The Malaysian government released the much-awaited National Energy Transition Roadmap (NETR) in two parts earlier this year, detailing how Malaysia will transition towards cleaner sources of energy. This is important because energy is the biggest source of emissions, and many low-hanging fruits – solar power systems and energy efficiency, for instance – are ripe for harvest.

Malaysia’s energy transition

The US Federal Reserve continued on its monetary tightening path in 2023, sending the US dollar higher, triggering the collapse of some of the nation’s banks that spooked capital markets, and putting an end to the 40-year bond rally. The global economy seems to have survived so far, given nascent signs that inflation is cooling and talks of the Fed achieving a soft landing for the US economy. Though the greenback remains strong, the worst seems to be over for the ringgit.

Weighed down by rate hikes and the strong US dollar

If the last few years have taught us anything, it is that the future is unpredictable. From the widespread embrace of digital transformation to the burgeoning importance of cybersecurity and the transformative potential of artificial intelligence (AI), which will only continue to gather pace in the new year, many emerging trends have impacted the country’s business landscape. Here are some of the key business and technology trends we foresee opening a new chapter for Malaysian companies in the year ahead.

Navigating Malaysia’s tech horizon

The rapid expansion of the country’s digital economy in recent years positions it as a potential primary driver of development. The government sees it as a key driver of economic growth and a new source of fiscal revenue.

Overview of Malaysia’s digital economy

Investors have been forced to re-evaluate their investment strategies, given the new economic reality of inflation and geopolitical uncertainties as well as the need to decarbonise. According to Schroders’ Global Investor Study 2023, 57% of Malaysian investors — versus 54% globally and 59% in Southeast Asia — have already adjusted their investment strategies, while a third intend to do so. The UK-based multinational asset management company had surveyed more than 23,000 individual investors from 33 countries and territories for its flagship study.

A shift in investment strategies amid new economic reality

The salary was once seen as the main motivator for keeping employees happy in the workplace — the higher the salary, the happier the workforce. However, this theory does not seem to hold water anymore.