In mid-December 2025, Malaysian Prime Minister Datuk Seri Anwar Ibrahim announced a cabinet reshuffle, marking a strategic recalibration of the MADANI government’s leadership. The announcement on December 16 came after months of speculation about long-vacant portfolios and internal political pressures, with key ministries lacking ministers following resignations earlier in the year and senator term expirations.
This reshuffle (the second major one in Anwar’s term) was aimed at reinforcing the government’s ability to address economic challenges, improve policy implementation, and respond to public concerns about inflation, cost of living, and the pace of reforms. The reshuffle also precedes a series of state elections and signals preparation for the broader political contest of the 16th General Election, which must be held by 2028.
Cabinet Changes
Prime Minister Anwar’s reshuffle introduced new leadership across several key ministries and filled vacancies that had persisted for months. He announced the new lineup in a televised address, with many ministers and deputy ministers formally sworn in at Istana Negara on 17 December 2025. Among the Ministers were 3 portfolio realignments and 7 new appointments. The Deputy Ministers saw 10 portfolio realignments and 8 new appointments.
Major reassignments, promotions, and appointments were as follows:
Updated Minister Roster:
- Datuk Seri Johari Ghani - Investment, Trade and Industry Minister
- Steven Sim - Entrepreneur Development and Cooperatives Minister
- Datuk Seri R. Ramananan - Human Resources Minister
- Hannah Yeoh - Federal Territories Minister
- Datuk Seri Noraini Ahmad - Plantation Industries and Commodities Minister
- Datuk Seri Arthur Joseph Kurup – Natural Resources and Environmental Sustainability Minister
- Akmal Nasrullah Mohd Nasir - Economy Minister
- Dr Zulkifli Hasan - Minister in the Prime Minister's Department (Religious Affairs)
- Datuk Mustapha Sakmud - Minister in the Prime Minister’s Department (Sabah & Sarawak)
- Dr Mohamad Taufiq Johari - Youth and Sports Minister
Updated Deputy Minister Roster:
- Datuk Mohamad Shahar Abdullah - Deputy Economy Minister
- Loh Su Fui - Federal Territories Deputy Minister
- Marhamah Rosli - Deputy Minister in the Prime Minister's Department (Religious Affairs)
- Liew Chin Tong - Deputy Finance Minister
- Abdul Rahman Mohamad - Energy Transition and Water Transformation Deputy Minister
- Chang Foong Hin - Agriculture and Food Security Deputy Minister
- Datuk Lukanisman Awang Sauni - Foreign Affairs Deputy Minister
- Lim Hui Ying - Women, Family and Community Development Deputy Minister
- Datuk Mohamad Alamin - Entrepreneur Development and Cooperatives Deputy Minister
- Datuk Khairul Firdaus Akhbar Khan - Human Resources Deputy Minister
- Mordi Bimbol - Youth and Sports Deputy Minister
- Datuk Hanifah Jahar Taib - Deputy Health Minister
- Sim Tze Tzin - Investment, Trade and Industry Deputy Minister
- Yuneswaran Ramaraj - Deputy Unity Minister
- Chiew Choon Man - Tourism and Culture Deputy Minister
- Datuk Seri Huang Tiong Si - Plantation Industries and Commodities Deputy Minister
- Adam Adli Abd Halim – Higher Education Deputy Minister
- Syed Ibrahim Syed Noh – Natural Resources and Environmental Sustainability Deputy Minister
Two ministers dropped entirely from the Cabinet, Dr. Zaliha Mustafa and Datuk Mohd Na’im Mokhtar, as part of the restructuring and vacancy-filling process.
Domestic Political Implications Now and Looking Ahead
While the cabinet reshuffle is primarily a domestic political recalibration, its significance extends to the evolving federal–state power balance. It can be read as strategic positioning to manage support from East Malaysian partners that are critical to sustaining PM Anwar’s parliamentary majority and prospects of remaining in office. The outcome of the Sabah election has reinforced its distinct political dynamics and highlighted the importance of East Malaysian blocs in shaping coalition stability ahead of the next general election cycle.
Analysts also interpret the cabinet lineup as a signal of shifting coalition dynamics, with influential positions reflecting negotiations between parties in the ruling government. Some observers note that changes in ministerial representation, such as the reassignment of certain senior figures, may help Anwar balance competing factional interests while appealing to broader segments of the electorate as national polls approach.
Additionally, the reshuffle underscores a strategic emphasis on policy implementation rather than symbolic appointments alone. Anwar has publicly urged ministers to act with discipline, humility, and urgency in delivering policies that benefit ordinary Malaysians, signaling a push for results over rhetoric. The outcome of the Sabah state election has reinforced the state’s distinct political dynamics and highlighted the continued importance of East Malaysian blocs in shaping coalition stability ahead of the next general election cycle.
Potential Commercial Impacts
The reshuffle reflects Prime Minister Anwar’s efforts to strengthen governance and bolster his administration’s credibility ahead of crucial electoral tests. By filling key vacancies and redistributing portfolios, Anwar signaled a commitment to more cohesive teamwork and sharper focus on economic management, messages that resonate amid ongoing public concerns about the cost of living and economic performance.
With the appointment of a dedicated Minister of Investment, Trade and Industry as well as a Minister of Economy, foreign investors, not least of which including U.S. firms, may find a more predictable environment for engagement. Clear leadership in these economic ministries could help facilitate policymaking and implementation in areas such as trade, foreign investment flows, and industrial development, all of which impact U.S. companies operating in Malaysia.
For U.S. companies, these dynamics matter because shifts in East Malaysia’s political alignment and bargaining posture may affect policy continuity, project approvals, and regulatory engagement in sectors where it plays a strategic role, underscoring the importance of tracking sub-national political developments alongside federal policymaking.
