By Kenny Teng
BANGKOK, Oct 18 (Bernama) -- Malaysia’s diversified economy, resilient export markets and stronger fiscal buffers will help cushion external shocks and support its growth outlook for 2027, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
Amir Hamzah said geopolitical tensions, shifting global trade patterns and economic uncertainty would remain key risks, but Malaysia is better positioned to withstand disruptions after adapting to previous crises, including the Russia-Ukraine war and ongoing trade tensions.
“Malaysia’s total trade in the first eight months of this year rose 27 per cent compared with the same period last year, reflecting the resilience of our trade sector,” he told Bernama in an interview here.
Amir Hamzah said Malaysia’s economic base has broadened beyond commodities and oil and gas to include electrical and electronics, semiconductors, data centres and advanced manufacturing, reducing its reliance on any single sector.
"Our export markets are also diversified, with no single market accounting for more than 17 per cent of exports, allowing businesses to redirect trade towards better-performing markets. Malaysia has shown that it is very adaptable,” he said.
Amir Hamzah is leading the Malaysian delegation to the International Monetary Fund-World Bank Group Annual Meetings, held here at the Queen Sirikit National Convention Centre in Bangkok.
He said shifting geopolitical alignments and the fragmentation of globalisation have made supply chain reliability increasingly important, presenting Malaysia with an opportunity to strengthen its position as a trusted manufacturing and trading hub.
"The government is strengthening domestic industrial ecosystems to enable manufacturers to source more components locally, reducing their exposure to disruptions in international supply chains.
“Malaysia maintains trade relations with major economies while adhering to international law and ensuring that foreign investments generate genuine value for the domestic economy,” he said.
On fiscal preparedness, Amir Hamzah said reforms to strengthen public finances have given the government greater capacity to respond to external shocks.
He emphasised that the government’s response to recent tensions in West Asia prioritised supply security while providing targeted assistance to affected groups, including through expanded financing support rather than relying solely on subsidies.
"The government is also mobilising private capital alongside public funds to support economic growth, including by encouraging government-linked investment companies (GLICs) to invest in strategic domestic industries without compromising commercial returns," he said.
Amir Hamzah shared that Malaysia’s total approved investments reached RM431.8 billion last year, with foreign and domestic direct investments each accounting for about half, reflecting confidence among international and local investors.
He said stronger domestic investment, supported by diversified industries and export markets, would further reinforce Malaysia’s economic resilience and help sustain growth amid an uncertain global outlook.
-- BERNAMA