Malaysia must be ‘Sang Kancil’ to navigate economic challenges, says Khazanah

Khazanah Nasional Bhd managing director Amirul Feisal Wan Zahir emphasized the significance of preserving Malaysia's heritage, arguing it would attract foreign visitors to stay longer and experience the country firsthand. At the Khazanah Megatrends Forum 2026 in Kuala Lumpur, Amirul likened Malaysia to the character Sang Kancil, the resourceful mouse-deer from Malaysian folklore.

He cited financial market buoyancy not necessarily trickling down to the real economy, particularly in affluent nations, and the concentration of consumption among higher-income households. Despite investments in artificial intelligence, only 95% of enterprise AI initiatives showed tangible returns, according to an MIT study. With ongoing supply chain disruptions, the sustainability of financial market exuberance is uncertain, Amirul warned during his opening remarks at the forum.

Prime Minister Anwar Ibrahim attended the event. Amirul stressed the need for resilience over mere profitability, highlighting that major economies like the US, Europe, and China could absorb domestic production and demand due to their large markets and substantial public investments. For Malaysia, which lacks a similar cushion, becoming a resourceful and connected trading nation is essential.

Amirul underscored the importance of connectivity and preserving Malaysia's heritage, asserting that a well-visited nation serves as a valuable asset for a trading state.