Anwar Ibrahim heads a fragile unity government coalition that has faced repeated setbacks in state elections since late 2025, including losses in Johor, Negeri Sembilan, and Sabah that exposed eroding support for his Pakatan Harapan parties and rising strength for Barisan Nasional partners and opposition forces. Internal PKR fractures, including high-profile defections to a breakaway party, have compounded coalition tensions with Umno and stalled reform momentum. Parliament’s term runs until December 2027, with the next general election required shortly afterward; recent reporting indicates Anwar is weighing a delay into late 2027 rather than a near-term snap poll. These dynamics shape trader assessments of risks to his premiership before scheduled or potential early votes.