Market Assessments Raise Malaysia’s Growth Outlook To 4.5–5.0 Pct This Year -- PM Anwar

KUALA LUMPUR, Feb 7 (Bernama) -- Current market assessments place Malaysia’s economic growth in the range of 4.5 to 5.0 per cent in 2026, reflecting strengthening domestic demand and continued investment momentum, in line with expectations from the Finance Ministry and international institutions, said Prime Minister Datuk Seri Anwar Ibrahim.

He said based on official projections earlier, Malaysia’s economy was expected to expand between 4.0 and 4.5 per cent in 2026, supported by steady domestic demand and sustained investment activity. 

The speech was read by Finance Minister II Datuk Seri Amir Hamzah Azizan at the Affin 50th anniversary gala and Chinese New Year dinner today.

Anwar said Malaysia enters 2026 with an economy that remains resilient, even as global conditions continue to be uncertain.

He added that inflation is expected to remain moderate and well contained, in line with monetary policy objectives.

“Bank Negara Malaysia is also expected to maintain a policy stance that supports growth while safeguarding price stability and the soundness of the financial system.

“Nevertheless, we must remain vigilant. Geopolitical tensions, shifts in global trade policies and volatility in financial markets call for disciplined risk management and strong governance,” he said.

In managing this growth, the Prime Minister said, the government remains committed to fiscal discipline and financial system stability.

“Structural reforms are being implemented in a phased and prudent manner, taking into account market conditions, the welfare of the rakyat and the capacity of financial institutions to support this transition.

“This balanced approach is essential to sustaining investor confidence and strengthening Malaysia’s economic resilience,” he said.

In this context, Anwar said, the banking sector plays a critical role as the banks are not only providers of financing but they are stabilisers of the financial system, facilitators of investment and anchors of market confidence.

“Within this framework, institutions such as Affin Group serve an important role as financial intermediaries. They support system stability, expand productive financing and ensure that credit continues to flow to the real economy,” he said.

On another note, Anwar said today’s market environment demands speed, efficiency and the ability to scale.

He said the MADANI Government views digitalisation and artificial intelligence as tools to raise productivity, expand financial access and strengthen national competitiveness.

“These efforts must be supported by strong risk controls, cybersecurity safeguards and robust data protection,” he said, adding that Affin Group’s digital transformation initiatives in recent years are aligned with national priorities.

-- BERNAMA