Businesses Should Identify Pain Points Amid Rising Uncertainty - Economist
KUALA LUMPUR, June 19 (Bernama) -- Malaysian businesses should identify their operational pain points before making strategic decisions as the business landscape becomes increasingly uncertain, said AmBank Group chief economist Firdaos Rosli.
He said companies can no longer operate the way they did in the past, as geopolitical tensions, supply chain disruptions and rapidly evolving risks require businesses to become more resilient and agile.
"The first thing companies need to understand is where their pain points are. Doing business today is no longer the same as before, and every day brings new risks that businesses need to be aware of," he said during the 'AmBank BizDialogue Market Outlook Series: Middle East in Focus' session, held virtually today.
Against this backdrop, Firdaos said Malaysia's economy is expected to remain resilient, although growth would likely moderate over the coming quarters while inflation gradually rises amid higher energy prices and supply chain disruptions.
"We expect growth to come down moderately over the next couple of quarters, while inflation starts to rise as a result of this.
"Unemployment will probably increase a little bit but not to a dangerous level, while loan growth appears to remain quite stable," he said.
In the first quarter of 2026, Malaysia's economy grew at 5.4 per cent year-on-year, while headline inflation averaged 1.6 per cent and the unemployment rate remained at 3.0 per cent,
Meanwhile, Firdaos said the balance of risks remains tilted to the downside, with the Strait of Hormuz continuing to pose one of the biggest external risks to Malaysia, as any prolonged disruption could drive up energy prices, operating costs and imported inflation.
He urged businesses to work closely with banks, not merely as financing providers but as strategic partners that could help companies assess risks, strengthen resilience and identify opportunities for sustainable growth.
Firdaos said feedback gathered by banks from businesses is also channelled to Bank Negara Malaysia, enabling policymakers and the government to better understand industry challenges and formulate appropriate support measures.
Echoing the call for businesses to become more adaptive, integrated plastic recycling company, Heng Hiap Industries Sdn Bhd (HHI) founder and chief executive officer Seah Kian Hoe said companies should also develop contingency plans for their supply chains and continuously reassess their business models to manage growing uncertainties.
He said businesses have traditionally operated in a relatively stable environment where efficiency and scale were the primary focus, but today's increasingly dynamic landscape requires companies to become more flexible and responsive.
"We have to reassess our business model and move from a fixed model to a dynamic model," he said.
He also said that manufacturers should adopt dynamic manufacturing and pricing strategies that enable them to respond quickly to changing customer demand, rather than focusing solely on operational efficiency.
At the same time, Seah said uncertainties should also be viewed as an opportunity to create value.
For example, during periods of supply constraints, he said HHI focused on offering supply availability while strengthening product certification and sustainability credentials, positioning recycled materials as a value-added solution instead of merely a cost-saving alternative.
He also said that businesses must continue investing in long-term capabilities while managing immediate challenges.
"We have to fight the war while building the city," he said.
Seah also called for greater localisation of supply chains by working more closely with local manufacturers and recyclers to strengthen domestic industrial capabilities and reduce dependence on imported materials.
He added that businesses should collaborate more closely with industry associations and government agencies, while accelerating investments in renewable energy solutions such as solar power and battery energy storage systems to improve long-term resilience and competitiveness.
At the regional level, Seah said closer ASEAN cooperation would be increasingly important in strengthening regional supply chains and enabling businesses to better withstand future disruptions while capturing new growth opportunities.
-- BERNAMA