Malaysia’s economy is projected to grow 4.0-4.5% in 2026, supported by domestic demand, investment and tourism, despite global volatility

KUALA LUMPUR: Malaysia’s economic growth outlook for 2026 is expected to remain steady between 4.0% and 4.5%.

Deputy Economy Minister Datuk Mohd Shahar Abdullah said this projection holds despite a challenging global economic environment.

He stated that the country’s growth will be supported by strong domestic consumption and continued investment in infrastructure and industrial projects.

Further support will come from the expansion of the digital economy and the recovery of tourism linked to Visit Malaysia 2026.

“Economic resilience becomes critical as we navigate these complex global headwinds to ensure our long-term stability,” Mohd Shahar said.

He made these remarks in a special address at the 2nd ASEAN Banking and Finance Summit today.

The summit’s theme was “The Role of the Financial Sector in Driving Malaysia’s Sustainable and Inclusive Economic Growth.”

Mohd Shahar noted the discussions were timely amid persistent global geopolitical tensions.

He highlighted that volatility in the Middle East continues to impact global energy markets.

Earlier reports noted economists debating Malaysia’s growth outlook amidst the escalating US-Iran conflict.

Some analysts cautioned that rising oil prices may weigh on the economy.

Conversely, investment banks have stressed potential gains from higher energy revenue and robust domestic demand.

 The Sun Malaysia