The global economy is now defined by fragmentation and policy shocks, so Malaysia must stay nimble, build resilient middle-tier capabilities, and avoid self-inflicted drag from domestic bureaucratic overreach. From there, two lessons should worry policymakers.
First, volatility is no longer episodic. Shocks arrive faster than institutional responses, and countries that cannot act quickly will lose competitiveness through higher costs, slower decisions, and weaker confidence.
Second, trust has become a hard economic variable. When policies are predictable and institutions are fair, businesses invest, and households will comply. However, when policies stray, and rules change midstream, enforcement feels discretionary, and people hedge, delay, and disengage.
Malaysia is at a critical juncture precisely because we need better...