Why politics and business should not mix in Malaysia

A reminder: The fusion of political power with business interests poses serious risks to our democracy, economy, and social fabric. Read full story

featured-image

HAVING seen how politics and business intersect over the years, I believe it is important to remind us all why these two domains should stay apart, particularly in a nation like Malaysia. The fusion of political power with business interests is a lived reality that poses serious risks to our democracy, economy, and social fabric. This isn’t about pointing fingers but about understanding the dangers and reminding ourselves why we need to keep these spheres distinct.

In a healthy democracy, the government should first serve the people, not corporations or elites. When business interests influence politics, democracy is compromised, and policies benefit a few well-connected individuals rather than the rakyat. This is particularly risky for Malaysia, where democratic institutions are still maturing and vulnerable to such influence.



A democracy influenced by business interests is a democracy weakened, and preserving its integrity means keeping these lines clear. Governments are meant to be facilitators, creating conditions to allow businesses to flourish. This means ensuring a fair and transparent regulatory framework, investing in infrastructure, and fostering innovation.

However, when governments start working for specific business interests, they stray from their primary duty of serving the rakyat. After 65 years of independence haven’t we heard all the stories? High-profile corruption cases that make headlines, for instance, revealing the ugly nexus between politics and business. It’s a pattern that repeats itself, and unless we remain vigilant, it will continue.

Corruption doesn’t just rob us of money – it robs us of trust in our leaders and institutions. When public funds are siphoned off due to corrupt practices, who suffers? It’s the everyday Malaysian. Resources that should go to schools, hospitals, and infrastructure instead line the pockets of the powerful.

This isn’t just a cautionary tale; it’s our reality, and we need to demand better. The market is distorted. We must remind ourselves of the damage done to our economy when politics meddles in business.

In a fair market, competition should drive innovation and growth. But when businesses secure government favouritism through political connections, it stifles competition. This is something we see far too often in Malaysia, with politically linked companies getting the lion’s share of contracts and benefits.

What happens then? Smaller businesses – especially the small and medium-sized enterprises that are the backbone of our economy – are left to struggle. Innovation stalls, prices rise, and ultimately, we, the consumers, bear the brunt. If we want a thriving economy, we need markets that are free from political interference.

Trust is the cornerstone of any functioning society. Yet, the mixing of politics and business erodes this trust. When Malaysians see leaders prioritising corporate interests over public welfare, it breeds cynicism and apathy.

We’ve all felt it – the frustration of seeing decisions being made that seem to be more about lining someone’s pockets than serving the people. This erosion of trust can lead to something even more dangerous: social unrest. In Malaysia, where economic and social divides already exist, the perception of a corrupt elite can spark discontent.

We’ve seen movements and protests arise from this very frustration. To avoid further disillusionment and unrest, we need transparency and accountability in both politics and business. We also need to talk about the growing gap between the rich and the poor – a gap that’s often widened when politics and business get too cosy.

We can’t ignore the fact that political favouritism has contributed to this inequality. When policies favour a select few, the majority are left behind, struggling to make ends meet. It is about real lives – about families who can’t afford proper education for their children or adequate healthcare.

When business elites and politicians collaborate to serve their own interests, they perpetuate cycles of poverty and limit opportunities for many Malaysians. We must remember that true progress is inclusive – it leaves no one behind. So let’s talk about ethics.

When politics and business mix, ethical standards often erode – politicians may seek personal gain, and businesses may ignore regulations for profit. This decline in ethics affects every-one. In Malaysia, we’ve seen how environmental and labour rights can take a back seat when profits are on the line, which isn’t sustainable.

Whether it’s in politics or business, our leaders must act with integrity and prioritise the rakyat’s best interests. The entrenched blend of politics and business makes it hard for new governments to implement reforms. Even with leadership changes, the old guard often holds sway through longstanding business networks, acting as a “shadow government” that resists economic, bureaucratic, and political reforms.

Efforts to dismantle monopolies, ensure transparent procurement, or reform public institutions often face pushback from these interests. True reform requires not only political will but also breaking down these deep-rooted power networks. What can we do about this then? It starts with us – the people.

We need to stay informed, hold our leaders accountable, and demand transparency. Campaign finance reform, stronger regulations, and independent oversight are all critical. But perhaps most importantly, we must keep reminding ourselves and others of the importance of separating politics from business.

Malaysia’s future depends on it. Let’s not wait for the next scandal or crisis to wake us up. Instead, let’s stay vigilant and proactive, ensuring that our democracy and economy serve the people, not the powerful few.

This is our country, our future, and it’s up to us to protect it. Senior lawyer Datuk Seri Dr Jahaberdeen Mohamed Yunoos is the founder of Rapera, a movement which encourages thinking and compassion among Malaysians. The views expressed here are entirely his own.

.