Malaysia confident of 4-5pc growth in 2026 despite global headwinds, says economy minister

KUALA LUMPUR, July 13 — The government remains bullish that Malaysia’s economy could grow between four to five per cent despite the International Monetary Fund (IMF) lowering its global economic growth projection to three per cent, Economy Minister Akmal Nasir Nasrullah said today. 

The optimism stems from Malaysia’s strong economic showing, which grew by 5.4 per cent in the first quarter of 2026 as well as the ringgit’s improving strength and inflation that remains steady at two per cent since May. 

Akmal Nasir also highlighted Malaysia’s robust trade performance as the country’s total trade value jumped by 18.3 per cent to RM1.5 trillion between January and May this year. 

“Exports burgeoned by 24.3 per cent to RM793.8 billion while imports climbed by 11.8 per cent to RM661.1 billion, with a trade surplus of RM132.8 billion.

“The Leading Index increased by 1.3 per cent in April while the Industrial Production Index for the manufacturinf sector expanded by 6.4 per cent between January and May, especially involving the electric and electronix products.

“The Manufacturing PMI rose to 50.7 points in June, signalling that manufacturing activities have bounced back,” Akmal Nasir said during an online briefing after the National Economic Action Council (MTEN) meeting today. 

Akmal Nasir added that the ringgit has also strengthened by 8.3 per cent against the US dollar since 2025-end, as of July 3, and that Bank Negara has maintained the Overnight Rate Policy (OPR) at 2.75 per cent. 

He said the government will also reduce unnecessary structural and compliance costs, expand market access to attract quality investments and expedite adoption of technology besides ensuring sufficient fuel, food and industrial input supplies.