Kuala lumpur: Kenanga Investment Bank Bhd maintains its 2025 gross domestic product (GDP) growth forecast at 4.8 per cent and projects a moderation to 4.2 per cent in 2026, supported by a stable Manufacturing Purchasing Managers' Index (PMI).

According to BERNAMA News Agency, a research note from Kenanga IB indicated that the manufacturing PMI averaged 49.9 in the fourth quarter of 2025, which is close to the neutral mark of 50.0. This suggests that there are broadly stable conditions despite global uncertainty arising from US tariffs.

The bank noted that with steady services expansion and resilient domestic demand, GDP growth is expected to hold in the final quarter of the year. Furthermore, the latest PMI readings, which remained steady at 50.1 in December 2025, indicate broadly stable operating conditions despite persistent tariff-related uncertainties.

Kenanga IB commented that export-oriented sectors have mitigated the impact of weaker US-bound shipments by redirecting goods to alternative markets. However, the bank cautioned that the delayed impact of higher US tariffs could potentially weigh on orders after the festive period.

Nonetheless, the electrical and electronics (E and E) sector is projected to remain resilient due to its exemption from higher tariffs. Additionally, domestic-oriented industries are anticipated to benefit from household spending, ongoing fiscal support under Budget 2026, and initiatives under the 13th Malaysia Plan.