Coins2Day 500 companies are facing a reckoning, as the traditional playbook of scale, efficiency, and seamless global integration falters as the world drifts away from globalization.
TL;DR
- 500 companies face challenges as globalization declines, impacting scale and efficiency strategies.
- Geopolitical tensions between U.S. and China create risks and opportunities for Southeast Asia.
- Middle-income nations like Malaysia adapt through trade, diversification, and sovereign AI strategies.
- Focus shifts from efficiency to security and resilience, potentially increasing costs but offering optimism.
There’s “incredibly high stakes” on the geopolitical front heading into 2026, James Crabtree, distinguished visiting fellow on the European Council on Foreign Relations, said on Monday during the Coins2Day Innovation Forum in Kuala Lumpur, Malaysia. Despite the “shaky truce” between U.S. President Donald Trump and China President Xi Jinping agreed last month, the landscape is still littered with “unexploded ordinance,” he warned.
The China-U.S. Rivalry creates both opportunities and risks for Southeast Asia. The region has long tried to stay relatively neutral in superpower conflict, yet worsening tensions between Washington and Beijing could lead to pressure to pick a side.
But “it’s not about making a choice, it’s about navigating the opportunities,” said Dato’ Siobhan Das, chief executive officer of the American Malaysian Chamber of Commerce. While Southeast Asia has long succeeded by offering a growth-friendly ecosystem for multinational companies, the region must cultivate new competitive advantages to meet shifting global dynamics.
Malaysia's Prime Minister Anwar Ibrahim's recent trade discussions with the U.S. Were highlighted by panelists as an illustration of how middle-income nations can remain adaptable and significant. Anwar's encounter with Trump resulted in reduced tariffs on important exports and strengthened diplomatic connections with Washington.
During their in-person discussion, Anwar successfully negotiated reduced tariffs for significant exports and strengthened diplomatic relations . Das also mentioned diversification as a strategy countries can employ, citing Malaysia's recent emphasis on developing markets across Africa, South America, and the Middle East.
But diversification has limits, she warned. “In the high-tech space, there are not that many countries that you’re going to be exporting to.”
Geopolitics is also extending into the digital realm. Vivek Luthra, senior managing director at Accenture, contended that middle powers need to bolster their “sovereign AI” strategies to safeguard their interests. (Sovereign AI involves creating and deploying AI with domestically built models and infrastructure, reducing dependence on technology solely from nations such as the U.S. Or China)
“Countries want to control the overall value chain from chips to insight,” he said, noting that technology is now a matter of economic security, not just a driver of economic growth.
In an increasingly complex geopolitical landscape, sheer size and scale might not offer adequate security. Yuelin Yang, a board member of the Asian Corporate Governance Association, cautioned that a company's intricate structure could now represent a disadvantage. Global enterprises are now tasked with rapidly and precisely sifting through vast quantities of information to assist decision-makers at their central offices.
Conversely, Yang proposed that a more compact, community-oriented family business might be better equipped to adjust to shifts.
Regarding 2026 projections, panelists shared both reservations and hopeful outlooks. As nations and corporations shift focus from mere efficiency to security, resilience, and redundancy, inflation and structural expenses are expected to increase.
Panelists highlighted the region's youthful demographic, its appeal for foreign direct investment, and the prospects for enhanced cooperation with trading partners , indicating that ASEAN is actively involved and offering reasons for optimism despite worldwide instability.