Kuala Lampur, Oct. 26 -- Malaysia's economy has proven remarkably resilient. Growth hit 5.2 per cent in 2025, and while projections for 2026 have moderated to roughly 4.4 per cent-4.9 per cent, the economy continues to expand on the back of strong domestic demand and an electronics export upcycle. The ringgit has strengthened, and the fiscal deficit is narrowing.

But resilience is not invulnerability. Beneath the headline numbers, Malaysia faces a set of economic risks that are more deeply rooted than the typical "external headwinds" framing suggests. The real danger is not a single shock, but the compounding effect of external volatility on an economy whose domestic foundations have been quietly eroding for over a decade.

Malaysia's op...