Relations between Malaysian Prime Minister Anwar Ibrahim and Deputy Prime Minister Ahmad Zahid Hamidi are facing significant strain, according to recent reports. A major point of contention has emerged from a public dispute over funding disbursements for Zahid's Rural and Regional Development Ministry. Zahid openly expressed frustration that contractors for his ministry were unpaid because the Finance Ministry, led by Anwar, had not released nearly $1 billion in approved funds. UMNO Youth chief Muhamad Akmal Saleh further escalated the situation by directly questioning Anwar, who also serves as Finance Minister, about the delay and suggesting "another agenda" might be at play.
Treasury secretary-general Johan Mahmood Merican responded by stating that allocations for rural roads were fully disbursed but largely spent, and accused Zahid's ministry of over-committing beyond its annual budget. The Treasury approved an additional $300 million to cover outstanding payments. However, Zahid's press secretary rejected this account as misleading, arguing that ministries cannot spend without authorization and that many commitments stemmed from pandemic-delayed projects. He also claimed the $300 million was an owed allocation, not additional funding. This public disagreement, involving civil servants and political aides from both PKR and UMNO, has been described as more than an administrative dispute, potentially signaling a proxy battle between Anwar and Zahid.
Adding to the tensions is the perceived betrayal by Barisan Nasional (BN), led by Zahid, for allying with Perikatan Nasional (PN) in the Negeri Sembilan state election. Former UMNO youth chief Khairy Jamaluddin stated that trust between Anwar and Zahid has reached an all-time low following BN's cooperation with PN, despite their federal-level alliance. This alliance resulted in BN and PN winning 25 out of 36 state seats, while Pakatan Harapan (PH) won only 11. Although Anwar has dismissed claims of a rift and maintained a "peaceful approach," he acknowledged some differences at the state level. The public quarrel over funding and the political alliance suggest a widening fissure within the fragile ruling coalition, with implications for governance and the future stability of the Madani government.
