Commentary: Mahkota by-election has far-reaching consequences for Malaysia government

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MAHATHIR-ESQUE POLICY

PN leaders have generally been silent on the president’s initiatives in southern Johor, including the suggested Special Economic Zone with Singapore and the Forest City Special Financial Zone. However, PN will assuredly support a more Mahathir-like monetary policy in Johor that is more separatist in character.

&nbsp, Dr Mahathir Mohamad is, after all, the assistant to the four PN state institutions of Terengganu, Kelantan, Kedah and Perlis. Mahathir has been critical of advances in southern Johor and, most just, has criticised the Johor Bahru-Singapore RTS Link.

Despite holding no recognized position, Mahathir’s notes are often seen to require a reply from the authorities. His new assertions that Malaysia has been subcontracting Singapore’s water source have compelled the government to declare that it is reviewing the appropriate agreements.

The emerging of old controversial bilateral problems, if not managed properly, will destroy the administration’s plans for the Johor-Singapore Special Economic Zone&nbsp, and the Forest City Special Financial Zone.

The Johor-Singapore Special Economic Zone&nbsp and Forest City Special Financial Zone are both in bad health because of Mahathir, not the only factor. PN chairman and Bersatu president Muhyiddin Yassin’s stronghold is in Pagoh, in northern Johor.

As prime minister, Muhyiddin launched the Pagoh Special Economic Zone in 2021. In the Johor state elections in March 2022, the PN’s manifesto for strengthening the Pagoh Special Economic Zone also included this. Since the federal government’s transition in November 2022, little has been known about the Pagoh Special Economic Zone.

The actions of PH and UMNO leaders following the Mahkota by-election will determine the viability of the PH-BN partnership and the legitimacy of the Johor-Singapore Special Economic Zone&nbsp and the Forest City Special Financial Zone.

Adib Zalkapli, a public policy consultant, helps businesses navigate Asia’s political challenges. This commentary first appeared on ISEAS- Yusof Ishak Institute’s blog, Fulcrum.