KUALA LUMPUR — Malaysia and China are emerging as relative havens of economic resilience in Asia, even as global energy markets reel from escalating tensions in West Asia.
JP Morgan’s head of Asia and co-head of global emerging markets equity strategy, Rajiv Batra, told CNBC that while most economies in the region remain vulnerable to energy shocks, Malaysia and China are better positioned to weather the storm.
“Malaysia’s resilience comes from its strong energy export profile and a disciplined policy framework, which together act as a buffer against external pressures,” Rajiv explained in an interview.
“The country’s fiscal deficit is well contained thanks to prudent government policy, and inflation remains moderate.”
These factors, he added, not only bolster Malaysia’s equity markets but also help stabilise the ringgit amid global uncertainties.
China, meanwhile, benefits from a largely self-sufficient electricity sector, with imports accounting for just five per cent of its power generation.
“China also maintains significant strategic reserves and has the capacity to expand alternative energy sources, including coal and renewables, if necessary,” Rajiv said.
Despite these strengths, he cautioned that the broader economic outlook remains fragile.
Continued geopolitical tensions and disruptions to oil and gas supply chains — whether from infrastructure damage or logistical delays — could weigh heavily on global growth.
In the short term, equity markets are likely to feel the effects most acutely in energy-sensitive sectors such as consumer goods, utilities, and downstream industries.
However, if the crisis is prolonged, the impact could spread to financials, technology, telecommunications, and even healthcare.
“Markets have not yet fully priced in a worst-case scenario,” Rajiv said.
“Currently, they are still anticipating a muddle-through outcome.” - March 29, 2026
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