KOTA KINABALU : The ongoing tensions between Iran and Israel, which are now at risk of erupting into a full-scale conflict, are causing concern among industry players and economic analysts.
The President of the Asean Chamber of Commerce & Industry (ACCI) Sabah Chapter, Datuk Nordin Ening, said that this development could have a knock-on effect on global economic stability and affect local businesses involved in international markets.
“This conflict is not just a foreign political issue. It also has a direct impact on world oil prices, currency exchange rates, supply chains and global shipping costs.
“Malaysian entrepreneurs, especially in Sabah who depend on imports and exports, need to be more prepared,” he said when asked to comment on the development.
Nordin said he suggested that entrepreneurs start re-evaluating their strategies including aspects of geopolitical risk management, market diversification and building business resilience against any global uncertainties.
“A smart entrepreneur does not only depend on one source of market or trade route. In this increasingly uncertain world.
“We need to have contingency and alternative plans, including strengthening regional markets such as ASEAN,” he explained.
According to him, the government is also advised to play a more active role by channeling current information, financial support and technical assistance to industry players who may be directly affected.
“We need an economic response mechanism to foreign conflicts.
“A comprehensive framework must be established so that the national economy can continue to survive in the event of any unexpected shocks,” he said.
He also stressed the need to strengthen economic cooperation between ASEAN countries so that the region is not too exposed to turmoil in the Middle East or the world’s superpowers.
“We cannot move alone in facing global challenges like this. ASEAN needs to act as a united and mutually supportive economic bloc,” he said.
He added that this threat should also be seen as an opportunity to accelerate the agenda of domestic economic empowerment and reduce dependence on foreign markets.
“Crisis often creates space for innovation. Entrepreneurs need to dare to change and take steps forward so that their businesses continue to survive in any situation,” he added.
