Kuala lumpur: Current market assessments have revised Malaysia's economic growth outlook to a range of 4.5 to 5.0 percent for the year 2026. This optimistic forecast reflects the strengthening domestic demand and continued investment momentum, aligning with expectations from the Finance Ministry and international institutions, according to Prime Minister Datuk Seri Anwar Ibrahim.
According to BERNAMA News Agency, Prime Minister Anwar Ibrahim indicated that the previous official projections had anticipated Malaysia's economy to expand between 4.0 and 4.5 percent in 2026, supported by steady domestic demand and sustained investment activity. This update was delivered by Finance Minister II Datuk Seri Amir Hamzah Azizan during the Affin 50th anniversary gala and Chinese New Year dinner.
Anwar emphasized that Malaysia enters 2026 with a resilient economy despite the uncertain global conditions. He noted that inflation is expected to remain moderate and well-contained, aligning with monetary policy objectives. He added that Bank Negara Malaysia is expected to maintain a policy stance that supports growth while safeguarding price stability and the soundness of the financial system. However, he stressed the importance of remaining vigilant due to geopolitical tensions, shifts in global trade policies, and financial market volatility.
In managing this growth, the Prime Minister highlighted the government's commitment to fiscal discipline and financial system stability. He stated that structural reforms are being implemented in a phased and prudent manner, considering market conditions, the welfare of the rakyat, and the capacity of financial institutions to support this transition. This balanced approach is deemed essential for sustaining investor confidence and strengthening Malaysia's economic resilience.
Anwar pointed out the critical role of the banking sector in this context, noting that banks are not only providers of financing but also stabilizers of the financial system, facilitators of investment, and anchors of market confidence. Institutions such as Affin Group, he mentioned, serve an important role as financial intermediaries, supporting system stability, expanding productive financing, and ensuring the continuous flow of credit to the real economy.
On a different note, Anwar acknowledged that the current market environment demands speed, efficiency, and the ability to scale. He stated that the MADANI Government views digitalization and artificial intelligence as tools to raise productivity, expand financial access, and strengthen national competitiveness. These efforts, he added, must be supported by strong risk controls, cybersecurity safeguards, and robust data protection, aligning with the national priorities reflected in Affin Group's digital transformation initiatives in recent years.