The economics of winning elections

Economics plays a crucial role in politics and elections, often overlooked by traditional economists. With the 2027 general election (GE16) looming, Prime Minister Anwar Ibrahim seeks guidance on how economics can bridge identity politics to secure victory. The key lies in targeting large voter groups with direct financial benefits.

For instance, around a million Malaysian voters with PTPTN loans are currently in tertiary education or post-graduation grace periods, with 160,000 to 180,000 new students joining annually. PTPTN spends RM3 billion to RM3.5 billion annually on loan disbursements. For a mere 1% of federal operational expenditure or the cost of one month of petrol subsidy, the government could abolish student loans, fund higher education directly, and recover the cost through future graduates' higher income taxes.

Additionally, improving salaries for government-linked employees and extending wage benefits to private sector workers could cost around RM9 billion. For older voters, a monthly state pension of RM500 would cost RM18.2 billion for those over 60 and RM12.5 billion for those over 65. These policies, though requiring creative thinking and fiscal adjustments, target individuals directly, benefiting them and their families.

Implemented universally, these policies address the cost of living and do not diminish overall spending power. As Anwar and his party face formidable electoral alliances, the message is clear: adopt these universal policies or risk election defeat.