KUALA LUMPUR (July 28): The government is proposing an Economic Security Framework to strengthen Malaysia's supply chains against future geopolitical shocks after the recent West Asia conflict exposed key vulnerabilities, Prime Minister's Office senior director of economy and finance Nurhisham Hussein said on Tuesday.
The proposal, which includes establishing a dedicated task force to monitor and address economic risks, is expected to be submitted to Prime Minister Datuk Seri Anwar Ibrahim in a couple of weeks.
"We're looking at some of the internal reforms that are required because this crisis has raised awareness of some of our key vulnerabilities.
"I have not presented the framework to the Cabinet yet, but what we're trying to do is address the supply chain weaknesses exposed during the crisis and create a team to focus on them," he said at Bank Negara Malaysia's Sasana Symposium 2026.
Nurhisham said the conflict highlighted the need for Malaysia to prepare for a more uncertain global environment, as the world shifts “from a unipolar to a multipolar” order marked by heightened geopolitical tensions and economic rivalry.
"The reality is that this crisis is just a front-runner of crises to come. The geopolitical situation is becoming increasingly uncertain, while economic competition is here to stay.
"The liberal free trade regime that Malaysia has benefited from over the last two or three decades is slowly fading away. We need to think about how Malaysia can continue to thrive in that environment,” he added.
While geopolitical fragmentation has pushed up production costs and contributed to higher living costs, Nurhisham said it also presents new opportunities for Malaysia to attract investment.
“It's also about looking at maybe some of the industries and investments that we can attract from the Middle East. Maybe looking at some of the opportunities because the shipping lanes are changing. And we are looking actively at attracting or benefiting from some of these disruptions,” he added.
Read also:
BNM governor: Malaysia’s 2026 growth likely at upper end of 4%-5% range despite energy supply shock
Malaysia launches iTEKAD Employment to help vulnerable groups secure jobs
BNM governor: Strong demand for Malaysia’s US$1.5 bil sukuk signals investor confidence
BNM framework should evolve from prescriptive to collaborative — former deputy governor