Kuala lumpur: Malaysian businesses should identify their operational pain points before making strategic decisions as the business landscape becomes increasingly uncertain, said AmBank Group chief economist Firdaos Rosli. He emphasized the need for businesses to adapt to new challenges posed by geopolitical tensions, supply chain disruptions, and rapidly evolving risks, which demand greater resilience and agility.
According to BERNAMA News Agency, Firdaos highlighted the importance of understanding these pain points during the 'AmBank BizDialogue Market Outlook Series: Middle East in Focus' session held virtually. He noted that the current business environment is vastly different from the past, with daily emerging risks that require constant vigilance from businesses. Despite these challenges, he expressed optimism that Malaysia's economy would remain resilient, although growth is expected to moderate over the coming quarters. Inflation is anticipated to rise gradually due to higher energy prices and ongoing supply chain disruptions.
In the first quarter of 2026, Malaysia's economy recorded a 5.4 percent year-on-year growth, with headline inflation averaging 1.6 percent and the unemployment rate steady at 3.0 percent. Firdaos pointed out that the balance of risks leans towards the downside, citing the Strait of Hormuz as a significant external risk that could impact energy prices and operating costs. He advised businesses to collaborate closely with banks, not only for financing but as strategic partners to assess risks and identify growth opportunities.
Seah Kian Hoe, founder and CEO of Heng Hiap Industries Sdn Bhd (HHI), echoed Firdaos' call for adaptability. He urged companies to develop contingency plans for supply chains and reassess business models to manage uncertainties. Seah emphasized the need for dynamic manufacturing and pricing strategies to respond swiftly to changes in customer demand and highlighted the potential of uncertainties as opportunities to create value.
Seah also advocated for greater localisation of supply chains and increased collaboration with local manufacturers and recyclers. He stressed the importance of investing in renewable energy solutions to enhance long-term resilience. At the regional level, he underscored the significance of closer ASEAN cooperation to strengthen regional supply chains and seize new growth opportunities.