Accra:Malaysia's gross domestic product (GDP) is projected to grow by 5.2% in 2026 before moderating to 4.7% in 2027, amid regional economic uncertainties, according to the International Monetary Fund (IMF).

According to BERNAMA News Agency, the IMF's October 2026 Regional Economic Outlook for Asia and the Pacific, themed 'Resilient Amid Uncertainty Can It Be Sustained?', highlights technology-related exports and investment in data centers as key growth drivers. Malaysia and Singapore have boosted exports as technology product assemblers, while investment in data centers across China, India, Japan, Indonesia, and Malaysia has spurred regional growth.

In Malaysia, operational data center capacity exceeds 1,000 megawatts, with an additional 1,500 megawatts under construction. Modern services accounted for 30% of Malaysia's total services exports in 2023. Across ASEAN, services exports embodied in goods exports constituted 17%, with 30% delivered through commercial presence.

The IMF report notes that most services exports in the region target global markets rather than regional ones. Inflation has been contained through reliance on inventories and price-smoothing measures, with Malaysia implementing fuel or utility price freezes and subsidies.

To mitigate the impact of higher energy prices, over 80% of economies have adopted measures like fuel tax reductions and subsidy-backed price caps. Malaysia, India, and Singapore have also provided targeted support through credit guarantees or liquidity facilities. Domestic measures in Malaysia include work-from-home arrangements and travel restrictions.

The IMF also observed that Malaysia's per capita consumption is growing faster than income, with significant household borrowing from banks. The IMF suggests policies focus on bolstering consumption resilience among vulnerable and indebted households.