Learn from Trump’s midterm defeat: Guan Eng warns Putrajaya over ‘phantom growth’

KUALA LUMPUR, Nov 5 — Former DAP MP Lim Guan Eng has cautioned the Malaysian government against assuming that impressive economic indicators will shield Putrajaya from voter discontent if citizens continue to struggle with rising living expenses. Lim highlighted the recent Republican Party's loss in the US midterm elections, where Democrats gained control of Congress after rejecting some of President Donald Trump's endorsed candidates, even in conservative strongholds.

Despite a 3.4% GDP growth in the US in Q3 2026, voters were dissatisfied due to the uneven nature of the growth, leaving regular households out. Lim drew a parallel with Malaysia's situation, where despite a 6% GDP growth in Q2 2026, many small and medium-sized enterprises (MSMEs) and individuals complained about what they called "phantom growth and controlled inflation" that did not alleviate their worsening business conditions or help with the cost of living.

The DAP leader argued that the government's recent tax hikes and increased regulatory burdens had worsened commercial concerns. Lim urged government ministers to interact personally with small business owners and staff from different ethnic communities - Malay, Chinese, and Indian - to understand their challenges. He also criticized bureaucrats at state development agencies for not actively promoting policies that ease operational burdens and boost commerce.

Lim stressed that if Malaysian leaders dismiss public frustrations over everyday issues, they risk facing the same electoral consequences the US administration did.