Fresh twist on Anthony Loke’s resignation: Little wiggle room for him, breathing space for Anwar

KUALA LUMPUR: Malaysia Transport Minister Anthony Loke’s resignation in protest of former prime minister Najib Razak's conditional royal pardon took a fresh turn on Tuesday (Sep 29), with Loke saying he and Prime Minister Anwar Ibrahim have agreed it will take effect only when Najib begins his house arrest. 

The move, analysts say, is calculated to limit disruption to the Cabinet and ensure continuity for key transport infrastructure projects. 

It also gives Anwar some breathing space while crowdfunding to raise Najib’s court-imposed RM50 million fine by his United Malays National Organisation (UMNO) party continues, they add.

Observers say Loke has little room to backtrack on his decision, which his Democratic Action Party (DAP) made in line with its anti-corruption stance, however.

Failing to resign once Najib’s house arrest conditions are met – even if Loke’s offer is rejected by Anwar – would hurt the DAP's credibility, analysts noted.

WHAT ARE THE POLITICAL CONSIDERATIONS?

To some analysts, DAP may have gotten ahead of itself when making its initial decision.

Loke, who is DAP secretary-general, first announced his resignation on Sep 19 after the party’s central executive committee met. 

The committee gathered a day after the king’s decision and agreed that DAP’s other ministers would remain in Cabinet to maintain political stability. Inclusive of Loke, DAP currently has five Cabinet ministers and seven deputy ministers.

Hisommudin Bakar, executive director of the research firm Ilham Centre, told CNA that Loke’s initial announcement felt hasty.

It may have stemmed from DAP being under pressure following a series of electoral defeats in the Sabah, Johor and Negeri Sembilan elections, most notably Loke’s own defeat in the Chennah seat in Negeri Sembilan that he had held for three terms, he said. 

“This could have been intended as a signal to Chinese voters that DAP is a party that sticks to its principles and that Chinese voters can continue to place their trust in it,” Hisommudin said, referring to DAP’s traditional core vote base. 

“If Loke had already decided at the outset that he would resign over Najib’s pardon, then there was no need to attach further conditions to it,” he said. 

“It risks looking as though DAP was not serious and that the whole episode was just political theatre.”

Loke’s latest agreement with Anwar for the resignation to take effect when Najib begins house arrest, however, spares the PM from having to look for his replacement for now, Hisommudin said.

“For Anwar, Loke’s resignation would create additional pressure because it would leave a vacancy in the Cabinet. It could also create speculation on who would replace Loke and could fuel rumours of a wider Cabinet reshuffle ahead of the general election,” he said. 

Malaysia’s 16th general election (GE16) is due by February 2028, but Anwar has been urged by Deputy Prime Minister Ahmad Zahid Hamidi of the Barisan Nasional (BN) coalition to call a GE “immediately”, in the wake of BN’s recent state election victories in Johor and Negeri Sembilan.

Anwar is buying time because he needs DAP’s full support in the Cabinet and does not want to lose any of its members, said Azmi Hassan, a senior fellow at the Nusantara Academy for Strategic Research. 

While the decision is a win for Loke, DAP and Anwar, Azmi agreed that Loke's changing stance – shifting from an immediate resignation to a delayed exit – has invited public mockery and left the impression that he is hesitating. 

“Already DAP’s political enemies were already making fun of his resignation offer initially, so they are unlikely to stop now,” he said. 

On Tuesday, Anwar questioned the attention on Loke's resignation and cited more pressing issues to discuss.

"What is the problem with Anthony Loke? The problem is corruption. The problem is robbery and stealing public funds.

"Those issues are not being raised but people keep asking why this person resigned," he was quoted as saying by The Star.

WHAT NEXT FOR TRANSPORTATION PROJECTS? 

Transport experts said Loke’s impending departure would not have much impact on near-term projects including the Johor Bahru-Singapore Rapid Transit System (RTS) Link as well as the East Coast Rail Link (ECRL) - a 665km megaproject connecting Selangor to the east coast states of Pahang, Terengganu and Kelantan. 

Both the RTS and ECRL are expected to begin commercial operations in January next year.

“These projects have been in the works for a long time, even before Anthony Loke’s time as minister and, importantly, are near completion so a vacancy or new minister is unlikely to change the remaining trajectory of these projects,” said Timothy Wong, an associate professor at the National University of Singapore’s Department of Economics.

For instance, the cross-border RTS Link was first announced in 2010, with Singapore and Malaysia signing a legally binding agreement in January 2018. 

When Loke was first appointed transport minister in May 2018 after the Pakatan Harapan coalition came to power under then-prime minister Mahathir Mohamad, he said Malaysia would continue with the project. 

