KUALA LUMPUR, Jan 16 (Bernama) -- Business interruption remains the top concern for business risks in Malaysia this year, alongside fire and explosion, as well as changes in legislation and regulation, according to the Allianz Risk Barometer 2025 report.
In a statement today, Allianz group’s corporate insurer, Allianz Commercial, said that business interruption retains its top spot in Malaysia, reflecting the severe supply chain disruptions experienced during and after the pandemic.
“For example, last year, Malaysia Airlines reduced its scheduled flight capacity by 20 per cent to mitigate the post-pandemic challenges of returning to normalcy in air travel due to new aircraft delivery delays and a global spare parts shortage that impacted their current fleet maintenance,” it said.
Moreover, it said the destructive nature of fire and explosion often means a high degree of disruption.
It noted that damaged plants sometimes take years to rebuild and regain full production capacity.
Allianz Commercial also noted that changes in legislation and regulation can result in a more challenging business operating environment.
It said there were several changes in Malaysia last year, including a new regulatory license for social media platforms and technology firms, the Cyber Security Act, and amendments to the Personal Data Protection Act.
Additionally, Allianz Commercial said cyber incidents remain one of the top risks in Malaysia as they continue to increase with the rapid development of technology.
“Five government agencies and nine companies operating in aviation, banking, and healthcare were among those affected by the global CrowdStrike outage last year,” the insurer said.
Meanwhile, Allianz General Insurance Company (Malaysia) Bhd chief underwriting officer Rafliz Ridzuan said business interruption is closely linked to many of this year’s highly ranked risks, such as fire, cyber incidents, and natural catastrophes.
“Disruption from fire can be very high, as it can take longer to recover than many other perils, and the impact on suppliers can often be great.
“Given the growing reliance on technology, cyber incidents remain a top risk for organisations, and the CrowdStrike incident once again underlined how dependent we all are on secure and dependable information technology systems,” he said.
He urged companies to establish robust risk management plans and supply chains to enhance resilience and withstand business interruption.
According to the report, market developments have emerged as a new concern for companies in Malaysia in 2025 and tied for fifth position with natural catastrophes.
“The country saw a wave of technology investments in the region as new players, including AirTrunk, Equinix, EdgeConneX, Princeton Digital Group, NEXTDC, and ST Telemedia Global Data Centres, entered the market.
“Google also announced its investment in Malaysia, while other technology giants like Microsoft, Amazon, Nvidia, and Apple intensified their focus on the region,” it said.
The Allianz Risk Barometer is an annual business risk ranking compiled by Allianz Commercial, together with other Allianz group entities.
-- BERNAMA
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