Malaysia's Prime Minister Anwar Ibrahim picked the head of the country's top pension fund to support him in the finance ministry, marking the first Cabinet reshuffle as his government seeks to boost growth and rein in a fiscal deficit.
Amir Hamzah Azizan, the chief executive of the Employees Provident Fund, was selected as the second finance minister, Anwar said in a briefing Dec. 12.
The prime minister's decision to revamp his Cabinet was in part a response to critics' concerns that he has taken on too many responsibilities.
The finance ministry "must have a strong professional team to ensure that we are on the right track and focus on the economy," said Anwar, who still leads the portfolio.
Anwar is seeking to extend his grip on power as he leads a coalition government backed by multiple parties since November 2022. While he commands the support of two-thirds of Malaysia's parliament, his approval rating has dived.
Malaysia's benchmark stock index fluctuated between gains and losses amid a volatile trading session. The ringgit was little changed after the announcement.
The reshuffle comes two weeks after parliament approved Anwar's scaled back spending plan for 2024 that seeks to narrow the budget deficit through a combination of subsidy cuts, new taxes and lower debt payments. Restoring fiscal health is key for Malaysia to retain developing Southeast Asia's highest credit score, and keep investors' faith at a time when higher U.S. rates have made them wary of emerging-market assets.
Amir Hamzah, who has run the country's biggest pension fund since March 2021 and led Malaysian utility company Tenaga Nasional Berhad, will be central to implementing Anwar's economic plans. A seasoned technocrat, he graduated with a bachelor of science in finance from Syracuse University before attending Stanford University, according to his LinkedIn profile.
The Cabinet reshuffle is positive for Anwar as he has added "steady hands that could pull the country out of the economic rut", according to Oh Ei Sun, principal adviser for Pacific Research Center of Malaysia. "The Cabinet reshuffle brought in quite a few old faces who are considered to be quite well respected and capable."
The new lineup ushered in the return of former ministers such as Dzulkefly Ahmad, who will once again helm the health portfolio after holding the position from 2018 to 2020. Johari Ghani, 1MDB task force chief and former second finance minister, will lead the plantation and commodities ministry.
Anwar's Cabinet is now expanded to 31 ministers — the same as his predecessor Ismail Sabri Yaakob — from 28. Overall, his administration has 60 people, including deputies, though still lower than Ismail Sabri's 70-member administration, his office said in a statement.
Here are details of the other appointments: Anwar named Deputy Prime Minister Fadillah Yusof as energy transition minister; Khaled Nordin, the minister for higher education, will move to head the defense portfolio; former defense chief Mohamad Hasan will be foreign minister; Gobind Singh Deo will head the newly created Digital Ministry.
Gobind served as communications and multimedia minister from 2018-2020.
