Malaysia’s economic fundamentals remain resilient, with inflation at 1.9% and Q2 growth at 5.8%, says ACCA.
KUALA LUMPUR: Malaysia’s economic fundamentals remain strong despite mounting global cost pressures from ongoing geopolitical tensions, said the Association of Chartered Certified Accountants (ACCA).
In a statement, the ACCA and Institute of Management Accountants (IMA) Global Economic Conditions Survey for the second quarter of 2026 found that while businesses worldwide face rising costs, Malaysia has weathered the global uncertainty well.
“For Malaysia, higher logistics, fuel and raw material costs continued to affect businesses, particularly import-dependent sectors and small and medium enterprises,” it said.
“Nevertheless, the country’s economic fundamentals remained resilient, with inflation moderating to 1.9% in June 2026, while the economy expanded by 5.8% in 2Q 2026, supported by robust domestic demand and stronger manufacturing, mining and services activity.”
The ACCA said the government has cushioned external pressures through RM54.7 billion in subsidies, assistance and incentives this year to stabilise prices and ease household burdens.
ACCA’s portfolio head of Maritime Southeast Asia, Andrew Lim said Malaysia’s outlook is supported by contained inflation, steady domestic demand and targeted policy measures.
“However, businesses should remain agile and manage costs carefully as global volatility is likely to persist,” he said.
Globally, the survey revealed the ongoing conflict in West Asia weighed on the global economy, with over three-quarters of accountants worldwide reporting higher operating costs in 2Q 2026 due to rising commodity prices and supply chain disruptions.
The ACCA said among CFOs, 83% experienced increased costs, close to the highest levels recorded in 2022 and 2023.
Despite cost pressures, global confidence improved from near-record lows in 1Q 2026, reflecting economic resilience and optimism over potential diplomatic progress.
“However, weaker new orders, capital expenditure and employment indicators suggested global growth was slowing amid persistent inflation, geopolitical uncertainty and tighter financial conditions,” it added.
The survey ranked economic pressures as accountants’ top business risk at 22%, followed by geopolitical instability (20%) and cybersecurity (14%).
ACCA chief economist Jonathan Ashworth said sharply rising costs remained a major issue for firms.
“If businesses increasingly pass these costs on to consumers, the risk of further monetary policy tightening would rise. Despite the improvement in confidence, accountants remain cautious as uncertainty continues to define the global operating environment,” he said.
The GECS was conducted from June 3-17, 2026, receiving 647 responses before the renewed escalation of the West Asia conflict.
