The ceremony at the National Palace closed the chapter on one of the most dramatic elections in Malaysia's history, after no party managed to secure a majority to form a government for the first time since independence in 1957.
Anwar's ascension to the premiership caps a turbulent political life, which has not only propelled him into the corridors of power but also landed him inside a jail cell.
The 75-year-old became the country's fourth leader in as many years amid hopes for political stability, capping a turbulent career that has included jail time on widely criticised sodomy and corruption charges.
Here are some key questions as he starts his rule as stated from AFP:
Biggest challenge?
"His biggest challenge will be to lead Malaysia out of the economic malaise following the pandemic," James Chin, a professor of Asian studies at the University of Tasmania, told AFP."His appointment will also be welcomed internationally since Anwar is known as a Muslim democrat worldwide."
Malaysians are facing soaring food prices, a tumbling ringgit currency and stagnant wages.
The government has revised its growth forecast for 2022 to 6.5-7.0 percent from 5.3-6.3 percent for this year, but expects economic growth to slow to 4.0-5.0 percent next year.
Oh Ei Sun of the Pacific Research Center of Malaysia, said: "Anwar's biggest challenge will be to pass the budget and revive the economy."
Asrul Hadi Abdullah Sani, deputy managing director at strategic advisory firm Bower Group Asia, said: "One of his agendas is to ensure he is able to fulfil his reform agenda as he looks to stabilise a loosely cobbled federal coalition."
What will happen to Najib
Anwar, who campaigned on a strong anti-corruption platform, has said he will not intervene in the court process.Former Prime Minister Najib Razak is serving a 12-year jail term for corruption linked to his role in a massive financial scandal at state fund 1MDB, and faces dozens more charges that could keep him in prison longer.
Several leaders of the former ruling party, the United Malays National Organisation (UMNO), are also facing corruption charges.
Anwar said before his appointment he would let those cases run their course.
How Malaysians are react
“I got goosebumps, seriously," said 36-year-old Norhafitzah Ashruff Hassan. "He fought hard to be given the chance to be PM. I hope he performs well and proves his worth."Muhammad Taufiq Zamri, a 37-year-old product manager, agreed. "I cannot express in words the ecstatic feeling I have at the announcement. A sense of optimism now flows and I believe Anwar will lead the country forward."
Why did the king need to intervene?
Largely Malay Muslim Malaysia is a constitutional monarchy with a unique arrangement where the throne rotates every five years between rulers of the nine states. The states are headed by centuries-old Islamic royalty called sultans.The system has been in place since Malaysia's independence from Britain in 1957.
While their role is largely ceremonial, Malaysia's Islamic royalty command great respect, especially from Muslim Malays, and criticizing them is strictly forbidden.
The king has the discretionary power to appoint a premier whom he believes has the majority of lawmakers' support.
Malaysia's current king, Sultan Abdullah Sultan Ahmad Shah, had to intervene after a political stalemate because there was no clear winner in the elections and there were two rival claims to the premiership.
He summoned the political parties and consulted with his fellow sultans as he called for a unity government to be set up.
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