Kuala lumpur: Malaysian businesses should consider diversifying into 'adjacent operations', including equities and other activities closely related to their core businesses, so that they can leverage their current expertise while mitigating risks.

According to BERNAMA News Agency, PwC managing partner Soo Hoo Khoon Yean emphasized that in the current environment of uncertainty, companies seeking profitability tend to expand into sectors closely related to their core business rather than venturing into entirely new industries. Soo Hoo illustrated this by mentioning that an oil and gas company might diversify into renewable energy, while car manufacturers are moving into electric vehicles, utilizing the skills they already possess.

Touching on disruptions such as the volatility in oil prices, Soo Hoo explained that business reimagination is often deferred to address immediate operational needs, including ensuring a sufficient cash flow. He stressed the importance of focusing on resilience in the present, as the duration of crises like wars is unpredictable.

Oil prices climbed above US$101 a barrel on Thursday, despite the International Energy Agency's announcement of a unanimous agreement among its 32 member countries to release 400 million barrels of oil from their emergency reserves. At the time of writing, Brent crude oil prices rose 6.24 percent to US$97.72 per barrel. Soo Hoo remarked on the ongoing uncertainty regarding the global impact of current crises and the changing energy landscape.

On food security, Soo Hoo noted the challenges Malaysia faces not only in production but also in consumer preferences. The high demand for imported goods limits the effectiveness of local produce supply in crisis planning. He suggested that government policies should encourage the promotion of local produce to counteract this issue.