March 16, 2026
PETALING JAYA – Malaysia may be better placed than many regional economies to cushion the spillover effects of the Middle East conflict, with an economist pointing to its lower energy vulnerability and growing appeal to expatriates from the region.
Sunway University economics professor Dr Yeah Kim Leng said Malaysia can partially shield itself from the conflict better than most countries that are highly dependent on energy imports.
“It is likely to benefit from capital flight and investment diversions owing to the current situation,” he said.
Besides bringing in new capital and investments that boost the real economy and financial markets, he said Malaysia stands to benefit from higher consumption.
“This may include increased demand for entertainment, hospitality, leisure, education, healthcare and related services such as travel and aviation,” he said.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said Malaysia stands to gain in terms of talent.
“We have the advantages to attract the right talent,” he said. “Otherwise, how do you explain the foreign talent that has remained in our country for decades?”