THE nation must respond rapidly and strategically to mounting global economic uncertainty arising from geopolitical tensions in West Asia or risk allowing temporary disruptions to spiral into a deeper economic crisis, former central bank governor Tan Sri Dr. Zeti Akhtar Aziz has warned.
Speaking amid growing concern over the global fallout from escalating regional conflicts, Zeti stressed that the current environment should still be viewed as a manageable economic disturbance rather than a full-scale crisis — provided decisive and coordinated action is taken early.
“If managed well, it will not become a crisis. That is what we want to do, which is to emerge from this situation,” she said after delivering a keynote address at the FLUX Business Forum 2026.
Her remarks came as governments and financial institutions worldwide monitor the economic implications of geopolitical instability in West Asia, including pressure on energy markets, trade flows, inflation risks and investor confidence.
Zeti said Malaysia’s economic fundamentals remained resilient despite the increasingly volatile external environment, although she acknowledged that the country remained exposed to global developments beyond domestic control.
“We are facing global developments that are beyond our control, and we must accept that as a reality.
“Therefore, we need to act based on various possible scenarios, whether the war ends sooner or drags on for a long period. Under these different scenarios, we need to prepare ourselves on how we will respond,” she said.
The former Bank Negara Malaysia governor argued that responding effectively to economic uncertainty could not rest solely on the government, but required coordinated support from the private sector alongside significant behavioural adaptation among consumers.
She said economic resilience would increasingly depend on how businesses recalibrate strategies, how households manage spending behaviour and how policymakers anticipate risks before they intensify.
Zeti also highlighted the importance of institutional coordination mechanisms capable of producing early-warning responses and rapid policy interventions during periods of uncertainty.
“The response needs to be well coordinated. Usually, in the past, and I believe we still have it, the National Economic Action Council (MTEN) can drive this, along with a strong secretariat that will analyse ongoing developments.
“This enables us to act earlier and in a more pre-emptive manner. That is what will be the determining factor, and I believe Malaysia has the potential (to achieve it),” she said.
Her comments underscored growing calls for Malaysia to strengthen economic preparedness frameworks as geopolitical tensions continue reshaping global supply chains, commodity markets and international investment patterns. - May 21, 2026
