Malaysia must recalibrate its priorities amid heightened global uncertainty and geopolitical tensions, says Prime Minister Datuk Seri Anwar Ibrahim.
PUTRAJAYA: The current global economic challenges, compounded by geopolitical tensions, require Malaysia to recalibrate its priorities amid heightened uncertainty, said Prime Minister Datuk Seri Anwar Ibrahim.
He said that while some economic pressures are beyond the country’s control, the government must remain responsive and forward-looking in managing both immediate risks and longer-term prospects.
“The worst thing that we can expect in any economy is uncertainty. That is why the latest episode of Israeli-American aggression against Iran and its ramifications for the region is causing huge problems,” he said during a two-hour Ilmuwan Malaysia MADANI Forum Series 11, themed “Muslim Unity in Times of Geopolitical Crisis”.
Anwar said the government is currently able to contain domestic fuel prices, noting that Malaysia’s RON95 remains among the lowest globally.
Still, he cautioned that such measures come at a high fiscal cost.
“We can contain price increases for now. But can we sustain that in the medium or long term? That is a fundamental question. The government has to subsidise more than RM7 billion just to manage the impact on the rakyat,” he said.
He added that while petrol supply remains manageable due to domestic production and arrangements facilitated by Petroliam Nasional Bhd, diesel supply poses a more pressing challenge.
“Diesel is a major problem. Unlike petrol, we are more constrained, and we have to deal with the possibility of shortages,” he said, adding that the country is unable to export diesel despite requests from other countries due to domestic needs.
Anwar said these developments call for the need for Malaysia to anticipate short- and medium-term risks more effectively, with economic management now a key policy focus.
“At the same time, we must think ahead. Future studies are critical not just to respond to current challenges, but to anticipate what lies ahead in a post-normal world,” he said.
Meanwhile, Anwar also called upon the Muslim world to remain proactive and explore available avenues for reform and cooperation despite the dominance of Western powers in the global system.
He said that calls to reform the international financial architecture have persisted since the 1990s but have yet to materialise, while highlighting a lack of collective resolve among nations, including Muslim countries.
“Since the ’90s, when I was finance minister, there were strong calls to reform the international financial architecture, but nothing has happened. There has also been a failure, even among Muslim countries, to embark on these efforts with sufficient courage,” he shared.
Anwar said smaller, practical collaborations among groups of Muslim countries, including Malaysia, Turkiye, Indonesia and Pakistan, could serve as a starting point towards strengthening economic and institutional resilience.
The forum, moderated by Anwar, also featured Minister in the Prime Minister’s Department (Religious Affairs) Senator Dr Zulkifli Hasan; the Islamic Institute for Development and Research director Sharif Hasan Al-Banna; and the National University of Singapore associate professor Dr Khairudin Aljunied.
