KUALA LUMPUR – The resignation of Rafizi Ramli as Economy Minister does not necessitate a Cabinet reshuffle, but should instead prompt the dissolution of the ministry altogether, say political analysts.
They argue the ministry’s core functions can be streamlined into existing portfolios, such as the Finance Ministry (MOF), which is already overseeing the targeted subsidy rationalisation programme, and the Investment, Trade and Industry Ministry (MITI), which handles tariff-related negotiations.
Speaking to Scoop, Universiti Malaya political analyst Mohammad Tawfik Yaakub said such a move could reduce the number of ministers and help cut administrative expenditure.
“I am of the view that if the Prime Minister does not intend to carry out a Cabinet reshuffle, then it is better for the Economy Ministry to be dissolved. Its functions can be distributed to other ministries like MOF, MITI, and relevant implementing agencies.
“This is more cost-effective and practical than retaining a ministry whose policies have not stood out.
“For example, initiatives like PADU and the vending machine project previously introduced did not yield significant impact,” he said today.
Commenting further, Tawfik said Rafizi’s resignation was bold but poorly timed.
“The resignation took place a day after Malaysia hosted the Asean Summit, and this has somewhat tarnished the image the government is trying to build.
“This move appears more personal in nature and does not reflect the stature of a national leader,” he said.
He added, however, that the decision is unlikely to affect the stability of PKR.
“PKR has weathered many challenges, including internal splits during the era of Datuk Seri Azmin Ali, but the party recovered and now leads the government,” he said.
Geostrategist Azmi Hassan echoed the view that a Cabinet reshuffle is unnecessary, as the Economy Ministry no longer plays a central role in shaping economic policy.
“Even critical functions like petrol subsidy rationalisation are now managed by MOF.
“Tariff-related policies are largely driven by MITI under Tengku Datuk Seri Zafrul,” he said.
Azmi also dismissed concerns over potential disruption to economic direction, arguing that few key policies originate from the ministry.
“Only the 13th Malaysia Plan is closely linked to the Economy Ministry, but most responsibilities under it can be taken over by other ministries, including monitoring.
“So the ministry can either be abolished or a new appointee from PKR’s leadership can be named,” he said.
Rafizi earlier announced his resignation from the Cabinet, effective June 17.
In a statement today, he confirmed that his resignation letter has been submitted to Prime Minister Datuk Seri Anwar Ibrahim.
“This resignation will take effect from June 17. Starting today, I will utilise my remaining annual leave until June 16,” he said.
Rafizi had previously lost to Nurul Izzah Anwar in PKR’s central leadership contest for the party’s number two post. – May 28, 2025.