Kuala lumpur: Malaysia is undergoing a significant transformation in response to a changing global order, as highlighted by Deputy Finance Minister Liew Chin Tong. Addressing a panel discussion on "Confronting Global Economic Shocks: Lessons and Challenges for the Global South" at Sunway University, Liew stressed the need for the country to move away from its traditional focus on economic efficiency and towards prioritising resilience.
According to BERNAMA News Agency, Liew pointed out that the global landscape has shifted after two decades of a relentless drive to produce cheaper goods. "We are no longer in a 'just-in-time' world. We are in a 'just-in-case' world," he remarked, underlining that the era of prioritising efficiency is ending. Instead, he advocated for incorporating resilience into every aspect of economic planning.
Although Malaysia is facing the current crisis from a position of strength, Liew noted that the ongoing energy crunch is expected to persist longer than originally anticipated. He projected that it might take six to 12 months for energy supplies to return to pre-crisis levels and 12 to 24 months for price stabilization.
To address these challenges, Liew advocated for a transformation in Malaysia's economic identity. He encouraged leveraging the nation's existing supply chain and domestic capabilities, suggesting a shift from a trading nation mindset to that of a technology nation. Highlighting Malaysia's semiconductor capabilities, Liew envisioned their expansion into sectors like medical devices, agricultural technology, and defense.
Illustrating the potential for local resilience, Liew referred to a recent meeting involving the Investment, Trade and Industry Ministry (MITI) and key industry players like Coca-Cola. He emphasized the potential for domestic circularity by connecting local recycling operators with major plastic users, thus reducing reliance on imported semi-finished plastic goods from China.
The event was initiated by Citizens International chairman and moderator, Dr. Shahridan Faiez, who pointed out the persistent inequality in today's interconnected world. He emphasized the increasing frequency of global crises, citing examples from 1998, 2008, and the COVID-19 pandemic, which demand better institutional preparedness.
World Bank senior economist Shakira Teh also contributed to the discussion, highlighting the lessons Malaysia learned from the 1997-1998 Asian Financial Crisis. However, she observed that modern crises occur more frequently and rapidly, likening this trend to the "TikTok brain rot culture." Shakira cautioned that the focus on immediate stabilization has led policymakers to overlook long-term challenges, identifying fiscal constraints and social protection adequacy as immediate concerns.
Shakira underscored the importance of public understanding and collaboration with policymakers on government assistance initiatives, such as subsidies. She also called for a formal review of major historical policies, like the New Economic Policy, to assess their relevance and future trajectory.
The panel discussion was hosted by Citizens International and co-hosted by the Asian Strategy and Leadership Institute (ASLI), drawing an audience of civil society representatives, students, foreign diplomats, and media personnel.