Malaysia aims for economic resilience over efficiency amid global uncertainties, says Tengku Zafrul

KUALA LUMPUR, Oct 3 — Malaysia has pivoted its economic strategy from efficiency to resilience in the face of global uncertainty, according to the Malaysian Investment Development Authority (Mida). Mida chairman Datuk Seri Tengku Zafrul Abdul Aziz emphasized that economic leadership requires preparing Malaysia to seize opportunities while remaining resilient to unexpected shocks.

He highlighted the strengthening of Malaysia's public finances through key fiscal reforms, including fuel subsidy rationalization and the Fiscal Responsibility Act. Tengku Zafrul stressed that economic reform must go hand in hand with compassion, safeguarding the vulnerable while building national capacity. He outlined the need to proactively increase incomes by ensuring wages rise alongside productivity, creating higher-paying jobs, and fostering entrepreneurship.

The former Investment, Trade and Industry Minister noted that trade routes are changing and artificial intelligence (AI) is both empowering and displacing the workforce, altering job prospects for young people. Tengku Zafrul argued that Malaysia's youthful population could be an economic asset, but only if it translates into higher productivity, innovation, high-value jobs, and new businesses.

He questioned the impact of record investment flows into the region and Malaysia, inquiring about the creation of high-income jobs, skilled young engineers, and small and medium-sized enterprises integrated into global supply chains. Tengku Zafrul concluded that capital should bolster stronger firms, and technology should enhance skills.