KUALA LUMPUR: The growth in the domestic manufacturing sector is projected to remain steady at 3% in 2026, supported by both export- and domestic-oriented industries.
The broader gains from the global technology upcycle are anticipated to continue supporting export-oriented industries, particularly those involved in semiconductor production, electronics manufacturing, and high-value component assembly.
The report said the domestic E&E cluster is expected to remain the key driver, with sustained growth across semiconductor products, particularly in the chips segment, following robust demand for AI applications and digitalisation.
These developments will further elevate growth prospects and strengthen Malaysia’s position in the global E&E supply chain, the report noted.
Meanwhile, domestic-oriented industries will continue to be supported by higher output, underpinned by stable investment and consumption activities, alongside concerted government efforts to boost local production capacity, strengthen supply chains, and encourage the use of locally sourced materials.
A surge in visitor arrivals and rising gastronomic activities are expected to increase output in the consumer goods segment, particularly in food and beverages, supported by higher domestic spending and strong tourism-related demand.
Furthermore, Phase 2 of the Public Service Remuneration System implementation is anticipated to boost household spending.
The transport-related industries will also benefit from increasing logistics and travel activities, it said.
