions and “a just, lasting two-state solution based on international law and UN mandates.” 

Perhaps the climate of disillusion is best encapsulated by former Prime Minister Najib Razaq. The alleged architect of 1Malaysia Development Berhad, which collapsed into one of Asia’s biggest-ever financial scandals, has had his 12-year sentence cut in half amid credible rumours he will be allowed to serve the remainder under house arrest – a strategy to keep the ethnic Malays who continue to venerate him on Anwar’s side. 

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