KUALA LUMPUR, 2 August 2026 (The Capital Post) – Malaysia’s economy has remained resilient despite mounting global cost pressures driven by geopolitical tensions, according to the latest Global Economic Conditions Survey (GECS) released by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA).
The survey, conducted between 3 and 17 June 2026, found that the ongoing conflict in the Middle East continued to weigh on the global economy, with more than three-quarters of accountants worldwide reporting higher operating costs during the second quarter of 2026.
The increase in costs, fuelled by higher commodity prices and supply chain disruptions, exceeded the previous record recorded following the escalation of the war in Ukraine. Among chief financial officers (CFOs), 83 per cent reported rising operating costs, close to the peak levels seen in 2022 and 2023.
Despite these challenges, global business confidence improved from the near-record lows recorded in the first quarter, reflecting the resilience of the global economy and optimism over possible diplomatic progress at the time the survey was conducted. However, weaker indicators for new orders, capital expenditure and employment suggest that global economic growth is slowing amid persistent inflation, geopolitical uncertainty and tighter financial conditions.
Economic pressures emerged as the top business risk identified by respondents, accounting for 22 per cent of responses, followed by geopolitical instability at 20 per cent and cybersecurity at 14 per cent. Respondents also highlighted the growing importance of artificial intelligence (AI), with discussions focusing on sustainable value creation, cyber resilience and accountability.
ACCA Chief Economist Jonathan Ashworth said rising operating costs remained a significant concern for businesses during the second quarter.
He said firms passing higher costs on to consumers could increase the likelihood of further monetary policy tightening, adding that while confidence had improved, accountants remained cautious as uncertainty continued to shape the global business environment.
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In Malaysia, businesses continue to face higher logistics, fuel and raw material costs, particularly those operating in import-dependent industries and small and medium-sized enterprises (SMEs).
However, the survey noted that Malaysia’s economic fundamentals remain strong. Inflation eased to 1.9 per cent in June 2026, while the economy expanded by 5.8 per cent in the second quarter, supported by resilient domestic demand and stronger performance across the manufacturing, mining and services sectors.
The report also highlighted that the Government has allocated RM54.7 billion in subsidies, assistance and incentives in 2026 to help cushion the impact of external pressures, stabilise prices and ease the cost-of-living burden on households.
ACCA Portfolio Head for Maritime Southeast Asia, Andrew Lim, said Malaysia’s economic outlook remained comparatively resilient due to contained inflation, steady domestic demand and targeted policy measures.
He added that businesses should continue to remain agile and manage costs prudently as global volatility is expected to persist. – The Capital Post.
