KUALA LUMPUR: Malaysia’s current economic disruptions arising from the United States-Iran conflict should be managed effectively to prevent them from escalating into a crisis, prominent economist Tan Sri Dr Zeti Akhtar Aziz said.
She also expressed confidence in the country’s ability to navigate global uncertainties through coordinated action and proactive planning.
"It's a disruption, yes, and if managed well, it won’t become a crisis. That’s what we want to do - emerge from it,” she told reporters after her keynote address at the FLUX Business Forum 2026, held in partnership with the Malaysian-German Chamber of Commerce and Industry here today.
Zeti later stressed the importance of strengthening resilience against external developments beyond the country’s control, saying coordinated efforts and preparedness remain essential in navigating evolving global conditions.
The former Bank Negara Malaysia governor said Malaysia’s economic fundamentals remain intact, but policymakers and businesses need to prepare for different scenarios arising from global developments beyond the country’s control.
"We have our fundamental system, right? Yes, correct. But we face global developments that are beyond our control. We have to take them as a given.
"And so we have to operate with different potential scenarios that could occur. Whether it is an early end to the war or a prolonged conflict, under these different scenarios, we have to prepare ourselves for how we are going to respond,” she added.
She said Malaysia has the capacity to respond effectively to changing circumstances, but such efforts must involve not only the government but also the private sector.
Zeti also stressed the importance of strong coordination mechanisms and continuous assessment of developments to ensure responses remain anticipatory and forward-looking.
"Usually in the past, and I believe we still have it, there was a National Economic Action Council, supported by a strong secretariat that analysed the developments taking place so that we were anticipatory and pre-emptive.
"That is what will count. And I have confidence that Malaysia has that potential,” she said.
Earlier in her keynote address, Zeti said the global environment is increasingly being challenged by continuous disruptions arising from geopolitical conflicts, policy shifts by major economies, as well as rapid technological and digital transformation, resulting in greater uncertainty and a more fragmented global economy.
She said structural shifts in global trade and rising economic nationalism have further intensified uncertainty, while supply disruptions and sustained cost pressures, particularly from energy-related shocks, continue to test the resilience of economies, businesses and societies.
"We are operating in a period of heightened and persistent uncertainty. This uncertainty has to be taken as a given. It has become part of the new normal, the new tomorrow,” she said.
Zeti said governments, businesses and the public must adjust to changing conditions and build resilience to perform across different scenarios, including challenges yet to emerge.
She added that responding effectively to disruptions requires anticipation rather than reaction, warning against relying solely on reactive measures as conditions continue to evolve.
"Being anticipatory allows for pre-emptive and forward-looking actions. Being pre-emptive in the management of shocks will also help minimise the potential costs and consequences of the disruption.
"An important determining factor in managing these conditions is the speed and quality of decision-making under uncertainty, and this will be a function of the government’s institutional design, which must take into account the sense of urgency of the circumstances,” she said. - Bernama
