12/01/2026

MONDAY | JAN 12, 2026

2 ‘Neutrality stand under pressure’

o Foreign policy likely to become more cautious, focused on avoiding over-reliance on any single major power, says expert

could also increase. “Volatility in crude oil prices would likely feed into domestic conditions, including cost-of-living pressures and currency stability, contributing to a more uncertain economic environment.” He added that this partly explains why economic growth projections for 2026 are slightly lower than the previous year. Ahmed Razman highlighted the importance of government initiatives such as the 13th Malaysia Plan (13MP) and the Johor–Singapore Special Economic Zone (JS-SEZ) in cushioning both external and internal shocks. “The implementation of the 13MP and the JS-SEZ would allow Malaysia to remain flexible and nimble in introducing interventions if necessary, ensuring that the

“It also ensures that national security and technology decisions remain aligned with the country’s own interests. That being said, it is still possible that Trump’s actions could pressure Malaysia to choose a side.” He added that intensifying competition among major powers could narrow Malaysia’s room to manoeuvre, limiting the ability to make independent decisions. Putra Business School economist Assoc Prof Ahmed Razman Abdul Latiff said rising geopolitical tensions present a mixed outlook for Malaysia’s economy in 2026, particularly through their impact on global oil prices. “US control of Venezuelan oil is likely to have minimal impact since Venezuela’s current production remains relatively low compared with other major producers. “However, any subsequent action involving Iran could push global oil prices higher.” Ahmed Razman warned that while higher oil prices could boost Malaysia’s oil and gas revenue, government spending, particularly on fuel subsidies such as RON95,

weaker investor confidence and delayed foreign direct investment.” Mohd Yazid also said spillover exposure from sanctions or secondary sanctions could complicate banking and commerce. He said pressure from major powers may force difficult decisions in areas such as security, technology standards and market access. “Despite being an oil and gas producer, Malaysia is not insulated from heightened global tension in energy-producing regions. “Geopolitical instability could still lead to higher fuel and shipping costs, inflationary pressures and increased strain on government subsidies. “Price spikes may boost revenue but they also increase volatility and domestic cost-of-living pressures. Regional stability and the security of key sea lanes could also be affected.” Mohd Yazid said maintaining strategic autonomy is also critical. “Strategic autonomy allows Malaysia to protect trade and investment links with multiple partners, reduce exposure to sudden demands or sanctions and preserve room to act through Asean and international law.

Ű BY HARITH KAMAL newsdesk@thesundaily.com

global environment is growing less forgiving of countries trying to stay neutral. Mohd Yazid said Malaysia’s foreign policy is likely to become more cautious and focused on avoiding over-reliance on any single major power. “Malaysia will try to diversify its trade and security partners, rely more on multilateral rules for protection and keep its ties with the US pragmatic and transactional, while avoiding being pushed into choosing sides in the US-China rivalry.” He said as a small and open economy, Malaysia is particularly exposed when major powers act unilaterally or unpredictably. “There is the risk of sudden trade and tariff shocks affecting exports, supply-chain disruptions involving shipping and energy routes, volatile capital flows and exchange rates,

PETALING JAYA: Malaysia’s long standing stance of neutrality is under pressure as rising global tensions force the administration to rethink how it safeguards sovereignty, economic stability and foreign policy autonomy, say experts. International Islamic University Malaysia Ahmad Ibrahim Kulliyyah of Laws deputy dean Assoc Prof Dr Mohd Yazid Zul Kepli said recent developments under United States (US) President Donald Trump’s administration show that traditional diplomatic positions are becoming harder for small, open economies to sustain. “Strategic diplomacy, supplemented with new coalitions and new strategies, is becoming unavoidable,” he said, adding that the

