{
  "id": 9112692,
  "title": "Companies must rethink global footprints in light of heightened geopolitical risks",
  "url": "https://urgent.news/2026/09/22/companies-must-rethink-global-footprints-in-light-of-heightened",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-22T08:25:04.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/09/1538491/companies-must-rethink-global-footprints-light-heightened"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: Geopolitical risks are prompting businesses to reconsider their international operations and prioritize localisation in crucial markets, according to veteran corporate leader Tan Sri Abdul Wahid Omar. During a panel discussion at the CGI Global Governance Summit 2026, Wahid emphasized that companies should concentrate on the broader implications of geopolitical events, such as their impact on customers, supply chains, costs, market access, capital allocation, and long-term competitiveness. In the plantation sector, these events could affect input costs, energy prices, logistics, and trade routes, as well as market access.\n\nWahid distinguished between temporary market fluctuations and structural changes that could influence competitiveness and future valuations. He cited IOI Corp's downstream operations in Germany as an example, allowing the company to serve the European Union market through local production instead of relying solely on exports from Malaysia. Operating globally brings rewards but also risks, and businesses are increasingly focusing on markets where they can exert greater control while maintaining a presence in strategically important regions.\n\nWahid challenged the notion that building resilience against geopolitical shocks comes at a high cost, arguing that diversification could provide companies with a competitive advantage. He highlighted IOI Corp's approach to fertiliser procurement, where having multiple suppliers prevents over-reliance on a single provider, enabling the company to secure better pricing and service. Diversifying customers and markets could also allow companies to redirect products when a specific market faces import restrictions or other disruptions.\n\nHowever, Vistra Malaysia country head Celine See cautioned that resilience may require additional investments in systems, locations, suppliers, technology, and equipment. The challenge lies in ensuring that resilience generates value and supports growth rather than merely adding layers of cost and controls. Companies can respond to crises by streamlining approval processes, which could speed up decision-making when businesses need to react quickly.\n\nKiyotaka Sasaki, president of the Core Corporate Governance Research Institute in Japan, urged boards not to view geopolitical developments as external issues separate from their immediate responsibilities. He stressed the importance of recognizing the issue, assessing its potential impact on the company, and going beyond mere compliance with laws and regulations. Geopolitical risks could expose vulnerabilities not captured by existing rules or conventional risk frameworks.\n\nGillian Meller, legal and governance director at MTR Corp in Hong Kong, emphasized the need for organizational curiosity, encouraging companies to continuously ask what could happen and test whether existing systems could withstand unexpected disruptions. She cited scenario exercises that tested how the company would respond if key technology providers or suppliers became unavailable, highlighting the value of identifying alternative suppliers, operational arrangements, and decision-making processes in advance.",
  "summary": "KUALA LUMPUR: Geopolitical risks are prompting companies to rethink their global footprints and strengthen localisation in key markets, as businesses seek greater control over supply chains, costs and market access, veteran corporate leader Tan Sri Abdul Wahid Omar said.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}