Kuala lumpur: Malaysia's gross domestic product (GDP) is anticipated to grow by 4.8 percent in 2026, contingent upon the resolution of the West Asia conflict by June, driven by stable domestic demand, enhanced investment activity, and continued economic reforms, Affin Bank Bhd announced.
According to BERNAMA News Agency, Datuk Wan Razly Abdullah, group president and CEO of Affin Bank, indicated that these trends are emerging alongside a broader global shift in investment flows towards Asia. Global assets under management have reached approximately US$147 trillion, with Asia representing nearly US$40 trillion, highlighting Asia's increasing role in shaping global capital and economic growth.
Wan Razly noted that within this shifting landscape, ASEAN is becoming one of the world's most strategically significant regions as businesses diversify supply chains and reduce concentration risks. The region benefits from favorable demographics, a growing middle-income population, improving infrastructure, and a relatively balanced geopolitical stance amid global fragmentation.
Moreover, ASEAN is transitioning from merely responding to global changes to positioning itself as a key driver of long-term resilience, investment, and sustainable growth. Within ASEAN, Malaysia is well-positioned to capitalize on these developments due to its structural advantages, including being resource-rich, food-secure, and energy-capable.
Affin Bank anticipates that inflation will remain manageable at about 1.7 percent, although supply-side uncertainties might still exert upward pressure on prices. Meanwhile, monetary conditions remain supportive, with the Overnight Policy Rate held at 2.75 percent. The ringgit has demonstrated resilience, strengthening to RM3.92 against the US dollar earlier this year and is expected to reach RM3.80 against the greenback by year-end, maintaining its status as one of the region's better-performing currencies.
Supported by improving growth fundamentals and sustained fiscal reforms, the ringgit recorded an outperformance of approximately 0.6 percent against its relative index earlier this year. Malaysia's broader economic indicators remain encouraging despite geopolitical uncertainty, with firm domestic demand, gradually improving investment activity, and resilient key sectors.
The external sector has remained supportive, with exports in 2025 averaging RM123 billion. In 2026, exports have already reached RM147 billion a month, achieving a historic high in January 2026, marking a 19.6 percent year-on-year increase. These indicators reflect growing investor confidence in Malaysia's economic trajectory and reinforce the economy's underlying resilience.