KUALA LUMPUR: Domestic demand remains a key buffer for the economy amid the ongoing conflict in West Asia, says Affin Group chief economist Alan Tan.
However, he cautioned that reliance on domestic resilience alone may not be sufficient to fully offset weaker exports if global conditions deteriorate further.
“But no doubt, Malaysia’s domestic demand is strong,” he said.
“This is evident in tourism, private consumption spending, and the investment drive that we are seeing, especially in Johor data centre developments.”
Tan was speaking during a sharing session at the Asean Leadership and Partnership Forum 2026 titled “Strategic Resilience: Navigating the Global Economic and Energy Crisis and Supply Chain Landscape” moderated by CARI Asean Research and Advocacy chairman Tan Sri Munir Majid. — Bernama
