Kuala Lumpur (VNA) – Malaysia's economy is projected to expand by 4–5% in 2026, supported by resilient domestic demand, robust exports and sustained investment, according to the country's central bank.
Bank Negara Malaysia (BNM) Governor Abdul Rasheed Ghaffour said the economy has remained resilient despite external uncertainties.
Malaysia's economy grew 5.4% in the first quarter. Abdul Rasheed said high-frequency indicators point to some moderation in economic activity in the second quarter of 2026. He, nevertheless, assured that the economy continues to demonstrate resilience despite external uncertainties.
He did not rule out the possibility of full-year growth being in the upper half of that range.
He attributed the positive outlook to easing geopolitical tensions in the Middle East and the stabilisation of global supply chains. Malaysian businesses have also diversified their supply sources and adopted alternative strategies, helping ensure energy security and contain price pressures.
Domestic demand continues to be underpinned by a stable labour market, strong export performance and sustained investment activity. Rising exports are expected to support employment and private consumption, while growing demand linked to artificial intelligence and the electrical and electronics sector is expected to provide an additional boost.
Investment momentum remains strong, driven by ongoing and newly launched projects, including data centres, as well as the implementation of previously approved investments. High project execution and disbursement rates are translating into tangible economic activity.
Smaller-scale projects undertaken by both the government and private sector are also helping sustain economic activity and reinforce domestic growth.
In its latest World Economic Outlook update, the International Monetary Fund (IMF) maintained its 2026 growth forecast for Malaysia at 4.7%, citing the country's expanding data centre industry and the recovery of the global technology cycle as key growth drivers.
Malaysia's advance estimate for second-quarter 2026 GDP is scheduled for release on July 17, while official figures are expected in August./.
