ACCA-IMA survey records near-pandemic-low confidence as Middle East conflict drives energy costs and supply chain stressKUALA LUMPUR, April 21 (Bernama) -- The ACCA and IMA Q1 2026 Global Economic Conditions Survey (GECS), conducted between 3 and 19 March, coincided with the outbreak of war in the Middle East, weighing heavily on global business sentiment.
For Malaysia, the implications are significant. As a key semiconductor hub, the country may experience some upward pressure on input costs due to disruptions in petrochemicals and other critical materials. As a net energy importer, it could also be affected by higher oil and gas prices. In addition, a stronger US dollar may place some pressure on the ringgit, potentially increasing import costs and foreign currency exposures.
Regionally, 33% of Asia Pacific respondents ranked geopolitical instability as their top risk priority in Q1 2026, above the global average of 25%. Cybersecurity risk ranked second globally at 17%, a concern that is relevant in Malaysia’s fast-digitalising economy.
Andrew Lim, Head of Maritime SEA, ACCA, said: “The Q1 2026 GECS findings are a sobering reminder of how deeply interconnected Malaysia’s economy is with global trade and geopolitical dynamics. Our position at the heart of Southeast Asia means that supply chain disruption, energy price volatility, and currency pressures hit us at multiple pressure points simultaneously. Finance professionals in Malaysia must now navigate an environment where the risks are not only economic but deeply geopolitical – and the two are increasingly inseparable.”
The survey showed a sharp decline in confidence, close to the series lows recorded at the beginning of the pandemic in 2020, as firms grapple with the fourth major global shock this decade. Confidence also fell sharply among chief financial officers.
While an April ceasefire brought some market relief, uncertainty remain high, and energy and other commodity prices look set to remain elevated. Rising cost pressures were evident in Q1, with reports of increased operating costs at their highest since Q3 2022. With energy prices rising and supply chains under strain, pressures are expected to intensify.
Some indicators were more encouraging though. The Global New Orders Index registered a solid increase and is now at its historical average level. Meanwhile, the Global Employment Index, which captures the hiring and firing decisions of firms, also saw slight improvement, although it remains below its historical average.
Read GECS Q1 2026
here.
Source: ACCA
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--BERNAMA