Malaysia's massive cabinet reshuffle, digital ministry set up to fight economic construction
Malaysia's unity government reshuffles cabinet for first time in a year, sets up digital ministry to boost artificial intelligence and economic growth。
On December 12, Malaysian Prime Minister Anwar Ibrahim announced that Malaysia would restructure its cabinet and make a series of changes, creating a new Ministry of Digital to boost economic growth and attract investment.。This is the first cabinet reshuffle since Malaysia's unity government came to power in 2022.。
Prime Minister Anwar said the new ministry would focus on driving the development of artificial intelligence (AI) and the country's digital transformation, adding: "This changing and challenging field is a major focus of this government."。Last month, just one year into his term as Prime Minister Anwar, he highlighted the importance of tackling the growing trends in data centres and artificial intelligence, as well as the need to "enhance the understanding of students at all levels."。
At a press conference held on the same day, Prime Minister Anwar read out the basic information of the cabinet reshuffle and the adjusted list, through which it is reported that the number of cabinet ministers reached 31 (an increase of 3) and the number of deputy ministers reached 29 (an increase of 2).。Among them, there are two key personnel changes worthy of attention:
First, former Malaysian Defence Minister Mohamad Hasan was transferred to Foreign Minister, former Foreign Minister Zambry Abdul Kadir was transferred to Minister of Higher Education, and former Minister of Higher Education Mohamed Khaled Nordin was transferred to Minister of Defence.。According to the analysis, this appointment and dismissal shows that Anwar wants a more senior political leader to be his top diplomat.。
Secondly, the second finance minister is held by technocrat Amir Hamzah Azizan, who is also the current CEO of the Malaysian Employees Provident Fund (EPF, Malaysia's national private sector pension scheme).。It is understood that Amir has up to 27 years of business management experience, has been the head of a number of well-known enterprises。Many local media believe that Prime Minister Anwar's appointment of a professional to the post shows his determination to "fight for the economy."。
Prime Minister Anwar said the cabinet reshuffle was to meet the needs of the situation and to meet the challenges of economic development and improving people's livelihoods.。
"On the first anniversary of the unity government, we made sure we did our best to carry out our duties.。Now we will try to make some necessary adjustments, "Prime Minister Anwar said.。
Recent polls may be the reason for Prime Minister Anwar's cabinet reshuffle.。
A survey by the country's Merdeka Center for Opinion Reserach, released on November 22 this year, found that nearly 80 percent of the population believes that a unity government should address economic problems first。And voters are in low spirits due to continued concerns about inflation and economic growth, with approval ratings at just 41 per cent, and Anwar's own approval rating has fallen from 68 per cent in December to 50 per cent in October this year.。
For some time now, the unity government led by Prime Minister Anwar has been criticized for communication and dissemination of information.。To address this shortcoming, he suggested that the Department of Digital should be separated from the existing Department of Communications and Digital to enhance the Government's external communication and information dissemination capabilities.。
As a result, in terms of sectoral restructuring, Prime Minister Anwar split the original communications and digital component into the Ministry of Communications, the Ministry of Digital, and the natural resources, environment and climate change component into the Energy Transition and Public Services Department, the Ministry of Natural Resources and Sustainable Development.。
Tricia Yeoh, chief executive of the Centre for Democracy and Economic Affairs (IDEAS), a Malaysian think tank, said the expansion of the cabinet team was unexpected, especially the split of two key departments.。
"It is always important to maintain a balance of party interests when it comes to cabinet deliberations.。Now it seems that the government is focusing on the economic, health and cost of living issues in the country, paying special, detailed attention to these issues, "Yeoh said.。She also believes that the new finance minister is expected to enhance the Ministry of Finance's policy implementation, and that domestic fiscal consolidation is just around the corner.。
For months, Prime Minister Anwar has been stressing the importance the unity government attaches to the technology sector.。
In his budget speech to Parliament in October, Prime Minister Anwar announced the creation of the GovTech Nucleus Unit to promote the digitization of national identity and other government services.。He said Malaysia aims to be in the top 20 of the global startup ecosystem by 2023 and make Kuala Lumpur a hub for digital industries and new ventures in Southeast Asia.。
Malaysian Minister of Investment, Trade and Industry Tengku Zafrul said in August that from 2021 to March this year, Malaysia received a total of 76 billion ringgit (about 162.$300 million) of data center-related investments。He added: "From 2021 to 2026, the domestic data center market is expected to grow at an average annual rate of 16% to more than $2 billion.。"
On Dec. 8, U.S. semiconductor company NVIDIA and YTL Power, a subsidiary of a Malaysian conglomerate, announced that they would invest 20 billion ringgit (about 42.US $500 million) to build Malaysia's first artificial intelligence (AI) data center in Kulai, Johor, which is expected to be completed by mid-2024。
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