Kuala Lumpur (VNA) – Economists have raised their forecast for Malaysia's gross domestic product (GDP) growth in 2026 to 4.8%, up from the previously projected 4.6%, following stronger-than-expected business performance in the first half of this year.
The positive outlook reflects the Malaysian economy's resilience to international conflicts, disruptions to global shipping and rising crude oil prices. Statistics show that Malaysia recorded GDP growth of 5.4% in the first quarter, while research organisations forecast growth of 4.6–4.9% in the second quarter.
Malaysian Prime Minister and Finance Minister Anwar Ibrahim said the strong economic performance reflects the resilience of the country's economic framework, which is underpinned by solid macroeconomic fundamentals, sustainable investment inflows and prudent fiscal management. He added that sound fiscal and monetary policies have also helped shield the economy from external shocks.
One of the main drivers of growth is an estimated 23 billion USD in investment during the first half, concentrated in high-tech sectors such as artificial intelligence (AI), semiconductor manufacturing and digital infrastructure. Exports also posted strong growth during the period, rising 45.3% year-on-year and contributing to a current account surplus equivalent to 3% of GDP.
In addition, targeted subsidy reforms, including those for petrol and diesel, have helped ease the cost burden on households and businesses while improving the efficiency of public spending by reducing leakages.
Governor of the Central Bank of Malaysia Abdul Rasheed Ghaffour said the country remains in a strong position thanks to a healthy labour market and resilient domestic demand. The government has also expanded financial assistance and credit guarantee programmes to help micro, small and medium-sized enterprises (MSMEs) manage cash flow challenges amid continued global uncertainty.
Despite the positive outlook, economists cautioned that downside risks remain in the second half of the year, requiring Malaysia to closely monitor geopolitical developments and uncertainties in global trade./.
