KUALA LUMPUR: Malaysian businesses should consider diversifying into “adjacent operations”, including equities and other activities closely related to their core businesses, so that they can leverage their current expertise while mitigating risks.
PwC’s Managing Partner, Soo Hoo Khoon Yean, said that in the current environment of uncertainty, companies seeking profitability tend to expand into sectors closely related to their core business rather than venturing into entirely new industries.
“For example, an oil and gas company may diversify into renewable energy, while car manufacturers are moving into electric vehicles. They are using skills they already have,” Soo Hoo told BERNAMA TV’s ‘The Nation: What Malaysian Chief Executive Officers Are Really Thinking in 2026’ programme on Wednesday.
Touching on disruptions such as the volatility in oil prices, Soo Hoo said business reimagination is often deferred to address immediate operational needs, including ensuring a sufficient cash flow.
“The trend I see is that companies defer some plans to strengthen decisions before continuing. You need to focus on resilience today because no one knows how long a crisis, such as a war, will last,” he added.
Oil prices climbed above USD101 (about RM397) a barrel on Thursday, despite the International Energy Agency (IEA) announcing a unanimous agreement among its 32 member countries to release 400 million barrels of oil from their emergency reserves.
At the time of writing, Brent crude oil prices rose 6.24 per cent to USD97.72 (about RM384.13) per barrel.
“The jury is still out on whether current crises will have a major global impact. Uncertainty remains over the duration of conflicts, and the energy landscape is very different today,” he said.
On food security, Soo Hoo noted that Malaysia faces challenges not only in production but also in consumer preferences, as high demand for imported goods limits the effectiveness of local produce supply in crisis planning.
“Our problem with consumer preference is that we (Malaysians) want imported stuff; the level of demand for local produce is not sufficient. But we should encourage government policies to promote local produce,” he added. – BERNAMA
