Malaysia must be ‘Sang Kancil’ to navigate economic challenges, says Khazanah

Malaysia will have to be a “Sang Kancil” – the legendary mouse-deer known for its resourcefulness – to navigate some of the economic challenges ahead, Khazanah Nasional Bhd managing director Amirul Feisal Wan Zahir said today.

Amirul said the rosiness in financial markets had not necessarily translated to the real economy, especially in wealthier nations, while consumption itself had grown more concentrated among higher-income households.

He added that despite the capital poured into artificial intelligence (AI), an MIT study found that 95% of enterprise AI pilots had yet to show any measurable returns.

“As supply chain disruptions prolong, this makes us wonder: how long can this exuberance in financial markets last?” he said in his welcoming address at the Khazanah Megatrends Forum 2026, here.

The event was also attended by Prime Minister Anwar Ibrahim.

Amirul said such fragility had seen countries pushing for resilience rather than pure returns.

He said big economies like the US, Europe and China could pull production and demand home, cushioned by vast domestic markets and deep public capital.

Malaysia, meanwhile, had no such cushion, he said.

“So how does a small economy respond to these overpowering global forces?

“Malaysia has to be a Sang Kancil again: a clever, connected trading nation whose resilience comes from breadth – be it more sources of capital, export destinations or supply-chain relationships.”

He also noted the power of connectivity, saying Malaysia, as a “Sang Kancil” nation, must be well connected to the world.

He likewise underscored the importance of preserving Malaysia’s heritage, saying this would give foreign visitors reasons to come, stay longer and see Malaysia for themselves.

“For a trading nation, being a place the world wants to visit is itself a source of power.”

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