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Budget 2026: Fiscal continuity and the pursuit of domestic resilience

Economic Views /

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

Fixed-Income Views /

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

Fixed-Income Views /

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

Economic Views /

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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Monthly Review: Trade uncertainties weigh on growth prospects

Fixed-Income Views /

Malaysia’s 2Q2025 gross domestic product (GDP) growth advance estimate of 4.5% is underpinned by the services sector’s resilient expansion of 5.3% (1Q2025: 5.0%), driven by robust private consumption and front-loaded external demand in April. However, export performance continued to soften, contracting by 3.5% in June (May: -1.1%), weighed down by persistent weakness in the manufacturing

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2H2025 Outlook: Growth to moderate amid trade risks and policy uncertainty

Economic Views /

Global economic growth is expected to moderate in 2H2025 as trade tensions and geopolitical risks weigh on sentiment. The US’ sweeping tariffs have reignited protectionist concerns, contributing to slower global growth. The US economy contracted by 0.2% in 1Q2025, with the Purchasing Managers’ Index for both manufacturing and services falling below the neutral 50 mark

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Monthly Review: First foreign equity inflow in months signals a turnaround in risk appetite

Fixed-Income Views /

Headline inflation moderated to 1.2% in May (Apr: 1.4%), driven by slower price increases in food and beverages as well as housing, water, electricity and gas, while prices in the transportation sector remained unchanged from April. Although the upcoming implementation of the 8% Sales and Services Tax (SST) on 1 July may add modest price

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Monthly Review: Malaysia’s bond inflows surge, equity outflows ease

Fixed-Income Views /

Malaysia’s gross domestic product (GDP) growth moderated to 4.4% in 1Q2025 (4Q2024: 5.0%), but remained supported by the services (5.0%), manufacturing (4.1%), and construction (14.2%) sectors. Exports surged by 16.4% in April (Mar: 6.8%), led by electrical and electronics as well as machinery exports, reflecting the front-loading of trade activities after the 90-day tariff pause

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Monthly Review: Tariff tensions drive flight to safety, fuelling bond inflows

Fixed-Income Views /

Malaysia’s economy is anticipated to grow by 4.4% in 1Q2025, easing from 5.0% in the previous quarter due to weaker mining and manufacturing output, although domestic demand as well as the services and construction sectors remained resilient. Inflation stayed subdued at 1.4% in March, but upside risks may arise from the recently implemented minimum wage

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