Malaysia
Malaysia exhibits mid-range performance across all categories of the Global State of Democracy framework, but it is among the bottom 25 per cent of countries with regard to Freedom of Religion. The country performs among the top 25 per cent in Basic Welfare, Absence of Corruption, and Free Political Parties, for which it has seen a notable advance over the last five years. The country is home to a dynamic market economy and boasts the third highest GDP per capita in Southeast Asia.
Malaysia is a multi-ethnic and multi-confessional state that was consolidated out of a variety of sultanates and independent kingdoms by European colonial powers, most prominently Great Britain. Parts of Malaysia became independent from Great Britain in 1957, with additional territories joining later in 1963. The country has sizable ethnic Indian and Chinese minorities, but the largest group, representing nearly 70 per cent of the population, are bumiputera, a term that encompasses ethnic Malays and a number of small “aboriginal” populations, although specific definitions vary between regions.
From independence in 1957 until 2018, the country was ruled by the United Malays National Organization (UMNO) party, leading the coalition Barisan Nasional (BN). The UMNO advocates for special privileges for the bumiputera population, who have enjoyed a wide range of constitutionally protected special privileges in education, employment, access to finance, and more since 1971. The broader coalition was always dependent on ethnic Chinese and Indian parties under a consociational arrangement, marked by cooperation between elites. This also produced an entrenched system of patronage and corruption among economic and political elites in the country.
The 1997 Asian Financial Crisis was a turning point for Malaysian democracy, galvanizing the political opposition around a reform movement that sought better governance and improved ethnic inclusion. As the opposition gained support, the UMNO turned to tactical polarization and ethnonationalist rhetoric to maintain support, sparking racial and religious tensions. Consociationalism broke down as the coalition lost both Malay and non-Malay popular support, ushering in a governance system marked by complex extra-parliamentary agreements and elite horse-trading without substantial democratic expansion.
A key milestone for the country’s democracy came in 2018 when public dissatisfaction with systemic corruption - most notably due to the 2016 1MDB scandal – resulted in the ousting of the UMNO-led BN coalition from power for the first time. Although long a Muslim-majority society, conservative interpretations of Islam have become more ingrained in recent decades, Women’s equality in social life and the labour market have significantly improved. but the gains have been unequally distributed, with women of low socioeconomic status suffering more discrimination and being more likely to be victims of gender-based violence.
In the coming years, it will be important to watch whether social tensions increases along the lines commonly referred to as “3R” issues (race, religion and royalty). Freedom of Press will need to be watched in light of proposed reforms to the media code of ethics which may result in undue government control and intimidation of the media. Freedom of Expression should also be monitored as the government has been criticized for their use of restrictive laws – in particular towards human rights defenders, artists and the LGBTQIA+ community. Moreover, Economic Equality will need to be closely watched in light of public dissatisfaction with the high costs of living due to slow economic reforms and uneven distribution of wealth.
Last Updated: June 2025
https://www.idea.int/democracytracker/
August 2026
Malaysia expands student free speech protections
On 28 August 2026, Malaysia's Ministry of Higher Education directed all public universities to halt disciplinary proceedings related to freedom of expression, criticism of authorities, peaceful assembly and the expression of personal opinions. The ministry also announced that the Universities and University Colleges Act (AUKU) and student disciplinary regulations that restrict students' rights to speak, organise associations, manage student activities, communicate publicly and publish materials would no longer be enforced, and that it would investigate the extent to which existing legislation could be used to better protect students’ civil liberties. The decision was presented as part of a broader reform agenda following Prime Minister Anwar Ibrahim's call to expand students’ civil rights. While legal restrictions remain in place for criminal offences and other misconduct, the move significantly broadens protections for student expression and association in public universities.
July 2026
Malaysia moves to strengthen independence and oversight of public prosecutions
In July 2026, Malaysia’s Cabinet approved constitutional amendments that would increase Parliament’s role in the appointment of the Public Prosecutor and further separate the offices of the Attorney General and Public Prosecutor. Under the proposed reforms, candidates for Public Prosecutor would be scrutinized by a parliamentary committee, which will make recommendations to the Judicial and Legal Service Commission for appointment by the King. The amendments followed review by a bipartisan parliamentary committee and consultations with legal experts and civil society organizations. If adopted, the changes would represent a significant institutional reform of Malaysia’s justice system and strengthen safeguards supporting independent prosecutorial conduct. The amendments are tabled for debate in July 2026 sitting of the Dewan Rakyat.
Sources: The Vibes , Malay Mail
Malaysia halts new refugee registrations amid growing hostility toward Rohingya refugees
In July 2026, the Malaysian government instructed the UN High Commissioner for Refugees (UNHCR) to temporarily suspend the registration of refugees so it could implement a new state-managed refugee registration system. Officials said the measure would improve efficiency and allow Malaysian authorities to assume greater control over refugee identification, monitoring and regulation. However, critics and human rights groups raised concerns that the new system is intrusive, lacks clear criteria for determining refugee status, and may exacerbate existing issues such as indefinite detention and even deportation of registered refugees. The policy was introduced amid growing public hostility toward Rohingya refugees, including widespread online hate speech, misinformation campaigns and an online petition attracting more than 500,000 signatures calling for their removal from Malaysia.
Sources: The Diplomat (1), The Diplomat (2), Human Rights Watch
May 2026
Allegations against anti-corruption commission undermine confidence in anti-graft oversight
Malaysia’s Anti-Corruption Commission (MACC) chief commissioner Azam Baki stepped down in May after months of pressure surrounding allegations that he had abused his office to assist private businessmen in efforts to take control of listed companies. Under Baki’s leadership, MACC allegedly pursued investigations against company founders, including arrests and freezing of accounts, in order to pressure them to relinquish control of targeted companies. The allegations were surfaced in a February 2026 Bloomberg News investigation. Separate reports revealed Azam had violated civil service regulations by failing to declare shares in publicly listed companies worth hundreds of thousands of US dollars. The Prime Minister’s office defended Azam and conducted only an internal inquiry, and no criminal charges were filed. Civil society organizations and opposition figures argued that the affair exposed weaknesses in oversight and accountability within Malaysia’s principal anti-corruption institution.
Sources: Bloomberg News , Straits Times (1), Straits Times (2), Straits Times (3)
January 2026
Former Prime Minister Najib Razak receives further prison sentence in 1MDB corruption case
On 26 December 2025, Malaysia’s High Court found former prime minister Mohammad Najib bin Abdul Razak guilty on four counts of abuse of power and 21 counts of money laundering in the largest remaining case linked to the 1MDB corruption scandal. The court sentenced Najib to 15 years’ imprisonment, imposed fines totaling MYR 11.4 billion (USD 2.8 billion), and ordered the recovery of over MYR 2 billion (USD 480 million)in assets. The judgment followed years of litigation and came days after a separate court rejected Najib’s bid to serve an earlier sentence on related charges under house arrest. Observers described the verdict as a significant demonstration of judicial independence and accountability, particularly given Najib’s continued political influence and longstanding concerns that senior political figures might evade punishment.
Sources: Asia Sentinel , Nikkei Asia
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