Malaysia: Malaysia's economic outlook remains resilient, supported by strong manufacturing activity, sustained infrastructure investment, and a rapidly expanding data centre sector, said SandP Global Ratings. Its senior economist for Asia Pacific, Vishrut Rana, said the country continues to record solid economic momentum, driven largely by its role in the regional technology supply chain.
According to BERNAMA News Agency, Vishrut Rana highlighted that Malaysia is experiencing relatively strong economic performance, bolstered by robust manufacturing of technology and electronic products. Ongoing investments in this sector are expected to support growth over the medium term while enabling Malaysia to move up the value chain, he mentioned during SandP Global Ratings's webinar on Malaysia Credit Outlook: Geopolitics, Data Centres, And The Future Of Credit.
Vishrut explained that public investment in large-scale infrastructure projects, particularly in rail and transport developments, is significantly contributing to Malaysia's economy. He noted that rising investments in data centres have emerged as a key and increasingly substantial driver of economic expansion in recent months.
He further emphasized that Malaysia's manufacturing sector outperformed overall economic growth in the second quarter. Strong mining output, especially from gas exports, has also supported national income. Inflationary pressures are relatively contained, with headline consumer price inflation hovering around two per cent, within the central bank's comfort range. Pockets of inflation exist in the personal care and performance segment, but broad-based inflationary pressures are largely not present, helped by existing subsidies for consumer energy products.
Looking ahead, Vishrut projected that Malaysia's growth in 2026 is likely to exceed SandP Global Ratings' earlier projection of 4.9 percent, supported by stronger-than-expected performance in the first half of the year. The economist expects inflation to remain stable, reducing the need for near-term monetary policy adjustments. He added that the ringgit has remained relatively strong without significantly affecting export competitiveness, while labour market conditions are steady.