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1H2026 Outlook: Global growth moderates, Malaysia maintains resilience

As the global economy enters 2026, growth is expected to moderate following a resilient 2025 in which major economies avoided recession, supported by strong services activity. However, structural constraints, including demographic pressures and tight labour markets, are set to weigh more heavily on momentum. Against this backdrop, the global economy is projected to transition into …

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Monthly Review: Foreign bond bid firms on ringgit strength and resilient domestic fundamentals

Malaysia’s external sector remains on a firm trajectory, with exports expanding by 7.0% in November (Oct: 15.7%). Growth was supported by resilient demand for electrical and electronic (E&E) products at 15.0% (Oct: 26.5%) alongside a recovery in petroleum exports. Performance among trading partners also remained robust, with shipments to China accelerating to 9.3% (Oct: 7.5%), …

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Monthly Review: Resilient domestic fundamentals anchor ringgit’s regional outperformance

Malaysia’s full-year gross domestic product (GDP) growth is on track to reach the upper end of Bank Negara Malaysia’s (BNM) projection of 4.0%–4.8%, supported by stronger 3Q2025 GDP which expanded by 5.2% after two consecutive quarters of registering a 4.4% growth. Reflecting this acceleration, market consensus has revised its 2025 GDP growth forecast upwards to …

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Monthly Review: Malaysia’s growth prospects strengthen amid global crosscurrents

Malaysia is poised for stronger 3Q2025 growth, with advance estimates pointing to a 5.2% gross domestic product (GDP) growth, above the 4.2% consensus. The services sector held steady at 5.1% (2Q2025: 5.1%) on resilient household spending and retail activity, while manufacturing accelerated to 4.0% (2Q2025: 3.7%). The mining sector, having weighed on growth earlier in …

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Budget 2026: Fiscal continuity and the pursuit of domestic resilience

On 10 October 2025, the Malaysian government announced an allocation of RM419.2 billion under Budget 2026, representing 19.7% of gross domestic product (GDP). Of this amount, RM338.2 billion is designated for operating expenditure, whereas RM81.0 billion is allocated for development expenditure. While Budget 2026 has increased slightly from the 2025 revised estimates, it incorporates downward-revised …

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Monthly Review: Malaysia’s trade declines on external uncertainties

Malaysia’s imports declined by 5.9% in August, mainly from reduced intermediate goods which made up over half of total imports, while exports rose modestly by 1.9% to RM131.6 billion, mainly supported by demand for electrical and electronics (E&E), machinery and equipment, optical and scientific instruments, and palm oil and palm-based agricultural products. E&E remained the …

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Monthly Review: Malaysia’s exports rebound as tariff cuts restore demand

Malaysia’s 2Q2025 gross domestic product growth came in at 4.4% (1Q2025: 4.4%), slightly below the advance estimate of 4.5%. Growth was underpinned by the services sector, which expanded by 5.1% (1Q2025: 5.0%). Meanwhile, manufacturing growth moderated to 3.7% (1Q2025: 4.1%), weighed down by heightened tariff-related uncertainties during the quarter while the construction sector sustained double-digit …

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MARC Ratings: Malaysia’s 13MP signals reform commitment

On 31 July 2025, the Malaysian government unveiled the 13th Malaysia Plan (13MP), outlining the country’s development framework for the next five years (2026–2030). Key highlights include total investments amounting to RM611 billion, of which RM430 billion is earmarked for development expenditure. This translates into RM86 billion annually, on par with the development allocations in …

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