Kuala Lumpur: Business interruption remains the top concern for business risks in Malaysia this year, alongside fire and explosion, as well as changes in legislation and regulation, according to the Allianz Risk Barometer 2025 report. In a statement today, Allianz group's corporate insurer, Allianz Commercial, said that business interruption retains its top spot in Malaysia, reflecting the severe supply chain disruptions experienced during and after the pandemic.
According to BERNAMA News Agency, last year, Malaysia Airlines reduced its scheduled flight capacity by 20 percent to mitigate the post-pandemic challenges of returning to normalcy in air travel due to new aircraft delivery delays and a global spare parts shortage that impacted their current fleet maintenance. Moreover, Allianz Commercial highlighted the disruptive nature of fire and explosion, which often results in significant disturbances. Damaged plants sometimes take years to rebuild and regain full production capacity.
Allianz Commercial also noted that changes in legislation and regulation can result in a more challenging business operating environment. There were several changes in Malaysia last year, including a new regulatory license for social media platforms and technology firms, the Cyber Security Act, and amendments to the Personal Data Protection Act. Additionally, cyber incidents remain one of the top risks in Malaysia as they continue to increase with the rapid development of technology. Five government agencies and nine companies operating in aviation, banking, and healthcare were among those affected by the global CrowdStrike outage last year, the insurer said.
Meanwhile, Allianz General Insurance Company (Malaysia) Bhd chief underwriting officer Rafliz Ridzuan said business interruption is closely linked to many of this year's highly ranked risks, such as fire, cyber incidents, and natural catastrophes. He emphasized that disruption from fire can be extensive, as recovery may take longer than many other perils, and the impact on suppliers can be substantial. Given the growing reliance on technology, cyber incidents remain a top risk for organizations, and the CrowdStrike incident once again underlined the dependence on secure and reliable information technology systems. Ridzuan urged companies to establish robust risk management plans and supply chains to enhance resilience and withstand business interruption.
According to the report, market developments have emerged as a new concern for companies in Malaysia in 2025, tying for fifth position with natural catastrophes. The country saw a wave of technology investments in the region as new players, including AirTrunk, Equinix, EdgeConneX, Princeton Digital Group, NEXTDC, and ST Telemedia Global Data Centres, entered the market. Google also announced its investment in Malaysia, while other technology giants like Microsoft, Amazon, Nvidia, and Apple intensified their focus on the region.
The Allianz Risk Barometer is an annual business risk ranking compiled by Allianz Commercial, together with other Allianz group entities.