The COVID-19 pandemic, geopolitical unrest, rising inflation, and interest rates have led to slower growth and greater uncertainty for local businesses in Malaysia. In order to become more robust and crisis-resistant, local business players must think outside the box and create new business ecosystems with new or existing partners closer to local markets. These ecosystems can help reduce reliance on unstable supply networks and eliminate boundaries between conventional economic sectors, making them a crucial step for enterprises in becoming more collaborative and data-driven.

The new ecosystem economy is anticipated to continue to alter and expand, driven by developing technologies, shifting consumer preferences, and global trends. Businesses operating in this economy will be at the forefront of innovation and adaptability. The elimination of boundaries between sectors means that companies can collaborate and pool resources to overcome obstacles like changing legislation, fines, rising prices, and attaining ESG goals.

To take advantage of the opportunities presented by the ecosystem economy, local businesses in Malaysia must adopt digital transformation, grow their markets, and encourage innovation. Digital transformation is crucial to remaining competitive in a world that is swiftly moving towards digitalization. Companies must invest in digital infrastructure and equipment to improve customer satisfaction, cut costs, and streamline operations. Growing internationally can be accomplished through digital platforms, forging alliances with international businesses, and participating in trade shows and exhibitions. Supporting employee creativity and innovation through innovation hubs, brainstorming sessions, and rewards for creative solutions is essential to encouraging innovation.

In embracing the ecosystem economy, local companies in Malaysia can ensure their sustainability and achieve long-term success in the marketplace. The new ecosystem economy presents opportunities for businesses to collaborate, innovate and overcome obstacles, making them more resilient in the face of uncertainty. Companies that can adapt to these changes and embrace collaboration and innovation are likely to succeed in the new ecosystem economy.

Ahmad Nizam Che Kasim is a lecturer at Universiti Malaysia Perlis

The views expressed here are those of the author/contributor and do not necessarily represent the views of The Pulse.