Malaysia Economy to See Moderate Growth in 2026 Amid Global Uncertainty

KUALA LUMPUR, Aug 8 — Malaysia’s economy is projected to grow moderately in 2026, supported by resilient domestic demand despite global trade uncertainties, said the Ministry of Finance (MoF) in its Pre-Budget Statement 2026. Growth will be driven by private investment, stable employment, targeted cash transfers, and tourism under Visit Malaysia 2026. Public investment will be boosted through strategic 13th Malaysia Plan projects and the GEAR-uP programme. GDP grew 4.4% in Q1 2025 and is expected to expand 4.0%-4.8% this year. Inflation fell to 1.1% in June, while unemployment dropped to 3.0% in May. The fiscal deficit is targeted at 3.8% in 2025. The ringgit appreciated 5.8% to RM4.2270 per US dollar, supported by strong fundamentals. Malaysia secured RM384.4 billion in approved investments in 2024, its second consecutive record year, and improved 11 spots to 23rd in the IMD World Competitiveness Ranking 2025, its best position since 2020.