Malaysia, ASEAN+3 Economies Remain Resilient Amid Global Fragmentation
KUALA LUMPUR, Nov 25 (Bernama) -- ASEAN+3 economies are showing stronger-than-expected resilience amid global fragmentation, with Malaysia among the strongest performers as growth, inflation, and domestic demand remain broadly stable, Bank Negara Malaysia (BNM) Deputy Governor Marzunisham Omar said.
He added that two structural forces, geoeconomic fragmentation and the artificial intelligence (AI) revolution, are reshaping growth, trade, and financial conditions across the region, with long-lasting implications.
“After decades of globalisation, trade liberalisation, and market openings, we are now confronted with growing economic fragmentation, tariff and non-tariff barriers, and other forms of trade restrictions and frictions.
“The important point is how these economic issues are intertwining with geopolitical considerations, national security, and more,” he said during the first session of the 4th ASEAN+3 Economic Cooperation and Financial Stability Forum, titled Macroeconomic Risks and Regional Integration Amid Global Fragmentation.
The forum, organised by the ASEAN+3 Macroeconomic Research Office (AMRO), was held in Hong Kong.
Marzunisham said this trend is unlikely to be temporary and expects economic fragmentation to persist for some time.
At the same time, he noted that rapid AI adoption is driving surges in investment and demand for high-end electronics, benefiting several ASEAN+3 economies, including Malaysia.
“Drawing from Malaysia's experience, I agree that easing global financial conditions and AI-related investments have been positive for the region. Initially, we thought that after front-loading activities slowed, our exports might be affected.
“But we did not see that. Exports of electrical and electronics remained very strong in September and October, supported by robust demand for semiconductors and chips,” he added.
He said Malaysia’s export diversification has helped offset slower shipments to the United States (US), with resilient exports to China, East Asia, and ASEAN cushioning the impact of the slowdown in US-bound demand.
Meanwhile, Marzunisham emphasised that preserving monetary and financial stability remains the central focus for policymakers in the region, especially amid heightened global market volatility.
He added that strengthening external buffers, ensuring a healthy financial sector, and maintaining adequate reserves are also priorities.
“Speaking about Malaysia, the government has undertaken a number of reforms to strengthen the economy and enhance productive capacity. In particular, efforts to reinforce our fiscal position provide the country with the space to weather the period ahead,” he said.
-- BERNAMA
