Anwar S Silent Reformasi Breaking Deep State S Chains

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For decades, Malaysia has been trapped in a cycle - a weakening ringgit, rising costs, and an economy weighed down by systemic rot.
Some blame local mismanagement, others external economic forces, but few truly see the full picture: Malaysia’s dependence on foreign financial systems has kept it shackled for generations.
Prime Minister Anwar Ibrahim is dismantling it all. The Petronas gravy train, Mahathir’s Umno-built fortress of corruption, and the bureaucratic machinery that siphoned public wealth - it is all coming apart, piece by piece.
The largest GLC, bloated with inefficiency and entrenched Perikatan Nasional loyalists, will be the first to go. And this purge will not stop there.
ADSBefore dedollarisation, we had to desterlingise
Long before the US dollar dominated Malaysia’s economy, the country was locked into the Sterling Area - a relic of British colonial rule that forced former colonies to hold their reserves in pounds.
Then came Nov 18, 1967 - the day the British government, under prime minister Harold Wilson, devalued the pound sterling by 15 percent against the US dollar.
Overnight, Malaysia lost RM200 million from its reserves - an economic gut punch for a newly independent nation still trying to find its footing.
The devaluation was supposed to boost British exports, but for Malaysia, it was an act of economic betrayal. It immediately made imports more expensive, fueled inflation, and exposed the dangers of relying on a foreign-controlled financial system.
Malaysia had no say in Britain’s decisions, yet it suffered the consequences. This wasn’t just a financial loss - it triggered real-world violence.
Hartal riot: When people exploded
The economic shock sparked mass outrage, particularly in Penang, where the working class and traders - many of whom held their savings in pounds - were hit hardest.
On Nov 24, 1967, just days after the devaluation, Penang erupted into chaos. A Hartal (general strike) was declared in protest of the government’s inability to shield Malaysians from the economic blow. Businesses shut down, and tensions boiled over into a full-blown riot.
What began as a demonstration quickly turned violent. Mobs clashed with police, looting and arson spread, and communal tensions flared. The riot left 27 people dead, dozens injured, and further deepened distrust in the government’s handling of economic affairs.
This tragedy should have been a turning point - a wake-up call to break free from financial dependence. But instead, Malaysia failed to learn from the crisis.
Rather than asserting full monetary sovereignty, we simply switched dependence from the British pound to the US dollar. And that mistake would come back to haunt us.
ADSThe dollar trap: How Malaysia got played again
The 1970s marked the rise of the petrodollar - a system where oil-exporting nations were forced to price and sell oil exclusively in US$, giving the US an iron grip over global trade.
Malaysia, despite being rich in natural resources, fell straight into the trap. Instead of leveraging its oil wealth to build a self-sufficient economy, the government pursued a policy that made Malaysia an exporter of crude oil while remaining dependent on foreign refiners.
The result was a system where Malaysia sent its own crude to foreign markets at low prices, only to buy back refined fuel at premium rates.
At the heart of this system was Petronas, a national oil company that was meant to secure Malaysia’s energy future but instead became a political piggy bank for Umno.
Rather than focusing on long-term national interests, Petronas was used to finance Umno-linked projects, bail out politically connected businesses, and sustain a bloated bureaucracy filled with party loyalists.
The company’s vast earnings, instead of being reinvested into energy security and economic diversification, were funneled into questionable ventures, overseas acquisitions, and opaque deals that enriched the political elite at the people’s expense.
Petronas itself has been run not as a national institution serving Malaysians, but as an entity answering to a board stacked with individuals who have little to no stake in the well-being of the country.
The current CEO is little more than a rubber stamp, signing off on decisions dictated by a boardroom full of global elites, foreign interests, and political remnants of the old guard who view Malaysia’s oil wealth as nothing more than a personal vault.
Instead of bold leadership, Petronas has been steered by an executive who simply approves whatever directives land on his desk, ensuring the status quo remains untouched while the nation pays the price.
As global oil prices fluctuated, Malaysia’s overreliance on Petronas revenue became a liability. When oil prices were high, the government splurged. When prices crashed, the economy suffered.
Yet no significant steps were taken to reduce dependency on oil revenues or ensure that Malaysia could refine its own resources without being at the mercy of foreign markets. Now, Anwar Ibrahim is tearing the system apart.
Smash the Petronas cartel, restore the ringgit
Unlike past leaders who talked about reform but never acted, Anwar is doing it - starting with Petronas, the golden goose of Umno’s corruption machine.
For decades, Petronas was not just an oil company - it was Umno’s financial backbone. Through opaque contracts, inflated projects, and a revolving door of politically connected executives, billions were siphoned away from national development into the pockets of an entrenched elite.
The deep rot within Petronas was shielded by layers of bureaucratic protection that made it nearly untouchable. Oversight was weak, transparency was non-existent, and any attempts at reform were blocked by those who stood to lose their privileged access to Malaysia’s oil wealth.
Now, that era is over. Anwar’s government is stripping Petronas of its political influence, cutting unnecessary divisions, and ensuring that every ringgit it generates is used for national benefit, not party survival.
This restructuring is not just about efficiency - it is about breaking the cycle where Malaysia’s natural resources were exploited for political gain rather than economic stability.
And it’s no surprise who is most outraged: the same people who never backed this government in the first place - hardline Perikatan Nasional supporters who thrived in the old system. But Petronas is just the beginning.
No more cheap oil for Singapore
Despite being an oil-producing nation, Malaysia lacks sufficient refining infrastructure. For decades, the country has exported crude oil to Singapore, where it was refined and sold back to Malaysia at inflated prices. This created a system where Malaysia, despite its oil wealth, was dependent on an external market for its own fuel needs.
Anwar’s strategy is clear: Malaysia must develop its own refining capabilities, ensuring that it no longer has to rely on Singapore or other foreign players to process its own natural resources.
The government is already working to expand domestic refining facilities, secure better trade agreements, and ensure that oil profits benefit Malaysia first. If Singapore refuses a fair deal, then Malaysia will impose tariffs on crude oil exports heading into Singapore - a necessary move to protect the country’s economic interests while it builds its own capacity.
For too long, Malaysia has subsidised Singapore’s refining industry at its own expense. Under Anwar, that ends.
The Purge: Raya will be exciting
Dismantling Petronas’ deep state is just the start. The real purge is coming, and no one entrenched in Dr Mahathir Mohamad-era cronyism will be spared.
Every major government agency that served political elites instead of the people is now under scrutiny. The civil service is being restructured, and those who used their positions to sabotage reforms will be removed.
For decades, Malaysia has been held hostage by Mahathir’s version of Umno - a government within a government, using state institutions to serve political masters instead of the people. That era is now dead.
Most Malaysians feel the problem - rising prices, a weaker ringgit, and declining purchasing power. But what many don’t realise is that this isn’t just inflation - it is the result of decades of structural dependence on foreign financial systems and corrupt domestic institutions.
For the first time in generations, Malaysia is breaking free - not just from foreign financial dominance, but from internal parasites that have bled the nation dry. One thing is certain - this Ramadan will be unforgettable. - Mkini
TUAN MUDA is the pseudonym of Mudasir Khan, an American corporate transplant who grew up in Penang and brings a unique blend of global insight and local expertise to the logistics industry.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

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