Kuala Lumpur, Malaysia – On Saturday, July 26, 2025, thousands of Malaysians took to the streets of the capital to protest soaring living costs and the perceived failure of Prime Minister Anwar Ibrahim’s unity government to deliver promised reforms. The rally, organized by opposition parties, marked the first major protest in Southeast Asia’s sixth-largest economy since Anwar assumed power in 2022.
Protesters gathered at various points across Kuala Lumpur before converging on Merdeka (Independence) Square, carrying placards with slogans such as “Turun Anwar” (“Step Down Anwar” in Malay). Dozens of police officers monitored the event closely. Fauzi Mahmud, a 35-year-old protester from Selangor, expressed frustration, stating, “He [Anwar] has governed for three years and has yet to fulfill the promises he made. He’s been to many countries to bring investments, but we have yet to see anything.” He also highlighted the persistent high cost of living.
Anwar, elected on a reformist platform in November 2022, promised to address corruption, nepotism, and cronyism within Malaysia’s fractured political system. However, his administration’s measures, including a minimum wage hike, increased electricity tariffs for heavy users, and an expanded sales and services tax, have drawn criticism for potentially passing higher costs to consumers, including low- and middle-income earners.
In response to growing public discontent, Anwar announced several populist measures days before the rally. On Wednesday, July 23, 2025, he revealed that all Malaysians above 18 years would receive a one-off cash payment of 100 ringgit ($23.70) starting August 31, with the government allocating 15 billion ringgit ($3.55 billion) for cash aid in 2025, up from 13 billion ringgit. Additionally, approximately 18 million Malaysian motorists will be eligible to purchase subsidized medium-octane fuel at 1.99 ringgit ($0.47) per liter, down from the current 2.05 ringgit ($0.49). Political analysts viewed these announcements as attempts to appease public frustration ahead of the protest.
Despite the unrest, a June 2025 survey by the Merdeka Centre for Opinion Research indicated that 55% of Malaysian voters approve of Anwar’s performance, citing reduced political turmoil and Malaysia’s elevated profile through its 2025 ASEAN chairmanship.