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Malaysia’s Economic Growth Projected to Continue in 2026 Due to FDI Inflows and Domestic Economy

Kuala lumpur: Malaysia's economy is expected to continue growing in 2026, driven by foreign direct investment (FDI) inflows as well as a robust domestic economy, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

According to BERNAMA News Agency, the country's economic performance this year will also be driven by government efforts to improve the remuneration system for civil servants. The minister noted that the nation's economy received a positive response last year, with encouraging levels of FDI inflow.

Earlier, His Majesty Sultan Ibrahim, King of Malaysia, in his royal address, congratulated the government on Malaysia's success as ASEAN Chair last year and in hosting the 47th ASEAN Summit. His Majesty also praised the positive economic growth last year, highlighting the low unemployment rate and a hardcore poverty rate down to 0.09 percent.

On Friday last week, the Department of Statistics Malaysia reported that Malaysia's economy is estimated to have grown by 4.9 percent for the whole of 2025, close to the 5.1 percent growth recorded in 2024.

Amir Hamzah highlighted Malaysia's success in attracting international delegates during its tenure as ASEAN host last year, including attendees from major countries previously less active in the region. He emphasized that this recognition by other countries signals a desire for improved interactions with Malaysia.

The First Meeting of the Fifth Session of the 15th Parliament began today, focusing primarily on the royal address by Sultan Ibrahim during the opening ceremony for both the Dewan Rakyat and Dewan Negara. According to the calendar on Parliament's official website, the Dewan Rakyat sitting will last 20 days, featuring the tabling of the motion of thanks and a debate on the royal address over seven days beginning on January 20. The Dewan Negara sitting will occur over 13 days starting February 23.

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