At PKR congress, Anwar vows wider graft crackdown and cites king’s backing

At PKR congress, Anwar vows wider graft crackdown and cites king’s backing On the back of three consecutive dismal state election results, Malaysia Prime Minister Anwar Ibrahim maintains that he will continue to do the “right thing” even at the expense of political cost. AYER KEROH, Melaka: In a keenly anticipated response following electoral defeats, embattled Malaysian Prime Minister Anwar Ibrahim has pledged tougher action against corruption, saying enforcement will be carried out “fiercely” and that he has the king’s backing. Speaking at the party congress of his Parti Keadilan Rakyat (PKR) on Saturday (Aug 15), he framed this as part of a renewed “reformasi” agenda, arguing that political stability and stronger economic performance had given his government space to focus on institutional reforms. “My instructions are clear: anyone who violates the rules, steals assets, or betrays the trust of the people - including the trust involving Muslims, where the losses ultimately have to be paid for by the people - must face action,” said Anwar, who is also PKR president. “So the instruction has been issued: take the strongest possible action. His Majesty the Yang di-Pertuan Agong informed me and the ministers last week: do not let this end with Tabung Haji alone. Continue with other (issues),” he added. Tabung Haji refers to the country’s Muslim pilgrimage savings fund, which was created to allow the country’s Muslims to save for haj without borrowing or selling their property. The previous government had launched a royal commission of inquiry (RCI) into problems surrounding the fund between 2014 and 2020, and a 211-page report was submitted to the king in August 2022 but made public only on Jul 29 this year. The RCI, which was approved in July 2021 under the administration of then-Prime Minister Muhyiddin Yassin, identified weaknesses in governance and financial reporting, including sweeping ministerial powers, politically influenced board appointments and “creative accounting” to inflate profits and sustain generous payouts despite a widening asset-liability gap. This year’s PKR congress is closely watched as it comes on the back of recent electoral thrashings for the party and the Pakatan Harapan (PH) coalition, which Anwar also leads. Across the three most recent state elections in Sabah, Johor and Negeri Sembilan, PKR only won four out of the 49 seats it contested. The biggest blow for PH and PKR came most recently on Aug 1 when the coalition lost control of the Negeri Sembilan state assembly after being at the helm since 2018. PH’s losses have been attributed largely to the rise of a so-called Malay-Muslim pact between the Barisan Nasional coalition, led by lynchpin party United Malay National Organisation (UMNO), and Perikatan Nasional, led by Parti Islam Se-Malaysia (PAS). The BN-PN pact swept a two-thirds majority in both Johor and Negeri Sembilan, garnering a significant portion of the majority Malay-Muslim population. If the alliance holds to the next general election - analysts and local media have projected that BN-PN could clinch a simple majority and form the next government. PRESSING ON WITH ANTI-GRAFT EFFORTS In his speech on Saturday, Anwar warned that he is now looking to press on with anti-graft efforts, including on issues relating to Malaysia's Federal Land Development Authority (Felda). “His Majesty asked me, ‘Who is looking after Felda now?’ So, once Tabung Haji is dealt with, we will uncover (other graft issues),” said Anwar. Felda refers to the Federal Land Development Authority, a government land development agency that has long been central to Malaysia’s rural settler communities and palm oil economy. It was once the world’s largest plantation company earning billions annually, but Anwar has said that it now faces debts of almost RM10 billion (US$2.45 billion) due to mismanagement and excessive political interference. On Saturday, Anwar also addressed comments from politicians and observers who have said the release of the Tabung Haji RCI report is timed to politically hurt BN, which is allied with Anwar’s federal government but a rival in the recent state polls. “Some have questioned that (if I don’t act on corruption), I don't have the political will to act and if I take action, they say I have an axe to grind,” added Anwar. “But (some of these investigations) happened long before I (became prime minister), and action has been taken. Several other major cases have also continued from (before me),” he added. WILL ANTI-GRAFT EFFORTS GAIN ANWAR POLITICAL MILEAGE? Some senior PKR leaders who spoke to CNA have voiced support for Anwar’s pledge to intensify anti-corruption efforts, and expressed confidence that it will be well received by Malaysians and voters. “The (anti-graft effort) is a royal decree, an instruction from the king. Issues like Felda and Tabung Haji are absolutely key for millions of Malaysians,” PKR Vice-President Ramanan Ramakrishnan told CNA. Felda communities historically influence as many as 50 to 54 parliamentary seats, making them a critical voting bloc during national elections. Ramanan added that he felt Anwar has always been consistent in his anti-corruption agenda since the start of his term as prime minister in November 2022, and that the timing of the release of the Tabung Haji RCI, for instance, was to ensure that the report is completed in its entirety to communicate to the masses. “Anti-corruption is not something that was just thought of today or (recently), it’s being done all this while,” added Ramanan, who is also the minister of human resources. PKR youth chief Muhammad Kamil Abdul Munim also rejected allegations that the decision to focus on anti-corruption efforts is politically motivated following electoral defeats. “The politicians who are not satisfied with these investigations will make accusations to shift the attention away from the actual corruption acts,” added Muhammad Kamil, who is also political secretary to Anwar in the finance ministry. Anwar is also finance minister. However, political analyst Azmi Hassan said that Anwar’s decision to step up anti-graft measures as a reaction to recent electoral defeats is not surprising, but it could ultimately be a “gross mistake” to leverage these issues to garner political mileage. “Whatever move he makes in trying to clamp down on corruption is now seen as politically motivated and it has not worked, we have seen this in Negeri Sembilan (with the release of the Tabung Haji RCI days before polling day),” said Azmi. Azmi asserted that Anwar’s repeated use of the word “sakau” (illegally siphon funds) in relation to the Tabung Haji issue is an exaggeration. In Azmi’s view, the RCI report did not outline any illegal siphoning of monies by any specific individuals. “The release of the Tabung Haji report ultimately did not benefit PH (in Negeri Sembilan).In fact, BN had questioned his use of the word ‘sakau’ even though the report never said anything to this effect,” said Azmi. In his speech on Saturday, Anwar said that given current “political stability” and the country’s strong economy, he was keen to pursue institutional reforms, starting by repealing the Universities and University Colleges Act 1971 (AUKU). He later told reporters the matter will be raised at next week’s Cabinet meeting. There have recently been calls from student activists, including from the Democratic Action Party (DAP) youth wing, to repeal AUKU as they claim it suppresses student autonomy, academic freedom, and free speech through heavy political control over higher education institutions. DAP is a key component party in Anwar’s PH coalition. Anwar told the crowd of around 5,000 PKR delegates that for this weekend’s congress, he was keen to listen to party delegates, and willing to accept and implement changes which he deems fruitful and feasible. “Whatever the case, the list of our achievements is substantial. We have achieved changes to the system of governance and to the economy. “But there are still gaps. We have not fully satisfied the expectations of the people, particularly when it comes to change - including, as I mentioned earlier, the cost of living, the prices of goods, and access to education and healthcare for the people,” Anwar said. “I will try to address these issues properly within a short period of time.” The PKR congress coincides with DAP’s own meeting on Sunday where more than 4,000 delegates are set to vote on whether the party should remain in Anwar’s Cabinet – or whether its five full ministers and seven deputy ministers should relinquish their posts. DAP decided to hold the vote after the November 2025 Sabah state election, where it won none of the eight seats it had contested. A DAP withdrawal from the Cabinet would pose a serious threat to Anwar’s administration and could even force him to call an early GE, said analysts.