Kuala lumpur: ASEAN+3 economies are showing stronger-than-expected resilience amid global fragmentation, with Malaysia among the strongest performers as growth, inflation, and domestic demand remain broadly stable, Bank Negara Malaysia (BNM) Deputy Governor Datuk Marzunisham Omar said.
According to BERNAMA News Agency, Marzunisham highlighted that two structural forces, geoeconomic fragmentation and the artificial intelligence (AI) revolution, are reshaping growth, trade, and financial conditions across the region, with long-lasting implications. “After decades of globalisation, trade liberalisation, and market openings, we are now confronted with growing economic fragmentation, tariff and non-tariff barriers, and other forms of trade restrictions and frictions,” he explained during the 4th ASEAN+3 Economic Cooperation and Financial Stability Forum held in Hong Kong.
Marzunisham pointed out that the intertwining of economic issues with geopolitical considerations and national security is a significant concern. He remarked that this trend of economic fragmentation is not expected to be temporary and might persist. Meanwhile, the rapid adoption of AI is boosting investment and demand for high-end electronics, benefiting several ASEAN+3 economies, including Malaysia.
He elaborated that Malaysia’s experience shows that easing global financial conditions and AI-related investments have been beneficial for the region. Despite initial concerns that exports might be negatively impacted after front-loading activities slowed, Malaysia’s exports of electrical and electronics remained robust, supported by strong demand for semiconductors and chips in September and October.
Furthermore, Marzunisham noted that Malaysia’s export diversification has helped mitigate the effects of reduced shipments to the United States, with resilient exports to China, East Asia, and ASEAN providing a buffer against the slowdown in US-bound demand.
In his closing remarks, Marzunisham stressed the importance of maintaining monetary and financial stability amid heightened global market volatility. He emphasized the need to strengthen external buffers, ensure a healthy financial sector, and maintain adequate reserves. Additionally, he mentioned that Malaysia’s government has implemented reforms to fortify the economy and enhance productive capacity, with efforts to strengthen the fiscal position providing the country with the resilience needed to navigate future challenges.