On the home front, the fall of the previous Perikatan Nasional and Pakatan Harapan governments had left Malaysians in cynicism and pessimism over the nation’s political landscape.
After taking office, Ismail introduced the “Keluarga Malaysia” motto, and proceeded to bring political calm after two years of turbulence which caused the fall of two governments.
With the Covid-19 pandemic largely dealt with, economic recovery has got under way, with Malaysia’s economic output in the second quarter of the year registering growth of 8.9%, according to Bank Negara Malaysia.
Headline and core inflation rose to 2.8% and 2.5%, respectively, reflecting improving domestic demand amid a high-cost environment, the central bank said.
“Unstable politics will lead to economic instability. Of course, the people would be affected,” Ismail told reporters in an interview at Seri Perdana recently, when asked about his greatest challenge in the past year.
On his second day in the hot seat, Ismail surprised many when he invited Pakatan Harapan’s four party leaders – Anwar Ibrahim, Lim Guan Eng, Mohamad Sabu and Wilfred Madius Tangau – to sign a memorandum of understanding (MoU) to ensure stability in the country.
“This was unprecedented in Malaysia’s history. With that, the political situation was stabilised,” he said with a look of relief as he recounted the MoU’s signing.
Ismail admitted that it was no small feat to shore up support for the MoU, noting how supporters of the parties that agreed to the reform pact used to be sworn enemies.
“At one point in time, racial and religious issues were a thing every day in the media and social media, but now we see that this has reduced. When we accept the ‘Keluarga Malaysia’ concept, harmony can be achieved quickly.”
Ismail, who is also an Umno vice-president, took over the top post from Muhyiddin Yassin in August last year after several Umno MPs withdrew their support for the Bersatu president.
Economy on the mend, but more must be done
Ismail said the latest official figures on the nation’s gross domestic product (GDP), trade and foreign direct investment was hugely encouraging.
Wholesale and retail trade had reached a high in May, growing by 19.9% year-on-year to a record RM129.8 billion in sales, the highest since 2013.
However, the prime minister was far from satisfied.
While the GDP is estimated to be between 5.3% to 6.3% this year, with a massive improvement in retail sales, he noted that many Malaysians still lived in poverty and could not afford the current cost of living.
Despite unemployment dropping to 3.8%, the lowest since the Covid-19 pandemic struck, Ismail also acknowledged that “many are still unemployed”.
“There’s still a lot of work that needs to be done. What’s more important is not just unemployment but income. What people may be earning may not be commensurate with the work they’re doing,” he added.
When asked if he was satisfied with his Cabinet’s performance so far, Ismail asked observers to take a wider perspective and to consider issues that his government had successfully resolved.
“Now, the price of chicken has gone down. The price of cooking oil has gone down. Even steel (prices) have decreased.
“Study this matter with a holistic perspective, not just by looking at individuals in the Cabinet. The Cabinet’s decisions are every ministers’ decision.”