Kuala Lumpur, 16 August 2021: The Institute for Democracy and Economic Affairs (IDEAS) notes the resignation of the Prime Minister today and that of his Cabinet. IDEAS believes that the process of transition in the following weeks are crucial. All negotiations that take place must strictly adhere to the provisions stipulated in the Federal Constitution.

In addition, IDEAS stresses that there must be clarity over the duration of time in which the newly appointed Caretaker Prime Minister will govern the country. The Caretaker Prime Minister should not announce any major policy or commit to any major public spending.

To that end, we therefore urge that the formation of the new government should take place prior to the tabling of the 2022 Budget in Parliament, which is expected at the end of October 2021.

IDEAS urges the government that will eventually be formed to prioritise the implementation of institutional reforms that have long been promised to Malaysians. Some of these reforms include:

1. Implementing the National Anti-Corruption Plan (NACP) to combat corruption; 
2. Tabling the Political Financing Bill in Parliament;
3. Separating the roles of the Attorney General (AG) and the Public Prosecutor;
4.  Increasing the independence of the MACC by elevating it to a constitutional body;
5. The appointment processes of key public officers and heads of GLCs to be done transparently and independently;
6.  Empowering Parliament by reintroducing the Parliamentary Services Act and expanding Parliamentary Select Committees (PSCs) to ensure a higher proportion of backbencher and Opposition representation, and;
7.  An independent Judiciary that is empowered to adjudicate on all cases of political corruption.

Despite the transitioning process, policies instituted to combat COVID-19 must be prioritised, continued and improved without disruption or delay. This includes the continuation of the National Immunisation Programme (NIP) and the National Recovery Plan, with its accompanying National Recovery Council. Improvements can be made to these existing plans, for instance introducing a Federal-State Council to include state governments into the decision-making process. However, disruptions must be minimised to ensure pandemic management takes priority above all. 

Consequently, the process of government formation must strictly resist any form of MP buying towards party-hopping, corruption and abuse of public funds. We understand that the political climate is fragmented and it is not likely any party will be able to form a government without coming to an agreement with others. However, this process of negotiation must be underpinned by offers of policies and visions to take Malaysia forward. The Malaysian people also deserve to know and understand the process of government formation, which means that it must be done transparently and with accountability. 

Lastly, the incoming government must commit to a strict timeline of when a general election will be called. The best way to resolve the ongoing political crisis is to return the choice to the Malaysian people. Although a stable government is not guaranteed, the ability to choose their elected representatives is a right that must be granted to all Malaysians. 

Most importantly, the incoming government must restore trust in institutions and in our democratic system. The instability of the past year and a half has exposed many flaws in various levels of our politics and governance, all of which will not be easily solved. Such instability has been detrimental to our economy and investment climate. Efforts towards institutional reforms and a healthier democracy must continue. Taken collectively, political stability will further strengthen our economic and social outcomes.

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For enquiries, please contact:
Zokhri Idris, Ph.D, Director, External Relations
T: +603 2070 8881/8882 | E: zokhri@ideas.org.my