# IMF and World Bank warn of economic risks for Asean

> IMF and World Bank urge Asean to strengthen economic resilience amid geopolitical tensions.
- Title: IMF and World Bank warn of economic risks for Asean | Shortify
- Summary: IMF and World Bank urge Asean to strengthen economic resilience amid geopolitical tensions. Asean must enhance regional economic resilience to avoid turning…
- Keywords: imf, world bank, asean, geopolitical tensions, energy security, inflation, low-income countries, regional economic resilience, news, world, Bank, warn
- Source: Malay Mail — https://malaymail.com/news/what-you-think/2026/10/18/the-alarm-bells-of-the-imf-and-world-bank-must-be-heeded-phar-kim-beng/239595
- Published: 2026-10-18T14:42:39+00:00
- Read time: 2 min
- Topics: imf, world bank, asean, geopolitical tensions, energy security, inflation, low-income countries, regional economic resilience, news, world
## IMF and World Bank meetings in Bangkok
The annual meetings of the International Monetary Fund and World Bank in Bangkok highlighted optimism about economic resilience despite global challenges.
## Global economic optimism and worry
IMF Managing Director Kristalina Georgieva described the atmosphere as one of 'optimism and worry' reflecting a fundamental contradiction in the global economy.

> optimism and worry
## Geopolitical threats to energy security
Iran war, Gulf Cooperation Council disruptions, and attacks on Saudi Arabia threaten energy supplies through the Strait of Hormuz.
## Energy security risks for Asean
South-east Asia's energy security is at risk due to geopolitical instability in West Asia, increasing costs and inflationary pressures for Asean economies.
## Malaysia's dual energy impact
Malaysia may benefit from higher energy revenues but households and businesses face increased costs through imported goods and logistics.
## Imported inflation challenges
Inflation from external shocks is difficult to manage as governments cannot easily control underlying causes of energy disruptions.
## Vulnerability of low-income countries
Wealthier countries have stronger fiscal buffers while poorer countries face higher borrowing costs and limited foreign exchange reserves.
## Geopolitics and economics interconnection
A missile strike on energy infrastructure can affect insurance premiums while Red Sea disruptions lengthen shipping routes.
## Asean's collective economic resilience
Asean has demonstrated stability during crises but faces unique challenges including energy insecurity and geopolitical fragmentation.
## Closer coordination needed
Asean Plus Three and Chiang Mai Initiative Multilateralisation can strengthen regional financial preparedness.
## Temporary resilience vs permanent stability
Growth can continue while households experience declining purchasing power and small businesses struggle with higher costs.
## Strategic diplomacy importance
Malaysia and Asean need diverse partnerships with Gulf Cooperation Council, China, India, Japan, South Korea, EU, and US for energy and investment.
## Long-term resilience required
Investment in renewable energy, food supply chains, infrastructure, and regional financial cooperation is needed to prevent economic crises.
## The warning for Asean
Asean must strengthen economic resilience before external shocks become domestic crises.
## Key takeaway

Asean must enhance regional economic resilience to avoid turning temporary stability into vulnerabilities from Iran war-related energy disruptions.