KUALA LUMPUR: Malaysia is considered a heavyweight within the region at the moment, supported by the richness of its resources and strong governance, which has helped cushion the country from global headwinds.
Venture capital firm Openspace Capital’s Orbit Listed Growth Fund chief investment officer Udhay Furtado said since the start of the Middle East crisis, there has been a movement of funds from the Gulf into the region.
He told StarBiz that Malaysia and Singapore have been among the biggest net beneficiaries of these outflows.
He added that data has been collected, but the total amount of funds moved had not yet been confirmed.
“For all the thematics discussed, we definitely consider Malaysia a heavyweight player. The semiconductor supply chain is very well-positioned, there is a super cycle that will benefit the country, and we’ve seen strong initial public offering activity in the country as well,” he said on the sidelines of “Affin Market Outlook Conference: Propelling Malaysia Forward 2026” here yesterday.
According to Udhay, even sectors like healthcare and commodities have done particularly well and remained resilient since the start of the war.
“Over the last couple of years, political stability here has enabled Malaysia and Singapore to be relative winners,” he said.
He added that while the situation remains challenging, the government is taking the right approach, with policymakers being proactive rather than complacent. But can this be sustained?
Deputy Finance Minister Liew Chin Tong said many in Malaysia are too comfortable, and do not even realise there is a global crisis.
“This is the time for us to revisit formulas. So far, we have been very fortunate that we have had enough to go around.
“The Budi95 subsidy, to a large extent, has been able to cover 80% of the population, so in reality, we haven’t been affected at all,” he said during a fireside chat themed “Malaysia’s Response to Global Energy Crisis: Build Back Better”.
Liew said the Middle East crisis will have lasting effects even if the conflict ends tomorrow, adding that it will trigger broader structural consequences, including inflation shocks, fiscal pressures, supply chain disruptions, and shifts that may ripple into an entirely new policy paradigm.
“The phrase ‘build back better’ is particularly important here, because the conversation should not just be about oil prices and fuel subsidies in a narrow sense.
“The backdrop is that the US power or US-led unipolar world is ending.
“That is in itself a fundamental shift, and we need to be able to adjust our mindset to a multipolar world,” he explained.
He said oil reserves are likely to last until early July, but the goal is to consume less in order to extend supply.
He also noted that public transport needs to become more widely used as the country rethinks urban development.
“Another shift is the artificial intelligence boom. Right now, Malaysia is only a smart part of the ecosystem, but we are an indispensable middle party.
“We should be able to do more. We have gone into this crisis from a position of strength, but we do not want to be complacent,” he said.
Liew cited China’s “Malacca dilemma” in 2003, when its heavy reliance on the Strait of Malacca for imports raised strategic concerns. This, he said, pushed China to adapt and develop new strategies to safeguard its national security.
“In that time, the Chinese built their electrical vehicle sector, they built electrification, because they have coal.
“They did not do it for the environment. It was for their national security because they produce coal on their own, and now they have ventured far into solar,” Liew pointed out.
“We may not have top-tier technology, but we have indispensable capabilities across the industrial base.
“And this is where I think our strength lies. We must leverage our strengths, but we must also organise ourselves better with the strategic insight we now have.”
Meanwhile, Affin Bank Bhd
president and group chief executive officer Datuk Wan Razly Abdullah Wan Ali opined that the series of economic shocks the world is undergoing has placed a growing spotlight on Malaysia’s resilience and effectiveness in the eyes of investors.
“Malaysia’s outlook remains constructive. We project gross domestic product growth to be 4.8% in 2026, should the war ends by June this year – supported by stable domestic demand, improving investment activity, and continued economic reforms,” he said in his speech.
He said inflation is expected to remain manageable at about 1.7%, although ongoing supply-side uncertainties may continue to exert upward pressure on prices.
“Monetary conditions have also remained supportive, with the overnight policy rate held steady at 2.75%.
“We target the ringgit to reach RM3.80 by the end of the year. The ringgit has been one of the strongest-performing currencies in the region so far,” he added.
“The challenges before us are real, but so are the opportunities for institutions prepared to navigate the uncertainty with resilience, adaptability, and long-term conviction” Wan Razly Abdullah said.
“Malaysia continues to demonstrate strong economic fundamentals while Asean remains one of the world’s most dynamic and strategically important growth regions.”
