Prime Minister Outlines Vision for Malaysia at Khazanah Forum
Prime Minister Datuk Seri Anwar Ibrahim reaffirmed Malaysia’s unwavering commitment to credible governance, innovation, and inclusive growth, declaring them the essential cornerstones of sustainable investment amid rising global uncertainty at the Khazanah Megatrend Forum 2025.
Speaking at the high-profile event, Anwar stressed that Malaysia must navigate the complex challenges of global protectionism and geopolitical volatility with a steady hand, equipped with fortitude and strategic foresight.
He emphasized that economic growth must be firmly anchored in principles of stewardship and fiscal discipline, rather than being driven by mere expansionary ambition.
“Our fiscal consolidation path is about stewardship, and making sure that every ringgit of public money is spent with purpose,” the Prime Minister asserted, underscoring the ethical management of national resources.
He passionately argued that bold domestic reforms, ranging from overhauling public procurement practices to rationalizing subsidies, must be implemented hand in hand with a firm commitment to social justice under the Madani framework.
Anwar specifically flagged Khazanah Nasional Bhd’s vital role in realizing this comprehensive national vision, stating clearly that the sovereign wealth fund’s mandate must extend beyond the sole pursuit of financial profit.
Khazanah’s strategic investments in critical sectors—from semiconductors and green technology to nurturing burgeoning start-ups through its Jelawang Capital initiative—are seen as reflecting a deep understanding that national resilience depends on both economic depth and technological breadth.
By actively nurturing the local venture capital ecosystem, Khazanah serves to strengthen Malaysia’s capacity to innovate from within, thereby strategically reducing the nation’s dependence on unpredictable external economic cycles.
Governance as the Anchor for Risk and Innovation
Anwar highlighted that navigating risk is an inevitable, constant theme throughout human history, viewing it not only as a stern test of limits but also as a powerful catalyst for courage, creativity, and new forms of innovation.
He stressed that Malaysia’s fundamental approach to managing this inherent risk must be anchored in robust, transparent good governance. The Prime Minister warned that without the structure and accountability provided by good governance, risk quickly devolves into a mere “licence for recklessness.”
Conversely, he asserted that when risk is managed with discipline and oversight, it transforms into “the key to innovation,” allowing for calculated ventures that drive progress.
Anwar further pointed out that the contemporary world has entered a new era where power is no longer defined simply by traditional metrics like military might or sheer economic scale, but increasingly by credibility—the ability of a nation to be trusted and to consistently provide stability and reliability amid persistent global tensions and uncertainty.
He stressed that Malaysia’s task in this volatile environment is to maintain its position as a reliable, constructive partner. This requires a careful and nuanced foreign policy that enables the country to engage actively with all global powers and parties without ever becoming dominated by any single one.
The nation must firmly uphold its core principles of neutrality and equity while simultaneously remaining pragmatic and realistic about the shifting dynamics of global power.
This balanced, principle-based approach, championed by the government, is intended to safeguard Malaysia’s long-term investment environment and national interests.
Upholding Multilateralism Amid Global Disconnection
The Prime Minister also addressed Malaysia’s international obligations and its commitment to upholding multilateralism, particularly within the context of its ASEAN chairmanship and broader global engagement.
Anwar noted the critical juncture facing the region as Malaysia’s chairmanship of ASEAN was set to conclude in just a few weeks. He issued a strong directive that ASEAN must remain central, cohesive, and project an image of confidence on the world stage, asserting that the region’s true strength lies in dialogue and collaboration, not division.
He observed that while the world may be trending toward economic and political decoupling, Malaysia cannot afford to disconnect itself from the global system. This principle guides the nation’s active participation across major global platforms.
By maintaining active engagement in bodies such as APEC and ASEAN, and emerging groups like BRICS, Malaysia will continue to advocate vigorously for core principles like open trade, the establishment of fair international rules, and genuine international cooperation.
This strategy is essential for preserving the investment and trade environment that Malaysia relies upon.
Anwar emphasized that through these platforms, the country will maintain its role as a constructive and trustworthy voice dedicated to promoting dialogue, equity, and shared prosperity.
Ultimately, the future success of Malaysia, as defined by the Prime Minister, hinges on a strong domestic foundation built on good governance and a proactive international stance that rejects protectionism in favor of deep integration and partnership.
