The economics of winning elections

Elections and economic matters are closely intertwined, beyond mere taxation and inflation. The upcoming 2027 Budget presents an opportunity for Prime Minister Anwar Ibrahim to leverage economic strategies to sway voters. Economists suggest targeting specific voter groups through fiscal transfers and redistribution policies. For instance, around a million voters with PTPTN loans could benefit from abolishing student loans and directly funding higher education through higher income taxes.

Similarly, raising salaries above the living wage of RM3,100 for nearly 190,000 employees in government-linked companies, and extending wage benefits to three million private sector workers, could garner support. Providing a monthly state pension of RM500 for three million older voters and restructuring the RM15 billion STR-SARA scheme into a steady monthly payment could also sway the electorate.

These policies, which directly improve the economic well-being of citizens, have the potential to break through identity politics and resonate with voters across Malaysia.