## Resilience Through Openness

## Source details

**Canonical URL:** [Resilience Through Openness](https://www.imf.org/en/publications/fandd/issues/2026/09/resilience-through-openess-amir-hamzah-azizan)

## Other formats

- [Markdown version](/en/publications/fandd/issues/2026/09/resilience-through-openess-amir-hamzah-azizan/index.md)
- [Structured JSON version](/en/publications/fandd/issues/2026/09/resilience-through-openess-amir-hamzah-azizan/index.json)
- [Bundle manifest](/en/publications/fandd/issues/2026/09/resilience-through-openess-amir-hamzah-azizan/bundle-manifest.json)

## Bibliographic details
- Authors: GITA BHATT, Jeff Kearns
- Published: September 1, 2026

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### Overview
- Malaysia has transformed from a producer of commodities (tin, rubber, palm oil) to a diversified upper-middle-income economy spanning services, manufacturing, and trade.
- The IMF projects the $516 billion economy will grow 4.7 percent this year.
- Interview subject: Amir Hamzah Azizan, 59, appointed finance minister II in December 2023; most recently CEO of the Employees Provident Fund, which manages $315 billion in retirement savings for private sector workers.

### Growth prospects and strategic priorities
- Thirteenth Plan projection: annual growth will average 4.5 to 5.5 percent between 2026 and 2030.
- Targeted growth drivers:
  - Electrical and electronics sector and semiconductor sector with a focus on attracting higher-end value-chain investment.
  - Development of data centers, including AI-layered data centers.
  - High-grading the economy through innovation and efficiency to maintain global relevance.

### Sources of resilience and policy approach
- Policy consistency highlighted as core to resilience: clear planning, transparent execution, and legal certainty to inspire investor confidence.
- Export base and markets are described as diversified across manufacturing, services, and mining.
- Approach to geoeconomic fragmentation: maintain openness, pursue free trade deals to secure permitted practices, and leverage trade connectivity to avoid being left behind.

### Fiscal consolidation and social protection
- Fiscal strategy includes curbing subsidies and increasing sales tax to reduce deficits; measures were legislated under the Fiscal Responsibility Act.
- Mitigation for vulnerable groups when taxes were introduced included moderating impacts on necessities like food and water.
- Fiscal space was used to:
  - Reduce government debt.
  - Expand social protection.
  - Improve talent management and training to help lower-income groups upgrade skills.
- Timing note: fuel price reform began "about two and a half years ago," which moderated the subsidy bill when oil prices rose after the Middle East crisis.

### AI, labor markets, and human capital
- Acknowledges youth concerns about job prospects with AI adoption.
- Policy responses:
  - Skilling programs and government training partnered with new investors.
  - Tax reforms to incentivize responsible business use of AI.
  - Strategy to attract data-center investment to create better jobs and supporting ecosystems.

### Regional integration and Asia’s outlook
- Positive view on Asia: retains a demographic dividend and drives innovation and experimentation.
- Regional strategy: strengthen intra-regional activity (ASEAN example) to build resilience against trade wars and supply-chain disruptions.
- Specific metric: trade between ASEAN countries is probably 32 percent of its potential.
- Recommendation: expand regional cooperation from an ASEAN play to a broader Asian play to increase resilience.

### Risks, priorities, and governance
- Key risks to monitor:
  - Climate change, described as "going to be a big thing" requiring measured responses.
  - Geopolitical fragmentation and external conflicts beyond Malaysia’s direct control.
- Governing principle: focus on controllable actions—fix domestic levers, build new partnerships, and insulate where feasible.

*Interview with Amir Hamzah Azizan, as published in F&D Magazine; edited for length and clarity.*

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## Content in this bundle

- **Resilience Through Openness**
  - [Resilience Through Openness (Markdown version)](/-/media/files/publications/fandd/article/2026/09/trenches.pdf.md){rel="alternate" type="text/markdown"}
  - [Resilience Through Openness (PDF)](/-/media/files/publications/fandd/article/2026/09/trenches.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/fandd/issues/2026/09/resilience-through-openess-amir-hamzah-azizan_