Similarly, the groundbreaking ceremony for the ECRL project was held in 2017 during the Najib administration. 

Nor Aziati Abdul Hamid, associate professor and senior researcher at the Universiti Tun Hussein Onn’s Centre of Excellence for Rail Industry in Malaysia, agreed that projects already at the testing stage, such as the RTS and ECRL, are “fairly insulated” from changes in political leadership. 

Projects still at the policy, approval or pre-construction stages would depend more on a minister to champion and push them forward, she said. 

The RTS Link, she said, is “past the stage where a minister’s personal drive matters”, said Nor Aziati. 

“The governance sits in treaty-level arrangements rather than with any one politician.” 

While she does not expect a change in minister to delay remaining construction for the RTS Link, Nor Aziati said Loke’s successor would have “little time” to build a ministerial relationship with Singapore before operations begin. 

“The RTS Link launch will be one of the government’s most visible deliverables ahead of the next GE”, and Loke has been the project’s public face, she said.

“Whoever holds the (transport minister) portfolio) at the launch will get the credit, which gives both Anwar and DAP a stake in how the handover is timed,” Nor Aziati said.

Loke himself said on Sep 19 that “ministers come and go”, and “projects that have already been implemented will continue, as the ministry does not stop functioning”.

Nor Aziati said the projects most at risk would be those without contracts or momentum yet. She cited Johor's elevated Autonomous Rapid Transit (ART) project that aims to tackle the state's congestion, especially in anticipation of a surge in passengers with the RTS Link. 

While the proposal had been tabled to Cabinet in 2024, no physical works had yet commenced, Johor Chief Minister Onn Hafiz Ghazi noted in June.

“Projects not yet approved or funded rely most on political will and they are the easiest to postpone easily,” Nor Aziati told CNA. 

A minister champions a project and presses for budget allocations, and “when that champion leaves, the projects don’t die but those still waiting approval or funding can slip down the queue”, she said.

Wong of NUS said changes could be anticipated for transport initiatives with longer runways to completion, such as the Mutiara LRT Line in Penang, which he described as a “hallmark project for the DAP government in Penang”.

“Without Loke at the helm of MOT, it is unclear whether the project will continue to be given as much priority, “ said Wong. 

WHO COULD REPLACE LOKE? 

Loke’s departure as transport minister could lead to some Cabinet changes but analysts do not expect a major reshuffle. 

“Anwar is also likely to leave the portfolio vacant or fill it with another DAP candidate to maintain a stable party coalition quota formula,” University Malaysia Sabah (UMS) political analyst Syahruddin Awang Ahmad told Sinar Daily.

“If the resignation triggers a portfolio swap among the main component parties, a more comprehensive reshuffle could take place,” he added. 

Nor Aziati of Universiti Tun Hussein Onn said one of the current ministers could be appointed acting transport minister.

After Rafizi Ramli resigned as economy minister and Nik Nazmi Nik Ahmad resigned as natural resources and environmental sustainability minister last year, Anwar appointed Finance Minister II Amir Hamzah Azizan and Trade Minister Johari Abdul Ghani to cover the vacated portfolios for six months until a Cabinet reshuffle in December 2025, she noted.

Anwar then appointed the Parti Keadilan Rakyat’s Akmal Nasrullah Mohd Nasir and BN’s Arthur Joseph Kurup as economy minister and natural resources and environmental sustainability minister, respectively.

With the current parliamentary term due to expire in December 2027 and the possibility of an early GE, a new minister “would have limited time to make a mark”, said Nor Aziati. 

Loke’s potential successors include DAP’s Steven Sim and Nga Kor Ming, she said.

Sim is currently the entrepreneur development and cooperatives minister and has experience across several portfolios, said Nor Aziati. Nga is minister for housing and local government.

Legal experts are of the view that Loke’s resignation does not legally require Anwar’s approval.

Constitutional lawyer Joshua Wu said the issue exists in a constitutional grey zone. Article 43 of Malaysia’s constitution, which governs Cabinet appointments, does not specify whether a minister needs the prime minister’s permission to step down, he noted. 

“Since there is no express provision in the Federal Constitution requiring that a minister's resignation be 'with the consent of the PM' or 'upon acceptance by the PM', I would lean towards the view that a Minister's resignation is unilateral,” he said. 

Lawyer Andrew Khoo concurred, stating that by constitutional precedent and convention, Loke should formally submit a letter of resignation, to which Anwar must respond.

"As prime minister and leader of the coalition government, Anwar may try to persuade Loke to withdraw his resignation," Khoo said. "But ultimately, the prime minister cannot force him to stay. If Loke insists on stepping down, Anwar will have to accept it.