Malaysian businesses are embracing a more cautious approach in the second half of 2026 as geopolitical instability, trade tensions, and rising operating costs continue to weigh on sentiment. They are reassessing hiring, salary adjustments, and expansion plans due to the uncertain economic climate, with potential supply chain disruptions also a concern.
KUALA LUMPUR: Malaysian businesses are expected to adopt a more cautious approach in the second half of 2026 amid ongoing global economic uncertainty . The National Chamber of Commerce and Industry of Malaysia said firms were reassessing hiring, salary adjustments, and expansion plans as geopolitical instability, trade tensions , and rising operating costs continue to weigh on sentiment.
Speaking at a press conference here, NCCIM president N Gobalakrishnan said businesses were also struggling to predict future production capacity and operating costs amid supply chain uncertainties.
“The impact will be there for at least the next nine months. The private sector is being very cautious about it because, obviously, we need savings,” he said. He also welcomed the government’s financial support measures for businesses, including RM5 billion in financing assistance, but urged agencies to ensure that loan approvals and disbursements are carried out efficiently.
Despite the challenging outlook, business leaders at the press conference agreed that the current economic uncertainty could work in Malaysia’s favour. Malaysian International Chamber of Commerce and Industry executive director Lee Han Ling said Malaysia’s position between major global powers and within Asean could create opportunities, especially as multinational companies look to diversify supply chains and expand investments in the region.
NCCIM vice-president AT Kumarajah said Malaysian businesses had shown resilience through previous crises, including the Covid-19 pandemic and recent tariff disputes, and were likely to remain adaptable despite current pressures. He described 2026 as a “year of consolidation”, with businesses expected to focus on stabilisation rather than aggressive expansion. The press conference was held ahead of the National Economic Forum 2026 on July 2.
Themed “A World in Transition: Securing Malaysia’s Economic Future in an Era of Disruptions”, the forum is expected to gather about 500 delegates from the private sector, government agencies and academia to discuss economic challenges ahead of Budget 2027. Last week, Nurhisham Hussein, senior director of economy and finance at the Prime Minister’s Office, said June and July were expected to be a major turning point for the economy as businesses exhaust existing raw material stockpiles.
“We’re going to start seeing production stoppages. We’re going to start seeing people losing overtime and shift reductions,” he told BFM.
Global Economic Uncertainty Geopolitical Instability Trade Tensions Supply Chain Uncertainties Financial Support Measures Financial Assistance Supply Chain Disruptions Businesses' Cautious Approach Economic Challenges Economic Resilience Government's Role Business Leaders' Views National Economic Forum 2026 Prime Minister's Office Economic Future Disruptions Supply Chain Management Supply Chain Visibility Supply Chain Resilience
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