New Alliances, Trade Deals Help Malaysia Reduce Global Risks In 2026 -WEF

KUALA LUMPUR, Jan 14 (Bernama) -- The flip side of concerning global risks has led countries like Malaysia to form new alliances and pursue regional multilateral or bilateral trade agreements to cushion the impact, especially after the United States tariff implementation, said World Economic Forum (WEF) managing director Saadia Zahidi.

Malaysia’s ongoing efforts have led to a more positive outlook, she said, highlighting that these efforts would be particularly important in cushioning the impact of growing geoeconomic confrontation, especially following the introduction of tariffs.

“Malaysia, as a key player in East Asia and the global economy, is placed at the centre of these challenges (downturn risk, rising inflation and the potential risk of asset bubbles). However, countries with greater economic influence can still take steps to shape outcomes,” Saadia told the media during the Global Risks Report 2026 online presentation today.

She also said that if any of these concerns were to start materialising, it would have a huge impact on demand, particularly for goods and services that come from large emerging markets like Malaysia.

According to the report, the top five risks for Malaysia identified by the Executive Opinion Survey (EOS) 2025 are geoeconomic confrontation (sanctions, tariffs, investment screening); talent and/or labour shortages; disruptions to a systematically important supply chain; adverse outcomes of artificial intelligence technologies; and lack of economic opportunity or unemployment.

-- BERNAMA