Former Prime Minister Tun Mahathir Mohamad have been expressing skepticism about the leadership of his successor, Anwar Ibrahim, raising concerns about the latter's ability to navigate Malaysia through the challenges of post-pandemic economic recovery. However, a critical assessment of their performances suggests that Anwar's leadership is proving to be more effective than Mahathir's.
Mahathir often takes pride in steering Malaysia towards rapid economic expansion in the 1990s. While his policies attracted foreign investment and spurred industrialization, the country's reliance on labor-intensive industries and cheap migrant labor became a bottleneck as other countries like China and Vietnam rose in the global market.
Additionally, Mahathir's capital control measures during the 1997 Asian financial crisis, while initially praised for safeguarding Malaysia's economy, were primarily aimed at bailing out his cronies. These measures sidestepped necessary reforms that could have set Malaysia on a more sustainable economic path.
Furthermore, Mahathir's ambitious industrialization projects, such as Perwaja Steel and the national car project, proved to be costly failures that drained the national coffers. His administration's heavy investment in massive infrastructure projects also contributed to the country's ballooning debt.
During his second term as prime minister, Mahathir sought low-interest loans from Japan without a clear plan to reduce the government's mounting debt, which surpassed RM1 trillion. His suggestion of using Malaysia's reserves to settle debts highlights a fundamental misunderstanding of economic principles and would have severely weakened the country's financial standing.
In contrast, Anwar Ibrahim's leadership is marked by pragmatism and a focus on practical, sustainable economic policies. He has worked to strengthen Malaysia's ties with key trading partners like China, Japan, Germany and Singapore, attracting international investors and promoting Malaysia as a favorable destination for business.
Anwar has also implemented measures to reduce government spending and debt, including subsidy cuts and a progressive wage model to increase incomes. His government has initiated programs for energy and digital transformation, vocational education, and AI development, as well as economic zones like the Automotive High Tech Valley and the Johor-Singapore Special Economic Zone, aimed at revitalizing the national economy.
While Anwar's projects may not have the grandeur of Mahathir's, they are practical and focused on long-term sustainability. It is clear that Mahathir's approach, characterized by flashy but unsustainable projects, has weakened Malaysia's economic fundamentals. Anwar's administration is now tasked with undoing this damage and guiding Malaysia towards a more stable and prosperous future.
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