The Malaysian Bar’s International Malaysia Law Conference (“IMLC”) 2026 took place from 27 to 30 Oct 2026 at MITEC, Kuala Lumpur.
By Voon Su Huei, IMLC Organising Committee Member
Plenary Session 2 was conducted from 5:30 pm to 6:30 pm on 29 Oct 2026 and was moderated by Anand Raj, President of the Malaysian Bar. The audience had the opportunity to hear key insights from the following economists:
- Professor Emeritus Dr Jomo Kwame Sundaram, Universiti Malaya; Research Adviser, Khazanah Research Institute; Fellow, Academy of Science, Malaysia; and
- Dr Wan Khatina Nawawi, Managing Director at Econworks.
The session was broadly divided into discussions of three main topics: the sustainability of subsidies for industry players, the intersection between the economy and law, and the feasibility of government involvement in business.
Sustainability of Subsidies Given to Industry Players
The session started with Dr Jomo answering Anand Raj’s question on how subsidies given by China would affect Asia and Malaysia in particular. Focusing on the electric vehicle (“EV”) industry in China, Dr Jomo shared that there is a federal Government policy in China that promotes green industries, where subsidies on EVs are given on a provincial level, resulting in over 100 EV companies in China. There is recognition in the country that such subsidies cannot be sustained, but ultimately many medium-sized companies still find it difficult to compete with China. He highlighted that medium-sized industries lack a voice and are rarely heard, except through spokespeople who are often lawyers.
When asked whether a breaking point should be expected, Dr Jomo said he does not foresee a moment when it would end, though he thinks that even if subsidies were withdrawn in the China EV industry, it would be difficult to compete with China EVs given their longstanding involvement in the industry. He acknowledged the challenging situation at play with no easy solution.
Anand Raj then asked Dr Jomo if the Malaysian government is doing enough in the face of subsidised imports. Dr Jomo expressed that even before China, small and medium industries did not stand much of a chance in this country. For instance, the consolidation of banks deprived many firms of their main sources of credit. The current favouring of foreign direct investments from China or Hong Kong means that modern competition has become very complex and the playing field is uneven.
Intersection of Economy and Law
Dr Wan Khatina then delivered her presentation on the intersection of law and economics from the perspective of regulatory economics. If a foreign company intends to acquire a Malaysian business, one should ask 3 questions. Will the deal weaken competition (merger control)? Does foreign ownership raise security concerns (investment screening)? Does state support distort the deal (foreign subsidies)? She highlighted that there are many facets one needs answers to when addressing a deal, where laws intersect. Anand Raj chimed in to state that the lack of merger control in Malaysia allows anti-competitive outcomes.
Dr Wan Khatina continued by stating that different problems require different laws to address them, such as European Union (“EU”) state aid rules for EU-subsidised deals and foreign subsidies regulation to deal with foreign-subsidised deals, among others — highlighting the interlinkages in international trade. As for Malaysia, it is negotiating a Free Trade Agreement with EU. One would need to see what the Malaysian Government has to agree to once it comes into force. How will it address issues arising out of mergers and subsidies? Ultimately, different channels of distortion require different regulatory responses.
Government Involvement in Business
The discussion then returned to Dr Jomo, who shared his thoughts on Government involvement in business. He said the answer to this issue depends on background and context, stressing that it is difficult to make a general statement on Government involvement in business. For instance, Government involvement in supporting food industries may be deemed socially and politically necessary. One would need to assess the different market sizes. What may be deemed unfair in a large market may not be deemed undesirable in a relatively small market like Malaysia, given the different economies underlying production in Malaysia.
When asked if he thinks Malaysia will ever become a developed nation, Dr Jomo’s view is that that is an arbitrary label. The more important issue to him is how we are subjected to competition law strategically. What is important is that we must have apt regulations based on ostensibly international standards.
The session ended with the speakers answering a question from the floor on how to address the issue of brain drain. Dr Jomo shared that Malaysia must up its game insofar as education is involved. He stressed that beyond policies, we must improve the quality of our discussions, especially on remuneration. It is a question of national discourse. Dr Wan Khatina wondered if the country has the capacity to implement commitments we have undertaken and called upon the audience to support the Government in its endeavour.