My Wish For 2026 While Revisiting The Wish For 2025…

On 1^st January, Scoop published my article, “My wish for 2025”. My first wish was for politicians to understand their roles and responsibilities. The second and third wishes were regarding artificial intelligence (AI) and to curb excesses.

A quick review tells me, we are off the mark.

Most politicians don’t seem to understand the basics of the Federal Constitution and their roles and responsibilities. Majority of them are poorly or not qualified academically with some even faking it. Once elected, they forget their responsibilities towards the electorate. Corruption and misuse of power is still rampant and Muslim politician’s actions seem not to reflect the teachings of Islam. Power seems to have been practiced beyond religious and moral behaviour.

Is it because “politics have no relation to morals” or smart people avoid politics?

Malaysia is racing to be among the world’s top 20 AI economies by 2030. Studies show that chatbots and automation can save users up to 90% of time, yet only a fraction translates into higher earnings/productivity. Will our dependence on foreign platforms and algorithms persist because spending billions without creativity and discipline will be a waste? In June 2023, S&P Global’s chief economist said Malaysia is on track to becoming a highincome nation by 2025 and it is partially attributable to the country’s emerging role as a technology leader. Where are we now?

Taiwan’s economy is doing well with tech sector booms due to AI demand with record exports and GDP growth forecasts but many of its workers are not doing that well.

The “excesses” of the Malaysian government still focusses on persistent historical debt from prior deficit spending. The 2025 budget allocation of RM421 billion was the largest ever tabled then, even as the government emphasised fiscal responsibility. It was the second highest expenditure-toGDP ratio in Asean, driven by heavy operating costs. For the 13^th Malaysia Plan, we aspire to keep debt low but simultaneously spending big (RM611 billion) over the next five years.

Isn’t it a conflict between ambition and prudence? The dual objective (to reduce debt but increase spending) is achievable in theory but fragile in practice. We have already raised the statutory debt limit twice in recent years, from 55% to 65% of GDP.

A series of disclosures exposed leakages involving not only politicians, but also enforcement agencies and financial institutions. Since 2023, seizures totalled RM15.5 billion. Hopefully, all are genuine cases and perpetrators to be brought to court with guilty verdicts and it would add to government coffers. 

Sadly, the Auditor-General’s Report (AGR) has no impact on any civil servants as there is no authority to prosecute. Enforcement agencies pretend not to know, not to see and not to rock the boat as the blame is always on the standard operating procedure (SOP). AGR 2024

recommended that the Prime Minister’s Office (PMO) refer the irregularities in the management of the National Professors Council (MPN) to the relevant enforcement agencies but has it been referred to the enforcement agencies?

The government has firmly expressed its commitment to fiscal prudence through the Public Finance and Fiscal Responsibility Act (FRA) that was enacted in 2023. However, the first meeting of the Fiscal Policy Committee (FPC) happened only in August 2025. Apart from fiscal discipline to enhance debt management, we also need discipline in time management showing urgency.

According to stress tests in the Ministry of Finance’s (MOF) Fiscal Outlook 2026 report, our debt ratio could surge to almost 97% of GDP if governmentlinked guarantees materialise.

Looking forward to 2026, I wish there will be lesser public dissatisfaction with the government. We had rising cost of living, perceptions of inconsistency in anti-corruption efforts and the unsatisfactory performance of development projects. There was economic resilience, thanks to the policies and ecosystems made available decades ago.

To earn the extra ringgit or sen, we need smart and visionary leaders who can propel us to greater heights. Ensuring the vision becomes reality with clear goals, practical plans, monitoring actions with accountability.

Imposing taxes on citizens is easy and giving tax incentives for foreigners and foreign companies to attract investments are unchallenging to achieve adequate fiscal space. As Anwar Ibrahim said in 2018, “Kera di hutan di susukan, anak di rumah kelaparan – anak-anak kita bayar GST, syarikat gergasi China di lepaskan GST”.  

We need capable leaders with political motivations and an eye to the longterm best interests of the people and the country, assisted by similarly capable and competent bureaucrats and technocrats in making better decisions – there is no law to charge for stupidity and a plan is only as good as its implementation.

Our economy may continue to strengthen and Malaysia’s global standing strengthens but in the World Happiness Report 2025, Malaysia ranked 64^th, dropping five spots from the previous year and a fifth place in ASEAN.

Last but not least, the court verdict on the 1MDB case tells us a lot and it should be a lesson to all. Transparency comes naturally with honesty, integrity and sincerity. 

What say you…

Happy holidays and season’s greetings to all.

 

Saleh Mohammed