PRIME MINISTER Datuk Seri Anwar Ibrahim has called for Malaysia to recalibrate its economic priorities in response to mounting global uncertainty driven by geopolitical tensions, cautioning that prolonged instability poses significant risks to both short- and long-term economic management.
He said that while some economic pressures lie beyond national control, the government must remain agile and strategic in navigating immediate risks while safeguarding future growth.
“The most undesirable condition in any economy is uncertainty. Therefore, recent developments involving conflict in West Asia and their implications for this region pose significant challenges,” he said during the 11th Malaysia MADANI Scholars Forum, themed “Muslim Unity in Times of Geopolitical Crisis”.
Despite global headwinds, Anwar noted that Malaysia has so far managed to shield consumers from rising fuel costs, with RON95 petrol prices remaining among the lowest globally.
However, he warned that such measures come at a considerable fiscal cost.
“At present, we are still able to contain price increases. But is this sustainable in the medium or long term? That is the fundamental question. The government has to bear subsidies exceeding RM7 billion to manage the impact on the people,” he said.
He added that while petrol supply remains stable due to domestic production and coordination by Petroliam Nasional Berhad, diesel availability presents a more pressing concern.
“Diesel is the main issue. Compared to petrol, we are more constrained and must face the possibility of supply shortages,” he said, noting that Malaysia is unable to export diesel despite external demand due to domestic requirements.
Anwar stressed that these developments underscore the need for stronger anticipatory capacity in managing economic risks, alongside a continued focus on long-term planning.
“At the same time, we must continue to look ahead. Future studies are critical not only to address current challenges but also to anticipate the evolving landscape in a post-normal world,” he said.
Beyond domestic concerns, Anwar urged Muslim-majority nations to pursue greater cooperation and reform, particularly in reshaping global systems that remain heavily influenced by Western powers.
“Since the 1990s, when I served as Finance Minister, there have been strong calls to reform the international financial structure, but there has been no significant progress.
“This effort has also failed to materialise, including among Islamic countries, to begin with the necessary courage,” he said.
He suggested that practical, smaller-scale collaborations among countries such as Malaysia, Türkiye, Indonesia and Pakistan could serve as a starting point to strengthen economic resilience and institutional capacity.
The forum, moderated by Anwar himself, featured a panel of local and international figures including Zulkifli Hasan, Hasan Al-Banna, and Khairudin Aljunied. - April 27, 2026
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