Finance Minister II Amir Hamzah says nations are prioritising domestic capacity and diversified supply chains over pure efficiency in a fragmenting world.
KUALA LUMPUR: Rising geopolitical uncertainty is compelling nations to abandon pure efficiency-driven economic models in favour of building greater resilience.
Finance Minister II Datuk Seri Amir Hamzah Azizan said this fundamental shift is reshaping global trade and investment strategies.
He stated that decades of expansion were underpinned by geopolitical stability, allowing businesses to maximise operational efficiency. That approach is no longer sufficient in an increasingly unpredictable landscape.
“I think we have moved from a just-in-time era to a just-in-case mechanism,” Amir Hamzah said during a panel discussion. He made the remarks at the International Monetary Fund and World Bank Spring Meetings in Washington DC.
Governments are now focused on strengthening core domestic capabilities to withstand external shocks. He cited the COVID-19 pandemic, which exposed critical vulnerabilities in global supply chains for items like vaccines and medical equipment.
Countries are also expanding external engagements to build new partnerships and avoid over-dependence on single sources. This diversification allows economies to remain adaptable during disruptions.
Amir Hamzah emphasised that clarity, stability and established rules must continue to anchor international relations despite a move towards more bilateral arrangements. From Malaysia’s perspective, the resilience-building shift began before the pandemic but has since accelerated.
The nation is attracting higher-complexity industries, particularly in electrical and electronics, while strengthening local supply chains. Efforts focus on developing domestic suppliers and attracting complementary foreign investments to ensure continuity during external stress.
Malaysia is also prioritising diversification across industries and markets to improve its ability to adjust to global shifts. On universal basic income, Amir Hamzah said adoption depends on a country’s development level and fiscal capacity.
For nations with fiscal constraints, the immediate priority is protecting the most vulnerable segments of society. This ensures broader social cohesion can be maintained during periods of economic transition and uncertainty.
