LETTERS: Malaysia needs to better insulate itself from external geopolitics stemming from the great power rivalry, especially in the economy and trade.
This can probably be done through more and deeper collaboration within Asean.
This is the main concern expressed at a recent forum entitled "Weaponisation of Economics and Restoring the Global Economic Order" at Universiti Kebangsaan Malaysia (UKM).
The process of economic engagement and open trade among economies always involves risks.
However, these risks have been mitigated relatively well under the United States-led, rules-based multilateral order that has dominated since World War 2.
East Asia had been one of the biggest beneficiaries of the multilateral trading system, said Professor Shiro Armstrong, editor of East Asia Forum at the Crawford School of Public Policy, Australian National University.
But he expressed concern about this system that has mitigated risks over the past few decades but is now under threat given the rise of great power rivalry between China and the US.
We note a general positive sentiment among participants as to how Malaysia has significantly benefited economically in recent times due to heightened US-China tensions, particularly in the semiconductor industry.
The nation's relatively neutral position has made it an attractive alternative for firms looking to diversify amid the trade war, where sanctions have become a common "economic weapon" - as seen in the case of US-China.
However, these successes must be approached with caution given the high-level risk.
If this trade war leads to in coercion in the traditional economic and trade systems, Malaysia and Asean could suffer greatly due to their high interdependence and reliance on multilateralism.
Therefore, we urge both businesses and ministries in Malaysia and Asean to not become overly optimistic or complacent. The power play and trade war could tip things over and send shockwaves, hitting us hard.
Thus, Malaysia and Asean members must take proactive steps to strengthen regional economic resilience while also ensuring effective contribution to maintaining the functionality of the multilateral trading system which has been vital to the region over the past century.
Fundamentally, a strong domestic economy is the foundation for regional economic resilience. The Madani government must prioritise improving Malaysia's economic conditions to achieve this goal.
More must be done to improve trade balances, realisation of the many foreign direct investment projects announced and most importantly, improve the livelihood of Malaysians grappling with rising cost of living and the country's heavy debt burden.
INSTITUTE OF STRATEGIC ANALYSIS AND POLICY RESEARCH (INSAP)
Kuala Lumpur
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times