KUALA LUMPUR, Oct 4 — Securing food and energy security, and climate change preparedness focusing on just transition and capacity-building are among the essential strategies that Malaysia should take to conquer the incoming "perfect storm” in the global economy, said Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz

He said the country must insulate its food and energy security from rising production and price volatility amid geopolitical conflicts, supply chain disruptions, deglobalisation movements and climate change.

"We need to think bigger and we need to do this faster. Given the heightened global geopolitical tensions, we must seriously consider investing in building a strong Asean-wide supply chain, especially for food and energy security,” he said at the Khazanah Megatrends Forum 2022 today.

He highlighted that Malaysia’s consumer price index increased to 4.7 per cent in August 2022 or 3.1 per cent year-to-date, partly due to price hikes in imported components that feed into the agriculture and food industry, like fertilisers and feedstock.

However, Tengku Zafrul said inflation remains well anchored despite global cost-push pressures, thanks to spare capacity in the economy, existing price controls and government subsidies amounting to nearly RM80 billion for 2022.

Delivering his closing address at the hybrid forum, Tengku Zafrul urged Malaysian corporations to take one step ahead and invest in building strong Asean supply chains in critical industries.

Given the varying degrees of development in each economy, investors are picking and choosing where they want to invest and being opportunistic with their business decisions, he said.

"If Asean policymakers can coordinate and work closely together, we can identify critical industries where we can scale up and enhance to be a critical part of the global supply chain.

"This will benefit not just our individual economies, but also serve as a mitigating strategy against calamities such as the pandemic and geopolitical tensions happening in other parts of the world,” he said.

He noted that Asean is an under-utilised platform, but if everyone put their sincere efforts into thinking about regional stability and economic prosperity, it could find itself as a driving force for greater benefits for more than its 600 million population.

Tengku Zafrul also suggested environmental, social, and governance (ESG) as a work for everyone and not simply a means to enrich the wealthy further and impoverish the poor.

In an attempt to become a carbon-neutral nation by 2050, there is a serious risk of disruption to the labour market, infrastructure and geographical landscape and, as such, any adverse outcomes from the transition must be minimised.

"ESG considerations will be a mainstay of business decisions by government-linked investment companies and other corporates going forward, and they will only grow in importance.

"For Malaysia, striking an optimal balance between advancing green transition and securing near-term growth is also critical,” he said.

The Minister added there will be various ESG-related measures in Budget 2023, which will be tabled this Friday, to support Corporate Malaysia’s endeavours to make the business ecosystem not only more vibrant and resilient but also equitable. — Bernama