Malaysia is currently undergoing a significant transformation grounded in inclusive and progressive nation-building anchored in the values of moderate Islam. Since the formation of the Unity Government in the aftermath of the 15th General Election (GE15), Prime Minister Dato’ Seri Anwar Ibrahim has introduced a new governance framework through the Malaysia Madani concept.

This initiative aims to re-establish the nation on principles of compassion (rahmah), justice, and pluralism. It starkly contrasts with the exclusive and ethno-religious political approaches propagated by opposition parties such as PAS and BERSATU, which appear increasingly disconnected from the realities of contemporary Malaysia and global expectations.

Nation-Building and the Identity of a Moderate Muslim State

Nation-building must transcend economic and physical development. It should be rooted in shared values, national identity, and social cohesion. Benedict Anderson (2006) conceptualizes the nation-state as an “imagined community,” constructed through symbols, language, historical narratives, and collective values. In this context, Malaysia Madani offers a renewed national narrative that integrates the Islamic principles of maqasid shariah (higher objectives of Islamic law), good governance, and social inclusion.

As a Muslim-majority yet plural society, Malaysia’s trajectory as a moderate Muslim state requires an Islamic framework that is inclusive and contextually grounded. Tariq Ramadan (2009) argues that moderate Islam is not simply a midpoint between extremism and liberalism, but a dynamic worldview that engages critically with contemporary realities and political structures.

In a 2023 address at the Oxford Centre for Islamic Studies, Anwar Ibrahim articulated this vision:

“The Islam we promote is not political rhetoric, but a living value system. We seek a just nation for all, without marginalizing the Muslim majority or disrespecting religious minorities.”

Early Achievements of the Unity Government in Nation-Building

Despite the initial challenges—including political instability and inter-ethnic tensions exacerbated by fear-mongering from the opposition—the Unity Government has made commendable progress in several nation-building domains:

Inclusive and Reformist Economic Policy
The Madani Budget 2024, amounting to RM393.8 billion, significantly increased allocations to Sabah (RM12.4 billion) and Sarawak (RM5.8 billion), underscoring a commitment to federal equity. The economic blueprint Madani Economy: Empowering the People outlines seven key performance indicators, including income growth, inequality reduction, and public service reform (Ministry of Finance, 2023).

Foreign Investment and Global Credibility
Foreign direct investment (FDI) surged to RM71.4 billion in Q3 of 2023, according to the Malaysian Investment Development Authority (MIDA). The entry of global firms such as Tesla, Infineon, and Google reflects confidence in the country’s political stability and investment climate—attributable in part to the Prime Minister’s international reputation as a moderate Muslim statesman.

Emphasis on Education and TVET
The government’s RM6.8 billion investment in Technical and Vocational Education and Training (TVET) demonstrates a long-term vision for workforce development. The integration of industries, universities, and public agencies in aligning education with market needs is a forward-thinking nation-building strategy.

Legal Reforms and Institutional Strengthening
Establishing the Law Reform Commission and restoring the Parliamentary Services Act reflect Malaysia’s renewed commitment to parliamentary democracy and transparency. These reforms align with the Islamic concept of ihsan (excellence) in governance and the maqasid shariah principle of institutional integrity.

Embracing Diversity as an Asset, Not a Threat

Malaysia Madani rejects the notion that ethnic and religious diversity undermines national unity. On the contrary, it treats pluralism as a national asset. This approach resonates with Will Kymlicka’s (2001) theory of multicultural nationalism, which argues that protecting minority rights and identities within a democratic framework enhances the legitimacy and sustainability of the nation-state.

The Unity Government exemplifies this with a diverse cabinet and leadership team. Muslim leaders such as Anwar Ibrahim, Zahid Hamidi, and Fadillah Yusof collaborate closely with non-Muslim leaders like Anthony Loke and Ewon Benedick, embodying a politics of cross-cultural solidarity. This inclusive governance model parallels the Constitution of Medina, which provided rights to Muslims and non-Muslims alike, based on justice and loyalty to the state rather than ethnic or religious supremacy.

In Religion, Politics and Nation-Building in Post-Colonial States, Nasr (2001) emphasizes that successful Muslim-majority states must separate the principles of religion from political exploitation and prioritize social justice and equity. Malaysia’s current direction aligns with this vision.

PAS and BERSATU: Regressive Identity Politics

In contrast, PAS and BERSATU rely heavily on fear-based narratives and ethno-religious exclusivity to sustain their political support. Their public rhetoric frequently invokes alarmist terms such as “liberalism,” “pluralism,” and alleged threats to Islam under the Unity Government. However, these parties have failed to offer viable, inclusive policy alternatives.

This political strategy not only deepens social polarization but contradicts Islamic jurisprudential principles that prioritize maslahah (public interest) and justice. For instance, PAS President’s statement that “Islam cannot be placed on equal footing with other religions” sparked public outcry and contradicts Article 11 of the Malaysian Constitution, which guarantees freedom of religion.

Furthermore, such rhetoric damages Malaysia’s global image. A 2023 Pew Research Center report indicates that rising religious fundamentalism correlates with investor anxiety, increasing perceptions of social and legal instability.

Malaysia as a Future Model of Moderate Muslim Governance

Malaysia’s re-emergence as a model moderate Muslim nation is gaining recognition across the Islamic world and beyond. At the OIC summit, Anwar Ibrahim called for a rejection of extremism and urged Muslim nations to uphold justice, knowledge, and openness—principles that echo the intellectual traditions of scholars like Yusuf al-Qaradawi and Syed Muhammad Naquib al-Attas.

Malaysia is increasingly seen as a potential bridge between the Islamic world and the West, with its democratic institutions, media freedom, and relatively effective pluralist governance setting it apart from many OIC countries.

Conclusion

Malaysia is rewriting its national narrative. From a nation long trapped in ethnic and religious political rhetoric and systemic instability, it is now moving toward becoming a progressive, just, and inclusive moderate Muslim nation. The Malaysia Madani framework and the nation-building initiatives of the Unity Government are laying the foundation for this resurgence.

Meanwhile, PAS and BERSATU remain mired in obsolete, exclusionary, and anti-intellectual politics. As Professor Syed Farid Alatas (2021) rightly observed:

“Islamic politics that fails to embrace social justice and universal values becomes a tool of oppression, not a source of mercy.”

In this light, the Unity Government is not only steering Malaysia’s future but also redefining Islamic political discourse in the country. PAS and BERSATU have not only lost relevance in policy and vision—they have missed the train to Malaysia’s future.