China’s more than 5,000-year-old civilisation has produced many words of wisdom. For example, the phrase “in times of peace, think of danger (居安思危)” has long been embedded in Chinese culture and has played an instrumental role in shaping how the country is governed. The phrase originates from a text written during the Spring and Autumn period, which in full reads: “In times of peace, think of danger; by thinking ahead, one becomes prepared, and with preparation, there will be no calamity (居安思危，思则有备，有备无患).”

This week, the International Monetary Fund (IMF) lowered its global economic growth forecast to 3.1%, down from its earlier projection of 3.3% made before the US-Israel-Iran war. However, it revised upward its growth forecast for Malaysia to 4.7% from 4.3%, supported by robust domestic demand, a steady recovery in tourism, and continued strength in key export sectors such as electronics.

While the IMF’s confidence in Malaysia is welcome, the Malaysian government should not become complacent or downplay the urgency of reforms needed to enhance the country’s productivity, competitiveness, and long-term economic resilience. Policymakers should always think ahead and remain prepared.