Washington dc: Countries are moving away from efficiency-driven economic models towards resilience, as rising geopolitical uncertainty reshapes the global economic landscape, including trade and investment strategies. Finance Minister II Datuk Seri Amir Hamzah Azizan highlighted this shift during a panel session at the 2026 Spring Meetings of the International Monetary Fund and the World Bank Group.
According to BERNAMA News Agency, Amir Hamzah emphasized that for decades, global economic expansion was supported by geopolitical stability, allowing businesses to optimize operations and maximize efficiency. However, as geopolitical conditions become increasingly unpredictable, the efficiency-focused approach is no longer viable.
He noted that the current global environment has shifted from a just-in-time era to a just-in-case mechanism, urging countries to focus on mapping their own areas to ensure resilience. The session, titled 'The Future of Economic Integration in a Fragmenting World,' was broadcast live on the International Monetary Fund website.
Amir Hamzah stated that governments are now prioritizing strengthening core capabilities and domestic capacity to withstand external shocks. The COVID-19 pandemic exposed significant vulnerabilities in global supply chains, particularly in critical areas such as vaccines and medical equipment.
Additionally, countries are expanding external engagements by building new partnerships and opening additional trade channels to avoid overdependence on a single source. This approach allows economies to remain adaptable during disruptions.
He further mentioned that despite the shift towards more bilateral arrangements, fundamental elements supporting global economic growth, such as clarity, stability, and established rules of engagement, must continue to guide international relations.
From Malaysia's perspective, Amir Hamzah explained that the country has been focusing on building resilience through stronger domestic capacity and diversified supply chains. This strategy was already in motion before the pandemic but has accelerated as Malaysia aims to become a high-income nation.
Efforts are being made to attract higher complexity industries, particularly in the electrical and electronics sector, while strengthening local supply chains. This ensures resilience against disruptions and continuity during external stress periods.
Malaysia is also prioritizing diversification across industries and markets to strengthen economic resilience. The country aims to improve its ability to adjust to shifting global conditions by developing domestic suppliers and attracting foreign investments that complement existing industrial ecosystems.
Regarding universal basic income, Amir Hamzah stated that its adoption depends on a country's development level and fiscal capacity. Priority should be given to protecting the most vulnerable segments of society, especially when resources are constrained. The focus for countries with fiscal constraints is to safeguard exposed groups while navigating economic changes to maintain social cohesion during transitional periods.