Datuk Seri Anwar says Malaysia must navigate geopolitical tensions and economic pressures while strengthening trade ties and ASEAN cooperation
KUALA LUMPUR: Malaysia must navigate rising geopolitical tensions and economic pressures as a trading nation deeply integrated into global supply chains, said Prime Minister Datuk Seri Anwar Ibrahim.
He said shifts in global power dynamics, particularly in trade, technology and geopolitics, have significant implications for a trading nation like Malaysia.
“For a country that lives by trade, and essentially Malaysia is one with factories in the middle of the world’s chip supply chains, this is not a mere theoretical consideration.
“A trading nation that is naive about this does not stay a trading nation for long,” he said in his opening remarks at the Khazanah National Bhd Megatrends Forum 2026 here today.
He said Malaysia has thus far managed to navigate these challenges by maintaining strong economic ties with multiple global partners.
“Malaysia is fortunately able to navigate these turbulent waters by focusing on economy and international trade, continuing to engage well both with the West and the East, registering phenomenal growth due to our investments and trade with the United States and Europe, and considering China, South Korea, Japan and India as our great friends,” he said.
He added that Malaysia’s position within ASEAN provides some stability, but stressed that regional cooperation must go beyond symbolism.
“I’m not naive to consider this an easy path. We are fortunate to be in ASEAN, where we together hold ASEAN centrality. But it must mean the capability or power to shape events, not merely hosting meetings,” he said.
At the same time, Anwar underscored the urgent need to strengthen global governance and accountability as rapidly shifting centres of power continue to outpace the institutions meant to regulate them.
He said the lack of meaningful accountability, both at the national and international levels, remains a fundamental weakness in modern governance, contributing to rising geopolitical tensions, unilateral trade actions and systemic imbalances.
“Power moves faster than institutions meant to govern it,” he said, noting that democratic accountability must go beyond periodic elections and be practised in its real sense.
