Malaysia’s broader economic base to help absorb shocks in 2027, minister says
Total trade rose 27 per cent in the first eight months of 2026, while no export market accounted for more than 17 per cent, according to the finance minister II.
Malaysia’s mix of industries, spread of export destinations and improved public finances should help protect growth against external disruptions in 2027, Finance Minister II Datuk Seri Amir Hamzah Azizan said in Bangkok on October 18.
Speaking to Bernama, Amir Hamzah identified geopolitical tensions, changes in global trade and economic uncertainty as continuing risks. He said experience dealing with earlier crises, including the Russia-Ukraine war and trade tensions, had improved Malaysia’s ability to respond.
He cited a 27 per cent increase in total trade over the first eight months of 2026 compared with the corresponding period in 2025. No individual export destination represented more than 17 per cent of exports, he said, giving businesses scope to shift sales towards markets performing better.
The minister said Malaysia had expanded beyond commodities and oil and gas into sectors including semiconductors, electrical and electronics, data centres and advanced manufacturing. The government was also developing domestic industrial networks so manufacturers could obtain more components locally and limit exposure to overseas supply disruptions.
Public finance reforms had increased the government’s capacity to manage shocks, Amir Hamzah said. Its response to recent West Asia tensions had focused on securing supplies and targeted help, including broader financing assistance, rather than subsidies alone.
He said the government was encouraging government-linked investment companies to back strategic domestic industries while preserving commercial returns. Approved investments totalled RM431.8 billion in 2025, with foreign and domestic direct investment each contributing about half.