economy can withstand disruptions.” Global geopolitical tensions have intensified over the past month, following renewed assertive actions by the US, including the arrest of Venezuela’s former president Nicolas Maduro, ongoing pressure involving Iran and controversial claims regarding Greenland. 4.6m Indonesian tourists target for VM2026 JAKARTA: Malaysia aims to attract 4.6 million Indonesian tourists this year through the Visit Malaysia Year 2026 (VM2026) campaign. Malaysian Ambassador to Indonesia Datuk Syed Mohamad Hasrin Tengku Hussin said the projection is based on the upward trend of Indonesian tourists visiting Malaysia in recent years and the robust, year-long promotional activities planned for 2026. “In 2024, Malaysia received around 4.1 million tourists from Indonesia and last year, up to November, some 3.8 million Indonesian tourists were recorded. So, we expect to achieve our target of 4.6 million tourists this year.” He was speaking after launching the VM2026 campaign held in collaboration with Indonesia AirAsia yesterday. Also present were Indonesia AirAsia Affairs and Policy head Eddi Krismeidi Soemawilaga and Tourism Malaysia Jakarta director Hairi Mohd Yakzan. Syed Mohamad Hasrin said a total of 320 large-scale programmes have been planned to highlight the uniqueness of Malaysia’s natural attractions, adventure activities and dynamic urban landscapes throughout the VM2026 campaign themed “Surreal Experiences”. – Bernama Govt to continue efforts to boost incomes: PM KUALA LUMPUR: The government will continue to work hard to ensure that economic growth is translated into better job opportunities, good incomes and a more secure future for Malaysians, said Prime Minister Datuk Seri Anwar Ibrahim. He said the national unemployment rate had dropped to 2.9%, the lowest in 11 years, as of the end of last year. “The job market in various sectors remain stable, supported by encouraging economic standing. This is the result of the Madani government’s hard work in building and strengthening all national foundations since three years ago,” Anwar said in a post on his Facebook page yesterday. According to chief statistician Datuk Seri Dr Mohd Uzir Mahidin, the workforce grew by 0.2% to 17.61 million individuals in November 2025 compared with 17.58 million in October, while the workforce participation rate was 70.9%. – Bernama

85,000 Bangladeshis in M’sia to cast postal votes KUALA LUMPUR: About 85,000 Bangladesh nationals in Malaysia have registered as postal voters for the country’s 13th general election on Feb 12, the first time postal voting is being implemented in Bangladesh. complete the process by Jan 26 and post the completed ballots back to their home country in the envelopes provided. Chowdhury said Bangladesh Post Office is working with Pos Laju via the Universal Postal Union to ensure smooth delivery. based on a consensus among political parties and civil society. “It is a reform proposal shaped by the spirit of the July-August 2024 mass uprising,” said Chowdhury. Chowdhury said about 10% of the Bangladesh diaspora in Malaysia have registered and verified their identification. – ADIB RAWI YAHYA/THESUN

Bangladesh Chief Election Commissioner Abul Maal Muhith Nasir Uddin has requested Malaysia’s Election Commission chairman Datuk Seri Ramlan Harun to deploy an international observer. “Bangladesh welcomes Malaysia’s support as we trust its experience in conducting free and fair elections.” Over 127 million registered voters will choose a government to replace the interim administration in power since former prime minister Sheikh Hasina was ousted in August 2024. The election campaign runs from Jan 22 to Feb 10, with a record 2,568 candidates contesting. – Bernama

Bangladesh High Commissioner to Malaysia Manjurul Karim Khan Chowdhury said ballot papers for registered postal voters, submitted via the Postal Vote BD mobile app, have been sent to their homes and workplaces. “Around 85,000 Bangladesh nationals in Malaysia, representing about 10% of the diaspora here, have registered and verified their identification. Some have already received their ballot papers, including myself.” Postal voters can start marking their ballots from Jan 22, once the Bangladesh Election Commission confirms the list of candidates for all constituencies. They can

“Both parties have been in constant communication since their first meeting coordinated by the High Commission last month. A similar system operates in other countries.” Malaysia hosts the world’s second-largest Bangladeshi diaspora, after Saudi Arabia. Chowdhury said some nationals who did not register for postal voting plan to return home to vote in person, enjoy the election festivities and visit family. The upcoming election is a key milestone for Bangladesh’s 180 million people, who will elect 300 MPs and vote on a referendum