Prime Minister Anwar Ibrahim’s Pakatan Harapan-led coalition faces internal strains and recent state-level setbacks, including Barisan Nasional’s strong July 2026 victory in Johor and losses in Negeri Sembilan, that have shaped trader views on early dissolution. The federal parliament, not due for automatic dissolution until early 2028, requires the prime minister to seek the Yang di-Pertuan Agong’s consent for a snap poll; Anwar has signaled willingness to consider one amid coalition rifts but has also downplayed the option following state results. Upcoming factors include any further coalition partner shifts, economic or corruption-related developments, and signals from the king or ruling parties that could alter the timeline before the scheduled 2028 general election. Trader consensus on dissolution probabilities by mid-2027 reflects these political risk assessments rather than confirmed plans.