Analysts Lift Malaysia 2026 Outlook as Domestic Demand Stays Strong

Malaysia’s 2026 outlook is improving as analysts point to resilient domestic demand, steady services activity and continued investment, even as external risks linger.

Kenanga Research said momentum could deliver upside toward 5% growth in 2026 but kept its base forecast at 4.5%, citing a mixed export outlook despite firm semiconductor shipments and a policy push for industrial upgrading.

Hong Leong Investment Bank raised its 2026 GDP forecast to 4.7%, above the finance ministry’s 4.0%-4.5% guidance, saying a healthy job market, supportive policies and investment should keep domestic demand as the main engine, while warning of protectionism and softer external demand.