KUALA LUMPUR: Strong governance, leadership discipline, and trust are central to Malaysia’s ability to realise its economic goals, said the Tunku Laksamana and former Regent of Negeri Sembilan, Tunku Datuk Seri Utama Naquiyuddin ibni Almarhum Tuanku Ja’afar.
He said Malaysia does not lack strategies or policy frameworks, but the real test lies in whether leadership across government and business can consistently translate ambition into results.
"Governance is no longer a technical matter for auditors and compliance teams. It has become a strategic issue that shapes confidence, capital flows, and long-term resilience,” he said at the Malaysia Business Competitiveness & Sustainability Conference 2026 here today.
The conference, jointly organised by KSI Strategic Institute for Asia Pacific (KSI) and the Economic Club of Kuala Lumpur (ECKL), carried the theme "Malaysia 2030: Transforming Business for Competitiveness, Sustainability and Shared Prosperity.”
Tunku Naquiyuddin, who attended the conference as a royal guest of honour, warned that markets no longer treat performance and governance as distinct factors, but evaluate them collectively. "Boards are scrutinised on how they manage risk, how honestly they disclose information, and how consistently they act when under pressure. Weak governance is no longer treated as an internal weakness. It is reflected in valuations, financing terms, and long-term partnerships,” he said.
He added that trust has become a competitive advantage, as it lowers the cost of capital, attracts long-term partners, and strengthens resilience in volatile environments. "Where trust is absent, even strong fundamentals are fragile. For Malaysia and for Malaysian companies, this reality cannot be ignored,” he continued.
On the global landscape, Tunku Naquiyuddin noted that economic systems are increasingly organised around trusted partnerships rather than open markets. "In this new world, supply chain resilience, sovereignty, and reliability matter more than speed or lower cost,” he said.
He said the Madani Economy framework is important in this regard as it places governance, trust, and responsibility at the centre of Malaysia’s economic ambition. "Crucially, it is not value signalling alone. It sets a concrete medium-term target for Malaysia to rank among the top 12 economies globally in competitiveness,” he added.
He emphasised that the New Industrial Master Plan 2030 made clear Malaysian firms are expected to move up the value chain and compete on quality rather than cost, while the National Energy Transition Roadmap elevates energy security and transition planning to board-level responsibilities.
"Whether Malaysia reaches its competitiveness ambitions will depend less on policy design and more on leadership response. Policy can set direction. It cannot substitute for judgment. Those who act decisively will build trust and resilience, while those who delay will find that the cost of inaction is higher than the cost of change,” he concluded. - Bernama
