MARCH 31 — The war in West Asia is no longer a distant geopolitical disturbance. It is a systemic shock—one that is rippling across energy markets, supply chains, and industrial strategies worldwide. For Malaysia and Asean, the question is no longer whether to respond, but how.
In this emerging polycrisis—where war, inflation, energy insecurity, and technological fragmentation intersect—Japan offers one of the most compelling models of strategic adaptation.
That lesson was made abundantly clear at the recent Japan–Malaysia Industrial Cooperation Seminar, convened with the strong support of the Embassy of Japan under the leadership of Ambassador Shikata Noriyaki.
Members of the Iranian Red Crescent Society work at the site of a reported strike amid the US-Israeli conflict with Iran, near a Mosque in Zanjan, Iran, in this screen grab taken from a handout video released on March 31, 2026. — Iranian Red Crescent Society handout via Reuters
By bringing together some of Japan’s most distinguished policymakers, scholars, and industry leaders, the Embassy has done Malaysia a strategic service at a moment of mounting uncertainty.
Among them, Professor Suzuki Kazuto of the University of Tokyo emphasised that economic security has now moved decisively to the centre of national strategy.
This is no longer an abstract concept. It is operationalised through diversified supply chains, strategic stockpiling, and long-term industrial planning.
In an era where the Strait of Hormuz can no longer be assumed open, such thinking is indispensable.
Malaysia must internalise this shift. Efficiency alone can no longer be the organising principle of economic policy. The triad now is cost, resilience, and sovereignty.
Mr. Komiyama Yasuji of Japan’s Ministry of Economy, Trade and Industry (METI) reinforced this point by highlighting how rising protectionism and constraints on strategic resources are fragmenting the global economy.
The implication is clear: overdependence on single sources—whether for rare earths, energy, or critical inputs—is no longer viable.
The disruptions already seen across the Gulf, including attacks on energy infrastructure, underline this vulnerability.
Diversification is no longer optional; it is existential.
Dr. Takeuchi Sumiko of the International Environment and Economy Institute further underscored that energy policy must now be approached holistically.
Energy security, affordability, and decarbonisation cannot be pursued in isolation. They must be advanced together. This is precisely where Japan’s model stands out.
Rather than rushing headlong into a singular energy pathway, Japan adopts a multi-layered strategy—combining renewables, transitional fuels, and emerging technologies such as hydrogen and ammonia.
Yet, as Dr. Takeuchi and Mr. Tsuchiya Masaru of McKinsey & Company cautioned, these technologies still face cost and scalability constraints. The transition must therefore be calibrated, not ideological.
For Malaysia, this is a crucial lesson. A fiscally unsustainable transition—especially one that exacerbates subsidy burdens—will ultimately falter.
Pragmatism must prevail over ambition detached from reality.
Equally important is the integration of industrial and energy policy.
Mr. Kikuchi Yo of the Japan Bank for International Cooperation (JBIC) highlighted how financing, infrastructure, and long-term partnerships are essential to sustaining industrial competitiveness. In Japan, industrial policy is not divorced from energy considerations; it is built upon them.
Malaysia must do the same. The convergence of industrial and energy policy is now the backbone of national resilience.
Decisions about manufacturing, technology, and investment must be aligned with long-term energy strategies.
On the technological frontier, Mr. Ito Ren of Sakana AI pointed to a decisive shift in artificial intelligence—from scaling ever-larger models to focusing on application-driven use cases. This is a critical insight.
Malaysia does not need to compete in the race for foundational AI dominance.
Instead, it should embed AI into sectors where it already possesses comparative advantages—banking, agriculture, and logistics—thereby unlocking immediate productivity gains.
Innovation, however, must also be grounded in entrepreneurship. Mr. Izumo Mitsuru, founder of Euglena Co., Ltd., and Dr. Maru Yukihiro of Leave a Nest demonstrated how Japan’s private sector continues to pioneer solutions in biofuels, sustainability, and deep-tech ecosystems.
Their presence served as a reminder that resilience is not built by governments alone, but through dynamic collaboration between state and enterprise.
At a broader level, Japan’s approach to interdependence is instructive.
Unlike Europe’s deeply institutionalised integration, Asia operates through flexibility. Japan thrives within this system by building layered partnerships—especially across ASEAN.
This is where Malaysia stands to gain the most.
ASEAN is increasingly emerging as a platform for supply chain diversification and industrial repositioning.
Malaysia’s relative stability, established industrial base, and strategic location position it favourably within these shifting dynamics. But opportunity is not destiny.
It requires deliberate alignment of policy, investment, and international cooperation. In this regard, Japan is not merely a partner—it is a strategic anchor.
From semiconductors to advanced manufacturing, from energy systems to green technologies, Japan’s industrial ecosystem complements Malaysia’s ambitions. The strengthening of Malaysia–Japan ties is therefore not incidental; it is essential.
Yet perhaps the most enduring lesson from Japan is continuity.
Policy consistency, institutional strength, and long-term financing are the quiet foundations of resilience. In contrast, the polycrisis unfolding from West Asia demands more than reactive measures. Quick fixes—whether in subsidies or ad hoc interventions—will not suffice.
Malaysia does not face an immediate emergency. But it does face a prolonged structural challenge—one that could last five years or more, given the time required to restore damaged energy infrastructure and stabilise global markets.
The appropriate response is not panic, but preparation and more preparation for an equitable energy mix based in fossil fuel and Renewable Energy (RE).
Japan shows that it is possible to navigate a world of uncertainty without succumbing to it.
By aligning economic security with industrial strategy, by diversifying dependencies, and by pursuing a balanced energy transition, Japan has built a model of resilience that is both pragmatic and adaptable.
For Malaysia, the path forward is not to replicate Japan wholesale, but to internalise its principles.
In a world reshaped by war in West Asia, resilience is no longer a luxury. It is the foundation of survival—and the basis of future competitiveness.
Japan has already understood this.
Malaysia must now act on it.
*Phar Kim Beng is professor of Asean Studies and director of the Institute of International and Asean Studies, International Islamic University of Malaysia.
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
