Kuala lumpur: Malaysia's policy consistency and robust economic fundamentals are key factors sustaining investor confidence, even amidst concerns surrounding the nation's domestic political climate, stated Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour. The governor was addressing inquiries regarding potential risks posed by the current political environment to Malaysia's targeted 4 to 5 percent GDP growth for 2026.
According to BERNAMA News Agency, the governor highlighted the resilience of the Malaysian economy, emphasizing intact growth drivers and ongoing reform efforts as crucial elements. 'On political uncertainty, you must know that our economy has shown a great deal of resilience because our economic fundamentals remain strong and our growth drivers are intact,' he noted during a press conference after announcing Malaysia's second-quarter 2026 GDP results.
Citing a recent global sukuk issuance roadshow, Abdul Rasheed pointed to the robust investor appetite for Malaysian assets, with the issuance being oversubscribed by approximately five times. 'In our engagements, investors consistently highlighted the strength of Malaysia's macroeconomic outlook and policy consistency as key factors supporting their positive sentiment,' he added.
Discussing data centre investments, the governor recognized their substantial contribution to recent growth, alongside the electrical and electronics (EandE) sector. While acknowledging potential moderation due to a high base in previous quarters, he affirmed that investment momentum will persist. He further noted the ongoing global technology upcycle, anticipated to bolster Malaysia's growth trajectory at least until 2026.
BNM's assessment aligns with reports from the Malaysian Investment Development Authority (MIDA), showing an increase in approved investments in the information and communications technology sector to RM38.9 billion in the first quarter of this year from RM35 billion in the same period last year.
Moreover, Abdul Rasheed highlighted strong demand for Malaysia's EandE exports, driven by the rapid global expansion of artificial intelligence (AI) adoption. 'Malaysia is well integrated into the global AI value chain, and demand for our semiconductor products remains strong,' he explained, noting a significant increase in order book visibility for multinational corporations.
'Earlier this year, order books were at around four to six months; more recent engagements show visibility has extended to between 12 and 18 months, reflecting sustained demand,' he commented. The governor concluded by asserting that Malaysia's economic outlook remains supported by resilient domestic demand, a strong external sector performance, and ongoing investments in high-growth areas like technology and digital infrastructure.