Market assessments have revised Malaysia’s 2026 economic growth forecast upwards to between 4.5% and 5.0%, reflecting strong domestic demand and investment momentum.
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim announced that current market assessments have raised Malaysia’s economic growth outlook for 2026 to a range of 4.5% to 5.0%.
This revised forecast reflects strengthening domestic demand and continued investment momentum, aligning with expectations from the Finance Ministry and international institutions.
Official projections had previously anticipated the economy expanding between 4.0% and 4.5% this year. Anwar said Malaysia enters 2026 with an economy that remains resilient despite global uncertainties.
He added that inflation is expected to remain moderate and well contained. Bank Negara Malaysia is expected to maintain a policy stance that supports growth while safeguarding price stability.
“Nevertheless, we must remain vigilant,” Anwar cautioned. He highlighted geopolitical tensions and financial market volatility as risks requiring disciplined management.
The Prime Minister’s speech was read by Finance Minister II Datuk Seri Amir Hamzah Azizan at the Affin 50th anniversary gala, yesterday. Anwar stressed the government’s commitment to fiscal discipline and financial system stability.
Structural reforms are being implemented in a phased and prudent manner. This balanced approach is deemed essential to sustaining investor confidence and strengthening economic resilience.
Anwar said the banking sector plays a critical role as a stabiliser of the financial system. Institutions like Affin Group support system stability and ensure credit flows to the real economy.
He also emphasised the importance of digitalisation and artificial intelligence to raise productivity. These efforts must be supported by strong cybersecurity safeguards and robust data protection.
