PUTRAJAYA – Anthony Loke should be leaving Malaysia’s Cabinet. Instead, the Democratic Action Party (DAP) secretary-general is strikingly upbeat about a party that has just suffered a string of electoral setbacks – including his own recent defeat in Negeri Sembilan.

“Negeri Sembilan’s defeat is basically a blessing in disguise for us,” the 49-year-old told The Straits Times in an exclusive interview on Oct 1. He noted that the UMNO-led state government, alongside Parti Islam SeMalaysia (PAS), remains mired in a royal crisis that they had promised to resolve upon coming to power under the Malay unity banner.

His optimism comes at a pivotal point for DAP, which has gone from perennial opposition to a key player in the federal government led by Prime Minister Anwar Ibrahim. Growing frustration among its core Chinese electorate has highlighted the limits of what it can achieve in a multi-party coalition.

Loke’s decision to leave the Cabinet over former prime minister Najib Razak’s house arrest illustrates the balancing act between staying in power and holding to principles the party says it cannot abandon.

Indeed, Loke should have cleared his desk after announcing on Sept 19 that he would quit the Cabinet in protest at Najib being allowed to serve the rest of his graft sentence related to the 1MDB scandal in his Kuala Lumpur mansion instead of Kajang Prison.

Instead, he has courted criticism after clarifying on Sept 29 that his resignation will only take effect once Najib pays the outstanding RM50 million (S$15.7 million) fine under the conditional house arrest order.