Kuala lumpur: The Malaysian Institute of Economic Research (MIER) has projected that Malaysia’s gross domestic product (GDP) will expand by 4.0% in 2026, driven by robust performance in the services, mining, and manufacturing sectors.

According to BERNAMA News Agency, MIER non-resident senior fellow Khalid Abdul Hamid highlighted that despite disruptions in the mining sector this year, it is expected to improve in the coming year.

Khalid expressed concerns regarding global economic uncertainties, citing geopolitical issues as potential challenges for the mining sector’s growth forecast for next year. However, he emphasized Malaysia’s solid and resilient economic structure, which positions the country to exploit more growth opportunities. Khalid believes that Malaysia’s strong economic fundamentals will enable it to withstand global headwinds and external factors.

Addressing the Malaysia-United States Agreement on Reciprocal Trade, Khalid mentioned that while the policy remains intact, some tariff-related issues are still being contested in US courts. He stressed the importance of focusing on mitigating both direct and indirect impacts of these challenges.

Meanwhile, Asian Development Bank regional lead economist for Southeast Asia, James P Villafuerte, stated that ASEAN’s growth is projected to range between 4.3% and 4.5% in 2025-2026, as inflation remains controlled across most economies. Despite global uncertainties, ASEAN is expanding at a steady pace, supported by strong domestic demand, improved macroeconomic policies, and resilient infrastructure investment.

Villafuerte noted that countries like Singapore, Malaysia, Vietnam, and Indonesia are reaping the most benefits from improving external conditions, especially in open, higher-income economies. To sustain growth and avoid a slowdown, he advised that ASEAN should strengthen regional frameworks for integration, innovation, and inclusiveness, while maintaining strategic neutrality and strong engagement with both the US and China.