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Monthly Review: Malaysia’s growth exceeds expectations

Malaysia ended 2025 on a strong footing, with its 4Q2025 gross domestic product (GDP) advance estimate rising by 5.7%, bringing full-year growth to an estimated 4.9%, above consensus expectations. Growth in 4Q2025 was broad-based, led by services (5.4%; 3Q2025: 5.0%) and manufacturing (6.0%; 3Q2025: 4.1%) due to strong external demand for electrical and electronic (E&E) […]

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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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MARC Ratings: Crude palm oil price to soften in 2026

The crude palm oil (CPO) market is expected to enter 2026 with a softer outlook, following the relatively elevated prices recorded in 2025. MARC Ratings projects prices to range between RM3,850 per metric tonne (MT) and RM4,250/MT in 2026 (2025F: RM4,300/MT). The softer trajectory is underpinned by more favourable weather patterns, recovering yields, and a

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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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MARC Ratings: Oil prices to stay under pressure in 2026

The global crude oil market will enter 2026 on a weaker footing, as the combined effects of sustained high supply, subdued demand growth, and ongoing global energy transition continue to exert downward pressure on prices. Despite intermittent geopolitical issues, the fundamental imbalance between supply and demand is expected to remain a dominating factor in price

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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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