How a $7 Billion Dispute Helped Topple Mahathir’s ‘New Malaysia’

  • Infighting took down coalition after historic win in 2018
  • Policy differences remain even if Mahathir manages comeback
Mahathir MohamadPhotographer: Samsul Said/Bloomberg
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In the weeks before his shock resignation as prime minister threw Malaysia into turmoil, Mahathir Mohamad was getting agitated.

His then-ruling alliance had suffered a series of by-election losses, stunting its momentum after a historic election win in 2018 against a government in power for six decades. Mahathir wanted quicker action to reduce living costs, a key part of the “New Malaysia” agenda that had propelled the bloc’s surprise win. But his proposals only spurred more bickering within the unwieldy coalition of four parties with racial and religious differences.