Kuala lumpur: The current global economic challenges, compounded by geopolitical tensions, require Malaysia to recalibrate its priorities amid heightened uncertainty, said Prime Minister Datuk Seri Anwar Ibrahim. He stated that while some economic pressures are beyond the country's control, the government must remain responsive and forward-looking in managing both immediate risks and longer-term prospects.
According to BERNAMA News Agency, Anwar emphasized the impact of current geopolitical events, noting that the latest episode of Israeli-American aggression against Iran is contributing to regional instability and economic issues. Speaking at the Ilmuwan Malaysia MADANI Forum Series 11, themed 'Muslim Unity in Times of Geopolitical Crisis', Anwar highlighted that uncertainty is a major threat to any economy.
The Prime Minister pointed out that Malaysia is currently able to manage domestic fuel prices, with RON95 fuel prices among the lowest globally. However, he cautioned that maintaining these subsidies comes at a significant fiscal cost, with the government spending over RM7 billion to mitigate impacts on the rakyat.
He further elaborated on the challenges posed by diesel supply, emphasizing that unlike petrol, diesel availability is more constrained, posing a potential risk of shortages. Despite international requests, Malaysia is unable to export diesel due to domestic demands.
Anwar urged the need for Malaysia to effectively anticipate short- and medium-term risks, stressing that economic management is now a key policy focus. He advocated for future studies to prepare for challenges in a post-normal world.
In addition to domestic strategies, Anwar called on the Muslim world to proactively explore reform and cooperation opportunities, despite Western dominance in global systems. He highlighted longstanding calls for reform in international financial architecture and the lack of collective resolve among nations, including Muslim countries.
He proposed smaller, practical collaborations among Muslim nations such as Malaysia, Turkiye, Indonesia, and Pakistan to strengthen economic and institutional resilience. The forum also featured insights from other notable figures, including Minister in the Prime Minister's Department (Religious Affairs) Senator Dr Zulkifli Hasan and other academic professionals.