Despite the holiday mood, it was not a quiet end to 2025, and 2026 is now shaping up to be a lively year.
After the economy posted strong numbers in 2025, analysts are predicting a slowdown in 2026 as the United States’ new tariffs weigh down exports.
But the cooling economy will unlikely bring down the political temperature as both the unity government and its main rival, Perikatan Nasional, are headed towards turbulent waters.
For different but linked reasons, 2026 could light the sparks of a break-up in both the ruling and opposition coalitions. This would then have a significant impact in 2027, when the 16th general election could be held.
Below is a list of events to watch out for in 2026 that could rock Malaysia’s political landscape.
Conventions, assemblies for Umno
Umno Youth has already started the ball rolling for the break-up of both the unity government and PN. It is holding a special convention on Jan 3 to collect grassroots voices on whether Umno and the BN coalition it leads should leave the government.
This convention is about two weeks ahead of the main Umno Assembly between Jan 14-17, where the topic of whether to stay or leave the unity government will likely also take centre-stage.
Special meetings for PN
After a slew of resignations among top PN leaders that were triggered by the Perlis menteri besar crisis, the opposition coalition is likely to meet and decide who should be in the driver’s seat - PAS or Bersatu.
Who is chosen to fill the most senior posts in the coalition could lead to strained ties among factions in Bersatu, which won 31 parliamentary seats in the last national polls, compared to PAS’ 43.
By-elections in Perlis
Following the Perlis menteri besar crisis, the state could see three by-elections to replace three PAS state assembly members who broke ranks to support the new menteri besar, Abu Bakar Hamzah from Bersatu.
The state’s assembly speaker, Rus’sele Eizan, has notified the Election Commission (EC) of the need to hold three by-elections, but the EC will decide whether polls are necessary as the assembly has already reached the three-year mark.
Were they to occur, the outcome of the by-elections in Chuping, Bintong, and Guar Sanji could lead to another round of instability in the Perlis government, as Abu Bakar has the support of only a simple majority in the 15-seat assembly.
State election in Sarawak
Meanwhile, Sarawak is likely to hold a region-wide election in the middle of the year to elect 82 members for its legislature.
Although the assembly’s term ends in February 2027, local leaders have speculated that the ruling Gabungan Parti Sarawak (GPS) coalition will likely dissolve the assembly earlier.
“I don’t expect the government to serve the full term. We are expecting the election to be called either in September or October 2026,” Sarawak opposition leader Chong Chieng Jen told Malaysiakini.
Although GPS will likely retain power, the attention will be on whether peninsula-based Pakatan Harapan will retain the two seats it controls, after the coalition was nearly wiped out in the 2025 Sabah election.
Public prosecutor, free information, ombudsman laws
The Madani administration is aiming to fulfil some of its signature promises to fix the flaws in Malaysia’s institutions by tabling a handful of long-awaited laws in Parliament. If they are passed, they could help revive support for Harapan.
These laws include:
Separating the attorney-general’s role from that of public prosecutor, which will likely see a new law enforcement entity coming into being.
Giving the public the ability to demand information about almost all government decisions through the Freedom of Information Act.
Creating an Ombudsman office to investigate complaints and allegations of maladministration by government entities.
DAP’s June deadline
Delivering on reforms will be on the top agenda of the DAP - the party with the most parliamentary seats in Harapan.
After being wiped out in the Sabah election, DAP has vowed to accelerate reforms while in the unity government in the next six months, according to party secretary-general Anthony Loke.
If Prime Minister Anwar Ibrahim fails to deliver meaningful reforms in that time frame, DAP will reassess its role in the government, Loke reportedly said. But he stressed that whatever the decision, the party will not let the unity government fall.
Going by the date of Loke’s statement on Dec 9, that deadline could fall on the last day of May 2026.
Visit Malaysia Year 2026
Although primarily an economic event, the campaign can affect political fortunes.
VMY 2026 can provide domestic cushioning against external shocks, especially as potential US tariffs weigh on Malaysia’s export-oriented sectors, said analyst Asrul Hadi Abdullah Sani to Malaysiakini.
“Tourism-led growth offers a diversified revenue stream for the government while stimulating domestic consumption and supporting small and medium enterprises.”
The tourism industry contributed about 15 percent to the nation’s 2024 economic output or GDP, bringing in more than RM102 billion in receipts. VMY 2026 aims to attract 47 million visitors and generate RM 329 billion in receipts.
“If executed well, a successful campaign can generate a tangible feel-good factor on the ground for consumers and voters alike,” Asrul added.
“However, for this momentum to translate into political goodwill, tourism gains must be felt directly through relief in the average household’s cost of living.” - Mkini
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