Investment banks raise Malaysia’s 2026 GDP forecast to 4.7%, driven by strong domestic demand, tourism and strategic investments
KUALA LUMPUR: Malaysia’s economic growth is projected to strengthen in 2026, with leading investment banks revising their forecasts upwards.
Apex Securities Bhd and Hong Leong Investment Bank Bhd have both raised their 2026 gross domestic product growth forecasts to 4.7%.
This revision from earlier estimates is driven by firmer growth momentum observed in late 2025.
Domestic demand is expected to remain the primary engine of growth, anchored by a healthy labour market and supportive government policies.
Kenanga Investment Bank Bhd maintains a more conservative forecast of 4.5% growth for the year.
The bank noted upside potential toward 5.0% if current economic momentum holds steady.
Stronger tourist arrivals under the Visit Malaysia 2026 campaign are anticipated to provide a significant uplift to the services sector.
Continued policy support for lower-income households is also expected to sustain resilient private consumption.
Investment momentum is forecast to stay solid with the rollout of key national strategic projects.
These include initiatives under the New Industrial Master Plan 2030 and the National Semiconductor Strategy.
Ongoing data centre expansion is expected to generate positive spillovers into higher value-added ICT services.
Hong Leong Investment Bank highlighted potential upside from an easing in global policy uncertainty.
Stronger-than-expected demand for electrical and electronics goods could also boost growth.
The bank cautioned that downside risks remain from rising protectionism and weaker external demand.
On monetary policy, all three institutions expect Bank Negara Malaysia to maintain the Overnight Policy Rate at 2.75% throughout 2026.
