SHAH ALAM, April 14 — The state government is urged to immediately strengthen economic mitigation measures through innovation, automation, and market diversification to ensure the industry's resilience amid global uncertainties.
Universiti Teknologi MARA's (UiTM) Business and Management Faculty senior lecturer Mohamad Idham Md Razak said this approach is important to reduce dependence on a single export market and strengthen domestic capabilities, particularly in the production of critical inputs.
Selangor already has a strong foundation in its industrial ecosystem, infrastructure, and investment attractiveness, but amid global uncertainty, the existing approach needs to be strengthened through supply chain risk management, digitalisation support, and strengthening the domestic market.
He said that official support, such as investment incentives, talent development, and financing facilities, is also important to ensure businesses remain competitive.
"Shifting focus to local companies can be one of the mitigation strategies, but it should be seen as a complement, not a substitute for foreign investment, because strengthening local companies helps enhance domestic economic resilience and reduce exposure to external shocks.
"However, openness to global investment is still important for technology transfer, market access, and long-term growth. Therefore, a more sustainable strategy is to strike a balance between empowering local players and maintaining attractiveness to international investors," Idham told Bernama today.
Previously, it was reported that Invest Selangor Bhd's chief executive officer Dato' Hasan Azhari Idris said the state's diverse economy and focus on high-impact industries are expected to withstand the effects of global uncertainty.
Selangor, which also contributes 26.2 per cent of Malaysia's gross domestic product in 2024, has a broad industrial ecosystem that helps the state remain resilient in facing external challenges.
Meanwhile, UiTM's Management and Business Faculty's Climate Risk and Sustainable Finance Research Group Climate Risk and Sustainable Finance Research Group Prof Amirul Afif Muhamat said companies in Selangor need to immediately restructure their business and operational models to avoid energy cost pressures that could jeopardise business continuity.
In the ongoing energy crisis, companies can no longer rely on existing cost structures; instead, they need to be more flexible in renegotiating contracts with suppliers and customers.
"The failure to adjust the terms of the agreement can increase financial risks, including the inability to meet debt commitments. Therefore, negotiations with banks and the implementation of a targeted moratorium need to be considered to avoid legal implications," he said.
Amirul noted that restructuring operations, including production schedules and working hours, is needed to ensure more efficient energy use.
