Malaysia Faces Political Turmoil as Muhyiddin Resigns from PN Chair

KUALA LUMPUR: Malaysia’s political landscape is in turmoil following the resignation of former prime minister Mu­hyiddin Yassin as chairman of the opposition coalition Perikatan Nasional (PN), effective January 1, 2026. The unexpected announcement on December 30, 2025, has sparked speculation and uncertainty, with implications for both the unity government and the opposition. Muhyiddin’s brief statement, which thanked supporters without naming a successor, raises questions about the future leadership of the coalition.

The timing of this shift suggests a calculated move, allowing for a transition amid rising tensions within PN. Political analysts speculate that the dominant partner in PN, Parti Islam Se-Malaysia (PAS), may be seeking increased influence. PAS reportedly supports either one of its leaders or Hamzah Zainudin, the deputy president of Bersatu, as potential candidates for the chairmanship. This change could realign the dynamics within PN, as Hamzah may be seen as a more agreeable figure to PAS on critical issues.

Tensions within PN are further highlighted by recent developments in Perlis, Malaysia’s smallest state. In late December, assembly members withdrew support from the PAS-appointed Chief Minister Mohd Shukri Ramli, leading to his resignation due to health reasons. He was promptly replaced by Abu Bakar Hamzah from Bersatu, marking a significant loss for PAS and exposing deep rifts between the two parties.

The ruling unity government, led by Prime Minister Anwar Ibrahim, is also facing challenges. A recent ruling by the High Court on December 22, 2025, rejected Najib Razak‘s request to serve his remaining sentence under house arrest. This decision came just days after Najib was convicted in a high-profile trial related to the 1MDB scandal, resulting in an additional 15-year prison sentence and substantial financial penalties. These developments have fueled unrest within the United Malays National Organisation (UMNO), with the Youth wing demanding a reevaluation of the party’s coalition with Anwar’s government.

Moreover, the outcome of the November 29, 2025, Sabah state election has compounded the challenges for the unity government. Local parties captured the majority of seats, with Gabungan Rakyat Sabah (GRS) securing 29 seats and Parti Warisan winning 25. In stark contrast, the ruling coalition, Pakatan Harapan (PH), managed to secure only one seat, reflecting a growing discontent in Borneo towards peninsular political dominance.

Implications for 2026

As Malaysia moves into 2026, the political landscape is fraught with uncertainty. While Prime Minister Anwar appears secure with PN in disarray, potential challenges loom. A revitalized PN under new leadership, particularly if Hamzah is appointed, could present a formidable opposition. This shift may further complicate UMNO’s internal dynamics, especially as calls for an all-Malay government gain traction among certain factions.

The ongoing saga surrounding Najib’s legal battles continues to divert attention, exacerbating UMNO’s frustrations and undermining Anwar’s narrative of unity. The Youth wing’s recent calls for the party to withdraw support from the government underscore the growing tensions, further complicating Anwar’s position.

The pressure on the unity government will also stem from Sabah and Sarawak. The recent election results have amplified state nationalism, which Anwar must navigate carefully. He faces the challenge of implementing Sabah’s court-mandated revenue entitlement, a multibillion-ringgit obligation dating back to 1974. Agreeing to these payments, even in installments, risks alienating the Malay political establishment, while any delay could further distance Borneo support.

Ultimately, 2026 is poised to be a pivotal year for Anwar, as he prepares for the upcoming 16th General Election (GE16), scheduled for February 2028. He must demonstrate tangible achievements to validate his position as prime minister, especially given that he did not win the last election outright. The question remains: can he secure support from Borneo once more, or will he be dependent solely on the political landscape in Malaya?

As the new year begins, Malaysia’s political arena is anything but stable. Anwar faces escalating challenges from within his coalition and from a resurgent opposition. The navigation of these complex political waters will be crucial; failure to do so may lead to deeper fragmentation in an already polarized landscape.