Multiple efforts to tackle economic vulnerability

Strategic challenges: For Malaysia, a net importer of refined petroleum products, the most immediate consequence of the Middle East conflict lies in energy prices. – AZLINA ABDULLAH/The Star

THE ongoing conflict in the Middle East has highlighted once again the vulnerability of the domestic economy to geopolitical shocks. Although geographically distant from the conflict, Malaysia is far from insulated from its effects.

Highly trade-dependent and integrated into global energy and supply chains, Malaysia is likely to face both short-term economic pressures and longer-term strategic challenges, especially if the conflict persists or expands.