KUALA LUMPUR, Nov 5 — DAP’s Bagan MP Lim Guan Eng has urged the federal government to heed the political reckoning of the US midterm elections, warning that strong headline economic numbers will not save Putrajaya from voter backlash if everyday citizens continue to grapple with escalating living costs.
In a statement today, the former finance minister pointed to the Republican Party's defeat in the Nov 3 polls, which saw Democrats seize control of the US Congress after voters rejected several of President Donald Trump’s endorsed candidates, including in longstanding conservative bastions.
Lim noted that despite the US registering 3.4 per cent gross domestic product growth in the third quarter of 2026, voters remained unswayed because gains were concentrated in isolated sectors, creating a bifurcated two-tier economy that left ordinary households behind.
“Malaysia faces a similar two-tier economy. Despite a record 6% GDP growth in the 2nd quarter 2026, many MSMEs and individuals complain about the so-called “phantom growth and controlled inflation” that fails to arrest their declining business or improve affordability and reduce the cost of living.
“These challenges are compounded by the government’s hike in compliance costs and taxes last year,” Lim said.
He contended that top-line expansion has done little to arrest declining sales volumes, relieve margin compression, or make daily necessities affordable, arguing that aggressive tax hikes and rising regulatory compliance burdens introduced by the government over the past year have only deepened commercial anxieties.
To bridge the divide, Lim called on federal ministers to step outside their “air-conditioned rooms” and engage directly with struggling small business owners and employees across Malay, Chinese, and Indian communities.
He also took aim at bureaucrats heading statutory development agencies tasked with assisting small businesses, insisting they must “stop sleeping on the job” and actively champion policies that reduce operational friction and stimulate commerce.
Lim warned that while Malaysian leaders might feel indifferent toward Trump's political reversal, the underlying electoral dynamics are universal.
Disregarding public frustration over bread-and-butter struggles, he cautioned, will expose the ruling administration to an identical fate at the ballot box when the country next heads to the polls.
