Malaysia must navigate a complex and evolving geopolitical environment to sustain its role as a key player in global trade, Prime Minister Datuk Seri Anwar Ibrahim said during the Khazanah Megatrends Forum 2026 in Kuala Lumpur.

Anwar emphasized that Malaysia’s integration into global supply chains, particularly in advanced manufacturing sectors like semiconductor production, makes the country vulnerable to shifting international dynamics. He highlighted Malaysia’s efforts to maintain balanced economic and trade relations with both Western countries—including the United States and Europe—and major Asian economies such as China, South Korea, Japan, and India.

Recalling his meetings last year with Chinese President Xi Jinping and U.S. President Donald Trump, Anwar acknowledged the challenges posed by the growing tensions between these powers. “Don’t envy me for having to, for example, meet and discuss with President Xi Jinping and having to dance with President Donald Trump just to keep the temperature down,” he said, describing the efforts as only achieving limited success.

The Prime Minister pointed to escalating conflicts and disruptions to key trade routes, as well as the increasing role of advanced technologies like artificial intelligence and semiconductors, as factors reshaping the geopolitical landscape. He underscored how trade policies, including tariffs, export controls, and restrictions on critical minerals and chips, have become instruments of economic pressure.

Anwar stressed the importance of continued engagement with international and multilateral institutions amid growing demands for reform. He expressed concern over what he described as major powers’ reluctance to make substantial changes to global organizations such as the United Nations, World Trade Organization, World Bank, and International Monetary Fund, despite their stated commitments to democracy, human rights, and economic justice.

In response to the shifting balance of global power, countries in the Global South are seeking increased influence through groupings like BRICS and other emerging alliances, the Prime Minister noted. He described political power as the root of many current global challenges and warned that authority is evolving faster than the institutions designed to regulate it. He called for enhanced accountability among those holding political and economic power, identifying a deficit in this area as a core challenge for modern societies.

Anwar also highlighted the Association of Southeast Asian Nations (ASEAN) as a vital platform in managing regional differences and maintaining stability. He praised Southeast Asian leaders for prioritizing peace to support economic growth and development and expressed hope that ASEAN’s centrality would translate into stronger influence over regional and global developments, beyond merely serving as a forum for dialogue.